COST OF LIVING

Tyler's cost of living index at the first quarter of 2007 was 91.1 of 100, and has consistently been 90-96% of the national average for the past five years. Cost of living indexes measure the relative price levels for consumer goods and services compared against the national average. The national average is always 100. Indexes below 100 indicate lower prices (less expensive) than the national average.

For example, Tyler's grocery index is 92.4. If during the first quarter of 2007 you bought a $100 basket of groceries in a city with a grocery index of 100, you would pay $100, the national average, for those groceries. However, in Tyler, you would only pay $92.40 for that same basket of groceries - a savings of $7.60, or 7.6%. In other words, your hard-earned dollars can buy more goods in Tyler than anywhere in the nation on average.

The Council for Community and Economic Research (ACCRA) conducts a nationwide survey and calculates the cost of living index each quarter. Since the number of respondents to the survey change each quarter, it is impossible to compare a quarter with any other quarter. A decline in the composite score or any category score does not necessarily mean prices have dropped, though this is possible. A drop in an index could also be caused if prices are rising locally and on the national average, but the local prices are rising at a smaller pace than the national average. The cost of living index is not a measure of inflation!

COST OF LIVING CITY COMPARISONS

The following table compares the cost of living index for cities the size of Tyler in the first quarter of 2007:

Location Index Tyler, TX 91.1 Burlington, VT 117.4 Fargo, ND 94.8 Joplin, MO 81.6 Lafayette, IN 88.9 Las Cruces, NM 100.7 Myrtle Beach, SC 94.1 Richland, WA 96.0

The following table compares the cost of living index for other U.S. cities, regardless of size, in the first quarter of 2007:

Location Index Tyler, TX 91.1 Chicago, IL 111.1 Denver, CO 102.3 Fort Lauderdale, FL 120.0 Las Vegas, NV 109.0 New York (Manhattan), NY 213.7 San Francisco, CA 172.1 Washington, DC 136.9

COST OF LIVING SALARY ADJUSTMENTS

If you were living in Manhattan, NY and contemplating a job offer in Tyler, TX, how much of a decrease in your after-taxes income can be taken and still be able to maintain your present lifestyle? Using the cost of living index, you can estimate how much it would take.

Manhattan has a composite index of 213.7 and Tyler has a composite index of 91.1 (see table above). You could maintain the same lifestyle with only 57.4% of your original salary!

Salary adjustment = 100 x [(91.1 - 213.7)/213.7)] = 57.4%

If your after-tax salary is $80,000 in Manhattan, you would need a salary of $45,920 in Tyler, TX to enjoy the same lifestyle. What if you were moving to Manhattan, NY from Tyler, TX with an after-tax salary of $80,000. How much you you have to earn in Manhattan (after-taxes) to enjoy the same lifestyle you had in Tyler?

Salary adjustment = 100 x [(213.7-91.1)/91.1] = 134.6%

You would have to earn $187,680 to enjoy the same lifestyle in Manhattan as you did in Tyler!

SALARY COMPARISONS

The following 2007 salary rates in the table below were provided by the Bureau of Labor Statistics. You can also view other supplemental data found in our Labor Market Survey and Wage and Benefits Survey - two publications produced by the Tyler Economic Development Council every three years.

Job Classification Tyler MSA Texas Nation Accountant/Auditor $59,210 $58,510 $60,670 Bookkeeping/Acctnt./Audit Clerk $27,350 $29,790 $31,780 Chief Executive $132,650 $146,990 $144,600 Computer Programmer $59,700 $73,690 $69,500 Customer Service Rep $25,810 $27,470 $30,400 Electrical Engineer $64,470 $87,430 $78,900 Electrician $33,300 $37,820 $46,620 Executive Secretary/Admin Asst. $34,320 $37,010 $39,160 General/Operations Manager $86,100 $96,540 $99,280 Janitor/Cleaner $17,550 $17,650 $21,730 Loan Officer $73,410 $63,560 $61,930 Machinist $32,090 $32,460 $35,810 Middle School Teacher $34,850 $43,540 $49,470 Plumber, Pipe fitter, Steam fitter $39,640 $37,910 $45,830 Production Occupations $28,490 $28,570 $30,480 Registered Nurse $52,150 $57,180 $59,730 Shipping Clerk $23,640 $25,120 $27,480 Supervisor/Manager of Office $39,480 $45,050 $46,530 Truck Driver, Light $24,370 $25,430 $27,520 Welder/Cutter/Solderer/Brazer $29,680 $30,530 $32,880