Investing in What WorksEffective policies that will reduce poverty, restore economic opportunity, and rebuild our economy
Erik R. Stegman, Manager, Half in Ten
Presentation to the UCSJOCO 2013 Human Services SummitJune 18, 2013
We CAN cut poverty in half
Poverty Today
• U.S. Poverty Rate: 15%, 46.2 million• Johnson County:
– 6.6% (2011)– 12.3% for children ages 0-5 (2011)
5 things you need to know about poverty in America
• Half in Ten’s Annual Report tracks 21 indicators of poverty to measure our progress and identify top line trends
The economy grew…but so did income inequality
Top 20% see income gains in 2011 while incomes fall or stagnate for low- and middle-income families
Stagnant service incomes
Real median weekly earnings for workers in service occupations over the last decade
Johnson County Income Trends
• Incomes are dropping for most people: Median income dropped 12.6% in JC between 2008-2011 (currently $69,856)
• Low wage work is a large component of the market: 33% of all jobs in JC paid less than $30k/year, and more than 1 in 3 residents work these jobs
• Income inequality on a sharp rise: The # of households making less than $25k grew by 38%, while those making $75k or more decreased 9%
Johnson County Income Trends
• Projected job growth won’t sustain households: the majority of job growth through 2018 in the Kansas counties of the KC Metro won’t sustain households. Of the top 10 jobs expected to have the greatest growth, 7 have median wages under $30k/year
Unemployment insurance critical to our recovery
• The share of unemployed workers receiving unemployment insurance benefits fell by 10 percentage points between 2010-2011.
• Nearly 4 million face cuts to federal jobless aid due to sequestration.
• 4,400 workers on average received monthly UI benefits in Johnson County each month in 2011
Tax credits & nutrition assistance kept families out of poverty
The Supplemental Poverty Measure shows that refundabletax credits such as the earned income and child tax credits kept 8.7 million people outof poverty in 2011, and that the Supplemental Nutrition Assistance Program lifted 4.7 millionpeople above the poverty line.
Health insurance coverage on the rise: early effects of the ACA
The number of Americans without health insurance rose steadily until 2011. Due to the early effects of the Affordable Care Act, a new positive trend in coverage is emerging.
New tools and resources in this year’s report
•At-a-glance fact sheets for each of our 21 indicators•Updated state-by-state data and rankings•Summary of findings fact sheet•Poverty and Opportunity Profiles
The bottom line: families need good jobs & support to stay in them
• Too many in our economy are still living in a recession
• Lots of talk about how to grow the economy, but not about how low-income families fit in
• Building ladders for shared economic opportunity relies on living wages and good work policies
But when the economy fails struggling families…
Policies Matter
Affordable and Available Housing
• 30% of JC housing market is renters
• Median monthly rent for JC housing in 2011: $881.
• Only 30% of the market was under $750/month
Affordable and Available Housing continued
• 1 in 4 homeowners were paying more than 30% of their monthly income on housing costs (2011)
• 46% of renters were paying more than 30% of their income on housing costs
• This kind of cost burden leaves families very vulnerable when emergencies and unexpected costs arise
Nutrition Assistance• Johnson County
food insecurity rate: 11.7%
• Children: 16.2% (22,900 children)
• 22,481 residents received SNAP benefits in 2011
Other supports• 7,818 residents received the Low Income
Energy Assistance program to prevent their utilities from being shut off
• EITC/CTC: 20k tax filers benefitted in 2008• WIC: 13,226 women, infants and children
received food, nutrition education, and health screenings in JC (FY 12)
• School Lunch: 23,117 students (25%) in 2012-13
10.6 mil Americans pushed into poverty due to out-of-pocket costs
Health insurance coverage: an important step forward
• 49k residents of Johnson County were uninsured in 2011 (9%)
• Nearly 17, 640 JC residents would be eligible if KS accepts Medicaid expansion
• The percentage of Johnson County residents receiving employer-based health insurance coverage is decreasing
• It’s good for public health and the economy
It doesn’t have to be this wayWe can cut poverty in half because we’ve done it beforeWe need to:
1. Rebuild an economy with full-employment opportunities and living wages
2. Support sound and proven policies that keep families on their feet when the economy fails them
It’s time to hit the reset button
Our deficit situation has improved dramatically
It’s time to focus on jobs and growth
Let’s take a look at the new projections from the Congressional Budget Office
The long-term fiscal outlook has improved significantly
Health care spending is going down
Investments are needed, not more austerity
• Unemployment in the Eurozone is at a record high
• UK’s immediate and harsh budget slashing resulted in a near triple-dip recession
• Austerity in the UK is actually resulting in more, not less debt
Our economy should be creating more jobs
• Even with this drastically improved outlook, our job market remains tepid
The sequester isn’t even necessary for deficit reduction
• The reckless across-the-board cuts that no one wanted won’t even achieve the deficit reduction they were supposed to
What it all means: increase employmentWe’ve cut poverty in half before through a full-employment economy and smart policies to support struggling families. We need to:1. Increase the number of household-sustaining
jobs2. Ensure that residents have skills to fill those
jobs3. Provide sound and accessible supports to
maintain employment
What it all means: reduce household and work expenses
And, we need to reduce the costs most responsible for pushing families into poverty:1. Out-of-pocket healthcare costs2. Work-related expenses, including
transportation and child care
Thank you
Erik Stegman, Manager, Half in Ten CampaignCenter for American Progress
Twitter: @ErikStegman
