Lawrence’s Social Security recipients are figuring out how to make ends meet with a 2.1 percent cost-of-living increase in 2004.

For a 75-year-old Lawrence woman at the Douglas County Senior Center on Thursday, the strategy was eating a hot dog sandwich. The woman, who declined to give her name, said she would have to start skimping on meals and other expenses because the 2.1 percent increase — the fifth smallest in the history of the Social Security program– wouldn’t allow her to keep pace with her living expenses.

“Everyday my husband wakes up and says ‘you know what, we’re poor,'” the woman said. “I say don’t say that, but he’s right. This will just make us poorer.”

Several Lawrence seniors expressed frustration over what they called a meager increase that doesn’t reflect the true increase in the cost of living. Many seniors said their biggest frustration was that the cost-of-living increases didn’t keep up with the increased premiums they pay for Medicare.

The premium increase for Medicare in 2004 will be 13.5 percent — the third largest in the history of the program. Monthly Medicare premiums will increase by $7.90 per month.

“A 2 percent increase in my check will mean about $12 a month,” Don Heim, a 71-year-old Lawrence resident, said. “By the time I pay the extra for Medicare it really won’t make any difference at all.”

Lawrence resident Harold Stice, 75, said it wasn’t just increasing insurance costs that was causing financial worries. He said grocery and gasoline prices have risen.

Also, officials in the natural gas industry have warned customers to brace for higher costs this winter.

“I figure I’m going in the hole about $50 per month,” Stice said. “Our cost of living has definitely went up more than 2 percent. I don’t know by how much, but I’d say maybe three times that.”

The Social Security Administration uses the national Consumer Price Index to determine the automatic cost-of-living increase. But there are some numbers that suggest Lawrence’s inflation rate may be higher than the national average.

The Lawrence Consumer Price Index, a new measurement compiled quarterly by Kansas University’s Policy Research Institute, shows that from June 2002 to June 2003, the inflation rate in Lawrence was 3.7 percent. Since 2000, the cost of living has increased by 8.9 percent in Lawrence. During that same period, Social Security recipients have received 7 percent in increased benefits.

Luke Middleton, the KU economist who compiles the Lawrence report, said the numbers merit more study. He said he wasn’t certain the Lawrence inflation rate was higher than the national average. He said it might be that the national Consumer Price Index, which is compiled by the Labor Department, may be more accurate than the Lawrence index because it looks at a larger number of items that people routinely buy.

Middleton, though, said he wouldn’t be shocked if the Lawrence rate was higher than the national average, particularly because of the cost of Lawrence housing.

“I don’t think it is unreasonable to think we’re higher than the national average,” Middleton said. “I just don’t know for sure.”

For seniors, the rising prices mean making adjustments.

“You ask your doctor if he has more samples you can try for free,” rural Lawrence senior Betty Brune said. “For entertainment, you read a lot because that doesn’t cost you much. You watch a lot of TV because that doesn’t cost much, unless you have cable. There will probably be more people going without cable this year.”