schmudget

BPC hires new Communications Manager

2009-11-10T15:12:00.000-08:00

Hi. After 19 years in journalism - most recently at the Seattle Post-Intelligencer -- I'm joining the Washington State Policy & Budget Center, as the Communications Manager. I'm looking foward to sharing with you all the excellent policy analysis the analysts here at the center do.

I wrote extensively about politics during my journalism career, covering such issues as welfare and health care reform as state government for The Seattle Times. I also covered City Hall and the monorail measure for the P-I. I also founded a news site, seattlepostglobe.org, with other former P-I journalists.

New BPC report: Federal Estate Tax Supports Public Priorities

2009-11-10T14:47:00.000-08:00

The federal estate tax provides billions a year for essential priorities like education, the environment and national security. It’s also the most progressive of federal taxes, applying to only the wealthiest two of every 1,000 estates.

But misconceptions surround the tax. And efforts are afoot in Congress that would weaken it.

The tax has already been steadily weakened since the Bush tax cuts in 2000, as rising exemptions have meant that less of an estate’s value is subject to the tax. In 2000, the exemption was $675,000. Only two of every 100 estates nationally were subject to the tax. The exemption is now $3.5 million for an individual, and only one in every 500 estates across the country owes any tax.

While, the rhetoric is that the estate tax hits the little guy, the reality, according to an analysis by the Tax Policy Center (TPC), is this: only about 110 small farms and busi¬nesses across the country would owe any estate tax in 2011, if the 2009 parameters were made permanent. In Washington State, only two small family farms or businesses would owe any estate tax in 2011, under those parameters.

Now some proposals in Congress would weaken the tax even more. According to an analysis by the Washington State Budget & Policy Center, only the wealthiest estate owners would stand to benefit from a proposal by Senators Blanche Lincoln and John Kyl (along with a similar proposal from Representative Shelley Berkley in the House).

For estates valued at $20 million, it would mean an average tax cut of $3.5 mil¬lion. This would cost the nation $153 billion more in lost revenue and increased interest on the higher national debt than a more fiscally responsible proposal by President Obama.

Read the entire report here:

DSHS Budget Proposal would Harm Health Care, Cost Federal Funding

2009-11-04T14:25:00.000-08:00

Even with the specter of I-1033 behind us, the state budget situation is bleak because of the lingering impact of the economic recession. The deficit facing the Governor as she prepares her budget could be as high as $1.8 billion.

A recent memo from the Department of Social and Health Services' Health and Recovery Services Administration—written in response to the Governor’s request for budget reduction proposals—helps illustrate the size of the problem. Acknowledging that “these are serious cuts, and cuts on top of cuts,” the Department proposed deep reductions in key health care programs:

The largest reduction ($69.2 million) would come by eliminating important benefits for lower income adults receiving Medical Assistance, including maternity support services, hospice, hearing, non-emergent dental, vision, podiatry, physical therapy, occupational therapy, speech therapy, interpreters for medical services, and Medicare Part D (prescription drugs) copays. Funding for school-based Medicaid services would also be eliminated ($5.6 million).

The proposal would eliminate access to state programs that provide health care to lower income children between 205 percent and 300 percent of the federal poverty line, taking a step backward on the state’s commitment to “Cover All Kids” in order to save $11.6 million.

Reductions in mental health care ($12.9 million) would include eliminating funding for the Program for Adaptive Living Skills and eliminating funding for community support services for individuals discharged from state hospitals.

The proposal would also eliminate drug and alcohol treatment for all low-income adults not enrolled in a separate DSHS program ($5.5 million).

There are also $8.3 million in administrative cuts and staff reductions included in the proposal.

The reductions in state spending are only part of the story. These proposed cuts would cost the state an estimated $101.4 million in federal matching funds.

24 of 31 Local Health Jurisdictions Cut Public Health Programs

2009-10-22T14:50:00.000-07:00

Yesterday the Budget & Policy Center issued a report detailing the impact of budget cuts on public health in the state. The report was co-released by the Washington State Public Health Association and the Washington State Nurses Association.

The Budget & Policy Center and the Washington State Association of Local Public Health Officials independently surveyed local public health agencies to get a sense of the impact of recent budget cuts on public health programs and services, staff, and funding. The Budget & Policy Center received responses from 15 of 35 local health jurisdictions; WASLPHO received answers from 31.

As the map below indicates, 24 of 31 local health jurisdictions, which are the primary providers of public health services, have cut vital programs as a result of budget cuts. These include services to support the health of lower income pregnant women, vulnerable children, and seniors through prevention and education programs.

Other key findings from the report include:

-- Lay-offs of public health professionals in 23 of 31 LHJs

-- Drops in funding for 24 of 31 LHJs, for example, over $780,000 in Spokane, $1.4 million in Snohomish, and $1.75 million in Thurston Counties

Budget Cuts Have Negative Impact on Public Health Infrastructure

2009-10-21T15:10:00.000-07:00

The Budget & Policy Center released a new report today on the impact of state and local budget cuts on public health in Washington State. Public health programs help to promote healthy communities and lifestyles, reduce the spread of communicable diseases and provide rapid responses to public health emergencies.

Local health jurisdictions (LHJs) across the state are feeling the effects of millions of dollars in reduced public health funding from the state and local governments.

The Budget & Policy Center and the Washington State Association of Local Public Health Officials independently conducted surveys of officials at local health jurisdictions--the primary providers of public health services in the state--to get a clearer picture of the impact of these budget cut decisions.

The paper, which was co-released with the Washington State Public Health Association and the Washington State Nurses Association, discusses the findings, including details of cuts in programs, lay-offs in staff, and reductions in funding.

New CBPP Report: I-1033’s Problematic Measure of Inflation

2009-10-16T14:57:00.000-07:00

Initiative 1033 proposes to limit revenue collections at the state, county, and city levels according to a formula based on the rate of population growth plus inflation. A key feature of Colorado’s TABOR amendment, this formula is deeply flawed because it fails to keep pace with the costs of providing essential public services such as health care and education. Under I-1033, the inflation component of this formula would limit revenue growth according to the “implicit price deflator for personal consumption expenditures” (IPD).

A new analysis from the Center on Budget and Policy Priorities shows that using the IPD to restrict revenue growth would do great harm to basic public structures in Washington. The report explains that the IPD only reflects changes in costs faced by consumers; it does not reflect the ongoing costs of providing state and local public services. The costs of education, for example, rise faster than the general rate of inflation. Education accounts for only two percent of expenditures for the typical consumer. For the state government, however, K-12 and higher education account for 53 percent of expenditures in Washington. As a result, restricting state and local revenues to growth in the IPD would lead to severe cuts in education and other core public services.

The CBPP report also shows that the IPD is even more restrictive than the measure of inflation that was used in Colorado under the TABOR amendment. Under TABOR, state and local spending was restricted to the rate of inflation as measured by the Denver Consumer Price Index (CPI). The graph below shows that from 1993 to 2005 – the period in which TABOR was in effect – the CPI grew at an annual rate of 3.4 percent while the IPD averaged 2.2 percent.

Yet even under the faster-growing CPI, TABOR lead to devastating cuts in education, health care, and other vital services in Colorado, prompting voters to suspend the amendment in 2005. According the CBPP report, “if Colorado had been operating under an I-1033-style IPD-based formula, the state would have had to cut services by an additional 10 percent beyond what the state enacted under the actual CPI-based formula.”

The view the entire report, click here.

Special Series: The Impact of I-1033 on Yakima County

2009-10-14T16:19:00.000-07:00

I-1033 would do great harm to basic public services in Yakima County. An analysis of historical revenue data from the Yakima County Auditor’s Office shows I-1033 would have cost the county nearly $45 million, had it been in place from 1996-2008. In particular, investments in public safety and criminal justice would likely have been significantly reduced, as 80 percent of the current operating budget in the county is dedicated to these essential services.

The graph below shows how I-1033 would have lead to progressively higher revenue losses each year from 1996 to 2008 in Yakima County. In 2008 alone, the county would have lost $5.9 million, or about 11 percent of the general fund budget.

To put this into context, $5.9 million in the 2008 Yakima County general fund budget would have been equivalent to:

Two-thirds of expenditures on the Sheriff’s Office ($8.3 million);

Eighty-four percent of the combined budgets for the District Court, the Superior Court, and the county clerk ($7.0 million);

More than the combined general fund expenditures on indigent defense, juvenile justice, and the Washington State University extension program ($5.0 million).

As a result of the ongoing national recession, revenue collections among local governments in Washington have fallen dramatically in the past year. In Yakima County, officials had to draw down reserve funds and eliminate more than 30 vacant positions in order to keep the 2009 budget in balance.

Revenue collections continue to decline in Yakima County, however. The county also faces rising costs and increased demand for services. For example, the county jail has experienced a recent influx of new inmates which drives up the cost of providing corrections services. Together, lower revenues and increased costs are resulting in a $3.3 million deficit going into the 2010 budget cycle in Yakima County. To fill this gap, county officials may have to lay off as many as 60 county government employees.*

It is important to note that 2009 would become the basis for all future budgets in Yakima County under I-1033. As a result, all of the cuts enacted this year and in 2010 will be locked into place, making it impossible to restore services even after the economy recovers.

Editor’s Note on Methodology: There has been much debate about which revenue sources would be subject to the population-growth-plus-inflation cap under I-1033. For this analysis, we assumed that general fund revenue -- including general fund tax revenues, revenues from permits and licenses, and revenues derived from charges for government services -- would have been subject to the I-1033 limit. It is important to note that expanding the scope of revenues subject to the I-1033 limit would substantially increase the estimates of annual revenue losses as well as expand the scope of county services negatively impacted under the initiative.

*David Lester, “Budget gap may force Yakima County to make 60 layoffs,” Yakima Herald-Republic, October 10, 2009.

Special Series: The Impact of I-1033 on Clark County

2009-10-13T11:58:00.001-07:00

This year, Clark County officials have struggled to maintain basic county services amidst the deepest national recession since the 1930s. If I-1033 is enacted, spending on law and justice, public safety, and other essential county services would be frozen at 2009 levels. And in future years, Clark County would face rising revenue shortfalls, forcing deep cuts in these services.

Clark County would have lost more than $115 million had I-1033 been in place from 1995-2008, based on an analysis of historical general fund revenue data from the Clark County Office of Budget and Information Services. As the graph below illustrates, during the 2007-08 biennium the county would have lost about $30.3 million (11 percent of the general fund budget).

In the 2007-08 Clark County general fund budget, $30.3 million would have been equivalent to:

Nearly 60 percent of expenditures on the Sheriff’s Office ($51.5 million);

Eighty-seven percent of the budget for the county jail ($34.7 million);

More than the combined expenditures on parks and public works ($7.0 million), community corrections programs ($11.6 million), and indigent defense services ($9.6 million).

The national recession has caused severe budget deficits, impacting local governments throughout Washington. During the current crisis, Clark County officials have struggled to keep the county budget in balance without reducing essential services or laying-off scores of county government employees. So far, this has been accomplished through the use of across-the-board budget cuts and one-time measures -- such as extending the lives of county patrol cars and diverting revenues from the county road fund.

Yet even with these actions, Clark County continues to face a projected $12.7 million budget deficit for the remainder of the 2009-10 biennium.* With few remaining options, county officials may be forced to completely eliminate services in order to fill the current gap. Under I-1033, the 2009-10 budget would form the basis for all future budgets in Clark County and it would be virtually impossible to restore services even after the economy recovers.

Editor’s Note on Methodology: There has been much debate about which revenue sources would be subject to the population-growth-plus-inflation cap under I-1033. For this analysis, we assumed that general fund revenue -- including general fund tax revenues, revenues from permits and licenses, and revenues derived from charges for government services -- would have been subject to the I-1033 limit. It is important to note that expanding the scope of revenues subject to the I-1033 limit would substantially increase the estimates of annual revenue losses as well as expand the scope of county services negatively impacted under the initiative.

* Clark County Office of Budget, General Fund 2009-10 Projections, October, 2009.

Special Series: The Impact of I-1033 on Spokane County

2009-10-12T08:47:00.000-07:00

Under I-1033, Spokane County would face erosion in basic public services. An analysis of historical revenue data from the Spokane County Auditor’s Office shows the initiative would have cost the county about $105 million in general fund revenues, had it been in effect from 1996 to 2008.

The graph below illustrates the annual impact. Under the initiative, Spokane County would have lost $16.6 million in 2008 alone.

To put that in perspective, in Spokane County $16.6 million was more than the combined general fund expenditures on the District Court ($5.8 million), the Superior Court ($6.6 million), and the county medical examiner ($1.4 million) in 2008. In relation to other services, $16.6 million was equivalent to half of the general fund expenditures for the Sheriff’s Office ($33.2 million), 90 percent of the combined budgets of the county prosecutor and public defender ($18.8 million), and 85 percent of all general fund spending on county jails ($19.6 million).

Under I-1033, 2009 would form the base year for future county budgets in Washington. However, the current recession has caused serious revenue shortfalls in Spokane County and throughout Washington. To balance the 2009 budget, Spokane County officials have already used about $3.4 million in budget reserves, enacted another $3 million in spending cuts, and instituted a hiring freeze that eliminated 56 county government positions. But despite these actions, the county currently faces a projected $12.5 million budget shortfall in 2010.* If enacted, I-1033 would make it impossible for Spokane County to restore services to pre-recession levels.

Editor’s Note on Methodology: There has been much debate about which revenue sources would be subject to the population-growth-plus-inflation cap under I-1033. For this analysis, we assumed that general fund revenue -- including general fund tax revenues, revenues from permits and licenses, and revenues derived from charges for government services -- would have been subject to the I-1033 limit. It is important to note that expanding the scope of revenues subject to the I-1033 limit would substantially increase the estimates of annual revenue losses as well as expand the scope of county services negatively impacted under the initiative.

* Jim Camden, "Budget woes may force Holmberg's closer," The Spokesman-Review, August 4, 2009.

Special Series: The Impact of I-1033 on Snohomish County

2009-10-09T12:35:00.000-07:00

I-1033 would be a disaster for Snohomish County, requiring deep cuts in essential public services. If it had been put in place in 1996, the initiative would have led to severe revenue shortages in each subsequent year. In total, Snohomish County would have lost about $245 million in general fund revenues between 1996 and 2008 under the initiative (see graph below).

In 2008 alone, Snohomish County would have lost about $33.5 million -- 16 percent of the general fund budget. By way of illustration, $33.5 million in the Snohomish County general fund budget would have been equivalent to:

Seventy-three percent of the general fund spending for the Sheriff’s Office ($46.1 million);

More than the combined general fund budgets for the District Court and the Superior Court ($31.6 million);

Ninety-one percent of spending on the Department of Corrections ($37 million);

Three times the general fund budget for the Parks and Recreation Department ($10 million);

Twice the amount of general fund spending on the Prosecuting Attorney ($15.2 million).

In total, 70 percent of the general fund budget in Snohomish County was devoted funding for the law and justice services in 2008. Deep cuts in these services and others would have been unavoidable under I-1033.

More troubling, I-1033 would be implemented during the deepest recession of the post-World War II era. Under the initiative, 2009 would become the base for all future budgets in Snohomish County. The current recession has already taken a heavy toll on the current county budget. Last year, in crafting the 2009 budget, Snohomish County lawmakers faced a budget deficit totaling $21 million. To fill this gap, Snohomish County lawmakers implemented a hiring freeze and eliminated dozens of vacant county government positions.

In early 2009 the economy worsened, forcing the county to close an additional $6.7 million shortfall in April. To fill this gap, the county extended the hiring freeze and instituted a series of 11 unpaid furlough days, amounting to a four percent pay cut for affected county government workers. Yet, the budget situation in Snohomish County remains grim. To balance the next year’s 2010 budget, Snohomish County Executive Aaron Reardon recently proposed increasing the number of furlough days to as many as 15, and decreasing pay for jail workers and Sheriff’s deputies.

Editor’s Note on Methodology: There has been much debate about which revenue sources would be subject to the population-growth-plus-inflation cap under I-1033. For this analysis, we assumed that general fund revenue -- including general fund tax revenues, revenues from permits and licenses, and revenues derived from charges for government services -- would have been subject to the I-1033 limit. It is important to note that expanding the scope of revenues subject to the I-1033 limit would substantially increase the estimates of annual revenue losses as well as expand the scope of county services negatively impacted under the initiative.

Special Series: The Impact of I-1033 on Counties

2009-10-08T10:08:00.000-07:00

Washington State’s 39 counties play key roles in our public infrastructure, including public safety, public health, transportation, parks, and libraries. The recession has hit county budgets hard and many are facing deep budget cuts.

If Initiative 1033 were to pass, it would have a disastrous impact on county governments and on the services they provide, at a time when they can least afford it. According to the Office of Financial Management, counties stand to lose a total of $694 million by 2015, as shown in the graph below.

Tomorrow, schmudget will begin a series outlining the potential impacts of I-1033 on individual counties. We'll begin tomorrow with Snohomish County.

New Census Poverty Data Reveal Deep Disparities throughout Washington

2009-09-29T14:52:00.000-07:00

According to new data from the U.S. Census Bureau, nearly 730,000 Washingtonians lived in poverty in 2008. In total, 11.3 percent of the state’s population had incomes at or below the federal poverty line last year. The overall poverty rate in 2008 remained statistically unchanged from the previous year, signaling that the data does not capture the full impact of the recession. Data for 2009, when the economic crisis worsened dramatically, is likely to show a disturbing increase in the number of Washingtonians living in poverty.

Poverty among Minority Communities in Washington

Poverty rates varied significantly across communities in Washington, with certain minority groups and counties experiencing higher rates compared to the general population. For example, last year members of Native American, African American, and Hispanic households were more than twice as likely to be impoverished compared to the population as a whole. The graph below shows that the poverty rate among Native American households stood at 26.1 percent. Similarly, African American and Hispanic communities experienced poverty rates of 22.9 and 23.5 percent, respectively. At the same time, Asian (9.2 percent) and White (9.9 percent) households were significantly less likely to be in poverty compared with the general population.

Poverty by County

Poverty rates in 2008 also varied significantly among Washington’s 19 largest counties – those with populations above 65,000. Compared to the statewide average, sparsely-populated counties tended to see higher poverty rates. The graph below shows that the poverty rate was highest in Franklin County (20.5 percent), followed by the counties of Yakima (18.3 percent), Grant (15.7 percent), Whatcom (14.7 percent), and Spokane (13.7 percent).

Conversely, residents in the counties of Snohomish (7.9 percent), Island (8.0 percent), King (9.1 percent), and Clark (9.6 percent) were significantly less likely to live in poverty compared with the statewide general population.

The poverty rate was not significantly different from the state average in Benton, Chelan, Clallam, Cowlitz, Grays Harbor, Kitsap, Lewis, Pierce, Skagit, and Thurston counties.

2009 Data Likely to Be Much Worse

Today’s 2008 data does not capture the full impact of the current recession. While the unemployment rate in Washington averaged 5.3 percent in 2008, that number jumped to 9.2 percent by August 2009. Overall, 66,000 jobs have been lost in Washington since the start of 2009. Nationwide, the recession has taken a greater toll on communities of color. In the U.S., the unemployment rate among white workers was 8.9 percent in August; but among African American and Hispanic workers, the rates was 15.1 and 13.0 percent, respectively.

UPDATE: Editorial Board Discussions in Seattle, Yakima, and Olympia

2009-09-29T11:46:00.000-07:00

Update: also watch our discussions with editorial boards from the Yakima Herald-Republic and the Olympian.

I met with the Seattle Times editorial board yesterday to discuss I-1033. The other discussants were Tim Eyman, the initiative’s sponser, and Phil Bussey from the Seattle Chamber of Commerce.

You can watch the entire video (an hour long) here or click below to watch a three-minute clip of Mr. Bussey explaining why the Seattle Chamber of Commerce is opposed to I-1033.

In Franklin and Yakima Counties, 28 Percent of the Population Lacked Health Insurance in 2008

2009-09-22T14:45:00.001-07:00

According to new data from the U.S. Census Bureau, 13.1 percent of Washington’s population went without health coverage last year. Among the state's 19 largest counties – those with populations over 65,000 – there was significant variation, with more than one of every four Washingtonians in Franklin County and Yakima County lacking health insurance.

Counties with larger populations generally experienced lower uninsured rates compared to the state average. Yet even in King County, one of every 10 residents (10.6 percent of the population) was uninsured in 2008. In addition to King County, Island County (9.5 percent), Thurston County (10.9 percent), and Spokane County (11.8 percent) all experienced uninsured rates significantly lower than the statewide average. In Benton, Clark, Kitsap, Lewis, Pierce, Snohomish, and Whatcom counties the uninsured rate was about the same as the state average.

Of Washington’s most populous counties, Franklin County and Yakima County had the highest uninsured rates in 2008, which stood at 27.7 percent and 27.5 percent, respectively. Residents in the counties of Grays Harbor (16.0 percent), Clallam (16.6 percent), Cowlitz (16.7 percent), Skagit (16.7 percent), Chelan (19.7 percent), and Grant (20.5) were also significantly more likely to lack coverage compared to those in rest of the state.

While today’s data sheds much-needed light on the disparities in health coverage throughout Washington, next year’s data are likely to be far worse. In 2008, the unemployment rate averaged 5.3 percent in Washington. However, the economy deteriorated dramatically in 2009. As of August, the unemployment rate in Washington stood at 9.2 percent, and nearly 66,000 jobs have been lost in the state since January. A BPC analysis of the census health coverage data in 2007-08 shows the employer-based coverage weakened significantly during that period – a trend that will certainly continue throughout 2009.

For information on the uninsured rate among children in Washington State counties, click here to view an analysis from Washington Kids Count and the Children's Alliance.

Editor’s note: The Census Bureau originally planned to release single-year estimates of all indicators included in the 2008 American Community Survey (ACS) today. Due to a coding error, however, ACS poverty estimates will not be released until September 29, 2009. That morning, the Budget & Policy Center along with Washington Kids Count will release an analysis of the latest poverty data from the ACS.

Nearly 1 in 6 Washington Workers Were Underemployed in First Half of 2009

2009-09-18T09:00:00.000-07:00

In the first half of 2009, 16.2 percent of Washington’s potential workforce was underemployed each month on average. Two years earlier, before the recession, the underemployment rate was 9.4 percent.

The underemployed includes workers who:

Are unsuccessfully looking for work (the unemployed),

Are marginally attached to the labor market, such as workers who have given up looking for work because they have become discouraged,

Are working part-time for economic reasons, such as an inability to find fulltime work.

Struggling to Make Ends Meet

2009-09-17T12:43:00.000-07:00

Today, the Northwest Area Foundation released the findings from a national survey of 4,000 adults called "Struggling to Make Ends Meet." The findings are easily accessed using an interactive tool. Findings from Washington State include:

31% of respondents reported that they or a family member lost a job in the last 12 months.
35% had their hours (or those of a family member) cut at work in the last 12 months.
61% report cutting back on spending as a result of the recession.

Other topics include awareness of available services, ability to pay for basic needs, the scope of and explanations for hardship in local communities, and views about elected officials.

More Bad News for State Revenue

2009-09-17T10:58:00.000-07:00

Today’s new revenue forecast from the Economic and Revenue Forecast Council widens the current state fiscal gap by $238 million.

The balance sheet included in the forecast shows the general fund deficit for the current biennium to be $430 million with a balance of $245 million in the rainy day fund. Those numbers do not include an adjustment for the most recent caseload forecast. Including the caseload forecast would increase the deficit by about $250 million.

While the sizable current deficit is a matter of concern, of greater concern are:

The 2011-13 biennium, which could face a deficit reaching into the billions of dollars when federal recovery funds being used to support education, health care, and public safety are no longer available.
The potential passage of I-1033, which could cost the state nearly $6 billion by 2015.

Details:

The $238 million in decreased revenue expectations breaks down as follows:

$109.6 million is due to a weaker forecast for consumer spending.
$46.1 million is due to a State Supreme Court case which will lower B&O collections.
$82 million is due to lower-than expected revenue collections since the last forecast.

Washington Families Risk Losing Housing Assistance

2009-09-16T08:52:00.000-07:00

Thousands of low income families in Washington could face painful reductions in housing assistance if Congress fails to approve additional funding for a critical federal voucher program. The Housing Choice Voucher Program provides rental support for about two million low income families throughout the United States. The program, however, faces a large budget shortfall for the remainder of 2009. Left unfilled, this shortfall could force hundreds of state and local housing agencies, serving 500,000 families, to curtail or eliminate rental assistance administered through the voucher program. Here in Washington, as many as 11,550 families could see reductions in housing vouchers.

According to a new analysis from the Center on Budget and Policy Priorities (CBPP), the shortfall in the voucher program immediately threatens rental assistance in about 400 state and local housing agencies. Cumulatively, these agencies will need an additional $130 million in funding for vouchers in 2009 to avoid drastic cuts in rental assistance and to restore assistance where cuts have already been made.

As of May 2009, shortfalls among housing agencies in Washington totaled nearly $1.6 million, leaving vouchers for 404 families completely unfunded.

The CBPP report goes on to show that states will have few good options should congress fail to approve additional funds for the voucher program. These options include:

Denying vouchers to eligible families on waiting lists, even when slots become available;

raising rents on voucher families;

reducing rents paid to property owners; and

terminating vouchers for participating families.

Income Inequality Grew Steadily from 2002-07

2009-09-14T11:11:00.000-07:00

The top one percent of wealthiest households in the U.S. saw almost unprecedented income growth between 2002 and 2007, with income rising ten times faster than it did for the bottom 90 percent of households. As a group, the richest one percent of households saw their incomes grow by 62 percent during this period, after adjusting for inflation. By comparison, the bottom 90 percent of Americans (those with annual incomes below $110,000) experienced income growth of only four percent.

According to a new analysis of IRS data by economists Thomas Piketty and Emmanuel Saez (summarized by CBPP), income growth skewed in favor of the wealthy during the 1920’s, but then turned towards the middle class during the post-WWII era. As the graph below shows, in the early 1980’s income growth again began to concentrate in the upper tiers of American households.

Income gains have been even more pronounced among those at the very top of the income scale. The CBPP report shows that incomes in the top one-tenth of one percent of U.S. households grew by about 94 percent ($3.5 million per household) from 2002 to 2007.

The report does not show the impact of the current economic recession. Even though it is expected that income concentration will fall in 2008-09, once the recovery begins economists predict income inequality trends will continue.

Public Insurance Keeps Uninsured Numbers from Rising, New Census Data Shows

2009-09-10T09:50:00.000-07:00

New Census data shows that while the overall share of Washingtonians who lacked health insurance went down between 2000-01 and 2007-08, employer-provided coverage weakened significantly over that time. Public coverage, that is Medicaid, increased during that time, offsetting the decreases in employer-based insurance.

National data shows that in 2000-01, 13.1 percent of Washingtonians lacked health insurance. This number dropped to 11.8 percent by 2007-08. Over that time, the table below shows that employer-sponsored health insurance fell from 67 percent of the population in 2000-01 to 64.6 percent in 2007-08. At the same time, the share of the population covered by Medicaid jumped from 12.1 percent to 13.6 percent.

Before the Census data was released, the Budget & Policy Center, Washington Kids Count, and others expected there would be a decrease in the share of Washingtonians with health insurance between 2000-01 and 2007-08. The news that the share of the population with health insurance actually went up, highlights the importance of publicly provided health care coverage.

During the last legislative session in Washington, lawmakers decided to cut funding for the state’s Basic Health Plan. This will result in a loss of coverage for Washingtonians who do not receive insurance through their employer. At the same time, the unemployment rate in the state has been rising, which means many people who did have employer-sponsored insurance will no longer have coverage. Because of these trends, we anticipate that a drop in the share of Washingtonians with health insurance will become evident in the near future.

Editor’s note: On September 22, 2009 the Census Bureau will release state-by-state estimates of poverty, median income, and health insurance coverage for 2008 from the American Community Survey (ACS). The ACS has a very large sample size, allowing for single-year estimates at the state and county levels. On the 22nd, the Budget & Policy Center and Washington Kids Count will jointly release an analysis of poverty, median income, and health coverage in Washington using the latest ACS data.

The Children's Alliance along with Washington Kids Count posted an analysis of the latest census data looking specifically health coverage among children in Washington. Consistent with the general population, they find that Washington's S-CHIP program (Apple Health for Kids) has kept number of children without health insurance from climbing in 2007-08.

New Census Health Insurance Data Likely to Show Declines in Health Coverage throughout Washington State

2009-09-09T12:36:00.000-07:00

Tomorrow, the U.S. Census Bureau will release national and state health insurance data for 2007-2008. The data will provide a preliminary glimpse of the impact that the current recession has had on families in Washington and throughout the nation. The data will not however, capture the full impact of the current economic crisis which deepened dramatically in 2009.

The new Census data is expected to show significant increases in the share of the population that is uninsured since the early 2000’s to 2007-2008. The loss of employer-sponsored health insurance is likely to be the dominant driver behind this trend. During the current recession, the economy sunk rapidly in 2009 and many more people lost their jobs and their health insurance. So while tomorrow’s release will signal trouble, next year’s 2008-2009 health coverage data will undoubtedly be far worse.

For example, as the graph below shows here in Washington the unemployment rate jumped from an average of 5.3 percent in 2008 to 9.1 percent by July 2009. Since the start of 2009, over 64,000 jobs have been lost in the state. As a result, next year’s 2008-2009 data will show a large drop in the number of Washingtonians enrolled in employer-sponsored health coverage.

Stay tuned to schmudget tomorrow when the Budget & Policy Center in conjunction with Washington Kids Count will post an analysis of health coverage trends in Washington using the new Census data. Our analysis will highlight changes in the share of the population without health insurance over time and will detail changes in employer-sponsored coverage and public coverage in Washington State.

Editor’s note: Tomorrow’s release will also include updated data on poverty and median income. To obtain state-level estimates of these measures, however, the Census Bureau recommends using data from a different survey, the American Community Survey (ACS). The latest ACS data for 2008 will be released on September 22, 2009. That morning, the Budget & Policy Center and Washington Kids Count will post analysis of the ACS data on poverty, median income, and health coverage in Washington State.

Toxic Twins Part 4: TABOR Did Nothing for Colorado's Economy

2009-09-03T16:04:00.001-07:00

Supporters of initiatives like I-1033 argue that rigid public spending limits can be a boon for state economies. In Colorado, however, TABOR had no positive impact on the state’s economy. In fact, after enacting TABOR, employment growth in Colorado slowed relative to other states in the region. Worse, following the last recession employment recovered much more slowly in Colorado compared to neighboring states.

The table below shows that employment in Colorado grew at an annual rate of only 0.2 percent between 2001 and 2006. At the same time, the median annual growth rate among the remaining seven states in the mountain region was 9.3 percent.

For more information on how TABOR adversely impacted core public services in Colorado, see our recent report, Toxic Twins: I-1033 Mirrors Colorado’s Corrosive TABOR, coauthored with the Colorado Fiscal Policy Institute.

Editor's note: This is the final post in series about TABOR's adverse effects on essential public services in Colorado. Previous posts in the series detail the sharp declines in education funding, health care services, and transportation infrastructure that ocurred in Colorado under TABOR.

Toxic Twins Part 3: Colorado’s Transportation Infrastructure Deteriorated Under TABOR

2009-09-03T14:11:00.000-07:00

I-1033 will lead to severe deterioration in public structures that are vital to Washington’s future prosperity, much like what happened with Colorado’s TABOR amendment. Our latest report, coauthored with the Colorado Fiscal Policy Institute, details TABOR’s disastrous impact on education, health care, communities, and transportation. This post highlights some of our findings on the serious erosion in Colorado’s transportation infrastructure as a result of budget shortfalls created by TABOR.

Under TABOR, Colorado was unable to make adequate investments in roads, bridges, and other forms of transportation infrastructure. In 2007, the state ranked 48th among all 50 states in spending as a share of personal income on highways. The result:

About 40 percent of the state’s roads were rated poor in 2006.

Over 100 bridges in Colorado have been found to be structurally deficient.

Congestion on Interstate 70 has been estimated to cost Colorado’s economy about $839 million each year.

To learn about TABOR’s adverse effects on other core public services – such as health care and education -- click here to view the entire report.

Editor’s note: This is the third post in a series about the sharp declines in core public services that occurred in Colorado as a result of the TABOR amendment. The next and final post in this series will discuss economic growth in Colorado during the period in which TABOR was active (1992-2005).

State Policy Fellowship Program Seeks Applicants

2009-09-03T11:30:00.000-07:00

The Center on Budget and Policy Priorities is sponsoring in coordination with the State Fiscal Analysis Initiative (SFAI), the State Policy Fellowship Program which is currently seeking highly-qualified candidates to serve two years as entry-level analysts. The position would entail working within a state policy organization belonging to the SFAI network, such as the Washington State Budget & Policy Center, or at the Center’s state fiscal division in Washington D.C.

Fellows will gain hands-on education and experience while working alongside experts in the field of state policy to analyze the impact of state budget and tax policy choices on low-income residents and promote positive reforms. The program offers a competitive salary with health benefits and features professional development opportunities.

For more information, click here.

Toxic Twins Part 2: TABOR Caused Sharp Declines in Health Care Funding

2009-08-27T14:26:00.000-07:00

Our latest report, co-authored with the Colorado Fiscal Policy Institute, details TABOR’s impact on education, communities, health, and transportation infrastructure. This post highlights some of our findings regarding TABOR’s disastrous effects on public health programs in Colorado.

In Colorado, TABOR greatly compromised a critical part of the public safety net – health care services. From 1992 to 2005, TABOR-induced shortfalls forced deep cuts in health care services throughout Colorado. The result:

Between 1992 and 2004, the share of lower income children with no health insurance doubled from 16 to 32 percent, making Colorado the worst in the nation by this measure.

In 2002, the state could no longer afford basic vaccines and had to suspend the requirement that all students be vaccinated against common diseases such as tetanus, diphtheria, and whooping cough.

In 2003, budget restrictions forced the state to temporarily stop the enrollment of children in the children’s health program and suspend the prenatal program.

TABOR had numerous adverse effects on health care and other public services in Colorado. For more detail, please click here to view the entire report.

Editor’s note: This post is the second in a series about the sharp declines in Colorado’s core public services that occurred as a result of the TABOR amendment. There will be two future posts: The next post will cover TABOR’s effects on transportation infrastructure; the final post will discuss economic growth in Colorado during the period in which TABOR was active.