Truth or Consequences Gilda Z. Jacobs Western Michigan University March 21, 2013

The League’s Mission To foster economic opportunity, independence and security of Michigan’s economically vulnerable population by shaping public policy through objective data-driven research, education and advocacy 1223 Turner St. Suite G-1, Lansing, MI (517) Fax: (517) Web site: A United Way Agency 2

Setting the Table Michigan League for Public Policy State EITC refunds drop from $349 million to $105 million Unemployment: 8.9% in December; 413,000 unemployed 1/837 homes foreclosure filing in January 48% of kids receiving free and reduced price lunches Cuts: $26 M $2 M $6 M

Setting the Table cont’d. Michigan League for Public Policy One third of working families in Michigan are low- income More Michigan residents lost more employer-sponsored insurance than anywhere in country in past decade (4.2 million to 3 million covered) Income disparity nationwide is at highest levels since Great Depression, and Michigan has a big gap 4

Family of 4 $24,000 Family of 3 $18,000 What is Poverty? Michigan League for Public Policy 5

Poverty in Michigan Continues to Rise Michigan League for Public Policy

2011 Poverty Total 17.5% Children 24.4% Families with Children 20.9% Michigan League for Public Policy 7

1 in 6 people live in poverty Total number of people living in poverty 1,693,294 Michigan League for Public Policy 8

1 in 5 families with children live in poverty Number of families with children living in poverty 1,138,970 Michigan League for Public Policy 9

1 in 4 children live in poverty Number of children living in poverty 548,145 Michigan League for Public Policy 10

How Much Do KIDS COUNT in Michigan? Michigan kids in poverty would fill the UM Big House 5 times Michigan League for Public Policy 11

Young Children, Ages 0-5, Eligible for Food Assistance Program* 2011 (MI – 37.4%) Michigan League for Public Policy %

Michigan Trends in Child Well- Being Poverty, ages 0-17 Children 0-5 receiving food assistance Children eligible for FRL Low-birthweight babies Infant mortality Child/Teen deaths, ages 1-19 Births to teens, ages Children in investigated families Confirmed victims Children in out-of-home care MEAP Fourth grade reading MEAP Eighth Grade Math MME High School reading Students not graduating on time Worse Better Economic Security Education Michigan League for Public Policy 13

Change in Family Poverty, Michigan League for Public Policy 14

Change in Poverty by Race/Ethnicity, Michigan League for Public Policy 15

Poverty by Race/Ethnicity, % white, not Latino Michigan League for Public Policy 16

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Kalamazoo County: Child Well-Being Overall ranking49 out of 82 counties Overall ranking49 out of 82 counties Michigan League for Public Policy 19

Kalamazoo County: Child Well-Being Child poverty increased 49% 1 of every 4 fro m Child poverty increased 49% 1 of every 4 fro m Michigan League for Public Policy 20

Kalamazoo County: Child Well-Being Rate of students eligible for free/reduced lunch increased29% 29% Michigan League for Public Policy 21

What Causes/Contributes to Poverty? Michigan League for Public Policy 22

Jobs 400,000 Workers Unemployed Every Month in Michigan League for Public Policy 23

Income Michigan’s Median Income of $45,981 has dropped more than $6,000 since the beginning of the recession. Michigan League for Public Policy 24

Cuts to business taxes Shift the burden to individuals Michigan League for Public Policy Tax Changes FOOD MORTGAGE CREDIT CARDS UTILITIES SAVINGS GAS CAR PAYMENT 25

Michigan Earned Income Tax Credit Cut, 2011 vs Michigan League for Public Policy 70% drop $439 $132 26

Fewer Children Kept Out of Poverty Michigan League for Public Policy 20% = 14,000 6% = 5,000 27

Policy Changes UI benefits Asset test for food assistance Restrictions on FIP Michigan League for Public Policy 28

More Policy Changes Lifetime cap on cash assistance Heating and energy assistance cut Cuts to need-based financial aid grants Higher ed/community colleges cuts Michigan League for Public Policy 29

Philanthropy can’t make up for loss of public services State spending $174 million less a year in Wayne County alone on non-Medicaid assistance Community Foundation for Southeast Michigan spends $54 million a year in seven-county area Michigan League for Public Policy For example: 30

What Can We Do to Reduce Economic Insecurity? Restore unemployment insurance benefits and index them for inflation. Restore the state Earned Income Tax Credit for low-income working families. Raise the minimum wage to a level that lifts a family of four above the poverty level ($23,000). Raise the eligibility and adjust the sliding scale for the child care subsidy. Michigan League for Public Policy 31

Michigan League for Public Policy Advocacy 101: YOU CAN MAKE A DIFFERENCE Contact your legislators/members of Congress Write letters to the editor/Op-Eds Provide stories of impact of policy decisions 32

Michigan League for Public Policy Advocacy tools Put it in writing Make a call Put in face time Building a relationship 33

If there were no advocates, there wouldn’t have been: — Women’s Suffrage Movement — Civil Rights Act of 1964 — Voting Rights Act of 1965 — Americans with Disabilities Act of 1990 What if? Michigan League for Public Policy 34

Additional Information Website: Join the Nokomis Challenge Sign up for “ Alerts” Check our blog Become a member Join the Prosperity Coalition: 35