Senate Finance Committee May 31, 2013 Testimony of Lisa Hamler-Fugitt, Executive Director

Transcription

1 Senate Finance Committee May 31, 2013 Testimony of Lisa Hamler-Fugitt, Executive Director 51 N. High St. Suite 761 Columbus, OH Phone: Fax: Chairman Oelslager, Vice Chairman Coley,Ranking Minority Member Sawyer, and members of the Committee, thank you for the opportunity to testify. I am Lisa Hamler-Fugitt, executive director of the Ohio Association of Foodbanks, Ohio s largest charitable response to hunger. Representing Ohio s 12 foodbanks, providing food funding, training, and technical assistance to 3,300 food pantries, soup kitchens, and homeless shelters. Over 80 percent of our charities are faith-based, volunteer-driven, operating on budgets of less than $25,000 a year and in the last quarter of 2012 served 2,365,773 Ohioans. The is part of Advocates for Ohio s Future, a statewide coalition of more than 400 organizations that works to strengthen families and communities in Ohio. Home of The Ohio Benefit Bank First, we want to thank you for your previous support and commitment to your hungry constituents, our needy friends and neighbors. And we want to thank Governor John Kasich for his exceptional leadership in Ohio s fight against hunger and for including funding for essential hunger relief programs in the Executive Budget and the executive orders that have been critical lifelines to our network over the last two years. I have attached to my testimony a memo that was delivered and ed to your offices on Wednesday clarifying how the funds from the Governor s recent Executive Order will be utilized by the association and our member foodbanks over the next 30 days, in an effort to hold back the flood gates of rising demand and depleted inventories. Hunger is an urgent problem in Ohio that must be addressed or high health care costs, lost educational achievement and worker productivity will rob our state and our communities of their potential. Our network of last resort has been battling a combination of factors that have left needy Ohioans searching for a few more meals every month in an effort to make ends meet and the 88-county hunger relief network with bare shelves. Rising food and fuel costs combined with stagnant household incomes, high poverty rates, lingering underemployment, and an aging population have combined to create a perfect storm in Ohio. In fact the current State Fiscal Year 2013 appropriation on $12.5 million was exhausted by February, as demand climbed and donations declined. A Partner State Association of Feeding America

2 Our state s public-private response to the issue of hunger, the Ohio Food Program and Agricultural Clearance Program (OFPACP), began in This partnership has been supported by four Governors, eight Ohio General Assemblies, four administrations, and generously administered through the budget of the Ohio Department of Job and Family Services. OFPACP makes Ohio-grown produce, protein items, and shelf-stable foods available to foodbanks to complement other food products acquired through the federal Emergency Food Assistance Program (TEFAP), donations, and other private sources. The association purchases surplus or otherwise unmarketable agricultural products from local farmers and growers for pennies on the pound, which helps prevent waste and helps Ohio s farmers recover production costs. The association also bulk purchases indemand items like peanut butter, eggs, poultry, and more to keep foodbank shelves stocked. In state fiscal year 2012, 40 million pounds of food was purchased at a total cost of $12.5 million. This food provided 33.3 million meals to needy families through Ohio s network of foodbanks. i Ten reasons why the State should support an investment in the Ohio Food Purchase and Agricultural Clearance Program of $17 million per year or $34 million over the biennium. 1. Ohio s emergency food assistance network served more than one in five Ohioans (2.32 million), an increase of 46 percent in the last three years. One-third of households had at least one working adult and 43 percent of the people we served reported making choices between food and gasoline. ii 2. 3,561,514 Ohioans, 31.8% of the State s population, are now eligible for emergency food assistance, with traditionally affluent counties showing the greatest increase. iii 3. Suburban areas across the state and nation appear to have borne the brunt of the Great Recession s fallout as illustrated in the following chart.

3 4. Poverty increased by 57.7% between 1999 and 2011, but the state s population increased by only 1.7%, and the effects of the Great Recession are still with us, and growing rapidly for the working poor. iv 5. A recent report by the Center for American Progress pegs the U.S. domestic cost of hunger in 2010 at $167.5 billion. For Ohio, the shared cost of hunger was estimated at $6.97 billion an increase of more than 33 percent since Ohio has the fifth-highest hunger bill in the United States. 6. According to the report, 78 percent of the entire hunger bill is a result of increased hunger-related illness and avoidable health care costs. Individuals experiencing hunger have higher sickness rates, increased malnutrition and chronic disease, and are more likely to suffer from depression, anxiety and other mental health challenges % of those we serve have to make the difficult choice between paying for medicine or medical care and buying food. One-third of the households we served had a member in poor health and, of those, 20 percent were suffering from a diet-related disease, like diabetes, hypertension, nerve disease, blindness, limb amputations, or renal failure Nearly 820,000 Ohio youngsters 44.4 percent of all students received subsidized meals this school year, according to the Ohio Department of Education. The most significant increases have, again, been in formally affluent and suburban districts. 9. Children from households experiencing hunger and low food security are more likely to miss school days, require special education or have to repeat a grade and are vulnerable to long-term deficiencies in social interaction, attention spans and overall learning ability. Children who are hungry are at higher risk of not completing high school and are less likely to go on to higher education which is linked to limited employability and lower lifetime earnings. 10. In state fiscal year 2012 the Agricultural Clearance Program, Ohio Food Program, and the Executive Order authorized by Governor Kasich added $30.2 million in output across Ohio, generated $8.7 million in income, and led to the creation of 376 jobs in addition to the direct benefit of providing 33.3 million meals to needy Ohioans, a remarkable return on investment. v

4 We all want a better Ohio, an Ohio where our people are strong, smart, healthy, and able to put their creativity and intelligence toward our better future. What we eat and whether we get enough to eat deeply affects all of the very important issues that it is your privilege and your burden to make decisions about every day. With the requested increase in funding, the will be positioned to acquire more than 70 million pounds of highly nutritious protein items, shelf-stable foods, and fresh fruits and vegetables, representing more than 56 million meals for hungry Ohioans. This investment makes good sense, affects educational attainment, health care cost and economic development and is a necessary and fiscally responsible choice to be included in the budget. Thank you for your time today and your consideration of our request, less than $1 per person, per month served by the emergency food assistance network. I would be pleased to answer any questions you may have. i 2012 Annual Report ii Hunger in Ohio, Mathematica Policy Research, Inc. iii March 28, Department of Development analysis of U.S. Department of Labor statistics. iv The State of Poverty 2012, Dispelling Myths & Preconceived Notions, Ohio Association of Community Action Agencies. v Independent Economic Impact of Ohio Food Program and Agricultural Clearance Program, State Fiscal Year 2012 Howard Fleeter March 11,

5 Date: May 29, 2013 To: President Keith Faber, President Pro-Temp Chris Widener, Majority Floor Leader Tom Patton, Majority Whip Larry Obhof, Senator Scott Oelslager, Senator Bill Coley, Senator David Burke, Senator Randy Gardner, Senator Jim Hughes, Senator Shannon Jones, Senator Bob Peterson Senator Frank LaRose, Senator Tom Sawyer, Senator Joe Schiavoni, Senator Shirley Smith, Senator Charleta Tavares, Senator Capri Cafaro, Senator John Eklund and Minority Leader Eric Kearney From: Lisa Hamler-Fugitt, RE: Request for consideration of an amendment to provide additional funding for the Ohio Association of Foodbanks Thank you for this opportunity to clarify our budget request for additional funding in the Omnibus amendment to Sub. H.B. 59. As Ohio s largest charitable response to hunger, our association represents 12 Feeding America foodbanks and provides hunger relief in all 88 Ohio counties through a network of 3,300 food pantries, soup kitchens, and hunger relief organizations. Hunger is an urgent problem in Ohio that must be addressed or high health care costs, lost educational achievement and worker productivity will rob our state and our communities of their potential. Our network of last resort has been battling a combination of factors that have left needy Ohioans searching for a few more meals to make ends meet and the 88-county hunger relief network with bare shelves. Rising food and fuel costs combined with stagnant household incomes, high poverty rates, lingering underemployment, and an aging population have combined to create a perfect storm in Ohio. In fact the current State Fiscal Year 2013 appropriation was exhausted by February, as demand climbed and donations declined. Last year the funds provide by the Ohio General Assembly allowed us to acquire more than 42.7 million pounds of wholesome food by reimbursing farmers, growers, and commodity producers for millions of pounds of surplus fruits and vegetables for pennies on the pound and to purchase millions of pounds of lean protein and shelf-stable foods for an average of $0.67 a pound. This program prevents waste, reduces losses for farmers and growers, creates jobs, and most importantly, provides the most wholesome food we have to distribute to 2.32 million struggling Ohioans who are standing at our doors, an incredible achievement and partnership. No state funding can be used to purchase non-food items such as toothpaste, shampoo, soap, households cleaning items, or diapers. On May 23, 2013, Governor John R. Kasich signed an Executive Order to provide up to $1.5 million from the Governor s Office of Faith-Based and Community Initiatives (GOFBCI) in the current fiscal year and to dedicate these funds to hunger relief. This Executive Order provides individual foodbanks with an equal share of the $1 million ($76,923 per foodbank) to help them purchase specific shelf-stable foods, produce, and other non-food items such as personal care, personal hygiene household cleaning items, diapers, and infant formula for low-income families, items needed to secure or retain employment. These funds must be spent by June 30, This Executive Order provided up to $500,000 to the to purchase fresh fruits, vegetables, and other protein foods that will be distributed to specific low-income families whose children are served through the summer food service and weekend meal programs. The funds must be spent by June 30, 2013 and will cover the cost of procuring and distributing these foods in the month of June only.

6 This Executive Order will provide critical and timely support, such as: The West Ohio Food Bank in Lima will use their $76,923 to partially cover the cost to repair and replace their broken down HVAC system and their 30+ year old freezer/refrigeration units which will ensure their ability to continue safely storing and distributing perishable food for the 153 agencies they serve in their 10 county service territory. This foodbank was forced to operate its warehouse without heat all winter. The Akron-Canton Regional Foodbank (ACRF) is very grateful for this important allocation that will provide them with additional resources to help the 351 member charities they serve in their 8 county service territory to feed people and fight hunger. The $76,923 allotted to the ACRF, will allow them to purchase $45,239 worth of peanut butter, 4,224 cases with oz. jars in each case for a total of 50,688 jars of peanut butter and $14,484 will purchase 43,464 boxes of macaroni and cheese ($0.30 per box). $17,200 will be used to purchase 2 Yale Pallet Riders to replace two aging units that are currently used on a daily basis to move product and pick orders for agencies in their 85,000 square foot Foodbank warehouse. Both of these units are in constant need of repair and are well past the projected original life of the equipment. The Cleveland Foodbank in Cleveland will use their allocations to purchase hand and body soap, laundry detergent, diapers, toothpaste, and toilet paper for the 519 agencies they serve in their 6 county territory. These items are always in very high demand in the emergency food network and the most expensive items that foodbanks purchase, when they can afford to purchase them. The Second Harvest Food Bank of Clark, Champaign, & Logan Counties, a program of Catholic Charities Southwestern Ohio located in Springfield, will use their allocation to purchase peanut butter & jelly, canned fruit, cereal, soup, beans, shelf-stable milk, bar soap, toothpaste, shampoo/conditioner, and deodorant to distribute to the 93 non-profit and faith-based emergency food providers they serve in their 3 county service territory. They state that this is a tremendous gift and is truly appreciated! The Shared Harvest Foodbank located in Fairfield in Butler County will purchase 400 cases of each of the following items: corn flakes, pork & beans, spaghetti noodles, spaghetti sauce, green beans, mac & cheese, spaghetti & meatballs, canned corn, peanut butter, chicken noodle soup, toilet paper, laundry detergent, shampoo, and bar soap to help meet the demand in June from the 82 agencies they serve in their 5 county service territory. The Second Harvest Food Bank of North Central Ohio located in Lorain will purchase fresh produce ($27,500), cereal ($23,500), canned vegetables ($18,600), 100% juice boxes ($9,500) and will allocate any unexpended funds on frozen meat in their effort to help meet the needs of the 146 agencies they serve in their 4 county service territory. I hope this brief summary helps you to understand how this critical funding from the Governor s Executive Order will be utilized in the next 33 days to help meet the needs of our hungry friends and neighbors. In closing, the respectfully urges your support of an amendment to provide an additional $2 million per year to expand the state s investment in programs that have proven results, benefit hungry Ohioans of all ages, and provide indirect benefits to farmers, local communities, and taxpayers. By increasing this funding, the will be positioned to acquire more than 70 million pounds of highly nutritious protein items, shelf-stable

7 foods, and fresh fruits and vegetables, representing more than 56 million meals for hungry Ohioans. This investment makes good sense and is a necessary and fiscally responsible choice to be included in the budget. We look forward to working with you and your colleagues and urge your support of this modest and humble request, representing less than $1 per person, per month served through our statewide network. Should you have any questions, or if I can provide you with any additional information, please don t hesitate to contact me at 614/ ext. 222 or by cell at 614/