Why Basic Needs Matter in

Central Maryland

GIVE. ADVOCATE. VOLUNTEER.

LIVE UNITEDTM

Provision for others is a fundamental responsibility of human life.

- Woodrow Wilson

LETTER FROM PRESIDENT & CEO, MARK FURST Page 7

INTRODUCTION Page 8• Maryland has been the setting for divergent social realities: an economic expansion for a

portion of the residents, a widening of the gap between the “haves” and “have-nots,” and a recession that has threatened many people’s basic needs.

THE GROWTH Page 9• Maryland has become the wealthiest state in the nation.

• The growth in median household income in all six jurisdictions of central Maryland has outpaced the national growth.

THE GAP Page 10• The gap between median income and the costs associated with living in Maryland has

widened.

• Although Maryland is the wealthiest state in the nation, it ranks 25th in the Annie E. Casey Foundations’ KIDS COUNT child-well-being indicator.

THE NEED Page 11• There continue to be multiple areas of need within each central Maryland jurisdiction, as

indicated by the percent of population in poverty.

BASIC NEEDS: Housing Page 12-15 Food Page 16-17 Health Care Page 18 Education Page 19

• The effects of poverty, underemployment, and the recession have been exacerbated by:

Cuts to the Social Safety Net Page 20

MOVING FORWARD & MEETING THE NEED Page 21 2-1-1 Page 22

• United Way of Central Maryland will continue its 85-year tradition of helping those who are most vulnerable by using basic needs as a compass to guide its work.

CONCLUSION Page 23-24

• Our strategy comprises a continuum of services to help clients emerge from crisis, stabilize their lives, and move toward self-sufficiency.

Appendices Page 25-30

TABLE OF CONTENTS

Why Basic Needs Matter in Central Maryland | Page 7

October, 2010

Why Basic Needs Matter in Central Maryland illustrates that even in Maryland, the most severe recession since the 1930s is jeopardizing the social safety net that protects everyone—especially the poor and the most vulnerable among us. Our own 24-hour information and referral center, 2-1-1 Maryland at United Way of Central Maryland, handled nearly 100,000 requests for assistance from across our region last year.

Despite recent reports by The National Bureau of Economic Research suggesting that the recession ended in June 2009, few experts are forecasting a robust recovery. Whether the economic horizon portends a protracted recovery at best, or a double-dip recession at worst, relief in the form of meaningful job/employment growth is not expected any time soon. Faced with declining tax revenues and massive unfunded pension liabilities, Maryland’s state, county, and local governments are not likely to increase—or perhaps even maintain—their support of health and human-service programs. Nonprofit agencies in Maryland, hit by the one-two punch of rising demand and fewer resources, have reached the point where they cannot do more with less.

In developing United Way of Central Maryland’s (UWCM) strategic direction for the next three years, we asked ourselves and our stakeholders throughout the region: “Where is the greatest need?” and “What does United Way do best?” Long associated with the Community Safety Net, UWCM heard two imperatives over and over again: • Focus our investments and energies to alleviate suffering by addressing the basic needs of families, children, and

individuals in central Maryland.

• Mobilize more resources for the nonprofit community by serving as a highly efficient, effective, and trusted fundraiser.

Because time is critical, we are adjusting our course for 2010-2013 accordingly.

UWCM understands that no single organization can solve problems of such scale and complexity. We believe we are uniquely positioned and qualified – from both regional and local perspectives – to listen, evaluate, and collaborate from local as well as regional perspectives in Baltimore City and Anne Arundel, Baltimore, Carroll, Harford, and Howard counties.

We will be flexible in closing human-service gaps in the basic needs continuum of education, income, and health— recognizing that where UWCM can provide the greatest value may be different in each jurisdiction. And we will be nimble —recognizing that priorities may change from year to year. We will gladly lend our expertise, data, and tools to help inform decisions, engaging collaboratively with our partners and other stakeholders across the community.

Despite the economy, there is great untapped empathy and philanthropy in America’s wealthiest state. A critical part of our role is to engage more people in more different ways: to help them make informed decisions about their charitable gifts, volunteer time, and social advocacy. While workplace fundraising remains critical, UWCM will also strive to diversify revenue sources while lowering our costs. Trust is crucial. We must be more open and more transparent in how we do business. Donors and funders must see a direct line of sight to the real impact their commitment produces.

Mark S. FurstPresident & CEO

LETTER FROM PRESIDENT & CEO, MARK FURST

Page 8 | Why Basic Needs Matter in Central Maryland

Since the 2000 Census, Maryland has been the setting for two dramatically divergent stories: the good news is that we have experienced significant growth in median household income; the bad news is that the recession has created overwhelming demand for health and human-service organizations. These organizations have been stretched thin by the extreme rise in need and by the deep cuts in traditional revenue sources, including government funding and philanthropic giving.

The Urban Institute surveyed nonprofits with government contracts and grants in 2009. (These nonprofits provide services essential for helping people remain stable and have the tools they need to be successful in life. 23% offered housing and shelter services, 7% offered employment assistance, and 8% offered youth-development programs.)i Many of the organizations surveyed experienced shortfalls in 2009. These deficits stemmed from declines in several revenue streams: 71% of the nonprofits reported a decline in revenue from state government agencies; 52% reported a decline from local government agencies; 37% reported a decline in individual contributions; 50% reported a decline in funding from private foundations; and 44% reported a decline in corporate donations.ii The shortfalls have resulted in service gaps for those most vulnerable in Maryland, leaving many on the brink of economic disaster.

i The Urban Institute. (2010). National Study of Nonprofit-Government Contracting: State Profiles. ii The Urban Institute. (2010). National Study of Nonprofit-Government Contracting: State Profiles.

“The measure of a country’s greatness should be

based on how well it cares for its most vulnerable

populations.”

- Mahatma Gandhi

INTRODUCTION

Why Basic Needs Matter in Central Maryland | Page 9

More than 5.5 million people now reside in Maryland. Over the past eight years the state has experienced an economic expansion, with the median household income increasing by 33.4%.iii This economic growth, which can be seen in all six central Maryland jurisdictions (Anne Arundel County, Baltimore City, Baltimore County, Carroll County, Harford County, and Howard County), has resulted in Maryland becoming the wealthiest state in the nation.iv Moreover, as the chart below illustrates, the growth in median household income among all central Maryland jurisdictions exceeded the 23.9% growth for the nation.v

iii United States Census Bureau. (2008). American Community Survey.iv United States Census Bureau. (2008). American Community Survey. v United States Census Bureau. (2008). American Community Survey.

Central Maryland Jurisdiction

2000 Median Household Income

2008 Median Household Income Percent Change

Anne Arundel 61,768 83,285 34.8%

Baltimore City 30,078 40,313 34.0%

Baltimore 50,667 63,128 24.6%

Carroll 60,021 78,653 31.0%

Harford 57,234 77,085 34.7%

Howard 74,167 102,540 38.3%

United States 41,994 52,029 23.9%

THE GROWTH

Page 10 | Why Basic Needs Matter in Central Maryland

While these statistics suggest that central Maryland is experiencing greater prosperity, this is far from the full story.vi Some Maryland residents have experienced economic growth, but for those in need, the gap between median income and the costs associated with living in Maryland has widened. The Center on Budget and Policy Priorities, a Washington, D.C. policy institute, reports that the wealthiest 20% of Maryland families have incomes 7.3 times as high as the poorest 20% of Maryland families; the top 5% have incomes 12.3 times as high as the poorest 20%.vii During the past 20 years, although the price of goods and services has increased for all Maryland residents, only the poorest 20% have not had significant gains in their incomes.viii The Center on Budget and Policy Priorities ascribes multiple contributing factors to the wage disparities, including unemployment and the lack of a living wage.ix

The gap between prosperity and need impacts Marylanders of all ages, including children and youth. The recent Annie E. Casey KIDS COUNT Data Book found that even though Maryland is the wealthiest state in the nation, it ranks 25th in child well-being—a measure that incorporates 10 indicators including percent of low-birth-weight babies, infant mortality, teen birth rate, and percent of teens who are high-school dropouts.x The disparity between Maryland’s rank in median household income and child well-being is the second-largest in the nation.xi This data shows that our prosperity is not evenly distributed—that we have vulnerable populations in our state, and that even early in life individuals and families in Maryland can encounter threats to their basic needs.

vi Community Foundation of Anne Arundel County. (2010). Poverty Amidst Plenty: The Two Faces of Anne Arundel County. vii Center on Budget and Policy Priorities. (2008). Pulling Apart: A State-by-State Analysis of Income Trends. viii Center on Budget and Policy Priorities. (2008). Pulling Apart: A State-by-State Analysis of Income Trends. ix Center on Budget and Policy Priorities. (2008). Pulling Apart: A State-by-State Analysis of Income Trends. x The Annie E. Casey Foundation. (2010). The 2010 KIDS COUNT Data Book. xi The Annie E. Casey Foundation. (2010). The 2010 KIDS COUNT Data Book.

THE GAP

Why Basic Needs Matter in Central Maryland | Page 11

From the east side of Baltimore City to the rolling hills of Carroll County, United Way of Central Maryland understands that each of our six jurisdictions has a unique character. UWCM also recognizes that despite apparent prosperity, each jurisdiction continues to have areas of great need, as indicated by the percent of people who live in poverty.

Percent of Population Living in Poverty in Central Maryland, 2008 Estimatesxii (Source: U.S. Census Bureau, 2008 Small Area Income and Poverty Estimate)

Poverty has been, and continues to be, a major risk factor for multiple social problems, with devastating effects on many aspects of life.

xii In 4 out of the 6 central Maryland jurisdictions, the percentages of population living in poverty who were between the ages of 5-17 were higher than the overall percentages of population living in poverty in those jurisdictions.

THE NEED

* See Appendices 1-6 for maps detailing the percentage of population living in poverty in each of the six central Maryland jurisdictions.*

The Federal Poverty Level: a measure used by the federal government to determine how many Americans live in poverty each year. The guidelines help determine eligibility for low-income assistance programs at the state and federal level. An individual living at the federal poverty level would earn no more than $10,830 annually, and a family of four would earn no more than $22,050.(Source: Department of Health and Human Services; Institute for Research on Poverty)

Page 12 | Why Basic Needs Matter in Central Maryland

Individuals living at or below the Federal Poverty Level struggle to finance many of their basic needs—including housing. The Fair Market Rent (FMR) for a two-bedroom apartment in central Maryland is $1,203 per month.xiii A person would have to earn $23.13 per hour in order not to pay more than 30% of his or her annual income on housing—a recommendation of the United States Department of Housing and Urban Development (HUD).xiv

(Source: National Low Income Housing Coalition)

For many central Maryland workers (those who count themselves among the under-employed and who do not earn a sufficient, livable wage), employment does not alleviate the difficulties they face given the lack of affordable housing in central Maryland.

*Not all calendar years are the same

(Source: Continuums of Care)

Earning the minimum wage, $7.25 per hour, an individual in central Maryland would need to work 110 hours per week, 52 weeks per year to afford a two-bedroom apartment at Fair Market Rent.xv Or, that individual could work 40 hours per week but would need 3.2 full-time jobs.xvi

The lack of affordable housing in central Maryland leaves many low-income individuals hovering on the fringe of homelessness.

Homelessness can affect anyone, regardless of age. In fact, service providers have noticed a growing number of youth who are experiencing homelessness. More than 26% of those served in shelters in 2008 were ages 0-17.xvii Reports from central Maryland schools echo this trend, as 4,442 students were identified as homeless in 2009, a 29.5% increase from the 2008 academic year.xviii And even these dire statistics may not fully capture the extent of youth homelessness in central Maryland because this population is difficult to identify and count.xix

xiii National Low Income Housing Coalition. (2010). Out of Reach 2010. xiv National Low Income Housing Coalition. (2010). Out of Reach 2010. xv National Low Income Housing Coalition. (2010). Out of Reach 2010. xvi National Low Income Housing Coalition. (2010). Out of Reach 2010. xvii Maryland Department of Human Resources Office of Grants Management. (2008). Annual Report on Homeless Services in Maryland. xviii Maryland State Department of Education (2009).xix Appleton, A. (2010, August 11). Nowhere to Go. Baltimore City Paper.

Central Maryland JurisdictionsPercent of People Who Cannot Afford Fair Market Rent

(Pay More Than 30% of Their Income on Housing), 2010

Anne Arundel 43%

Baltimore City 77%

Baltimore 53%

Carroll 53%

Harford 52%

Howard 38%

Central Maryland Jurisdictions% of Homeless Population Who are Employed,

2009 calendar year*

Anne Arundel 15%

Baltimore City 4%

Baltimore 15%

Carroll 16.3%

Harford 21%

Howard Data not available

BASIC NEEDS: HOUSING

“Human service providers are reporting increased demand for emergency assistance, as much as a doubling of demand even since last year. The demand for affordable housing continues to be a source of stress. Many low-and moderate-income people are spending more on their rent than they can afford. To address this need, we’ve begun working with many individuals and families at risk of homelessness, providing them with case-management services to help them keep their housing.”Bridges to Housing Stability, Howard County

Fair Market Rent (FMR): How much a rental property

would cost if it were available in the current

market.

“As a rule of thumb, about ten percent of people living

in poverty will experience homelessness in a given

year.” Project H.O.M.E.’s Saving

Lives, Saving Money Report

Why Basic Needs Matter in Central Maryland | Page 13

Homelessness has many adverse effects on youth. Students experiencing homelessness have difficulty regularly attending school, are 1.5 to 2.5 times more likely to perform below grade level, and nationally, 20% of homeless students will have to repeat a grade.xx; xxi In addition to poor long-term educational outcomes, homeless youth are also more susceptible to suffering from health problems such as malnutrition, substance abuse, and sexually transmitted diseases.xxii

Homelessness is a social problem with often overlooked costs and long-term consequences. According to a report released by the National Alliance to End Homelessness, individuals experiencing homelessness “use a variety of public systems [for example, emergency rooms and prisons] in an inefficient and costly way.”xxiii The report further describes that, “preventing a homeless episode or ensuring a speedy transition into stable, permanent housing can result in significant cost savings,” because individuals will not have as much need to access these emergency services.xxiv There are also health-related concerns associated with homelessness. In a study on premature mortality, “homeless persons in all age groups [were found to] have a higher risk of death than people of similar ages in the general population.”xxv

Homeless-service providers strive to meet the growing need for shelter. Data from 2008, the most current available, reported that Maryland providers served 37,955 people experiencing homelessness.xxvi Unfortunately, due to lack of space or funds, there were another 38,462 occasions on which people were refused shelter.xxvii Additionally, the waiting lists for housing choice vouchers, formerly called Section 8 vouchers, range from 1-7 years and contain thousands of names, depending on the jurisdiction.xxviii In certain places (for example, Baltimore City) the waiting list for housing choice vouchers has been closed due to its length.xxix Limited shelter capacities, coupled with ever-expanding waiting lists, mean that many people have no alternative to living on the streets.xxx

Housing and the RecessionThe economic recession of the past two to three years has exacerbated the challenges many central Marylanders have with financing housing-related costs. During this tenuous economic climate, job loss has become commonplace. The recession has “created the bleakest job market in more than a quarter-century,” and not even job training can fully address the high number of unemployed.xxxi

xx National Association for the Education of Homeless Children and Youth. (2010). Facts About Homeless Education. xxi Institute for Children, Poverty & Homelessness. (2010). National Data on Family Homelessness. xxii Johns Hopkins Bloomberg School of Public Health Center for Adolescent Health. (2008). Uncounted and Discounted: Homeless Youth in Baltimore City. xxiii National Alliance to End Homelessness. (2010). Cost of Homelessness. xxiv National Alliance to End Homelessness. (2010). Cost of Homelessness. xxv O’Connell JJ. Premature Mortality in Homeless Populations: A Review of the Literature, 19 pages. Nashville: National Health

Care for the Homeless Council, Inc., 2005.xxvi Maryland Department of Human Resources Office of Grants Management. (2008). Annual Report on Homeless Services in Maryland. xxvii Maryland Department of Human Resources Office of Grants Management. (2008). Annual Report on Homeless Services in Maryland. xxviii Central Maryland Continuums of Care. (2010).xxix Housing Authority of Baltimore City. (2010).xxx Maryland Department of Human Resources Office of Grants Management. (2008). Annual Report on Homeless Services in Maryland. xxxi Luo, M. (2010, July 18). 99 Weeks Later, Jobless Have Only Desperation. The New York Times.

BASIC NEEDS: HOUSING

Housing Choice Vouchers: rental subsidies distributed by the United States Department of Housing and Urban Development.

Page 14 | Why Basic Needs Matter in Central Maryland

(Source: Maryland Department of Labor, Licensing and Regulation)

Based on an analysis of the recessions of the 1980s and 1990s, researchers are reporting that even if the recession had ended in 2009, it would take multiple years before unemployment rates return to their pre-recession 2007 levels.xxxii

In these uncertain economic times individuals have watched their personal resources decline. They have become unable to fund housing-related expenses such as heating and electricity. The graph below shows the number of applications for heating and electricity assistance, indicating that the number of such applications has gone up in each of the last three fiscal years.

(Source: Maryland Office of Home Energy Programs)

Bills are going unpaid, debts are swelling, and people are having to leave their homes. The graph below reports the number of evictions in central Maryland from 2007 to 2009, showing an overall increase of almost 5%.

(Source: Maryland Judiciary)

xxxii PolicyForResults.org. (2010). Strategies for Tough Fiscal Times.

BASIC NEEDS: HOUSING

“We’re trying to create employment opportunities for people because we’ve

seen a lot of businesses in our community close. We’re also seeing an increase in the need for services while also a decline in funding. The economic uncertainty

means people are being a bit more conservative

in their giving, which we depend a lot on.”

Arundel House of Hope, Inc., Anne Arundel County

Why Basic Needs Matter in Central Maryland | Page 15

The economic disparities in central Maryland, combined with the negative effects of the recession, have placed people’s lives in jeopardy.xxxiii Many individuals, including those who have had no prior need, are accessing emergency services, such as homeless services.xxxiv

The Department of Housing and Urban Development (HUD) requires each jurisdiction’s Continuum of Care to count the number of people experiencing homelessness in that jurisdiction. This tally, also called “a point-in-time survey,” includes people living on the streets as well as those in homeless shelters.

(Source: Continuums of Care)

As the point-in-time chart demonstrates, homelessness has been on the rise in our region. And many of those experiencing homelessness did so for the first time, demonstrating the volatility of the past few years.

*Not all calendar years are the same

(Source: Continuums of Care)

For many families and individuals, the threat of homelessness poses a painful choice: pay for housing, or live on the street and pay for another basic need—such as food. A study conducted for Feeding America, a national organization of emergency food providers, found that 25% of those who receive charitable food distribution must choose between paying for housing or food.xxxv

xxxiii The Association of Baltimore Area Grantmakers. (2009). Guide for Funding Basic Human Needs in a Challenging Economy. xxxiv Policy Analysis Center. (2010). The Howard County Self-Sufficiency Indicators Report. xxxv Mathematica Policy Research, Inc. (2010). Hunger in America.

BASIC NEEDS: HOUSING

Central Maryland Jurisdictions% of Population Experiencing Homelessness for the

First Time, 2009 calendar year*

Anne Arundel Data not available

Baltimore City 46.3%

Baltimore 39%

Carroll 30.7%

Harford 31.6%

Howard Data not available

Central Maryland Jurisdictions

Point-in-time survey2007

Point-in-time survey 2009 % Change

Anne Arundel 273 322 17.9

Baltimore City 3,002 3,419 13.9

Baltimore 389 691 77.6

Carroll 125 144 15.2

Harford 145 152 4.8

Howard 123 174 41.5

Continuum of Care (CoC): an entity defined by the United States Department of Housing and Urban Development (HUD) that is responsible for coordination of homelessness services in a particular geographic area.

Point–in-Time Survey: The Department of Housing and Urban Development (HUD) requires each Continuum of Care (CoC) to count the number of people experiencing homelessness in their particular geographic area on a date chosen by the CoC, but within the last week of January and at least once every two years. The count includes both the sheltered and unsheltered (street count). Surveys are conducted in an effort to learn more about factors that contributed to the person’s situation and ways we can better serve the population.

Page 16 | Why Basic Needs Matter in Central Maryland

The Consumer Price Index (CPI) is a common reference point for tracking the price of goods in the United States.xxxvi According to the CPI, the price of all food increased 5.5% in 2008 and 1.8% in 2009; it is expected to increase 1.5%-2.5% in 2010 and 2.0%-3.0% in 2011.xxxvii

However, the increasing cost of food is just one factor that makes it less accessible to those in poverty.xxxviii Another is the reality that millions of people in underserved neighborhoods live miles from any grocery store.xxxix This means that many households living below the Federal Poverty Level are more likely to suffer from an uncertain supply of adequate food that is nutritious and affordable, which can lead to such health problems as malnourishment, obesity, heart disease, and diabetes.xl

Compounding this food insecurity issue is the low rate of eligible Maryland residents who receive Supplemental Nutrition Assistance Program (SNAP) benefits. SNAP, formerly called the Food Stamp Program, provides eligible low-income households with “electronic benefits they can use like cash at most grocery stores.”xli To qualify, a household must have no more than a net monthly income of $1,838 for a household of four, which is no more than 100 percent of the Federal Poverty Level.xlii Only 60% of eligible Maryland residents are enrolled and utilize their SNAP benefits; the remaining 40% are not enrolled, which ranks Maryland below the national SNAP utilization rate of 67% and means that many receive no respite from their struggle to acquire food.xliii Inconsistent and non-nutritious meals can negatively impact children’s cognitive development and their academic performance.xliv And, as noted above, people (of all ages) who suffer from food insecurity are at increased risk of experiencing multiple health problems.xlv

Food and the RecessionDuring this unstable economic climate, service providers have witnessed an increase in the number of people struggling to pay for food and more people accessing Federal Government Nutrition Programs, including SNAP and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).xlvi

xxxvi United State Department of Agriculture Economic Research Service. (2010). Food CPI and Expenditures: Analysis and Forecasts of the CPI for Food. xxxvii United State Department of Agriculture Economic Research Service. (2010). Food CPI and Expenditures: CPI for Food Forecasts. xxxviii The Association of Baltimore Area Grantmakers. (2009). Guide for Funding Basic Human Needs in a Challenging Economy. xxxix The Reinvestment Fund. (2010). Estimating Supermarket Access and Market Viability: Summary of TRF’s Research and Analysis. xl United States Department of Agriculture Economic Research Service. (2009). Food Security in the United States. xli United States Department of Agriculture Food and Nutrition Service. (2010). Supplemental Nutrition Assistance Program. xlii United States Department of Agriculture Food and Nutrition Service. (2010). Supplemental Nutrition Assistance Program. xliii Advocates for Children and Youth. (2010). Gap Widens Between State’s Wealth and Child Well-Being. xliv Food Research and Action Center. (2010). Health Consequences of Hunger. xlv United States Department of Agriculture Economic Research Service. (2009). Food Security in the United States. xlvi Maryland Hunger Solutions. (2010). County Participation in Federal Nutrition Programs.

BASIC NEEDS: FOOD

Consumer Price Index (CPI): “a measure of the

average change over time in the prices paid by urban

consumers for a market basket of consumer goods

and services.” United States Department

of Labor Bureau of Labor Statistics

We are seeing new households seeking

assistance from all our programs—Maryland

Energy Assistance, Homeless Prevention,

Food Pantry. These are households where people

were working but have lost their jobs due to the economic downturn . . .

more families are visiting the Food Pantry every

month to get supplemental food, rather than coming

only once or twice in an emergency situation . . .

The amounts owed on utility shut-off notices have grown

exponentially.” Harford County Community

Action Agency, Inc.

Why Basic Needs Matter in Central Maryland | Page 17

(Source: Maryland Hunger Solutions)

Despite the increasing numbers of people accessing Federal Nutrition Programs, these benefits alone do not enable patrons to sustain nutritious, healthy lifestyles.xlvii Furthermore, many underemployed workers cannot access certain social safety net programs, for example, SNAP, because their wages make them ineligible.

Food banks are meant to supplement the benefits provided by the federal food programs. However, the food banks are overwhelmed, having experienced a doubling and tripling of caseloads since the start of the recession.xlviii The Maryland Food Bank and Feeding America found that 44,600 Marylanders seek food assistance in any given week; and in 36% of the households that accessed these services at least one adult is employed.xlix Of those who receive emergency food assistance, 24% have to choose between paying for medical care or food, and 32% have to choose between paying for utilities or food.l Supplies have greatly diminished, while demand has continued to rise. Food banks are now left with a difficult decision: stretch the diminished supply over an increasing number of clients, or simply serve fewer clients.li

xlvii Maryland Food Bank. (2010).xlviii Maryland Food Bank. (2010). xlix Mathematica Policy Research, Inc. (2010). Hunger in America. l Mathematica Policy Research, Inc. (2010). Hunger in America. li Maryland Food Bank. (2010).

BASIC NEEDS: FOOD

This table shows that there was

an increase of over 50,000 people

who participated in Federal

Nutrition Programs—enough to

fill the 1st Mariner Arena nearly

four times.

Central Maryland Jurisdictions

People who Participated in

Federal Nutrition Programs

April 2009

People who Participated in

Federal Nutrition Programs

April 2010 Increase % Change

Anne Arundel 22,560 27,404 4,844 21.5%

Baltimore City 146,010 169,024 23,014 15.8%

Baltimore 51,516 66,350 14,834 28.8%

Carroll 6,829 8,510 1,681 24.6%

Harford 13,668 17,020 3,352 24.5%

Howard 8,579 11,606 3,027 35.3%

Page 18 | Why Basic Needs Matter in Central Maryland

The health risks associated with food insecurity are multiplied by diminished or unreliable income. According to the Baltimore City Health Department, income is a critical social determinant of health.lii Many low-income individuals do not have access to the care they need to prevent and treat medical conditions.

Increases in the cost of private health insurance have had two inter-related, negative effects: more employers no longer fund health insurance for their employees, and fewer employees can afford to buy their own coverage.liii In 2008, 11.1% of Marylanders were uninsured.liv A significant portion of the uninsured in Maryland, 76.7%, lived in families that were working—further reinforcing the fact that employment does not necessarily mitigate the daily struggles people face in meeting their basic needs.lv

Eligible central Maryland residents could pursue public insurance programs, such as Medicaid, Primary Adult Care (PAC), and Maryland Children’s Health Program (MCHP), which cover certain health care services for low-income individuals.lvi However, many who qualify for these services do not know that they are eligible,lvii and therefore do not enroll.lviii Those who do enroll and receive services face a host of additional obstacles: voluminous paperwork, processing delays that can take weeks or even months, language barriers, and a lack of health care professionals in proximity to their communities. This last barrier means that those seeking health care must have transportation to and from their providers’ offices, which can be daunting for people with already limited financial resources.lix

The barriers to health care access contribute to significant health disparities among communities. The Baltimore City Health Department examined health disparities among neighborhoods; their study found “a strong relationship between income and life expectancy.”lx

Two neighborhoods that are just a few miles apart, Roland Park and Hollins Market, have markedly divergent median household incomes and life expectancies. While Roland Park residents have a median household income of $64,571 and an estimated life expectancy of 82.9 years, Hollins Market residents have a median household income of $17,063 and an estimated life expectancy of 62.5 years.lxi This study’s findings indicate that, “differences in income [can] explain more than half of the variability in life expectancy between neighborhoods. On average, for every $10,000 more in neighborhood median income, residents lived 3.4 years longer.”lxii

Limited financial resources determine the goods and services many low-income individuals can afford. Faced with the decision of which basic needs they can satisfy, other additional critical services, such as accredited child care, may become less of a priority for low-income parents—out of necessity, not choice.

lii Baltimore City Health Department Office of Epidemiology and Planning. (2010). Baltimore City Health Disparities Report Card. liii The Association of Baltimore Area Grantmakers. (2009). Guide for Funding Basic Human Needs in a Challenging Economy. liv United States Census Bureau. (2008). American Community Survey. lv Families USA. (2009). New Report Finds 1.4 Million Marylanders Were Uninsured at Some Point in 2007-2008. lvi Maryland Department of Health and Mental Hygiene. (2010). Maryland Medical Program. Medicaid eligibility extends to those

earning no more than 133% of the Federal Poverty Level—$14,404 for an individual and $29,327 for a family of four. MCHP eligibility extends to children under the age of 19 whose families earn no more than $21,660 per year and to pregnant women who earn no more than $27,075 per year. PAC eligibility extends to individuals who meet the income requirements and have no more than $4,000 in assets and to families who meet the income requirements and have no more than $6,000 in assets.

lvii Mosaic Community Services, Inc., Bridges to Housing Stability, and Baltimore HealthCare Access, Inc. (2010). lviii Mosaic Community Services, Inc., Bridges to Housing Stability, and Baltimore HealthCare Access, Inc. (2010).lix Mosaic Community Services, Inc. and Bridges to Housing Stability. (2010).lx Baltimore City Health Department. (2008). Neighborhood Health Profiles. lxi Baltimore City Health Department. (2008). Neighborhood Health Profiles. lxii Baltimore City Health Department. (2008). Neighborhood Health Profiles.

BASIC NEEDS: HEALTH CARE

“Unemployment is up, poverty is up, and an increasing number of

Marylanders are making impossible choices among rent, food, clothing, health

care, and other basic human needs. Health

Care for the Homeless has documented an increase in

the number of individuals and families presenting

for care. And even though we’ve dramatically

increased our capacity, we still must turn people away

every morning because demand for services

exceeds our finite resources. Over the past two years,

we’ve noticed a particular increase in the number of “new” clients presenting

to HCH–those seeking our services for the very first

time. In many cases, these individuals and families

simply never fathomed that they’d ever experience

homelessness.”

Health Care for the Homeless, Baltimore City

Why Basic Needs Matter in Central Maryland | Page 19

Child care costs, which ranked as one of the top two household expenses in all six central Maryland jurisdictions, have become prohibitive for many of our residents.lxiii Although the United States Department of Health and Human Services recommends that parents pay no more than 10% of their income on child care, central Maryland parents paid almost twice that much in 2009.lxiv Moreover, the average annual cost of child care for an infant and for a four-year-old in the state represent significant portions of the incomes of families living at the Federal Poverty Level—more than 67% and 44%, respectively.lxv As a result, many low-income children may be unable to participate in quality child care programs, which in turn may prevent parents from being able to search for and maintain employment and may negatively impact the children’s long-term academic success.lxvi

Children who do attend quality child care receive programming that contributes to their cognitive, social, emotional, and physical development. These children are more likely to enter school ready to learn, having demonstrated the skills and behaviors “needed to meet kindergarten expectations successfully.”lxvii The Rand Corporation states that 90% of a person’s brain growth happens before the age of 3.lxviii Moreover, according to the Partnership for America’s Economic Success, if 50 first-graders enter school with reading problems, 44 of them will still have difficulties reading in the fourth grade.lxix Quality care, provided from a young age, can be critical to children’s development.

Children from low-income families are less likely to attend licensed, quality child care programs. They are thus more at risk for poor long-term outcomes, such as dropping out of school, which can lead to poor future earning potential.lxx;lxxi National data for 2008 (the most current available) report that median income for individuals who did not graduate high school was $23,500, while high-school graduates earned $30,000 and college graduates earned $46,000.lxxii Individuals with bachelor’s degrees earned almost 96% more than those who did not complete high school.lxxiii

lxiii Maryland Child Care Resource Network. (2010). Child Care Demographics Report. lxiv Maryland Child Care Resource Network. (2010). Child Care Demographics Report. lxv National Association of Child Care Resource and Referral Agencies. (2010). 2010 Child Care in the State of Maryland.lxvi Stein, R. (2010, May 14). Study finds that effects of low-quality child care last into adolescence. The Washington Post. lxvii Maryland State Department of Education. (2010). 2009-2010 Maryland School Readiness Report: Children Entering School Ready to Learn.lxviii The RAND Corporationlxix Partnership for America’s Economic Successlxx Children’s Defense Fund. (2010). Elementary and High School Education. lxxi CNN.com. (2009, May 5). High school dropout crisis’ continues in U.S., study says. lxxii United States Department of Education National Center for Education Statistics. (2010). Fast Facts. lxxiii United States Department of Education National Center for Education Statistics. (2010). Fast Facts.

BASIC NEEDS: EDUCATION

“In the past six months, many of our clients have watched their work hours drop or their jobs disappear. More of them are skating ever closer to the edge.”

-Carroll Child Care Centers, Inc., Carroll County

Page 20 | Why Basic Needs Matter in Central Maryland

The social safety net has been, and continues to be, vital to the survival of those most vulnerable in central Maryland. While the demand for these services has grown, they can provide only partial assistance to those in need. These services cannot provide permanent solutions for all, particularly given that the recession has forced the Maryland state government to reduce funding for certain health and human-service programs, greatly diminishing their capacities.

The economic instability that has taken place over the past two to three years has negatively impacted Maryland’s tax revenue and its financial reserves, resulting in a budget gap for the state of $2.0 billion in FY2010.lxxiv In response, our state government has in some cases either frozen support to state-funded health and human-service programs or has made significant cuts to these programs—for example, to the Service-Linked Housing Program and the Emergency and Transitional Housing and Services Program.lxxv

The Service-Linked Housing Program funds resident-advocate positions in 13 jurisdictions in the state of Maryland, including all six in central Maryland. Resident advocates link low-income residents of permanent housing to community resources, including health, employment, financial assistance, and counseling. Through this program, at-risk households are able to avoid homelessness. This state-funded program is funded at $550,000—50% less than the FY2009 funding level.lxxvi In Baltimore City, this reduction could mean that over 180 individuals could be at risk of homelessness.lxxvii

The Emergency and Transitional Housing and Services Program provides state funding for emergency shelter and transitional housing for people experiencing homelessness. The funds pay for shelter beds and supportive services such as rental assistance, food, transportation, and case management. This state-funded program received a 10% cut in the past fiscal year, which could result in as many as 25 families per month being unable to receive the services they need to remain stable.lxxviii

While federal stimulus funds have been able to offset portions of these shortfalls, the federal monies have been unable to compensate for the significant declines in state revenue and are unreliable going forward.lxxix Maryland is projected to have a budget gap of $2.0 billion in FY2011, and federal assistance is scheduled to scale back, as a portion of the time-limited federal stimulus money is set to end in December 2010.lxxx

Some progress has been made toward developing assets for those in need in central Maryland. Promising examples include the construction of the new Harry and Jeanette Weinberg Housing and Resource Center in Baltimore City, and the 13 new permanent supportive housing units in Baltimore County, made possible through a partnership between the YWCA of Greater Baltimore, the Baltimore County Government, and United Way of Central Maryland. Overall, however, the financial landscape for Maryland remains bleak. Recent projections suggest that Maryland will continue to suffer budget gaps of $1.5 billion or more over each of the next five years.lxxxi

lxxiv Governor’s Proposed Budget. (January 21, 2009).lxxv Maryland Department of Human Resources. (2010).lxxvi Maryland Department of Human Resources. (2010).lxxvii Baltimore City’s Homeless Services Program. (2010).lxxviii Baltimore County Community Assistance Network, Inc. (2010).lxxix Center on Budget and Policy Priorities. (2010). States Continue to Feel Recession’s Impact. lxxx Governor’s Proposed Budget. (January 20, 2010).lxxxi Maryland Budget and Tax Policy Institute. (2010). The Regular Person’s Guide to the Governor’s Fiscal Year 2011 Budget.

BASIC NEEDS: CUTS TO THE SOCIAL SAFETY NET

“Over the past year-and-a-half we’ve been getting overwhelmed by the numbers of requests for services. We’re going 125 miles per hour and helping as many people as possible, but the need is clearly greater now than it’s ever been.” - Prologue, Baltimore County

“HSP’s Mission is to address the essential

needs of people who find themselves having to

request help. In today’s economic environment most

often these requests are not just temporary ones

that can be addressed with simple “bandages,” but rather, each requires the

need for thoughtful plans to stay out of or move out of poverty. Our representative

client is not seeking a hand-out but, instead, a hand-up in their effort to establish or retain their self-sufficiency. They are not seeking the life

of luxury but, instead, are trying to provide the basics

for their household—essential utilities, maintain

employment and income, food and a home.”

Human Service Program of Carroll County

Why Basic Needs Matter in Central Maryland | Page 21

Poverty, the recession, underemployment, and reductions in government funding—all have combined to create a perilous economic situation for many in central Maryland. The struggles of some of our fellow-citizens to meet their basic needs put these vulnerable citizens’ lives at risk. These individuals cannot be assured that they will have a place to sleep or a meal to eat, let alone be successful in the classroom or workplace—which is crucial to leading successful, self-sufficient lives. While the country seems to gradually emerge from the recession, its effects are far from over. Nationally, 2009 posted the highest poverty rates since 1994lxxxii; and much of this unfortunate distinction can be attributed to the economic chaos of the past year.lxxxiii There also continues to exist the threat of a double-dip recession; and, even with the recent federal extension of unemployment benefits to a maximum of 99 weeks, many people are either on the verge of exhausting their benefits or have already done so.lxxxiv;lxxxv

As history indicates, for the foreseeable future it is anticipated that the strain on the social safety net will continue; “in 2007, the poorest households still had not recovered from the 2001 recession.”lxxxvi Responding both to the increased demand for basic human services and to requests from community stakeholders, United Way of Central Maryland will continue its 85-year tradition of helping those who are most vulnerable by using basic needs as a compass to guide its work. United Way of Central Maryland will support a continuum of basic-needs services that sustain and stabilize lives and, ultimately, lead people back to independence and self-sufficiency.

United Way of Central Maryland’s response echoes Abraham Maslow’s Hierarchy of Needs. According to Maslow individuals have many diverse needs, ranging from basic ones, such as food and shelter, to higher-level needs, such as personal achievement. Until people satisfy their basic needs they will struggle to achieve long-term success and reach their full potential. The continuum of services United Way of Central Maryland supports will be flexible and responsive to the unique needs and priorities of each jurisdiction in central Maryland, while also being inclusive of the entire region.

Target Populationlxxxvii: Individuals and families with incomes below 300% of the federal poverty level.lxxxviii

Result Statementlxxxix: Individuals and families are able to meet their basic human needs and move toward self-sufficiency.

Community-Level Indicatorsxc:1. Requests for utility assistance in each central Maryland jurisdiction (sources: calls to 2-1-1, requests to Continuums of Care,

and applications to the Office of Home Energy Programs).2. Shelter turn-away occasions in each central Maryland jurisdiction (source: Maryland Department of Human Resources).3. Evictions in each central Maryland jurisdiction (source: Maryland Judiciary).4. Number of residents who utilize the Supplemental Nutritional Assistance Program in each central Maryland

jurisdiction (source: Maryland Hunger Solutions and United States Department of Agriculture).5. Percent of residents without health-insurance coverage in each central Maryland jurisdiction (source: American

Community Survey).6. Homeless point-in-time survey for each central Maryland jurisdiction (source: Continuums of Care).7. Maryland State Department of Education’s School Readiness Assessment: The Work Sampling System (WSS)

(source: Maryland State Department of Education).8. School attendance rate (source: Maryland State Department of Education).

lxxxii United States Census Bureau. (2010). Income, Poverty, and Health Insurance Coverage in the United States: 2009. lxxxiii CNNMoney.com. (2010, September 16). Poverty in the U.S. Spikes. lxxxiv CNNMoney.com. (2010, July 17). When the Benefits Run Out-and Still No Job. lxxxv Luo, M. (2010, July 18). 99 Weeks Later, Jobless Have Only Desperation. The New York Times. lxxxvi PolicyForResults.org. (2010). Strategies for Tough Fiscal Times. lxxxvii Target Population: Clients/Customers served by a specific program or organization.lxxxviii United States Department of Health and Human Services. (2010). The HHS Poverty Guidelines for the Remainder of 2010. An individual living at 300% of the

federal poverty level has a gross yearly income of no more than $32,490. A family of four living at 300% of the federal poverty level has a gross yearly income of no more than $66,150.

lxxxix Result Statement: A statement describing a population condition of well-being for children, adults, families, and communities. A result is about the well-being of people in a community, city, county, state or nation.xc Community-Level Indicator: A measure that helps quantify the achievement of a result.

MOVING FORWARD AND MEETING THE NEED

Page 22 | Why Basic Needs Matter in Central Maryland

2-1-1An effective way to gauge the need in Maryland is 2-1-1, a 24-hour information and referral service that connects people with the health and human services they need. There are four nationally accredited call centers in Maryland, including 2-1-1 Maryland at UWCM, which is located at United Way of Central Maryland. This center serves callers living in Baltimore City and the five surrounding counties that make up central Maryland. The requests for assistance to 2-1-1 Maryland at UWCM give us a unique vantage point for identifying, assessing, tracking, and meeting the community’s needs. In FY2010, staff at 2-1-1 Maryland at UWCM answered 99,849 calls, a 7% increase from FY2009. As depicted in the graph below, patrons have consistently had trouble financing those services necessary for their survival, including food, housing, and health care.

The graph below illustrates that, while the levels of need have varied among the six central Maryland jurisdictions, basic-needs services remain the most requested areas for assistance throughout the region.

MOVING FORWARD AND MEETING THE NEED

Why Basic Needs Matter in Central Maryland | Page 23

The recession is changing the landscape of central Maryland, plunging many into crisis. For this reason, United Way of Central Maryland is supporting a comprehensive set of strategies focused on ensuring that individuals are able to meet their basic needs. Funding is one of the strategies on which we will execute; we support a continuum of services that work to get people out of crisis (sustenance), keep them out of crisis (stabilization), and move individuals and families toward a higher quality of life (self-sufficiency). We recognize that there is no one point at which everyone will enter in the continuum, and that different clients may enter at different points, depending on their need and individual situation. Therefore, the continuum described below is meant to be seen as flexible and adaptive—addressing the most acute needs first, and then helping people become more self-sufficient.

Examples of services within this continuum are:

1. Income Supports• Security deposits• Rental assistance• Energy assistance• Prescription assistance• Access to quality child care

2. Housing• Shelter• Transitional supportive• Permanent supportive• Permanent

3. Supportive Services• Employment services• Case management• Transportation• Out of school time• Parent support• Legal services

4. Food Security• Food programs with health objective• Food programs with outreach objective• Food programs that increase access to healthy food options

5. Access to Health Care

Sustenance

The most basic of needs are those that sustain life: food, shelter, and access to health care. Services that support these three elements are essential to keep people alive and to prevent homelessness, starvation, and negative short- and long-term health effects, including premature death. With homelessness on the rise, food insecurity throughout our region, and access to health care not readily available for all central Maryland residents, UWCM recognizes that in order for people to move out of crisis and begin to stabilize their lives, these needs must be met first.

Stabilization

Once people emerge from crisis, they must have services that will help them remain stable. Without such support, individuals are vulnerable and could quickly find themselves in another crisis situation. In addition to funding intervention services, United Way of Central Maryland will also be proactive in supporting services that work to avoid crisis in the first place.

CONCLUSION

Page 24 | Why Basic Needs Matter in Central Maryland

Self-Sufficiency

The ultimate aspiration of the continuum of services is that people will secure and maintain a higher quality of life. This can only take place once an individual or family has received the essentials for sustenance and achieved stability. Through special initiatives and strategic partnerships, UWCM will work to ensure that youth are healthy and have opportunities to be engaged in their schools and communities; that individuals and families have opportunities to achieve financial stability, and that the people who depend on us will ultimately be self-sufficient.

Engagement and Advocacy

While financial support for programs that provide essential services within the continuum is critical, UWCM believes non-financial support of such programs is also important. We will engage the heads, hands, and hearts of the central Maryland community to give volunteers as well as donors the opportunity to Live United through engagement and advocacy opportunities. UWCM will advocate for policies that provide opportunities for low-income Marylanders to receive the very basic human needs required for life, as well as opportunities to move beyond stability to independence.

UWCM will engage constituents through opportunities for individuals to learn about relevant issues and participate in advocacy efforts—through special events and tailored messages to our affinity groups, and through our Website and speaker series to educate donors and potential donors about our advocacy work.

It’s time for all of us to acknowledge that too many central Marylanders are in crisis. Those of us in a position to take action must do so now. United Way of Central Maryland is in such a position. In order to serve the most vulnerable citizens of our region we promote these fundamental actions:

• Believe that meeting the basic needs of all central Maryland citizens is possible.

• Educate the community on issues related to the three building blocks of a good life: Income, Education, and Health.

• Build strategic partnerships and collaborations with businesses, foundations, non-profits, government, and the community to align our collective focus on basic needs.

• Promote public policy and advocacy for longer-term solutions.

• Raise more money and distribute funds to those service providers who desperately need it.

• Give, Advocate, Volunteer

By actively pursuing these measures we will, together, close the gap between good intentions and real results, between the haves and the have-nots, and realize a central Maryland where prosperity is more equably available to us all.

Your investment with United Way is an investment in the future of your central Maryland.

CONCLUSION

Why Basic Needs Matter in Central Maryland | Page 25

Appendix 1Percent of Population in Poverty in Anne Arundel County,

2000 Census Tracts

Appendices

Page 26 | Why Basic Needs Matter in Central Maryland

Appendix 2 Percent of Population in Poverty in Baltimore City,

2000 Census Tracts

Appendices

Why Basic Needs Matter in Central Maryland | Page 27

Appendix 3Percent of Population in Poverty in Baltimore County,

2000 Census Tracts

Appendices

Page 28 | Why Basic Needs Matter in Central Maryland

Appendix 4Percent of Population in Poverty in Carroll County,

2000 Census Tracts

Appendices

Why Basic Needs Matter in Central Maryland | Page 29

Appendix 5Percent of Population in Poverty in Harford County,

2000 Census Tracts

Appendices

Page 30 | Why Basic Needs Matter in Central Maryland

Appendix 6Percent of Population in Poverty in Howard County,

2000 Census Tracts

Appendices

United Way of Central Maryland, Inc. (Main Office)100 South Charles StreetFifth Floor, P.O. Box 1576Baltimore, Maryland 21203-1576P 410.547.8000 F 410.547.8289www.uwcm.org

Community Partnership of Anne Arundel County10480 Little Patuxent Parkway, Suite 900Columbia, MD 21044-3524P 410.379.1319 F 410.510.1776www.uwcm.org/annearundel

Community Partnership of Baltimore CountyP.O. Box 1576Baltimore, Maryland 21203-1576P 410.895.1510 F 410.547.5640www.uwcm.org/baltimore

Community Partnership of Carroll CountyP.O. Box 2047Westminster, Maryland 21158P 410.840.2837 F 410.848.2436www.uwcm.org/carroll

Community Partnership of Harford County108 South Bond Street,Second Floor, P.O. Box 1011Bel Air, Maryland 21014-7011P 410.879.6453 F 410.420.1461www.uwcm.org/harford

Community Partnership of Howard County10480 Little Patuxent Parkway, Suite 900Columbia, MD 21044-3524P 410.379.1319 F 410.510.1776www.uwcm.org/howard

www.uwcm.org

unitedwayofcentralMD UnitedWayCentMD

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