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d David Riemer Senior Fellow Community Advocates Public Policy Institute Milwaukee, WI NCSL Annual Conference Seattle, Washington August 3, 2015 Working Our Way Out of Poverty Working Our Way Out of Poverty
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Page 1: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

d

David RiemerSenior Fellow

Community Advocates Public Policy Institute

Milwaukee, WI

NCSL Annual ConferenceSeattle, Washington

August 3, 2015

Working Our Way Out of Poverty

Working Our Way Out of Poverty

Page 2: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

2

The Poverty Drop…and Poverty Plateau

Source: U.S. Census Bureau

Page 3: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

Who is Poor?

27 million adults 8 million adults

Page 4: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

4

Work-Centered “Policy Package”

Page 5: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

5

Make Work Available

Policy 1: Create a Transitional

Jobs Program:

Program:• For unemployed & underemployed,

ages 18-69

• Not incarcerated or receiving Social

Security, SSDI, or SSI

• Opportunity to work in a minimum

wage TJ, up to 30 weeks

• Min. 8 hours, max. 40 hours per week

Page 6: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

6

Make Work Pay

Policy 2: Increase in the Minimum Wage:

• Raise the minimum wage to $10.10 per hour

as of 2015 (indexed for inflation)

• 28% increase through 2010 baseline year

$7.25$10.10

Page 7: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

7

Make Work Pay… Further

Policy 3: Reform the EITC

• Roughly $4,000 increase

• Remove marriage penalty

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8

Reduce Obstacles to Work

Policy 4: Strengthen Child Care Funding:

Guaranteed subsidized child care for every family

below 150% of official poverty line

Page 9: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

9

Help Retired Seniors and Adults with Disability Income

Policy 5: Secure Retirement and Disability Income

Tax Credit:

Eligibility Criteria:• Income from Social Security, SSDI, or SSI

• Age 18+ and not a dependent of another taxpayer

Credit Amount:

Equals = 150% of Federal Poverty line

- Sum of Social Security + SSDI + SSI

+ SNAP + Federal AGI (if positive)

Page 10: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

“Reducing Poverty in the United States”February 2015

http://www.urban.org/research/publication/reducing-poverty-united-states

Kye Lippold, Research Associate [email protected]

Results?

Page 11: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

Stand-Alone Policies = Small Impact

11

0%

2%

4%

6%

8%

10%

12%

14%

16%

Baseline Transiitonal Jobs Minimum Wage EITC Reform Secure RetirementCredit

Child Care Subsidies

SPM

Po

vert

y R

ate

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12

Entire Package = Dramatic Impact:Poverty Reduced by 50% +

14.8%

7.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Baseline Policy Package

SPM

Po

vert

y R

ate

Page 13: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

Impact by Age

13

15%16%

14%15%

7%

9%

7%

6%6%

7%

6%5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

All Persons Age < 18 Age 18-64 Age 65+

SPM

Po

vert

y R

ate

Baseline

Community Advocates Package - Low TJ Take-Up

Community Advocates Package - High TJ Take-Up

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14

Impact by Race & Ethnicity

15%

10%

22%

28%

16%

7%

4%

7%

15%

7%

0%

5%

10%

15%

20%

25%

30%

All Persons White Black Hispanic Other

SPM

Po

vert

y

Page 15: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

15

$332 Billion Cost in Perspective (Percent of Other Spending)

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16

State Progress

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17

City Increases in Minimum Wage

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18

State Progress

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19

Opportunities for State Legislatures

Short-Term

(1) Convert TANF/SNAP Benefits into Wage-Paying Jobs

• Enact state legislation enabling recipients of TANF and SNAP

benefits to voluntarily convert their monthly cash grants into wages earned

for performing useful wage-paying work in Transitional Jobs.

• Benefits:

-- Higher income (since EITC can be claimed);

-- Potentially faster movement from welfare to unsubsidized

employment…thus lowering state costs…because:

- “Real work” experience often improves self-confidence

and results in positive employer references, and

- Transitional Job employer may actually hire;

-- Private sector creation of new jobs

• May require federal waivers or law changes

Page 20: Working Our Way Out of Poverty - National Conference of ... · Policy 1: Create a Transitional Jobs Program: Program: •For unemployed & underemployed, ages 18-69 •Not incarcerated

20

Opportunities for State Legislatures

Short-Term

(2) Establish State Pilots of Entire Policy Package

• Enact state laws, and obtain federal waivers or law changes (if

needed)

• Select valid “control” and “experimental” groups in urban

neighborhoods and rural counties

• Offer “experimental” group the entire policy package

• Compare results for “control” vs. “experimental” groups,

looking at both:

- Economic outcomes: employment, earnings, income,

poverty;

- Other outcomes: CJ activity, health, education, marriage

Long-Term

Enact state legislation that translates each component

of policy package into law.

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21

Questions and Answers

Community Advocates Public Policy Institute728 North James Lovell Street, Milwaukee, WI 53233

David Riemer, Senior Fellow, [email protected], 414.270.2943

Conor Williams, Economic Policy Analyst, [email protected], 414.442.4646

Julie Kerksick, Senior Policy Advocate, [email protected], 414.795.8566

Community Advocates publications: http://ppi.communityadvocates.net/policy_projects/working_our_way_out_of_pover

ty/

Urban Institute report: “Reducing Poverty in the United States,” February 2015,

http://www.urban.org/research/publication/reducing-poverty-united-states


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