Block Grants: Funding Falls Making Innovation Harder

Transcription

1 Center on Budget and Policy Priorities Block Grants: Funding Falls Making Innovation Harder Sharon Parrott Center on Budget and Policy Priorities March 5, 2018 cbpp.org

2 Center on Budget and Policy Priorities What is a block grant? Two types of block grants Limited or single use block grants (like child care) Broad or multi-purpose block grants (TANF, Social Services Block Grant) cbpp.org

3 Center on Budget and Policy Priorities Basic Features Capped funding distributed by formula Funding often frozen, not tied to need Distribution of funds often is fixed or changes slowly with changes in relative need Federal requirements can be more or less stringent Broader use block grants tend to have broader flexibility on how funds can be used, but there are exceptions Block grants often go to states and flexibility tends to go to them (not localities that receive funding) cbpp.org

4 Center on Budget and Policy Priorities Lessons from History Funding tends to decline significantly over time Block grants with broader purposes can see funding spread over many areas and can be used to plug state budget holes/supplant state funding Support in Congress can wane cbpp.org

5 Center on Budget and Policy Priorities cbpp.org

6 Center on Budget and Policy Priorities 2016 School Meal Block Grant Proposal Funding was set below 2016 level and then frozen States controlled the funds and could set policy Funds could be spent on a broader set of purposes as long as those purposes related to school-age children s nutrition needs 3-state demo but question is whether this is an idea to pursue cbpp.org

7 Center on Budget and Policy Priorities Issues: Funding Funding would not adjust based on meals served, children served, child poverty, school population, or food costs. Funding would not adjust based on changes in need across states and would not automatically adjust based on changes within states Funding would not adjust because states or districts adopted policies, such as: expand school breakfast, improve data matching, or adopt community eligibility cbpp.org

8 Center on Budget and Policy Priorities Child Nutrition Would Face Big Cuts Under House-Proposed Block Grant cbpp.org

9 Center on Budget and Policy Priorities cbpp.org

10 Center on Budget and Policy Priorities If House-Proposed Block Grant for School Meals Had Taken Effect in 2008 cbpp.org

11 Center on Budget and Policy Priorities Issue: Flexibility Under House proposal, states would get significant flexibility in program design Cost of flexibility? Funding would become less and less adequate even if need didn t increase If need increases during a recession, funding would fall further compared to need What states really get: flexibility to increase state/local spending on the program OR flexibility to decide how they cut their programs cbpp.org

12 Center on Budget and Policy Priorities Modest Adjustments Won t Fix Basic Flaws Even if adjusted for inflation, block grants don t adjust for: Recessions Plant closure Increased outreach/participation Mechanisms to adjust for need seldom work cbpp.org

13 Protecting School Nutrition & Other Vital Programs Rebecca Vallas, Vice President, Poverty to Prosperity Program Center for American Progress March 2018

14 Current Landscape Threats facing nearly every program and policy that helps struggling kids & families make ends meet Nutrition, housing, energy assistance, disability benefits, Medicaid, and more Proposals to restrict eligibility and/or benefits, incl. via block grants and restrictive caps Widespread opposition to cuts New polling commissioned by CAP

15 When they say Flexibility Also: Streamlining Local control Cap funding Model programs after TANF They really mean Block grant Flat funding that doesn t adjust for need, population growth, recessions Funding shrinks over time $ can be diverted to plug state budget holes Welfare reform Workforce development Also: Welfare to work Promoting work Leverage private sector dollars Reduce funding for assistance programs; cut benefits and/or restrict eligibility Harsh time limits on assistance for people who cannot find a job or get enough hours at work Hope charity will meet need due to cuts

16 Poll: Methodology Figure 15 Survey conducted January 24 th 29 th, 2018 Representative online national survey of 2,000 registered voters plus demographic over-samples of: African American Registered Voters Hispanic/Latino Registered Voters Millennial Voters ages Overall margin of error: ±2.0 percentage points at the 95 percent confidence interval

17 Poll: Key Findings Figure 16 Americans oppose proposals to restrict eligibility and reduce funding for government assistance programs Across party lines; even Trump voters opposed to cuts Majority less likely to support candidate who backs cuts Why? 70% of Americans directly impacted by economic hardship in past year (themselves and/or immediate family member) Believe government should meet basic living standards for those in need; reject dependency argument Majority believe cuts proposed to fund tax plan, oppose cuts to assistance programs to fund tax cuts for wealthy

18 Poll: Broad Majorities Oppose Specific Program Cuts in GOP Plan Figure 17 Below are some specific policy solutions that have been proposed as part of Republican efforts to restrict eligibility and reduce overall spending on government assistance programs for low-income people. For each one, please tell mark whether you would SUPPORT or OPPOSE that particular policy solution. Cut funding for Medicaid, which provides health coverage mainly for seniors, people with disabilities, children, and low-income families Cut funding and restrict eligibility for Social Security disability programs, which help people with disabilities replace lost wages Cut funding for home heating assistance programs for low-income families Cut funding for unemployment insurance, which provides temporary income support for workers who have lost their job through no fault of their own Cut funding for the Head Start early childhood education program Cut funding for programs that provide access to affordable housing Strongly oppose Total oppose

19 Poll: Broad Majorities Oppose Specific Program Cuts Figure 18 Below are some specific policy solutions that have been proposed as part of Republican efforts to restrict eligibility and reduce overall spending on government assistance programs for low-income people. For each one, please tell mark whether you would SUPPORT or OPPOSE that particular policy solution. Cut funding and restrict eligibility for nutrition assistance programs such as food stamps Restrict eligibility for health care subsidies under the Affordable Care Act (SPLIT D) Allow states to deny Medicaid health coverage to recipients ages 18 to 64 who cannot find a job with a certain amount of hours and are not participating in state-approved work programs (SPLIT C) Allow states to deny Medicaid health coverage to recipients ages 18 to 64 who do not have a job with a certain amount of hours and do not participate in state-approved work programs Consolidate multiple federal anti-poverty programs into "block grants" that replace guaranteed benefits with a set amount of money given to states to spend as they choose Expand the Earned Income Tax Credit to include workers who have no children Strongly oppose Total oppose

20 Poll: Majority Believe Cuts Proposed to Fund Tax Cuts for Wealthy Figure 19 Which of the following do you think is the primary reason President Trump and Republicans in Congress are trying to restrict eligibility and reduce overall spending on government assistance programs for low-income people? Total African American Hispanic White Women They are concerned that these programs create dependency, and they want to make changes to lift more people out of poverty They do not like these programs for low-income people and want to cut them to help pay for the tax cuts for the wealthy that they recently passed 63 50

21 Poll: Opponents Driven by Trade-Off Between Cuts & Tax Breaks Figure 20 (IF OPPOSE IN Q.46/Q.47) What is the best reason to OPPOSE a proposal to restrict eligibility and reduce overall spending on government assistance programs for low-income people that includes all or most of these provisions? We shouldn't cut assistance for struggling families to fund tax breaks that mainly benefit the wealthy and big corporations 47 It will punish millions of Americans and deny them access to basic living standards 21 It does nothing to address the real problems of low wages and not enough good jobs 17 We have a moral obligation to help those in need

22 Poll: Majorities Less Likely to Support Candidates Who Vote for Range of Cuts Figure 21 Thinking about the election for Congress later this year, would you be MORE LIKELY or LESS LIKELY to vote for a candidate who supports each of the following proposals, or would it make no difference in your vote? Cut and restrict eligibility for Social Security disability programs Cut funding for Medicaid Cut funding for the Head Start early childhood education program Cut funding for unemployment insurance Cut funding for home heating assistance programs Cut funding for programs that provide access to affordable housing Cut funding and restrict eligibility for nutrition assistance programs Much less likely Total less likely

23 Figure 22 Poll: Nearly Half of Americans Directly Affected by Scarcity of Jobs w/good Wages Have you or a member of your immediate family had a serious problem with this issue over the past year? Yes, I have Total Yes, I have + Yes, a family member has Finding a decent job with good wages Total African American Hispanic 18 to 34 years old

24 Poll: Access to Medical Care Due to Cost Directly Affects Nearly 40% Figure 23 Have you or a member of your immediate family had a serious problem with this issue over the past year? Yes, I have Total Yes, I have + Yes, a family member has Being unable to get medical care because of the cost Total African American Hispanic 18 to 34 years old

25 Poll: Nearly 40% of Americans Also Struggling with Food Security Figure 24 Have you or a member of your immediate family had a serious problem with this issue over the past year? Yes, I have Total Yes, I have + Yes, a family member has Having too little money to buy enough food Total African American Hispanic 18 to 34 years old

26 Poll: Nearly 30% Struggling with Rent & Mortgage Payments Figure 25 Have you or a member of your immediate family had a serious problem with this issue over the past year? Yes, I have Total Yes, I have + Yes, a family member has Falling behind on rent or mortgage payments Total African American Hispanic 18 to 34 years old

27 Figure 26 Poll: Voters Embrace Need for Government Assistance by More than 3-to-1 Now I'm going to read you some pairs of statements. After I read both statements, please tell me whether the first statement or the second statement comes closer to your own view, even if neither is exactly right. Even if I may not need them now, I'm glad our society provides government services to ensure basic living standards for when times get tough. I don't envision ever being in a position where I would need or want to use the health care, nutrition, housing, or income support offered by the government Strong glad we provide services Total glad we provide services Strong won't need gov't support Total won't need gov't support Total African American Hispanic White Non-college 18 to 34 years old

28 Poll: Key Findings Figure 27 Americans oppose proposals to restrict eligibility and reduce funding for government assistance programs Across party lines; even Trump voters opposed to cuts Majority less likely to support candidate who backs cuts Why? 70% of Americans directly impacted by economic hardship in past year (themselves and/or immediate family member) Believe government should meet basic living standards for those in need; reject dependency argument Majority believe cuts proposed to fund tax plan, oppose cuts to assistance programs to fund tax cuts for wealthy

29 Hands Off Campaign to Stop Cuts Figure 28 Our partners: A national campaign dedicated to stopping cuts to nutrition, housing, Medicaid, disability benefits, and other critical programs that help kids and families afford the basics. Core goals: Put a face on programs at risk Show policymakers that supporting cuts will have political consequences Indivisible MoveOn Center for Popular Democracy AFSCME Planned Parenthood UNIDOS US Generation Progress Coalition on Human Needs American Federation of Teachers Public Citizen NETWORK National Women s Law Center Alliance for Retired Americans SEIU Food Research and Action Council (FRAC) Justice in Aging Center for Community Change Social Security Works PICO National Network Stand Up America Next Gen America The Arc Organizing for America National Low-Income Housing Coalition Share stories at handsoff.org and using #HandsOff

30 Hands Off: Storytelling Kendra Tapper, mother of 3, finished college and earned a master s degree thanks to WIC, SNAP, housing assistance, and CHIP

31 Hands Off: Storytelling Marta Conner, mother of Caroline, age 8, lives with Rett Syndrome Without Medicaid for Caroline, this is a matter of life and death.