Showing posts with label poverty. Show all posts
Showing posts with label poverty. Show all posts

Tuesday, October 29, 2013

Food stamp benefits set to drop this week

By Jamey Dunn

Starting this Friday, Illinois residents who receive federal food assistance benefits will take a hit to their grocery budgets.

Benefits for the Supplemental Nutrition Assistance Program (SNAP) were temporarily increased under the federal stimulus package in 2009. That increase of almost 14 percent is set to roll back on November 1. Nationally, the reduction will be about $5 billion in the 2014 fiscal year. In Illinois, it will mean a $220 million cut. According to an analysis from the Center on Budget and Policy Priorities, the reduction will affect more than 2 million Illinois residents. A family of four receiving the maximum benefit will see a cut of $36 a month, leaving them with a $632 monthly benefit. This equals about $1.75 per person for each meal. Overall, SNAP benefits average out to be less than $1.50 per person for a meal. (For a full list of the reductions, see the Illinois Department of Human Services website. All the examples listed there are the maximum benefits.)

“SNAP has never experienced a reduction in benefits that impacts all participants, including 22 million children nationwide. Given the fact that benefits are already inadequate for many families, these cuts will be particularly painful,” said Gaylord Gieseke, president of Voices for Illinois Children. Recipients will see the reduction when benefits begin to go out on Friday.

When originally passed, the increase would have remained in place until food price inflation surpassed it. But food prices did not increase as expected. In 2010, Congress passed and President Barack Obama signed a law to sunset the increase and gave the money to states in the form of additional federal education funding and an increased Medicaid match.

Advocates for the poor argue that SNAP benefits are too meager and say they fear further cuts being considered in Congress. “SNAP has been a powerful tool in helping to keep families out of poverty,” Gieseke said. “The majority of SNAP recipients who are able to work do so. Cuts to SNAP will result in more children lacking access to nutritious food that is critical for their healthy development. Now is not the time to further reduce this already modest assistance to these struggling families.”

SNAP is administered by the U.S. Department of Agriculture, and the funding is part of the federal farm bill. Lawmakers have been unable to reach a compromise on the farm bill since the previous version expired more than a year ago. Congress approved an extension of the previous version, but the two chambers, each controlled by a different party, have yet to agree on SNAP. The Republican-controlled U.S. House voted to cut the program by almost $40 million over the next 10 years. In the Senate, where Democrats have the majority, the approved plan would cut SNAP by $4.5 billion over the next decade. A bipartisan conference committee made up of members of both chambers is tasked with finding a compromise. The group’s panel’s meeting is scheduled for tomorrow.

A group of congressional Democrats, including Illinois Sen. Richard Durbin, sent a letter to the committee urging it not to tighten eligibility for the program. The letter argues that changing eligibility standards could have a ripple effect because some other public aid programs use SNAP eligibility to determine if someone qualifies for their services. “While we support efforts to improve the integrity of the SNAP program, we encourage conferees to reject all SNAP eligibility changes designed to erect new barriers to participation, preventing millions of seniors, children and families from accessing food assistance,” the letter states. “The eligibility changes also will mean an additional 280,000 children would lose free school meals because children in SNAP households are automatically eligible for school meals. Changes would also increase administrative costs by requiring states to re-determine eligibility for SNAP, even if a household was deemed eligible for other state and/or federal assistance programs.”

But proponents of deeper cuts point to the number of enrollees — in Illinois, about 16 percent of residents — and say the program’s growth makes it impossible to maintain. SNAP currently costs about $80 billion annually. “Just as I believe we must take care of fellow Americans who truly need the help, I also believe that we must address fraud and abuse in the SNAP program and provide opportunities and encouragement to put people back to work,” Illinois U.S. Rep. Rodney Davis, a Republican from Taylorville, told the Associated Press. “When unemployment declines, the number of food stamp recipients still increases under our current system. This is simply unsustainable.”

Ted Dabrowski, vice president of policy at the Illinois Policy Institute, said the disagreement over SNAP ties into the larger debate at the federal level over the growth of entitlement programs and government debt. He said as the country has seen a downturn, government has grown, and businesses, workers and the private sector have picked up the tab. “We need to reverse it,” he said. Dabrowski said there should be a safety net for those who truly need it, but that the best thing the government can do is limit spending and encourage businesses to grow. “Illinois is becoming better at putting people on food stamps than it is at creating jobs.”

Monday, September 24, 2012

New statistics show poverty continues to grow in Illinois

By Jamey Dunn

New data from the U.S. Census Bureau shows that poverty continued to grow in Illinois in 2011.

According to estimates from the census bureau’s American Community Survey, about 1.9 million Illinoisans were living in poverty in 2011. That compares with about 1.7 million living below the poverty line in 2010. Last year, the census bureau considered a family of three with a household income of $17,916 or less to be living in poverty; in 2010 it was $17,374 for three people. In 2011, 15 percent of Illinois residents were living in poverty, which is a jump from 13.8 percent in 2010. The numbers from the census bureau are the most current comprehensive statistics available on poverty. For more on 2010 poverty numbers, see this Illinois Issues Blog post. 

According to the bureau's findings, the median household income in the state has been slipping during the last three years for which figures are available. In 2011, it was $53,234, down from $58,743 in 2008.

Nationally, the poverty rate held relatively steady. It was 15.3 percent in 2010 and increased slightly to 15.9 percent in 2011. About 48.5 million Americans were living in poverty last year.

Of those living in poverty in Illinois last year, 648,592 were children. In 2011, the child poverty rate was 21 percent. That was a significant jump from 2010, when 590,949 children were living in poverty and the rate was 19.4 percent. One out of four children under the age of 5 was living in poverty last year.

“These near-unprecedented poverty levels are not simply the result of the recession and a sluggish recovery. Poverty was on the rise before the recession began as broader shifts in wages, job quality, workforce preparation, inequality and harmful cuts to the safety net disproportionately impacted people at the lower end of the income spectrum,” Amy Rynell, director of the Social IMPACT Research Center at the Heartland Alliance, said of the new poverty stats.

The Illinois Commission on the Elimination of Poverty, which includes members of the Heartland Alliance, set the goal of cutting extreme poverty in half by 2015, but the new statistics show that the state is losing ground. Extreme poverty is defined as an income that is less than half of the federal poverty level. Almost 100,000 more Illinoisans were living in extreme poverty in 2011 than in 2010. Nationwide, 21.4 million people lived in extreme poverty in 2011.The commission suggests that the state tackle extreme poverty through a series of policy changes, including increasing housing subsidies, increasing the number of families who receive welfare support and increasing access to community college scholarships.

Wednesday, July 25, 2012

More children living in poverty in Illinois and nationwide

By Jamey Dunn

While the number of children living in poverty in Illinois has increased in recent years, the state saw improvements in education and health care, according to a new study that seeks to measure the quality of life of children across the country.

The 2012 KIDS COUNT Data Book from the Annie E. Casey Foundation looked at four categories: health, education, economic well-being and family and community factors. Overall, Illinois ranked 21st out of 50 states, which is an improvement over the state's 27th ranking in 2011. According to the study, Illinois generally followed national trends, which showed improvement in some areas of education and health while economic security and positive factors at home and in the community slipped. According to the study, the number of children living in poverty in America has increased from 12.2 million in 2000 to more than 15.7 million in 2010. “Unlike the domains of education and health, where children are benefiting from long-term progress overall, the economic well-being of children and families has plummeted because of the recession,” the report said.

Of the more than 15.7 million kids living in poverty in 2010, 600,000 were in Illinois, and the state ranked 27th in the category for economic well-being. In 2010, 19 percent of Illinois children were living in poverty, this is an increase from 16 percent in 2005 but below the national average for 2010, which is 22 percent. Job security for families also appeared to be slipping in the state, with 32 percent of children living with parents who lacked job security. That has increased from 26 percent in 2005.

Illinois ranked fourth among the states in health insurance coverage for children in 2010. Only 4 percent of children in the state went without coverage, compared with 8 percent nationally. However, that still meant that 140,000 Illinois children were without health insurance in 2010. Illinois ranked 14th in overall child health and has improved since 2005 in all health related areas measured by the study.

But Illinois child advocates worry that recent cuts to the Medicaid program may cause a backslide in the state’s progress. Larry Joseph, director of the Fiscal Policy Center at Voices for Illinois Children, said that none of the Medicaid changes would directly effect children's eligibility on a "broad scale." However, he said there is concern that new focus on verifying eligibility for the program through information contained in databases could lead to children losing coverage when they are actually still eligible for it. “One of the concerns that we have is that in any database there’s a certain error rate. So how this is implemented is going to be very important. We don’t want kids—or anyone else for that matter—to be removed from Medicaid enrollment because there was a data error somewhere. So it’s important that there be safeguards,” he said. “Let’s say there’s a 2 percent error rate, well that could be thousands of kids who are wrongly removed from the rolls.” He also said that new limits on prescription drugs may make it difficult for some children to get needed medication. “The kids that have multiple medications are usually kids with special health care needs.” 

According to the report, Illinois also made some gains in education. Fewer children missed out on preschool. Between 2005 and 2007, half of Illinois children at preschool age were not in school. Between 2008 and 2010, 48 percent of Illinois kids at preschool age, or 153,000, did not attend preschool. Nationally, 53 percent of children did not go to preschool over the same time period. However, Joseph said that if the study had looked at more recent data, which reflects cuts to state funded preschool, Illinois would have received a lower ranking. "Illinois had become a leader in early childhood education,” said Gaylord Gieseke, president of Voices for Illinois Children. “It’s unfortunate that progress has been eroding, especially since we know that children who receive support early have a greater chance of success in school, at work, and throughout their lives. Investing in kids makes sense from both social and fiscal perspectives."

While some areas of education, such as reading and math proficiency, showed improvement in the report, the number of Illinois kids who do not graduate from high school on time is up by 10 percent from the 2005 to 2006 school year.

Illinois was ranked 28th on family and community factors. In 2010, 989,000 children were living in single-parent households, which is a 10 percent increase from 2005. The number of children living in areas that have high poverty rates was 304,000, an increase of 25 percent since 2000. “We know that children who grow up in concentrated poverty, regardless of their family's income, are more likely to experience harmful levels of stress, more likely to struggle in school, and less likely to achieve economic success as adults,” Gieseke said. 

Patrick McCarthy, president and chief operating officer of the Annie E. Casey Foundation, described in the report what he thinks kids need to succeed. “We know what it takes for children to thrive and to become successful adults. We have reams of research and data identifying the best predictors of success: getting a healthy start at birth and maintaining healthy development in the early years; being raised by two married parents; having adequate family income; doing well in school, graduating high school and completing post-secondary education or training; avoiding teen pregnancy and substance abuse; staying out of trouble; and becoming connected to work and opportunity.”

He also warned that many children are not getting those resources. “Millions of American children are growing up with risk factors that predict that they will not succeed in the world they will inherit. And if they don’t succeed, this country will become increasingly less able to compete and thrive in the global economy, thereby affecting the standard of living and the strength of our nation for all of us.”

Friday, September 30, 2011

State losing ground on poverty goals

By Jamey Dunn

A government commission seeking to cut extreme poverty in half in the state by 2015 says Illinois is moving in the opposite direction of that goal.

A report released by the Commission on the Elimination of Poverty found that more than 800,000 people are living in extreme poverty in the state. That number increased by more than 200,000 since the General Assembly created the commission in 2008. Extreme poverty is defined as an income that is less than half of the federal poverty level. For a family of four that would mean $11,175 a year. Making up 10 percent of those who are extremely poor, children are the most represented age group. More than12 percent of people living below the extreme poverty line have a disability that hinders their ability to work.

The recession that has pushed more residents into poverty and made things harder for those already below the poverty line has also strangled state revenues. With fewer tax dollars rolling in and much of the money from the recent tax increase going toward the state’s deficit, lawmakers made cuts to balance the budget. “The implications of substantial service cuts for those experiencing extreme poverty — many of whom rely on state-funded services in their communities to meet their basic needs — will be nothing short of devastating,” the report said. The commission’s report focused on several of the group’s recommendations from its 2010 plan. All but two of the legislative recommendations the group made last year and revisited in the report were defined as either “losing ground” or at a standstill.

Rep. La Shawn Ford, a Chicago Democrat and sponsor of a measure that would bar the state from asking most job applicants about nonviolent criminal records, said he has hope for his legislation. House Bill 1210 failed to emerge from committee during the spring legislative session. He said that The Illinois Department of Central Management Systems, which manages the state's workforce, is concerned about implementation costs, such as printing new applications. But Ford said he is working with CMS and hopes to revisit the issue during the fall veto session, scheduled for the end of October.

Ford said the plan would allow those who have paid their debt to society a chance to get back on their feet through work. “In fact, it would save the state a lot of money. The fact that we have so much recidivism — one of the reasons is that people can’t go back to work.” Ford said that jobs with specific legal requirements barring those with criminal records would be exempt from the bill. “The bill is pretty simple. The bill is safe. It eliminates employers or jobs in the state that the law automatically disqualifies. … You can’t apply for a job with law enforcement if you have a [criminal] background. The law disqualifies you. You can’t apply for a job dealing with money. The law disqualifies you.” Ford said if the state leads by example, private businesses might follow suit and stop asking about nonviolent criminal offenses. He added that the state could also offer incentives to employers that hire people with records. “It’s about time that taxpayers stopped footing the bill for individuals that are not able to go to work and pay taxes. We have to foot the bill by continuing to pay for their health care, pay for their incarceration or pay for them through social services.”

Some business leaders say components of the commission’s recommendations would potentially put more people out of work. David Vite, president of the Retail Merchants Association, said proposals such as raising the state minimum wage and requiring employers to give their work force paid sick leave would increase costs to business and deter hiring. He said in some cases, it might lead to layoffs, and some businesses would not be able to remain afloat under such demands. “It certainly would have reduced employment in the state and probably put some people out of business.”

Vite had a lukewarm reaction to one of the recommendations that did become law, House Bill 2927, and said it could help to spur hiring. The new law will offer subsidies to be spent on wages to employers who hire new workers. The companies and nonprofits that take the subsidies must agree to keep new workers even after the state stops helping to pay their wages. The subsidies are to be distributed throughout the state based on unemployment rates. “It’s not exactly what we would like, but anytime you give an opportunity to reduce the cost of labor in the state, it can give a positive effect,” Vite said.

Maywood Democratic Rep. Karen Yarbrough, who sponsored the legislation that created the commission, said the report was upsetting but not a total surprise. “It’s very distressing. I didn’t expect it to be so dire. But it is, and I understand why it is. Because working in our district offices, I mean, you see it up front and personal. This summer has been extremely distressing. People who have lost their homes, lost their jobs and probably the most important thing is that in some cases — lost hope.”

She acknowledged it is difficult to find support for proposals that would increase costs to the state or to businesses in the midst of a budget crisis and after the passage of an income tax increase. “We have an obligation. However we get it done, we have an obligation to the least of them. … We have a moral obligation to figure this out,” she said. “I understand the reality. It’s tough. But it’s our job. We signed up for it as legislators.”

The report said that the goal of eliminating poverty did not come out on top when weighed by legislators with other concerns and limited money to spend. Along with passing few of the group’s recommendations, lawmakers also shifted money away from the Temporary Assistance for Needy Families program, slashed programs for the homeless and transitional housing and eliminated two income assistance programs. “Faced with difficult decisions about state budget cuts and policy priorities, policymakers failed to prioritize funding for programs and services and substantive bills that would meet the needs of the most vulnerable. Only by refocusing and reprioritizing in the coming year will our state be able to decrease the number of individuals and families living in extreme poverty.”

Kimberly Drew — a policy associate for the Heartland Alliance for Human Needs & Human Rights, which provides assistance to the commission — said that group considered the state’s budget shortfall when making its recommendations. “There was much discussion around the current state of the Illinois budget and really what could gain traction around the budget climate.” She said administrative changes, such as Ford’s proposal and streamlining the application process for assistance programs so those who are eligible for multiply programs could cut down on the number of applications they submit, are low cost solutions. However, she said the commission will also lobby lawmakers to restore funding to the eliminated income assistance programs and programs for the homeless, among other cuts. “We want to raise up some of the cuts that have had particularly devastating impacts on people who are in extreme poverty. … The cuts to housing programs have been particularly hard felt.”

Thursday, December 09, 2010

Commission wants to cut poverty by 2015

By Jamey Dunn

Illinois can help to raise some of its most vulnerable residents out of crushing poverty by 2015, according to a new plan released today.

The Illinois Commission on the Elimination of Poverty released recommendations for the state to cut the number of those living in extreme poverty — those earning up to half or the federal poverty level — in half by 2015.

According to the group's report, about 1.6 million Illinoisans live below the poverty line, which is an income of $22,050 or less for a family of four, and almost 760,000 fit the category of extreme poverty, an income of $11,025 or less for a family of four. About half of those living in extreme poverty belong to groups that are unable to work, such as children, the elderly and the disabled. The report says the number of impoverished Illinois residents has been slowly growing over the last decade:
Our support system is failing those who need it most, and as a result, the number of individuals and families living in poverty in Illinois continues to rise.

The commission operated under the principle that “the absence of human rights is the cause of poverty.”

The commission was charged with finding ways to help people in need find affordable housing, health care and childcare. They also addressed accessibility to nutritious foods, reliable transportation and adequate education and training.

Here of some of several suggestions the group made in its report:

  • A statewide transitional jobs program that would help up to 40,000 people return to the workforce each year.
  • Eliminating categories of workers not covered by minimum wage — such as restaurant servers, who receive tips.
  • Educational programs to make sure those eligible for federal Temporary Assistance for Needy Families, commonly referred to as welfare, are receiving benefits. This group also recommends increased TANF benefits because it is possible to receive TANF funds and still be below the extreme poverty line.
  • Legislation to prohibit the state from asking job applicants about their criminal histories, as well as encouraging private employers to hire people with criminal backgrounds.
  • Increased scholarships to community colleges for low-income students.
  • Tripling the earned income tax credit, which is meant to reward employment and assist low-income families
  • Increased rental subsidies for individuals living in poverty.
  • Simplifying the application process for Medicaid and food stamps, allowing residents to sign up for all aid programs they are eligible for with one application.
The commission acknowledged that the state’s budget crisis will make some of the changes difficult:

With the state’s current fiscal situation, the commission recognizes that its recommendations need to be sensitive to the state’s current revenue constraints and spending obligations. Initial changes should not add to the state’s budget difficulties. As the commission advocates for the incremental adoption of its recommendations until 2015, it will make adjustments in the implementation of this plan that reflect the changes and opportunities that will be encountered during that time.

Maywood Democratic Rep. Karen Yarbrough, who sponsored the legislation that created the commission, said the state can no longer ignore its growing poverty numbers. “While there will be a cost to provide this help, the cost of doing nothing is so expensive that it could bankrupt society as we know it,” she said at a Chicago news conference.

Yarbrough said the report should be a starting point for action on the issue from the General Assembly. “This puts a real face on who we’re trying to help. But we must not lose sight of the fact that by helping them, we are helping everyone in Illinois. This plan is an important step toward addressing the needs of the most vulnerable in Illinois. Because it’s such a large step forward, no longer can we say that this issue must have more study. We’ve done the study.”