SNAP Kept Nearly 5 Million People out of Poverty Last Year, New Figures Show

October 16, 2014 at 1:39 pm

SNAP (formerly food stamps) kept 4.8 million people above the poverty line in 2013, including 2.1 million children, our analysis of Census data released today shows (see graph).  The figures are based on Census’ Supplemental Poverty Measure, which — unlike the official poverty measure — includes non-cash benefits (like SNAP) and taxes as well as cash income.

By providing low-income families with resources to buy food, SNAP not only reduces “food insecurity” (difficulty affording adequate food) but also frees up room in their very tight budgets to cover other necessities, such as rent and clothing.… Read more

Safety Net Cut Poverty Nearly in Half Last Year, New Census Data Show

October 16, 2014 at 12:25 pm

Safety net programs cut the poverty rate nearly in half in 2013, our analysis of Census data released today finds, lifting 39 million people — including more than 8 million children — out of poverty.  The data highlight the effectiveness of cash assistance such as Social Security, non-cash benefits such as rent subsidies and SNAP (formerly food stamps), and tax credits for working families like the Earned Income Tax Credit (EITC).  They also rebut claims, based on poverty statistics that omit non-cash and tax-based safety net programs, that these programs do little to reduce poverty.… Read more

K-12 Funding Remains Below Pre-Recession Levels in Most States

October 16, 2014 at 9:58 am

Most states continue to spend less — often far less — per student for kindergarten through 12th grade than they did seven years ago, our updated analysis of state general school funding shows.

Our review of state budgets finds that, after adjusting for inflation:

  • At least 30 states are providing less funding per student for the 2014-15 school year than they did before the recession hit (see chart).  Fourteen of these states have cut per-student funding by more than 10 percent. 
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Rental Assistance Can Do More to Help Kids Live in Better Neighborhoods

October 15, 2014 at 12:13 pm

Where children grow up can influence their lifelong health and success, and improvements to federal rental assistance programs could substantially better their life outcomes, our new report explains.

Nearly 4 million children live in families that receive federal rental assistance.  But just 15 percent of the kids whose families receive rent subsidies through the Department of Housing and Urban Development’s (HUD) three major rental assistance programs — the Housing Choice Voucher (HCV) program, public housing, and Section 8 Project-Based Rental Assistance — live in high-opportunity neighborhoods with access to good schools, safe streets, and high rates of employment.  … Read more

Tomorrow’s Poverty Numbers Will Help Measure Strength of Safety Net

October 15, 2014 at 10:07 am

The Census Bureau will release poverty statistics tomorrow that will allow us to determine how well the safety net reduced poverty in 2013.  Our analysis of figures released last year showed that the safety net cut the poverty rate nearly in half in 2012, from 29.1 percent to 16.0 percent (see graph).

Tomorrow’s figures are based on Census’ Supplemental Poverty Measure, which includes not only cash income but also non-cash benefits such as food assistance and rental subsidies as well as tax-based assistance such as the Earned Income Tax Credit. … Read more

Data Desire Needn’t Be Barrier to Kids’ Meals

October 14, 2014 at 1:41 pm

The Community Eligibility Provision (CEP) is now available nationwide, yet some districts are hesitant to implement it for fear of losing data from school meal applications.  But to get the data, we need not sacrifice school meals for kids.

Across the country, teachers and school nutrition administrators have praised CEP, which allows high-poverty schools to feed all students breakfast and lunch at no charge, for streamlining the school meal programs.  One of its key benefits is that participating schools don’t collect meal applications or make individual eligibility determinations, removing an administrative burden on school districts.  … Read more

In Case You Missed It . . .

October 10, 2014 at 1:58 pm

This week on Off the Charts, we focused on the federal budget and taxes, the safety net, state budgets and taxes, and health reform.

  • On the federal budget and taxes, Chuck Marr listed four things we would like to know about the forthcoming tax plan from Senators Mike Lee (R-UT) and Marco Rubio (R-FL). Chye-Ching Huang showed what congressional inaction on the Child Tax Credit and Earned Income Tax Credit would cost working families.
  • On the safety net, we highlighted a TalkPoverty LIVE!
Read more

GAO: Administration Can Make Health Reform’s “Risk Corridor” Payments

October 10, 2014 at 1:16 pm

Health reform’s opponents are renewing efforts to kill its temporary “risk corridor” program, through which the federal government will help cover any higher-than-expected costs for insurers that offer plans in the new marketplaces while sharing in the savings if costs prove lower than expected.  But the Government Accountability Office (GAO) legal opinion on which they’re basing this latest attack says the opposite of what they claim.

Citing the GAO opinion, opponents claim that the Administration lacks the legal authority to provide risk corridor payments and that legislation is needed to prevent it from making unlawful payments. … Read more

Join Jared Today to Discuss Ways to Reduce Poverty

October 9, 2014 at 10:35 am

CBPP Senior Fellow Jared Bernstein will participate in a TalkPoverty LIVE! online panel discussion at 2:00 today on three policies to reduce poverty and increase economic security:

  • Raising the minimum wage and strengthening the Earned Income Tax Credit, or EITC;
  • Addressing erratic work schedules to make it possible to balance work and family;
  • Reforming the criminal justice system and re-entry policies so that criminal records do not resign people or their families to a life of poverty.

Other panelists include the Center for Law and Social Policy’s Jodie Levin-Epstein and the Southern Coalition for Social Justice’s Daryl Atkinson. … Read more

What Would Congress’s Inaction Cost Working Families? Find Out.

October 8, 2014 at 2:05 pm

Unless Congress acts, key Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) provisions will expire at the end of 2017, pushing 17 million people — including 8 million children — into or deeper into poverty.  As we’ve noted here and here, making these provisions permanent should be a key priority for Congress.

Our new interactive calculator, below, allows you to explore what’s at stake for low- and moderate-income families if three important provisions expire at the end of 2017:

CTC refundability threshold

Current provision:  The CTC is worth up to $1,000 per child, and families have to work to qualify for it. … Read more

New Jersey Going from Bad to Worse on Budget Practices

October 7, 2014 at 4:34 pm

New Jersey, which already comes up short in budget planning and budget transparency, is falling even further behind.

The state Treasury Department recently stopped publishing monthly comparisons of actual tax collections to projected collections — information that the state’s revenue status reports had included for years.  The timing is especially unfortunate given New Jersey’s recent large revenue shortfalls.  Delaying acknowledgement of sluggish revenue collections will give policymakers less time to address the problem if these shortfalls continue.

The state has also stopped publishing town-by-town data on state property tax rebates in its annual reports on property tax collections and has removed prior-year reports from its website.  … Read more

4 Questions About Lee-Rubio Tax Plan

October 6, 2014 at 4:18 pm

With tax reform potentially on Congress’ agenda next year, the tax plan that Senators Mike Lee (R-UT) and Marco Rubio (R-FL) sketched out recently will merit a close look.  Its marquee proposal would supplement the current Child Tax Credit (CTC) with an additional credit of $2,500 per child.  We can’t evaluate the plan, which the senators say “won’t only help revive the American dream, but also make it more attainable for more Americans than ever before,” until they provide the details. … Read more