In Case You Missed It…

August 15, 2014 at 12:05 pm

This week on Off the Charts, we focused on food assistance, health reform, Social Security, the federal budget and taxes, and state budgets and taxes.

  • On food assistance, Becca Segal introduced our new database of schools nationwide that qualify for community eligibility and shared what school officials are saying about the benefits of the program, which allows schools in high-poverty areas to serve meals to all students at no charge.
  • On health reform, Jesse Cross-Call rebutted claims by opponents of health reform’s Medicaid expansion that the federal government frequently changes the share of states’ Medicaid costs that it covers.
  • On Social Security, Kathy Ruffing celebrated the program’s 79th birthday by explaining how it helps more than 58 million Americans.
  • On the federal budget and taxes, Chye-Ching Huang highlighted a new paper debunking the claim that high U.S. tax rates force companies to move their headquarters overseas.
  • On state budgets and taxes, Michael Leachman connected the dots between Kansas’ costly tax cuts and the recent downgrading of the state’s credit rating.

We released a paper on what the 2014 trustees’ report shows about Social Security and a database that identifies schools that qualify for community eligibility. We also updated our chart book on the legacy of the Great Recession.

CBPP’s Chart of the Week:

A variety of news outlets featured CBPP’s work and experts recently. Here are some highlights:

Economic recovery marked by lower-paying jobs, analysis finds
Los Angeles Times
August 11, 2014

All Somerset students qualify for free breakfast, lunch
DelmarvaNow
August 10, 2014

Don’t miss any of our posts, papers, or charts — follow us on Twitter and Instagram.

What Schools Are Saying About Community Eligibility

August 15, 2014 at 11:14 am

School officials around the country have explained (see here and here) why they’re adopting community eligibility, a powerful new tool to fight hunger in high-poverty neighborhoods by allowing schools to offer nutritious meals to all students at no charge.  As schools and families prepare for the new school year — and as the August 31st signup deadline for eligible schools approaches — here’s more of what school officials are saying about the benefits of community eligibility:

  • Bill Redwine, chair of Rowan County, Kentucky, board of education:

    “This program will have a direct benefit on students in the classroom because teachers know that students who are hungry or have not had breakfast have difficulty concentrating on their schoolwork. . . .  It will also benefit those parents who, in the past, have struggled to provide the money for their child’s meals.  This definitely is a win for our students, for their parents and for our district as a whole.”

  • Jesse Register, director of Metropolitan Nashville, Tennessee, schools:

    “We’re firm believers in educating the whole child and providing them what they need for productive school days.  If a child is hungry, he’s going to have trouble learning.  No child should go hungry and no child should be embarrassed about accepting a meal.  By making it universal, we don’t have to single out any child and we can make family budgets a little less tight.”

  • Margaret Allen, superintendent of Montgomery, Alabama schools:

    “Studies have shown that children who receive proper nutrition perform better in school. . . .   Many of our families live below the poverty line.  Even those that don’t, may skip meals to save money.  This will ensure learning won’t suffer because a student is hungry at school.”

  • Kim Hall, director of child nutrition services, Muskogee, Oklahoma, public schools:

    “Being able to eat a nutritious meal during the day helps the students learn — students that eat during the day are more likely to pay attention because they are not worried about being hungry.”

  • Joey Vaughn, nutrition director, Huntsville, Alabama, city schools:

    “Hopefully, this is going to do away with the stigma [of receiving free school meals] because everybody is going to be able to eat for free.  Nobody’s got to fill out any paperwork; nobody’s got to prove their financial status.”

  • Lisa Stevenson, principal of Neil Armstrong Elementary School, Eldridge, Iowa:

    “Families that don’t have as much money don’t spend the extra money to buy fresh fruits and vegetables at the grocery store because that’s expensive. . . .  This is an opportunity for us to get kids . . . on the right path to trying new and healthy food when they’re at school.”

  • Donna Hargens, superintendent of Jefferson County, Kentucky, public schools:

    “You can’t learn if you’re hungry so we know that providing breakfast and lunch for more of our kids is a really important ingredient and that’s just integral to kids learning.”

Federal Medicaid Matching Rates Have Remained Stable, New Study Shows

August 14, 2014 at 1:03 pm

Some state policymakers opposed to health reform’s Medicaid expansion continue to argue that the federal government will likely renege on its commitment to permanently pick up nearly all of the cost.  Some assert that Congress frequently changes the formula that determines what share of states’ Medicaid costs the federal government will cover (also known as the FMAP).  As we noted in February, that’s false, and a new report from the Urban Institute concurs.

The report finds that policymakers have only cut the FMAP once, in 1981, when President Reagan and Congress enacted a temporary cut.  The most recent FMAP changes were temporary increases to give states fiscal relief during the past two economic downturns.

States are headed down divergent paths based on whether they have expanded Medicaid.  The 27 states (including the District of Columbia, see map) that have taken up the Medicaid expansion are experiencing large gains in health coverage.  As a result, hospitals are providing much less uncompensated care than just a year ago.

Unfounded concerns of a future drop in the federal matching are no reason for the remaining states to stay on the sidelines and miss out on the many benefits of expansion.

Is Your School Eligible to Become Hunger Free?

August 13, 2014 at 3:47 pm

With the August 31 deadline fast approaching for schools to adopt the Community Eligibility Provision for the new school year, we’ve created a searchable database listing each state’s eligible schools.

Community eligibility, which becomes available nationwide this year, enables high-poverty schools and school districts to serve breakfast and lunch to all students at no charge.

The database also lists each state’s Identified Student Percentage (ISP), or the share of students who are already approved for free meals without an application because they either have been identified as low income by another program (such as SNAP, formerly food stamps) or are considered at risk of hunger (because they are homeless or in foster care, for example).

School districts, individual schools, or groups of schools can qualify for community eligibility if their ISP is at least 40 percent.  And under community eligibility, schools with higher ISPs receive higher federal reimbursements for the meals they serve.

For more on community eligibility, see this detailed report.

Happy 79th Birthday, Social Security!

August 13, 2014 at 2:04 pm

Social Security marks its 79th birthday tomorrow.  This highly successful program pays benefits to more than 58 million Americans.  It’s the single most important source of income for its elderly beneficiaries, contributing on average two-thirds of income for recipients over age 65.  For more than one-third of them, Social Security constitutes at least 90 percent of income (see graph).

Reliance on Social Security is especially high among the oldest — those who can no longer work and may have outlived their savings — and elderly blacks and Hispanics. Without Social Security, nearly half of elderly Americans would live below the official poverty line; instead, fewer than 10 percent do.

But Social Security isn’t just for the elderly.  It protects workers who suffer a severe medical impairment and children whose breadwinner dies, retires, or becomes disabled. We estimate that in 2012 — the latest year for which we have data — it lifted more than 22 million Americans of all ages above the official poverty line (see table).

Social Security benefits are modest.  The average retired worker or elderly widow collects only $1,300 a month, and disabled workers even less.  Nobody gets rich from Social Security: only 10 percent of retired workers get more than $2,000 a month (and fewer than 2 percent get more than $2,500).  Social Security benefits are low by international standards, too.

With the continued decline of the traditional defined-benefit pension, Social Security is the only retirement income most Americans will collect that’s indexed to inflation and guaranteed to last as long as they live.  And because it’s not means-tested, Social Security encourages people to supplement their retirement income by working part-time or by saving money.

Social Security faces a long-term shortfall that’s predictable and manageable, as our new paper on the trustees’ latest annual report explains.  Those who fear that Social Security won’t be around when today’s young workers retire misunderstand the trustees’ projections.  Even if policymakers did nothing, the program could still pay three-quarters of scheduled benefits after the trust funds run out in 2033.

Of course, policymakers should act well before then to place this extremely popular program (see here and here) on a sound long-term footing.  The best proposals would protect vulnerable workers and beneficiaries and give all participants ample notice of future changes.  A well-crafted package would also make targeted improvements to Supplemental Security Income, which is distinct from Social Security but has important overlaps.

Social Security is the most effective and successful income-security program in the nation’s history.  The President and Congress should design reforms judiciously so that it remains that way.