Computations for the 2002 Annual Update of the HHS Poverty Guidelines for the 48 Contiguous States and the District of Columbia

12/01/2002

(1)
Size of family unit
(2)
Poverty thresholds for 2000 (weighted averages)a/
(3)
Column 2 multiplied by 1.028 price inflatorb/
(4)
Difference between successive Column 3 entries
(5)
Average difference in Column 4c/
(6)
February 2002 poverty guidelines
1 $8,794 $9,040     $8,860
      $2,514 $3,080  
2 11,239 11,554     11,940
      2,569 3,080  
3 13,738 14,123     15,020
      3,973 3,080  
4 17,603 18,096     18,100d/
      3,306 3,080  
5 20,819 21,402     21,180
      2,785 3,080  
6 23,528 24,187     24,260
      3,316 3,080  
7 26,754 27,503     27,340
      3,030 3,080  
8 29,701 30,533     30,420
a/  Column 2 entries are from U.S. Census Bureau, Current Population Reports, Series P60-214, Poverty in the United States:  2000, Washington, D.C., U.S. Government Printing Office, September 2001, p. 5.

b/  Price inflation calculated from Table 7 (1A) of U.S. Department of Labor, Consumer Price Index press release (USDL-02-26), January 16, 2002.  (The Consumer Price Index (CPI-U) for all items was 172.2 for calendar year 2000 and 177.1 for calendar year 2001, an increase of 2.8 percent.)

c/  The arithmetic average of Column 4 entries, rounded to the nearest multiple of $20.

d/  Obtained by multiplying the average poverty threshold for a family unit of four persons for 2000 ($17,603, from Column 2) by the price increase factor from 2000 to 2001 (1.028) and rounding the result upward to the nearest whole multiple of $50.  All other entries in Column 6 are obtained by successive addition or subtraction of the average difference ($3,080) to the size4 2002 guideline entry ($18,100).

For Alaska and Hawaii, where the cost of living is traditionally believed to be significantly higher than in other states, scaling factors of 1.25 and 1.15, respectively, are applied to the 2002 guideline for a family of four for the 48 contiguous states, and the results (if not already a multiple of $10) are rounded upward to the nearest whole multiple of $10.  (These scaling factors were based on Office of Economic Opportunity administrative practice for these two states only beginning in the 1966-1970 period.)  These scaling factors are applied to the average difference for the 48 contiguous states (Column 5) to obtain average differences for Alaska and Hawaii for deriving guidelines for other family sizes.  For families with more than 8 members, add the following amount for each additional person: $3,080 (48 contiguous states and the District of Columbia); $3,850 (Alaska); $3,540 (Hawaii).