1. Hunger and Poverty in Texas: Causes and Solutions Food Insecurity: The Hunger Epidemic Witte Museum San Antonio, Texas February 18, Celia Hagert Senior Policy Analyst 1

2. Overview Hunger and poverty: causes and consequences Solutions
Expand economic opportunity
Ensure a strong federal nutrition safety net (SNAP, school meals, WIC, senior meals, etc.)
I’m going to talk more about poverty than hunger. Goal is to paint a context for hunger in which we can understand both causes and therefore solutions

3. The Economic Context Hunger is a symptom of poverty
Poverty is deep and widespread in Texas
Root causes are structural, not individual
Increasing economic opportunity and earnings is the long-term solution
Hunger doesn’t occur in a vacuum – it is a consequence or symptom of an economic problem, which is hunger. Both problems are deep and widespread in Texas. The root causes of both problems are structural—not individual—and therefore we can solve both problems through systemic change. In the long-run, the solution to both problems will be to find ways as a state and as a nation to make economic opportunity available to everyone.

4. How many people are officially poor in Texas?
The Numbers
How many people are officially poor in Texas?
Who are the poor?
Define = guidelines
Count = thresholds

5. Texas Hunger Rate Linked to Poverty
Sources: Poverty data are one-year estimates from American Community Survey, U.S. Census Bureau. Food Insecurity data are three-year averages from USDA’s Economic Research Service.

6. Poverty and Unemployment (with recession impact simulated)
Unemployment is a factor in poverty and current recession will make things worse.
But poverty is high in Texas even during good times: the rising tide does not lift all boats
Forecast
Source: U.S. Bureau of Labor Statistics; Comptroller Winter Forecast; Census Bureau CPS.

7. Source: 2008 American Community Survey, U.S. Census Bureau
Hispanics and African Americans Much More Likely to Live In Poverty as Whites in Texas
Some people are more likely to be poor based on their race or ethnicity.
Source: 2008 American Community Survey, U.S. Census Bureau

8. Vast Majority of Poor Texans are Citizens
As you can see here, poverty in Texas is not the result of our large immigrant population.
Source: 2008 American Community Survey, U.S. Census Bureau

9. Poverty Rates by Citizenship
679,700
Born-in-U.S.citizen poverty rate: 41st worst among states
3,760,431
3,080,731
No big improvement when all noncitizens are left out of poverty rate calculations. We are the 41st most-poor state without immigrant population included, compared to 43rd worst when everyone’s counted.
Source: 2008 American Community Survey, U.S. Census Bureau

10. Texas 43rd Worst Rate of Total Population in Poverty TX = 15. 8%; U. S
Source: 2008 American Community Survey, map from KIDS COUNT Data Center,

11. Texas Poverty 101

12. Why can’t families escape poverty?
The cost of living has outpaced earnings
Lack of education, economic opportunity limits earnings, upward mobility
People are poor despite work. Most poor families with children in Texas are working families. Of the 606,400 families with children below poverty in 2007, 58 percent were headed by a worker. Approximately 1.65 million people in Texas, 908,165 of whom are children, live in these working-poor families. In the larger universe of Texas families with incomes below 200 percent of the poverty line, work participation is even higher. Of 1.4 million poor and .near poor. Texas families with children, 77 percent are working. These families
include almost 4.8 million Texans, 2.4 million of whom are children. Low wages in many of the state economy’s growth sectors contribute to Texas’ large working but low-income population, as do limited public assistance benefits. Low-income Texans struggle to increase their earnings due to limited economic opportunity, such as difficulty affording college.

13. Minimum wage $70 shy of FPL for Family of 2
Full-time Work at Minimum Wage ($14,500) Doesn’t Lift Texas Families Above Poverty Line
Minimum wage $70 shy of FPL for Family of 2
You can see that a minimum wage doesn’t even get a family to the poverty level. The idea is that someone won’t work there very long, but without opportunities to get ahead, too many Texans get stuck in low-wage jobs that don’t pay enough to raise a family or afford a decent—what used to be called a middle class—standard of living.
Minimum wage = $7.25 per hour as of July 24, Full-time work = 2,000 hours per year.

14. Median Income Adjusted to Purchasing Power in 2000
Texas Median Income Increases Slightly, But Purchasing Power on General Decline
Median Income
Entered median income from given year and calculated “same buying power as” for Even families earning the median income in Texas have seen their buying power decline, and with it their standard of living--due to huge increases in the cost-of-living.
Median Income Adjusted to Purchasing Power in 2000
Source: KIDS COUNT Data Center, Families with Related Children, American Community Survey, Census Bureau; Data adjusted using inflation calculator from the U.S. Bureau of Labor Statistics 14

15. The Consequences
From NCCP’s FAQs:
Families and their children experience poverty when they are unable to achieve a minimum, decent standard of living that allows them to participate fully in mainstream society. One component of poverty is material hardship. Although we are all taught that the essentials are food, clothing, and shelter, the reality is that the definition of basic material necessities varies by time and place. In the United States, we all agree that having access to running water, electricity, indoor plumbing, and telephone service are essential to 21st century living even though that would not have been true 50 or 100 years ago.
The most commonly held stereotypes about poverty are false. Family poverty in the U.S. is typically depicted as a static, entrenched condition, characterized by large numbers of children, chronic unemployment, drugs, violence, and family turmoil. But the realities of poverty and economic hardship are very different.
Americans often talk about “poor people” as if they are a distinct group with uniform characteristics and somehow unlike the rest of “us.” In fact, there is great diversity among children and families who experience economic hardship. Research shows that many stereotypes just aren’t accurate: a study of children born between 1970 and 1990 showed that 35 percent experienced poverty at some point during their childhood; only a small minority experienced persistent and chronic poverty. And more than 90 percent of low-income single mothers have only one, two, or three children.
The experiences of children and families who face economic hardship are far from uniform. Some families experience hard times for brief spells while a small minority experience chronic poverty. For some, the greatest challenge is inadequate financial resources, whether insufficient income to meet daily expenses or the necessary assets (savings, a home) to get ahead. For others, economic hardship is compounded by social isolation. These differences in the severity and depth of poverty matter, especially when it comes to the effects on children.

16. Source: 2008-2009 Enrollment Data, Texas Education Agency
Over Half of Texas’ 4.7M Public School Kids Are Considered Economically Disadvantaged
Economically Disadvantaged =
Kids who are eligible for free (below 130% of poverty) or reduced-price lunch (130%-185% of poverty)
Source: Enrollment Data, Texas Education Agency

17. “Early disadvantage, if left untouched, leads to academic and social difficulties later in life. Early advantages accumulate, just as early disadvantages do.”
Heckman & Masterov, as cited in “Early Childhood Education for All: A Wise Investment”

18. GAPS IN ACHIEVEMENT: Fewer Economically Disadvantaged Kids Pass the TAKS Tests
Average passing rate is across all tests taken and all tests that met standard
-- NOT average across each test’s percentage met standard
Source: Percent Students Passing Across Grades Within Each Test, 2009 TAKS data, Texas Education Agency

19. GAPS IN ATTAINMENT: Economically Disadvantaged and Minority Students Drop Out at Higher Rates
Economic Scarring (   This briefing paper quickly summarizes a few of the long term impacts of a recession on families, businesses, and the economy. It talks about how child education and nutrition suffer, and that 20% of young adults delay or drop out of college. A highly productive workforce generally requires highly skilled, and thus, highly educated workers, so these minor setbacks today can lead to long term consequences – one study found that workers entering the workforce during a recession have lower earnings even 15 years later.
Source: Class of 2008 four-year longitudinal dropout rate within group, Texas Education Agency

20. GAPS IN EARNINGS: More than One of Every Three Texas Dropouts Lives in Poverty
Drop-outs are 60% more likely to be poor; Versus one in 6.67 H.S. Graduates. These education gaps leave low-skilled workers with limited employment opportunities, channeling them and their children into a life of poverty and hardship. This will have HUGE consequences for Texas as well. In our technology and service-oriented economy, our economic well-being will rise and fall with the skills of our workforce. With more than half (55 percent) of Texas’ public school students identified as economically disadvantaged, and more than two-thirds identified as minority (65 percent), if Texas does not close these gaps, Texas families and the economy will certainly suffer.
Source: Table C17003, 2008 American Community Survey, U.S. Census Bureau

21. Long-term solution to poverty & hunger: Increase economic opportunity so people can learn more, earn more
Ending poverty will require tremendous change at all levels of society. We’ll need an American people committed to making this change and able to elect political leaders with the will and the courage to make it happen. In the meantime, we have very effective solutions to prevent hunger in low-income families. And that’s what I’m going to talk about next

22. Short-Term Solution to Hunger: Improve Nutrition Safety Net
Make sure everyone who needs food assistance receives this help
This needs to be our mission statement. We came together as a nation over half a century ago and said Hunger is Unacceptable. It began after WWII when Congress created the NSLP. Too many men were turned down from the draft fro malnutrition. In the mid 70s, the modern-day FSP was created after a TV documentary exposed the effects of malnutrition on American children. Our public nutrition safety net has grown over time and today prevents hunger and improves nutrition for millions of Americans each year. As a result, few Americans experience severe or chronic hunger.

23. Gaps in the Nutrition Safety Net
#1 Many eligible families aren’t getting federal food assistance*
Flaws in the poverty measure prevent needy families from getting assistance
#2 Many needy families don’t qualify for federal food assistance
Barriers limit access for eligible families
*Federal food assistance = SNAP/Food Stamps, School Lunch/Breakfast, Afterschool/Childcare, Summer Food, WIC, Commodities
But there are gaps—some of which are larger in Texas than the nation—that we need to close the make good on our promise that Hunger is Unacceptable.

24. #1: Many Texans Qualify for Food Assistance But Do Not Receive It
Limited awareness
Stigma
Inadequate funding
Enrollment barriers (staff shortages, red tape, outdated rules) make the benefits hard to access
Source: Bridging the Gaps Project, Center for Economic and Policy Research

25. Many Texans Qualify for Assistance But Do Not Receive It
Source: Bridging the Gaps Project, Center for Economic and Policy Research

26. Too Many Families Relying on Food Banks Not Getting Federal Food Assistance
SOURCE: Hunger in America: 2010 Survey, Feeding America
Source: Bridging the Gaps Project, Center for Economic and Policy Research

27. Texas Failing to Process More and More SNAP (aka Food Stamp) Applications on Time
Retrieved from
Disposed - the number of applications worked to a decision (approved and/or denied) and provided a benefit if approved.
Timely - the number of applications disposed within the established time frames for the program.
September data by region
SNAP Food Benefits APPLICATIONS
Region Disposed Timely Percent
01 3,906 1, %
02 2,325 1, %
03 21,810 9, %
04 5,942 4, %
05 4,755 3, %
06 19,665 7, %
07 12,041 10, %
08 10,977 7, %
09 2,846 1, %
10 4,380 2, %
11 12,726 8, %
00 4,211 3, %
TOTAL 105,584 61, %
Source: Texas Health and Human Services Commission, 2009 Monthly Timeliness Reports

28. SNAP Not Reaching Its Target Population
Almost half (45.4%) of food bank clients believe they are not eligible for SNAP, yet almost one-quarter (24.2%) have income low enough to qualify (<130% FPL).
= lack of awareness of SNAP rules.
17.1% report not receiving SNAP benefits because “it is too much hassle."
= problems in the eligibility system.
SOURCE: Hunger in America: 2010 Survey, Feeding America
Source: Bridging the Gaps Project, Center for Economic and Policy Research

29. #2: Many Needy Families Don’t Qualify for Food Assistance
Eligibility for food (and other public) assistance is tied to Federal Poverty Measure
The Federal Poverty Measure is flawed: Poverty = 3 x cost of food per family size (methodology from the 1960s)
Fails to take into account today’s cost of living
Child care
Medical costs
Housing
...In 2000, a majority of Americans believe it takes at least $35,000 annually to provide adequately for a family of four. (Poverty Pulse poll, 2000)
--That’s equal to $43, when adjusting for inflation in 2009
The U.S. Census Bureau establishes annual income thresholds to measure poverty and estimate the number of poor people. People in families with income below the federal poverty threshold are considered poor. The U.S. Department of Health and Human Services uses these thresholds to set income guidelines, which vary by family size and are referred to as the “federal poverty level” (FPL). FPL is used to determine eligibility for many government programs. Private organizations also use these guidelines to determine eligibility for their services to low-income families.
The “federal poverty level” (FPL) - Individuals in families with income below the federal poverty level are considered poor
Guidelines reflect the minimum amount of income that American households need to subsist
Federal poverty “guidelines” are used to determine eligibility for many federal, state, and local programs
Private organizations also use these guidelines to target their services to low-income families

30. Federal Poverty Guidelines
Family Size
2007
2008
2009 2
$13,690
$14,000
$14,570 3
17,170
17,600
18,310 4
20,650
21,200
22,050
Source: U.S. Department of Health and Human Services

31. Monthly Costs for Single-Parent, 2-Child Family in Fort Worth-Arlington
$212-$1,100
$745
$1,034
$356
$339
$356
Total Monthly Expenses = $3,042 - $3,540
Source: Family Budget Estimator, CPPP, 32

32. Source: Family Budget Estimator, CPPP, www.cppp.org/fbe
Necessary Income for Single-Parent, 2-Child Family in Fort Worth-Arlington
Hourly = $19 - $23/hour
Annual = $38,737 - $46,709
226% to 272% of poverty line
2007 ACS for FW-Arlington Metro Division (Table B24092)
Median earnings for full-time, year-round civilian employed pop 16 and older
Women = $34,648 ($16.66)
Men = $43,912 ($21.11)
Source: Family Budget Estimator, CPPP,

33. Total Monthly Expenses for Families in Dallas-Plano-Irving as Percentage of the Federal Poverty Level
Note: These budgets are for families where the employer pays 100% of one parent’s health insurance and 50% of premium for spouse and/or dependents. The poverty line is the maximum amount a family can make in a month and still be considered below the 2007 federal poverty level

34. Public Assistance Programs Not an Option for Many Working Families
From NCCP FAQs:
Material deprivation is not as widespread in the United States as it was 30 or 40 years ago. For example, few Americans experience severe or chronic hunger, due in large part to public food and nutrition programs, such as food stamps, school breakfast and lunch programs, and WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children). Over time, Social Security greatly reduced poverty and economic insecurity among the elderly. Increased wealth and technological advances have made it possible for ordinary families to have larger houses, computers, televisions, multiple cars, stereo equipment, air conditioning, and cell phones.
Sources: U.S. Department of Agriculture; Texas Workforce Commission; Texas HHSC

35. Public Health Insurance More of an Option for Children, Elderly, Disabled
Annual income limits:
For a family of three in child & parent categories;
for SSI & Long-Term Care, income cap is for one person.
From NCCP FAQs:
Material deprivation is not as widespread in the United States as it was 30 or 40 years ago. For example, few Americans experience severe or chronic hunger, due in large part to public food and nutrition programs, such as food stamps, school breakfast and lunch programs, and WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children). Over time, Social Security greatly reduced poverty and economic insecurity among the elderly. Increased wealth and technological advances have made it possible for ordinary families to have larger houses, computers, televisions, multiple cars, stereo equipment, air conditioning, and cell phones.
Sources: Texas HHSC

36. Texas Low-Income Children vs. Served by “Safety Net”
Source: Texas Kids Count; Texas Health and Human Services Commission; March CPS (FERRET)

37. Family Budget Estimator (FBE)
The Family Budget Estimator (FBE) Project provides a realistic picture of how much it costs Texas families in different areas of the state to meet their basic needs.

38. Our Shared Challenge
Make sure everyone eligible for food assistance is getting it
Less than half of eligible population gets SNAP
Fewer than one in five eligible children get free summer meals
Make sure everyone who needs food assistance is getting it
Since eligibility is tied to the official poverty measure, many needy families don’t qualify for federal food assistance
Need to revise poverty measure or income limits for food programs

39. Sign up to receive notice of our work at: www.cppp.org
Contact Information
Celia Hagert
(512) ext. 110
Sign up to receive notice of our work at: 40