With caseloads only one-fifth of what they were 20 years ago, why do myths persist that “welfare is out of control” and “welfare spending is making Michigan broke?”

Skimming through the comment sections of online articles about cash assistance (not a valuable use of time, by the way), one finds rants reminiscent of this famous scene from Twelve Angry Men, much of which are based on misinformation or habitual assumptions about the cash assistance program and its recipients.

A few facts about FIP: recipients are required to work and the majority have jobs or engage in work activities, there is a 48-month time limit, most recipients are on for a short time, and rural counties are as likely as urban ones to have more than 1% of their population receiving FIP.

As the League’s Economic Security Bulletin points out, the FIP caseload has not tracked consistently with unemployment. The March unemployment rate was 8.5% and the FIP caseload dropped below 50,000 for the first time.

The last time Michigan had an unemployment rate of 8.5%, in August 2008, there were more than 69,000 families receiving assistance—but the caseload hardly budged over the following year as unemployment jumped to 14.2%. In fact, from 2007 to 2010, caseloads dropped consistently as the unemployment rate rose.

I have yet to see any spirited discussions in the online “rantosphere” about whether FIP effectively responds to hardship or if misguided policies are preventing some needy families from receiving assistance. No surprise. But with caseloads at an all-time low and unemployment still too high, that is a conversation that needs to take place where it actually matters: in the Legislature and in the Department of Human Services.

– Peter Ruark

Michigan, like other states around the country, has turned the corner following the national Great Recession, and revenues are inching up while unemployment slowly falls. The new revenue consensus by state fiscal experts is that Michigan will have an additional $702 million in combined revenues above earlier estimates for fiscal years 2013 and 2014—including a total of $579 million in state General Funds, and $123 million in the School Aid Fund.

While the promise of unexpected state revenues is encouraging, it follows years of steep revenue declines and related budget cuts, many of which disproportionately hurt low- and moderate-income families. To put it into perspective: Although state General Funds are projected to rise slightly in Fiscal Year 2014, according to the Senate Fiscal Agency, it’s rising over the lowest level in a quarter century. The significant decline in revenue experienced during the Great Recession in fiscal years 2009 and 2010 reduced General Fund revenue to its lowest level since Fiscal Year 1988.

In addition, because of the Great Tax Shift of 2011, a significant portion of the “new” revenues coming into state coffers flow from the loss of tax credits and deductions previously available to low-income working families, pensioners and other individual taxpayers—rather than businesses. As part of its report at the Revenue Estimating Conference, the Senate Fiscal Agency noted that the combined effect of the 2011 tax changes is to increase individual income tax revenue in 2014 by approximately $1.5 billion, while business taxes fall by $2 billion.

As revenues lagged during the Great Recession, low- and moderate-income families, public schools, and local cities and municipalities all suffered deep cuts with few restorations in sight as lawmakers finalize the Fiscal Year 2014 budget. Very poor children were denied income assistance as a result of changes in lifetime limits, fewer low-income families had access to federally funded food assistance because of the state’s decision to impose an optional asset limit, public schools suffered deep cuts, and low-income working families found it harder to maintain their low-wage jobs after a 70% cut in the Michigan Earned Income Tax Credit.   

While certainly not a windfall given the many and deep cuts Michigan has made in public services over the last decade, with this unexpected revenue, the Legislature has an opportunity to begin to reverse some of the damaging policy decisions made to balance the budget and provide business tax cuts. The priority should be investments in the services that help low-wage earners stay in the workforce, ensure a healthy and well-educated workforce, and protect children.

At the top of the list:  a partial restoration of the Michigan Earned Income Tax Credit to 10% at a cost of about $72 million.  This credit only goes to working families and will allow them to make ends meet with basic needs — food, transportation and housing.

Low- and moderate-income families were the first to be asked to sacrifice during tough times. Now, with unexpected revenue, they should be first in line again as priorities for the revenue are decided.

– Pat Sorenson

While the bill is a step that opens a previously closed door to discussion, the contents of the bill differ greatly from that supported by Gov. Rick Snyder and  raise many questions and serious concerns.  It demands submission of an unreasonable federal waiver, and if all provisions are not approved, expansion does not occur. 

While it would  cover “nondisabled adults ages 21-64” with incomes up to 133% of the federal poverty level ($15,282 for an individual, $31,322 family of four), it also requires a contribution for healthcare costs of up to 5% of annual income as well as establishes a 48-month time limit. A 5% contribution requirement seems excessive for low-income working individuals and families, who are currently struggling  to make ends meet.

Implementing a 48-month time limit for current and new (nondisabled) adult recipients seems very harmful to long-term health outcomes. Diabetes and high blood pressure cannot be cured in 48 months, for example.

With Michigan recently regaining its No. 1 national ranking in the number of people who have lost employer-sponsored coverage, 1.6 million, over the last decade, the time limit is even more troubling. The number of workers ages 18-64 with employer-sponsored coverage fell by 1.23 million, the largest drop in the nation over the last decade.  Jobs with healthcare coverage are harder and harder to find.

What impact would time limits have on infant mortality? Michigan currently ranks 37th. What would happen to a pregnant woman who has exceeded her 48-month time limit? Right Start data demonstrates we have a long way to go to improve maternal and infant health without restrictions such as time limits.

What about the 50,000 direct care workers in nursing homes, assisted living facilities and those who provide home care who are expected to qualify for expanded Medicaid eligibility?

The legislation suggests individuals “may select private health insurance” through the Healthcare Market Place or privately once the 48 months end. However, those with incomes below 100% of the federal poverty level ($11,490 for an individual, $23,550 for family of four), are ineligible for federal subsidies to purchase coverage through the Healthcare Market Place, and no state subsidies are proposed. It is unlikely that community direct care workers with median annual earnings of $12,000 would be able to purchase coverage without subsidies. 

There are many, many other examples of hardworking, low-wage individuals who do not have access to healthcare coverage – child care workers, retail sales, servers in restaurants, employees in small businesses, who would benefit from expanding Medicaid eligibility. They are not expecting a “handout.” They just need a little help.

Business understands it can’t solve healthcare issues alone. Several regional chambers of commerce as well as the Small Business Association of Michigan strongly support the governor’s proposal. They recognize the opportunity and importance of having a healthier workforce for the long run and ending the cost shifting that occurs when there are high numbers of uninsured.

Serious discussion is needed on this legislation to make it work for low-income, hardworking Michiganians. I am constantly reminded that we are all one catastrophic diagnosis away from healthcare insecurity and economic disaster. I concur with the lawmaker who said: “Medicaid is not a way of life.” Rather it is a way to have or to save a life. 

– Jan Hudson

Jacob, who had been in Head Start for two years, was looking forward to preschool, but cuts from the federal sequestration means he will not be able to attend Head Start this fall – as his siblings did before him – since the funding cuts forced North Kent Head Start in Cedar Springs to terminate its Head Start preschool program.

Other Kent County Head Start programs that also face closures include the Sparta, Rockford and Lowell programs, affecting around 149 children. Statewide, an estimated 2,200 preschool-aged Michigan children will also be affected.

Teresa and her husband, David, understand the importance of early childhood education and know from experience the benefits that Head Start imparts on low-income families and their children. David works at a box-making factory where he operates a corrugator machine that makes cardboard used for box assembly, while Teresa stays home with the kids.

Their older children, Kathy, David and Ashly, who were able to attend Head Start, entered kindergarten a step ahead of other children in their classrooms. Through the zoo-phonics classes offered at Head Start, for example, they learned to recognize sounds and letters earlier than other children, which later facilitated their ability to read and write more quickly and proficiently.

Head Start classes also gave the Erxleben children an opportunity to socialize with others their age. This is particularly important for children living in rural areas, who may be miles away from the nearest playground. Socialization skills are a part of the Head Start curriculum that helps children learn coping skills, such as how to share and how to deal with other children who may be in the process of learning to share.

“When another child takes a toy away from my child, coping skills taught in Head Start helps my child say ‘I don’t like that,’ or ‘You can play with it when I’m done,’” says Teresa.

These skills help prevent fights and disruptive behavior that may impede a child’s academic success.

Because Head Start is a comprehensive program designed to not only prepare children for kindergarten, but to also foster a safe and secure family environment for young children, the loss of this program to families like the Erxlebens can be very damaging.

“Head Start is about the whole family,” Teresa says. “When my husband was injured last year and could not work while he recovered, a Head Start social worker helped us find a food pantry near our home to put food on the table.”

Though it may not be obvious to most, food security is an important component of early childhood education, as it eliminates two factors that can hinder a child’s academic success: hunger and the stress that goes along with it.

Now that the North Kent Head Start school is closing, children in families like the Erxlebens will face two choices: find another preschool program, (which would likely be too far away and too expensive for many low-income rural families); or not send their kids to preschool at all.

The moms of some of Jacob’s young friends are already considering applying for pre-K spots at public schools. But their efforts may not be successful if demand exceeds availability, and if funds are not there to help these low-income families afford quality pre-K outside of Head Start.

Teresa was upset by the news that Congress fast-tracked a bill that gives the Federal Aviation Administration flexibility to deal with sequestration, effectively stopping the furlough of air traffic controllers and avoiding sequester-related flight delays, while Head Start is still on the chopping block.

“If you’re going to help one, you should help all,’’ she said.

The bill, Reducing Flight Delays Act, was passed by an overwhelming majority in both chambers of Congress: 361-41 in the House, and unanimously in the Senate. Shortly thereafter, President Obama signed the bill into law.

While President Obama highlighted the importance of early childhood education in his Fiscal Year 2014 budget by proposing the creation of the “Preschool for All” initiative, Congress has not shown a similar interest in prioritizing young children. Neither the Senate nor the House have proposed – much less passed – a sequester relief bill to reinstate full funding for Head Start, the preschool program that helps low-income children get ready for kindergarten.

For Teresa, Congress’ lack of urgency in resolving the sequester, in a way that does not continue to hurt families, says volumes about misplaced priorities.

The sequester will stay with us until 2021 – unless our elected representatives in Congress leave partisan fights aside and come together, in good faith, to find a balanced solution to the indiscriminate cuts that are already hurting families in Kent County, Michigan, as well as across the nation.

“If you’re going to help one, you should help all,” should be Congress’ guiding principle during those negotiations.

– Yannet Lathrop

This is a major concern as more babies die from preterm-related problems than from any other single cause, and Michigan’s 2010 infant mortality rate continued to top the national average. On this vital measure the state ranked 37th of the 50 states in 2010. 

Premature babies who survive infancy have a higher risk of intellectual disabilities, cerebral palsy, problems with hearing, breathings, vision and digestion than those born after 37 weeks.

The latest Right Start in Michigan report, released in time for Mother’s Day, provides an overview of maternal and infant well-being in the state and its 54 Great Start Collaborative areas—mostly centered in the Intermediate School District boundaries. Conditions for newborns vary widely between the best, Livingston GSC, and the worst—Wayne and Genesee GSCs. Disparities by race/ethnicity also persist. 

In this context, one would expect the Michigan Legislature to support Gov. Rick Snyder’s recommendation to allocate $2.5 million to support continuing the implementation of the Infant Mortality Reduction Plan. Not so. The House-passed budget did not include the funding while a Senate subcommittee has included a $100 “placeholder.”

The plan was drafted based on the recommendations from participants in a statewide summit a few years ago. Reducing infant mortality is on the governor’s dashboard of outcomes to be achieved under his administration.  Even at that, the governor’s recommendation was far short of the full annual tab ($11 million) to implement the plan. 

“We know, through science and research, what strategies work to improve birth outcomes and help infants survive and thrive but we must prioritize and invest in them,” said Amy Zaagman, executive director of the Michigan Council for Maternal and Child Health. “Access to prenatal care, parent education resources, and home visiting all make a substantial difference in the areas highlighted in the report. We must return to valuing prevention such as health education and pregnancy prevention if we hope to see better results for women and children.”

Both the governor and the Legislature have proposed expanded investment in early education by funding more slots in the Great Start Readiness Program–preschool for 4-year-olds. Research, however, shows that the months and years between zero and 3 reflect the most rapid brain development so making sure that more children get a better start at birth should be a priority.

Ensuring that more low-income women have access to care before and after pregnancy would also improve birth outcomes and infancy.  Almost half of women who gave birth in 2011 qualified for Medicaid during the pregnancy, but eligibility ended for many a few months after delivery. The expansion of Medicaid as projected by the Affordable Care Act and fully funded by the federal government from 2014 through 2016 could improve the circumstances of infants and their mothers.

Expanding evidence-based home visiting programs, those that have demonstrated their impact on improving the lives of mothers and young children, is a key strategy the state is deploying to improve maternal and infant well-being.

The Michigan Department of Community Health has successfully applied for several grants to implement home visiting programs and systems in local communities, particularly those with the highest infant mortality rates. These federal funds authorized by the Affordable Care Act have allowed the state to expand and improve access to services.

Increasing the well-being of mothers and babies in the state and its communities can yield long-term benefits for the state in its efforts to nurture a well-educated workforce to revitalize its economy.  Healthier children are better able to achieve academic success. We all have a stake in this enterprise. 

– Jane Zehnder-Merrell
 

After a long cold winter, it’s good to feel optimistic again. Spring is here in Michigan, and there are signs that our economy is back on track and chugging along, even if very slowly.

As I work on meeting a critical fundraising challenge issued by the Nokomis Foundation, however, I find myself reminding those I meet with that the economy still does not work for all.

Local businesses in Michigan are required to collect a 6% sales tax on purchases. Online retailers without a physical presence in Michigan are not required to collect this sales tax. If sales taxes are not collected by the retailer, consumers are responsible for reporting it and paying it. Voluntary compliance, however, is very low.

“If Medicaid did not exist, most of the tens of millions of Americans whose health coverage comes solely through Medicaid would join the ranks of the 49 million Americans who are uninsured.

“This is because private health insurance is generally not an option for Medicaid beneficiaries: many low-income workers do not have access to coverage through their jobs, and they cannot afford to purchase coverage in the individual insurance market,’’ the Center on Budget and Policy Priorities reports.

Adults on Medicaid are:

• Twice as likely to have a usual source of care than the uninsured.
• Twice as likely to visit a doctor in the past year than the uninsured.
• More likely to have received timely care (78% of Medicaid vs. 65% uninsured).

Medicaid coverage of low-income adults under existing policy is extremely limited for childless adults without disabilities. Under the Affordable Care Act, Michigan and other states have an opportunity to expand eligibility to those under 138% of poverty – an estimated 400,000 to 600,000 uninsured people in Michigan.

“The expansion is a very good financial deal for states,’’ the brief reports. “ The federal government will pay nearly all of the expansion costs — 93 percent over the first nine years (2014-2022) — according to CBO estimates. That’s because the federal government will pick up 100 percent of the cost of the expansion to newly eligible individuals for the first three years and no less than 90 percent of the cost on a permanent basis.

“And by greatly reducing the number of uninsured, the expansion will enable states and localities to save substantial sums on uncompensated care for the uninsured. States will spend just 2.8 percent more on Medicaid with the expansion than they would have without health reform.”

As Gov. Rick Snyder, doctors, advocates and leaders from business, health and law enforcement have said: Expand Medicaid.

– Judy Putnam

She wants her tax returns to go toward needed repairs on the road-weary Taurus, but an $825 tax increase from the state of Michigan may push that goal out of reach.

Paula Fekken

“Pretty much all of my money goes to clothing and shoes and basic needs,’’ said Fekken, 42, and newly divorced.

Like many lower-income workers, Fekken is feeling the sticker shock from tax changes made in 2011. That’s when the majority in the Legislature and Gov. Rick Snyder increased taxes on individuals by 23% and cut business taxes by 83%. The big tax shift is just now being felt by working families and seniors as tax returns come in.

A major piece of the tax shift came from chopping the state EITC from 20% of the federal EITC to just 6%. The EITC is a credit for lower-income workers. It is designed to reward work and offset other taxes that cause low-income people to pay a bigger share of their income in taxes such as payroll taxes, sales tax and property taxes.

The Michigan EITC dropped from an average of $439 to $132. For big families, the impact is even greater. Fekken earned just over $26,000. Her state EITC this year is $353 – down from $1,178. That’s a big loss to absorb for families struggling to make ends meet.

Still, she says she has to be careful with every dollar and the reduced EITC will be felt.

“Most of my money goes to food. With the four boys — every little bit helps,’’ she said.

For more information on restoring the Michigan EITC, go to www.saveoureitc.com. Follow the campaign on Facebook and on Twitter with #MIEITC.

– Judy Putnam

Workers who have been unemployed for more than 26 weeks collect Emergency Unemployment Compensation until they find a job. Because EUC is fully federally funded, it is subject to the across-the-board cuts demanded by sequestration.

For Michigan workers collecting EUC, this translates into a 10.7% cut in their weekly benefit beginning with their first payment this month.

Click here for interactive map

 The average weekly benefit for EUC is $275 per week, so the average cut is $29.47 per week (or $117 per month). That money can buy a half tank of fuel, a couple pairs of children’s jeans or some groceries, or could cover most of the month’s water and electric bills.

There are more than 75,000 workers in Michigan receiving EUC as they continue to look for work.  For just the week ending April 6, Michigan lost more than $2.2 million in federal dollars, much of which would have been spent in local economies. 

Everybody wants long-term unemployed workers to find employment, most of all the unemployed themselves. But until more jobs become available, the safety net for unemployed workers, their families and their surrounding communities needs to provide an adequate benefit. 

To see how the sequestration cut to weekly EUC benefits has affected your county, click here or on the map above.

– Peter Ruark