Truth or Consequences

Gilda Z. JacobsWestern Michigan University

March 21, 2013

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The League’s Mission

To foster economic opportunity, independence and security of Michigan’s economically vulnerable population by shaping public policy through objective data-driven research, education and advocacy

1223 Turner St. Suite G-1, Lansing, MI 48906-4369 (517) 487-5436Fax: (517) 371-4546 Web site: www.MiLHS.org

A United Way Agency

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Setting the Table

Michigan League for Public Policy

State EITC refunds drop

from $349 million to $105 millionUnemployment:

8.9% in December; 413,000

unemployed

1/837 homes foreclosure filing

in January

48% of kids receiving free and reduced price lunches

Cuts:2001 - $26 M 2012 - $2 M 2013 - $6 M

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Setting the Table cont’d.

Michigan League for Public Policy

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One third of working families in Michigan are low-

incomeMore Michigan residents lost

more employer-sponsored insurance than anywhere in country in past decade (4.2 million to 3 million

covered)

Income disparity nationwide is at

highest levels since Great Depression, and Michigan has a big gap

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Family of

4

$24,000

Family of

3

$18,000

What is Poverty?

Michigan League for Public Policy

Poverty in Michigan Continuesto Rise

2007 2010 20110%

10%

20%

30%

Children

Families with Children

All People

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2011 Poverty

Total

17.5%

Children

24.4%

Families with Children

20.9%

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1 in 6 peoplelive in poverty

Total number of people living in poverty

1,693,294

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1 in 5 families with children live

in poverty

Number of families with

children living in poverty

1,138,970

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1 in 4 childrenlive in poverty

Number of children livingin poverty

548,145

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How Much Do KIDS COUNT in Michigan?

Michigankids in poverty would fill the UM Big House

5 times

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Young Children, Ages 0-5,

Eligible for Food

Assistance Program*

2011 (MI – 37.4%)

Michigan League for Public Policy

47.7%

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-60 -50 -40 -30 -20 -10 0 10 20 30 40

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1

3

18

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14

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Health

Family/Commu-nity

MichiganTrends in

Child Well-Being

2005-2010

Poverty, ages 0-17

Children 0-5 receiving food assistance

Children eligible for FRL

Low-birthweight babies

Infant mortality

Child/Teen deaths, ages 1-19

Births to teens, ages 15-19

Children in investigated families

Confirmed victims

Children in out-of-home care

MEAP Fourth grade reading

MEAP Eighth Grade Math

MME High School reading

Students not graduating on time

Worse Better

60 40 20 0 20 40

Economic Security

Education

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Change in Family Poverty, 2007 - 2011

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Change in Poverty by Race/Ethnicity, 2007 - 2011

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Poverty by Race/Ethnicity, 2011

13.3% white, not Latino

Michigan League for Public Policy

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Kalamazoo County: Child Well-Being

Overall ranking

49out of 82 counties

Michigan League for Public Policy

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Kalamazoo County: Child Well-Being

Child poverty increased 49%

1 of every 4

from 2005-2011.

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Kalamazoo County: Child Well-Being

Rate of students eligible for free/reduced lunch

increased

29%

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What Causes/Contributesto Poverty?

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Jobs

400,000 Workers Unemployed Every Month in 2012.

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Income

Michigan’s Median Income of $45,981 has dropped more than $6,000 since the beginning of the recession.

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• Cuts to business taxes

• Shift the burden to individuals

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Tax Changes

FOOD

MORTGAGE

CREDIT CARDS

UTILITIESSAVINGS

GAS

CAR PAYMENT

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Michigan Earned Income Tax Credit Cut, 2011 vs. 2012

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70% drop

$439$132

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Fewer Children Kept Outof Poverty

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20% = 14,0006% = 5,000

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Policy Changes

• UI benefits

• Asset test for food assistance

• Restrictions on FIP

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More Policy Changes

• Lifetime cap on cash assistance

• Heating and energy assistance cut

• Cuts to need-based financial aid grants

• Higher ed/community colleges cuts Michigan League for Public Policy

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Philanthropy can’t make up for loss of public services

• State spending $174 million less a year in Wayne County alone on non-Medicaid assistance

• Community Foundation for Southeast Michigan spends $54 million a year in seven-county area

Michigan League for Public Policy

For example:

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What Can We Do to ReduceEconomic Insecurity?

• Restore unemployment insurance benefits and index them for inflation.

• Restore the state Earned Income Tax Credit for low-income working families.

• Raise the minimum wage to a level that lifts a family of four above the poverty level ($23,000).

• Raise the eligibility and adjust the sliding scale for the child care subsidy.

Michigan League for Public Policy

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Advocacy 101: YOU CAN MAKE A DIFFERENCE

• Contact your legislators/members of Congress

• Write letters to the editor/Op-Eds

• Provide stories of impact of policy decisions

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Advocacy tools

• Put it in writing

• Make a call

• Put in face time

• Building a relationship

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• If there were no advocates, there wouldn’t have been:— Women’s Suffrage Movement— Civil Rights Act of 1964— Voting Rights Act of 1965— Americans with Disabilities Act of 1990

What if?

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Additional Information• Website: www.mlpp.org

• Join the Nokomis Challenge

• Sign up for “Email Alerts”

• Check our blog• Become a member

• Join the Prosperity Coalition: www.prosperitycoalition.org