Poverty in Michigan. Karen Holcomb-Merrill, Policy Director St. Vincent de Paul April 20, 2013

Transcription

1 Poverty in Michigan Karen Holcomb-Merrill, Policy Director St. Vincent de Paul April 20, 2013

2 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 (517) Fax: (517) Web site: A United Way Agency

3 Michigan Families Are Losing Ground Median income down 20% largest drop in the nation in a decade Poverty up by 66% the fastest growth in the nation over last decade State ranks in top 10 nationally for the number of people without jobs FOOD 3

4 The Human Toll One of every four children in Michigan lives in poverty One third of working families in Michigan are low income Income disparities nationwide are at highest levels since Great Depression 4

5 What is Poverty? Family of 3 Family of 4 $18,000 $24,000

6 Poverty in Michigan Continues to Rise 30% 20% Children Families with Children All People 10% 0%

7 2011 Poverty Total 17.5% Children 24.4% Families with Children 20.9%

8 How Much Do KIDS COUNT in Michigan? Michigan kids in poverty would fill the UM Big House 5 times

9 Young Children, Ages 0-5, Eligible for Food Assistance Program* 2011 (MI 37.4%)

10 Change in Family Poverty, 2007 and 2011

11 Change in Poverty by Race/Ethnicity,

12 Poverty by Race/Ethnicity, % white, not Latino

13 What Causes/Contributes to Poverty?

14 400,000 Workers Unemployed Every Month in 2012.

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

16 Tax Changes Cuts to business taxes Shift the burden to individuals CREDIT CARDS CAR PAYMENT FOOD GAS MORTGAGE

17 Michigan Earned Income Tax Credit Cut, 2011 vs $439 70% drop $132

18 Fewer Children Kept Out of Poverty 20% = 14,000 6% = 5,000

19 It s Not Just the Economy! Budget and policy decisions in Lansing help drive rising poverty and growing income inequality The problems we must tackle: An outdated and broken revenue structure State budgets that fail to prioritize lowincome and working families Federal cuts through sequestration 19

20 Michigan s Track Record A decade of balancing the state budget through: Deep cuts in services affecting low-income and working families Temporary tax increases and tax changes that shift burden from businesses to individuals 20

21 A Decade of Disinvestment Virtually all state-funded services have been cut except health and corrections in the face of a more than 20% increase in inflation Percent Change in State Spending (General Fund and State Restricted) FY 2003 to FY 2013 Percent Change 60% 45% 30% 15% 0% -15% -30% 53% Community Health 21% Corrections -7% Human Services -0.8% K-12 School Aid -5% Community Colleges -29% Higher Education Revenue Sharing Change in Detroit CPI FY2003- FY2013: 21% -25% 16% All Other Programs 7% Total State Spending Source: Senate Fiscal Agency 21

22 Policy Changes Michigan was the first state to cut extended UI benefits to 20 weeks from 26 weeks Compared to other Midwestern states, MI has the lowest benefits and workers who are least likely to be eligible 22

23 Public Assistance Restricted Heating and energy assistance cut Asset test for food assistance Lifetime cap on cash assistance, reducing funding for FIP by 44% in just 4 years. 23

24 Lowlights of FY 2014 Budget Gov. cuts: DHS funding by 10% House rejects: Medicaid expansion Dental care Mental health services for veterans 24

25 And More of FY 2014 Budget Gov. and House provide no across-the-board increase for public schools; with reductions in other programs, some schools will see cuts Gov. cuts public health programs by 29%; House increases the cut to 41% House rejects Gov. s proposal to provide $2.5 million to prevent infant mortality Gov. increases funding for preschool by $65 million; House by $50 million 25

26 What Can We Do to Reduce Economic Insecurity? Restore unemployment insurance benefits and index them for inflation. Restore the Earned Income Tax Credit. Raise the minimum wage to a level that lifts a family of four above the poverty level ($24,000). Raise the eligibility and adjust the sliding scale for the child care subsidy.

27 What Can We Do to Reduce Economic Insecurity? Expand Medicaid Pass a state budget that reflects our priorities for the common good Modernize our revenue structure to grow the pie

28 Advocacy 202: YOU CAN MAKE A DIFFERENCE Contact your legislators/ members of Congress Write letters to the editor/opeds Provide stories of impact of policy decisions

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