Finally....Some Good News For Seniors

Senior citizens and those collecting Social Security have truly been living on a fixed income for the past 2 years.  Due to economy there was no COLA (Cost of Living Adjustment) in either January 2010 or January 2011.  That streak appears poised to end this coming January.

"...social security beneficiaries are very likely to see a 3.5% increase in benefits for 2012 beginning in December of 2011."

---http://www.headlinesnews.net

Social Security "COLA" adjustments, by law, are based on comparison of the average Consumer Price Index (CPI)  for Urban Wage Earners and Clerical Workers (CPI-W) for the 3rd quarter (July, August, September) of each year compared to the previous year (or, if no COLA was made, to the last year in which a COLA was made.

The last time a COLA was earned was January 2009, following the 2008 calendar year.  Therefore, 2008 is the baseline.  The CPI-W numbers for the 3rd quarter 2008 were 216.304, 215.247, and 214.935...for an average of 215.5. The CPI-W numbers for the 3rd quarter 2011 so far are 222.686 for July and 223.326 for August...for an average of 223.0. If one divides 223.0 by 215.5, the CPI-W has increased by 3.48%. And by law (unless the law is changed in the 11th hour), that would mean a COLA increase of 3.48% as long as the CPI-W for September (which is now in the books) doesn't drop much below 223.

If one considers what goes into the CPI, some things (gasoline) dropped, while others (food) rose.  Overall, the projection is for September to be on par with July and August meaning an increase of about 3.5%

...and they'll need it, because that is the same increase the school board is pushing for its tax levy.