Public Assets Institute: Vermont wages, housing and benefits leave many residents short of basic needs

Julie Lowell, Economic Security Policy and Outreach Director at the Public Assets Institute, told the Vermont House Human Services Committee that many Vermonters’ earnings do not cover routine expenses and that targeted state investments can improve economic security.

Lowell summarized research showing a widening gap between what people earn and what it costs to meet basic needs, citing the 2012 People’s Budget Language as a statutory framework for state spending priorities. "We work on state fiscal policy with really the goal to improve the well-being of all Vermonters and to advance racial and economic equity," Lowell said.

Why it matters: Lowell told lawmakers the Joint Fiscal Office’s basic-needs thresholds show families need much higher incomes than the federal poverty line to make ends meet, and that Vermont’s minimum wage remains well below a livable-wage benchmark. "Vermont's minimum wage is nearly $5 lower in 2024 than what the livable wage is," she said, noting the livable-wage calculation for a single person in shared housing is about $19 per hour on the JFO scale.

Most important findings: Lowell laid out the two drivers of the affordability gap — relatively low wages and rising prices — and highlighted three cost categories pushing household budgets: housing, medical care and food. She said median household income in Vermont grew 7.8 percent from 2019 to 2023, but…