Many kids stuck in poverty without solutions

Contact: Judy Putnam or Jane Zehnder-Merrell, 517.487.5436

Kids Count in Mich. ranks 82 counties on child well-being

LANSING, Mich. – Too many kids in Michigan remain mired in poverty at a time when policymakers have reduced help for struggling families, according to the Kids Count in Michigan Data Book 2015 released today.

Three measures of economic conditions worsened over the trend period with nearly one in every four children living in an impoverished household, a 35 percent increase in child poverty over six years. The trend period measured from 2006 to 2012 or 2013, depending on the availability of data.

“The unraveling of family’s economic security cries out to be addressed by state leaders but what’s happened is just the opposite of what is needed,’’ said Jane Zehnder-Merrell, Kids Count in Michigan Project director at the Michigan League for Public Policy.

The state Earned Income Tax Credit was cut 70 percent in 2011. It goes to working families earning the least. (Voting ‘yes’ on the May 5 road funding proposal will restore it to 20 percent.) Other barriers are hard caps on lifetime limits for cash assistance, fewer weeks of unemployment, an asset test that limits federally funded food assistance, and child care subsidies that haven’t kept up with inflation.

“These are the tools we have to make sure a family in a crisis doesn’t spiral downward and is able to survive. The shredding of these programs is bad policy when it comes to the well-being of Michigan’s children,’’ Zehnder-Merrell said. “It’s hoped that the merger of the state departments of Community Health and Human Services will offer improved services for children and families, though budget pressures could bring more cuts.’’

In addition, Michigan in recent years eliminated financial aid grants for adults attending public colleges and universities and slashed adult education to a fraction of where it was a decade ago.

The toxic effect of poverty on children cannot be overstated. Research shows that children growing up in poor homes are more likely to drop out of school and less likely to have stable employment as adults. Boosting income in those families through such strategies as tax credits pays off with children in those families earning more and working more hours when they grow up.

More than a half-million Michigan kids lived in poverty, defined as $23,600 or less a year for a two-parent family of four. Child poverty is particularly high in communities of color where a lack of jobs and transportation has deepened economic woes. Detroit, a majority African-American city, has the highest level of concentrated poverty of the 50 largest U.S. cities, a recent report from the Annie E. Casey Foundation found.

The Kids Count report also highlights the racial inequity in access to oral health that needs to be addressed in the 2016 budget. The Healthy Kids Dental program, which provides additional payments to dentists for children on Medicaid, is in 80 counties. The three remaining counties left out of the program, Wayne, Oakland and Kent, have large populations of children of color.

That means that only 28 percent of white children eligible for Medicaid are in counties without Healthy Kids Dental compared with 63 percent of African-American children eligible for Medicaid.

“Gov. Snyder has called for the Healthy Kids Dental to be available in all communities. That needs to happen this year. Using public dollars in a way that mainly benefits white children and leaves out African American children is simply unacceptable,’’ said Gilda Z. Jacobs, president and CEO of the Michigan League for Public Policy.

Of the 15 trends in child well-being examined in the report, eight improved, five worsened, one stayed about the same and one could not be tracked over time. The report also ranks 82 of the 83 counties for overall child well-being with Livingston and Ottawa counties tied for the best rating of No. 1.

Statewide, all four education trends improved while fewer children remained in foster homes or relative care. Yet nearly 200,000 children live in families investigated for abuse or neglect, a 41 percent jump in the rate between 2006 and 2013, while nearly 34,000 were confirmed as victims of abuse or neglect.

A partner in the release of the Kids Count report, Matt Gillard, president and CEO of Michigan’sChildren, said p revention and early intervention are the keys to ensuring safety at home.

“It’s so very important that we focus on interventions that work – the earlier the better. This includes increasing evidence-based services for the most challenged families in local communities to prevent child abuse or neglect, and targeting services to vulnerable families with infants,’’ Gillard said. “A two-generation approach that helps parents get the resources and tools that they need, while at the same time supporting children, is critical.”

The Michigan Coalition for Children and Families, representing 20 child and family advocacy groups across the state, will use the report to focus on improvements to benefit children.

“This report offers communities and state level officials a treasure trove of information so they can know what’s working and what needs to be improved,’’ said Michele Strasz, chair of MCCF and the director of the Capital Area College Access Network.

More contact information: Matt Gillard, matt@michiganschildren.org, 517.488.9129 (c); Michele Strasz, programdirector@capitalareacan.org, 517.712.2014 (c).

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Kids Count in Michigan project is part of a broad national effort to improve conditions for children and their families. Funding for the project is provided by the Annie E. Casey Foundation, the Detroit-based Skillman Foundation, Steelcase Foundation, Blue Cross Blue Shield of Michigan Foundation, United Way for Southeastern Michigan, Battle Creek Community Foundation, Kalamazoo Community Foundation and John E. Fetzer Fund of the Kalamazoo Community Foundation.

High poverty, unemployment harm economic growth

Often touted as the “Comeback State,” Michigan’s economic recovery has not included everyone as reflected in the state’s high poverty and unemployment rates. Leaving people behind will only hinder Michigan’s potential economic growth, which has already showed signs of slowing.

A recent report ranking states based on multiple indicators of economic security and opportunity reveals the state’s major lack of investment in its people. On almost every factor from poverty to education to affordable housing, Michigan is ranked worst or second-worst among the Midwest states. (more…)

11% of Mich. vets in households receiving food aid

More than one in every 10 Michigan veterans lives in a household that receives food assistance, a new policy brief estimates.

The report from the Center on Budget and Policy Priorities, released today in time for Veterans Day, is a reminder that thousands of struggling veterans use food assistance (formerly food stamps) to put food on the table.

The program, called Food Assistance Program in Michigan and SNAP at the federal level, helps 73,100 veterans — about 11% of Michigan’s vets. Michigan is one of 10 states where more than 10% of veterans are in households on food assistance.

“For low-income veterans, who may be unemployed, working in low-wage jobs, or disabled, SNAP provides an essential support that enables them to purchase nutritious food for their families,’’ the report states.

Food assistance has been a vital lifeline to many in Michigan as the state continues to recover from heavy job losses and falling income from the Great Recession.

Despite high unemployment and stagnating poverty, Michigan policymakers have made it harder rather than easier to get food assistance:

  • For a relatively small amount of additional heating assistance, Michigan could have opted to keep a ‘heat and eat’ provision that secured extra federal food assistance to families needing help with utilities. Only four states, including Michigan, of 16 using this option declined to continue by increasing help with utilities.
  • Michigan is bucking the trend nationwide by requiring a harsh food asset test that is not required by the federal government. Considering that the benefits are 100% federally paid, it’s unnecessary for Michigan to make it harder for veterans and others to access food assistance.

As policymakers continue to look for ways to tighten eligibility for public assistance in Michigan, it’s a good reminder that among those being harmed are veterans, who deserve help when they need it in return for the sacrifices they have made.

– Judy Putnam

 

 

Census numbers tell of stagnancy and slow recovery

Today is the big day that comes each year: the release of American Community Survey figures on income and poverty.

Ready for some numbers?

Michigan’s household median income in 2013 ($48,273) was a bit higher than in 2012, but is nearly $1,000 lower than in 2009. The income bracket that grew the largest from 2009 to 2013 was the share of Michigan households who make under $10,000 a year. The only other income bracket with a significant share increase was households making more than $200,000 a year. These numbers taken together suggest that the slow economic recovery in Michigan is primarily benefiting those at higher incomes. (more…)

Shooting ourselves in the foot

Michigan and the seven other states that cut unemployment benefits in the wake of the Great Recession caused financial hardship for unemployed workers and failed to boost the overall economic outlooks of the states, a new report from the Economic Policy Institute concludes.

Problems with the unemployment system actually stemmed from underfunding the state trust funds in good times, rather than paying out benefits too generously, the report concludes. And cutting benefits not only shortchanged jobless workers and their families, it undermined the countercyclical role of the unemployment system that is designed to kick in when times are tough. (more…)

Need Facts About Your County?

How much does a parent need to earn to be able to afford a two-bedroom apartment in your county? What percentage of children receive free or reduced-price lunches at school? What percent of the population in your county is Native American?

Answers to questions such as these can be found in the new, updated county fact sheets called Mapping the Facts, by the Michigan League for Public Policy. We developed these fact sheets for advocates, policymakers and concerned citizens. The sheets have been updated with the latest data available, including 2012 poverty statistics. (more…)

Vets lose benefits as we celebrate Fourth of July

Just as we head into one of our most patriotic celebrations of the year next week (the Fourth of July), a new estimate out shows that 285,000 unemployed veterans will lose jobless benefits by the end of June, including thousands of out-of-work vets in Michigan.

Extended benefits known as Emergency Unemployment Compensation expired Dec. 28. Congress’ failure to extend the benefits means that 1.3 million workers were cut off from unemployment benefits nationwide at the end of last year, with an additional 1.6 million exhausting their regular state benefits in the first six months of this year. Included in those numbers are nearly 300,000 jobless vets, Chad Stone, chief economist at the Center on Budget and Policy Priorities, estimates. (more…)

Senator’s claim smells fishy

Two out of the last three times the minimum wage was raised, Michigan’s unemployment rate decreased in the years that followed.

That indisputable fact makes a recent claim from state Sen. Pat Colbeck, R- Canton, surprising.

The Detroit Free Press and the Detroit News reported last week the senator’s assertion that raising the minimum wage will decrease the rate of employment “every time.” This false claim needs to be corrected. (more…)

Ramp up pressure on Unemployment Insurance

“I agree with you, I want to do it, now make me do it.”  ~ President Franklin D. Roosevelt to Sidney Hillman and other labor leaders after his election in 1932.

“I don’t think there is a great sense of pressure on our members.”  ~ Deputy Whip Rep. Tom Cole, R-Okla., responding to a question about renewing long-term Unemployment Insurance benefits, 2014.

The U.S. Senate passed a bill to extend Emergency Unemployment Compensation Monday evening with bipartisan support and with benefits retroactive to Dec. 28 when the program expired. Yet U.S. House leaders show little interest in bringing it up for a vote. (more…)

Raise Michigan raises hope

The possibility of a long-overdue increase to Michigan’s minimum wage is on the horizon with the kickoff of the Raise Michigan campaign to put the issue before voters on the fall ballot.

If successful, it will raise Michigan’s $7.40 an hour wage minimum wage to $10.10 over three years and index it to inflation. It also includes a gradual increase of the $2.65/hour “tipped” wage for restaurant servers.

With so many problems to report on – rising income inequality, growing number of low-income working moms and shrinking windows of opportunity for our young people – it’s good to be able to talk about a positive solution. (more…)

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