A Town Hall Meeting Poverty in California February 13, 2013 Sacramento This event is a production of the LegiSchool Project: A civic education collaboration between California State University, Sacramento and the California State Legislature A Town Hall Meeting Poverty in California www.csus.edu/legischool_project.html Megan Thorall, LegiSchool Project Director Poverty in California Dr. Mimi Coughlin, Sacramento State The economic impact of the Great Recession has made headlines in recent years as businesses and individuals struggle to recover from economic losses. Not surprisingly, poverty rates have climbed during this difficult period – and California has been hit particularly hard. Also of particular concern is the increase in poverty among children. Nationwide about one in every five children lives in poverty; in California, the rate is even higher, with about one in four children living in poverty. Studies show that even short-term, recession-induced poverty can have a serious impact on a child’s future in terms of health, educational achievement, and lifetime earning potential. How is “poverty” measured? For public policy purposes, at the federal and state level, specific measurements are used to determine whether an individual is considered poor. For example, the federal government considers a family of two adults and two children is poor when their pre-tax annual income falls below $19,157. This is often referred to as “falling below” the poverty line and this status qualifies individuals for particular programs and assistance. The predominant method of measuring poverty was developed in the 1960s and used the price of food as the basis for determining what is considered adequate income. This measurement has been adjusted for inflation every year, but critics say that it does not account for variations in cost of living expenses. For example, it costs more to live in some places than in others, so rent rates should be considered. Also, work related expenses, like commuting costs or childcare fees, have an impact on families’ income and should not be ignored. The high cost of living in California compared with the rest of the country affects everyone and is especially difficult for low-income individuals. For example, in San Francisco, a basic two-bedroom apartment costs $21,300 per year. That’s more than a family of four at the federal poverty threshold earns in a year, before even considering food, clothing, and other expenses. In addition, because of the high rate of poverty in California, there is stiff competition for inclusion in assistance programs like food stamps and CalWorks. A plan using “supplemental poverty measures,” to account for factors like regional housing costs and other expenses, has recently been put into effect. It is intended to yield more accurate data on how many of our state’s residents live in poverty today, and to direct funding to those in most need. Who is living in poverty? In California, children account for a disproportionately large number of those living in poverty: about one out of every four children in California lives below the federal poverty line. The number varies from county to county, but more than a quarter of all the poor children in California live in Los Angeles County. Statistically, child poverty rates among Latinos and African Americans are much higher (Latino: 30% poverty rate; African American: 31% poverty rate) than for Whites (10% poverty rate) and Asians (12% poverty rate). On the surface this may seem to attribute poverty to California’s large immigrant population, but, in fact, over 90% of children living in poverty have been born in the United States. Also surprising is that the majority of poor children (61%) live in families where one or both parents work, either fulltime or part-time. Less surprising is the fact that child poverty rates are particularly high (45%) among families headed by a single mother. Connections between education and poverty. Within California, almost half (44%) of the children who live in poverty are raised in families where neither parent has a high school diploma. This reflects the connection between earning potential and education level. Given the relationship between educational attainment and earning power, it is very troubling that children who grow up in poverty are very likely to have lower levels of educational attainment themselves. Their schools tend to have fewer resources, they often suffer from poor nutrition and other untreated health problems, many of them move frequently, and they are subject to chronic stress as a result of their situation. Consequently, poor children often achieve low scores on standardized tests and more likely to be held back a grade. Poor children are more likely to drop out of high school and less likely to obtain a college degree. All of this diminishes their job prospects, and perpetuates the cycle of poverty for them and their families. These educational trends also impact society as a whole. The productivity of the nation’s work force is lowered and the nation’s ability to compete in an increasingly globalized economy is limited. In addition, higher expenditures to pay for health care costs (for those who did not receive proper pre-natal and pediatric health care) and increased crime subtract substantially from the nation’s economic growth. Childhood poverty has long-term effects for society as well as for individuals and families. Discussion Questions 1. 2. 3. 4. 5. Why do you think that Latino and African American children in California (and nationwide) are more likely to grow up in poverty than White and Asian children? Is this the result of historic events or are there other reasons for the statistics? We have learned that the cost of living is very high in California. Why, then, do you think that so many families choose to live here in poverty rather than go to someplace with a lower cost of living, like South Dakota? Can you foresee any changes as a result of the supplemental poverty measures being taken into consideration? Can you think of some factors that weren’t mentioned above that might impact a family’s cost of living? The social service programs provided to people in poverty (welfare, food stamps, reduced and free school lunches, etc.) have been referred to as a “safety net.” Is this safety net a positive thing that helps struggling people stay afloat, or is it a negative influence, a deterrent from self-reliance? How can the public education system contribute to ending the cycle of poverty? What programs have you heard of that are currently in place? Can you make any other suggestions to create solutions to the problem? Reflection Questions 1. 2. 3. 4. Did you or anyone you know grow up in poverty? What impact would/did that have on your life today? How would you describe our society’s attitude toward the poor? Has this societal view shifted at all in the past few years during the recession? What responsibility, if any, do you think the government has to relieve poverty? Would wiping out poverty have any impact on the state as a whole? Can you think of any ways you personally could work to alleviate poverty California? What contributions could you make, either as an individual or as part of an organization? POVERTY: Facts and Figures December 2011 POVERTY IN CALIFORNIA Sarah Bohn California’s poverty rate spiked during the Great Recession. After declining to 12% in 2006 (the lowest level since the mid-1980s), the poverty rate in California spiked upward: as of 2010, it was 16%. This amounts to nearly six million Californians in families below the federal poverty level of income (about $22,000 for a family of four). Unofficial poverty rates are even higher when California’s high cost of living is accounted for. California’s poverty rate has not yet matched its early-1990s peak. Despite the severity of the Great Recession, a smaller percentage of Californians are in poverty now than during the recession of the early 1990s—in 1993 the poverty rate reached 18.1%. Given the persistently high rate and duration of unemployment, it is possible that poverty is still rising in the Great Recession’s aftermath. Even if this does not happen, rates of poverty will be much higher than they were three to four decades ago. California typically has a higher poverty rate than the rest of the nation. For most of the past two decades, California’s poverty rate has exceeded that of the rest of the country. By 2006 the two rates had nearly converged, with California’s rate declining and the rate in the rest of the U.S. rising. But during the Great Recession, the state’s poverty rate grew faster, and now California’s rate is slightly higher (16.3%) than in the rest of the country (14.9%). Latinos and African Americans have higher poverty rates than other groups. Latinos (22.8%) and African Americans (22.1%) have much higher poverty rates than Asians (11.8%) and whites (9.5%) in California. The statewide poverty rate among Latinos living in families with a foreign-born head of household is 25.7%; for the same group outside of California, it is significantly higher (28.4%). Poverty varies dramatically in accordance with educational level. In 2010, the poverty rate among families without any adult high school graduates was 31.3%. At the other extreme, in families headed by at least one college degree holder, the poverty rate was only 5.2%. For families in which the highest level of education is a high school diploma, the poverty rate was 19.2%. Poverty varies considerably across California’s counties. In 2010, the lowest poverty rate in California was in San Mateo County (6.7%) and the highest was in Fresno County (27.1%). Many Bay Area counties in addition to San Mateo (Contra Costa, Marin, Santa Clara, Napa, and Solano) had poverty rates below 12%, placing them in the bottom quarter of all counties. At the other end of the spectrum, Central Valley counties around Fresno (Merced, Tulare, Kings, Kern, and San Joaquin) were in the top quarter, with poverty rates in excess of 20%. More than 29% of poor people in California live in Los Angeles County. Most poor families in California are working. The majority (63.4%) of poor people in California are in working families. In 38.3% of poor families, a family member is working full-time, and in another 25.1% someone is working part-time. Workforce participation among the poor in California has decreased slightly (from 68.5%) since 2006, immediately before the recession, but it has increased over the past three decades and remains higher than in the rest of the nation. www.ppic.org POVERTY IN CALIFORNIA December 2011 During the recession, California’s poverty rate increased more rapidly than in the rest of the nation Population in poverty 20% 18% CA 16% Rest of U.S. 14% 12% 10% 8% 6% 4% 2% 0% Source: Current Population Survey, Annual Social and Economic Supplement (March). Poverty rates in California’s counties County or county group Poverty rate (%) County or county group Poverty rate (%) Alameda Alpine, Amador, Calaveras, Inyo, Mariposa, Mono, Tuolumne Butte 13.30 Placer 12.60 Riverside 16.60 20.90 Sacramento 17.30 Colusa, Glenn, Tehama, Trinity 17.30 Contra Costa Del Norte, Lassen, Modoc, Siskiyou El Dorado Fresno 9.40 21.90 9.80 27.10 9.40 San Bernardino 17.80 San Diego 14.70 San Francisco 12.60 San Joaquin 20.10 San Luis Obispo 14.60 Humboldt 15.00 San Mateo Imperial 20.80 Santa Barbara 19.00 Kern 21.40 Santa Clara 10.40 Kings 21.70 Santa Cruz 14.00 Lake, Mendocino 20.20 Shasta 17.90 Los Angeles 17.30 Solano 11.80 Madera 19.50 Sonoma 13.50 Marin 9.60 6.70 Stanislaus 19.80 Merced 24.30 Sutter, Yuba 18.30 Monterey, San Benito 16.50 Tulare 23.50 Napa 11.10 Ventura 10.60 Nevada, Plumas, Sierra 13.40 Yolo 17.90 Orange 12.00 California Total 15.70 Source: American Community Survey, 2010. Note: For some counties, poverty rates cannot be calculated individually; these counties are grouped with nearby counties. Sources: American Community Survey (2010) for demographic and geographic breakdown; Current Population Survey Annual Social and Economic Supplement (1970–2011) for trends (both from the U.S. Census Bureau). Census Bureau Supplemental Poverty Measure resources. Contact: bohn@ppic.org www.ppic.org December 2011 CHILD POVERTY IN CALIFORNIA Sarah Bohn Child poverty rates in California increased rapidly during the Great Recession. After reaching a low of about 16% in 2001, the child poverty rate in California has been trending upward. The Great Recession accelerated the increase: by 2010, nearly 1 in 4 children was living in poverty in California (23.2%). Child poverty in California is much higher than the poverty rate among adults (14%) and the elderly (10%). Child poverty is still lower than its peak during the recession of the early 1990s. Despite the severity of the Great Recession, a smaller percentage of children in California are in poverty than during the recession of the early 1990s—in 1994 the child poverty rate reached a high of 28%. Although the Great Recession is officially over, it is not yet clear whether the child poverty rate has peaked. Regardless, more children are in poverty now than three to four decades ago. The trend in California is similar to that in the rest of the country. Since 2001, the rate of child poverty has been holding steady or climbing in both California and the rest of the U.S. During the Great Recession, poverty among children increased across the country, but by 2010 the child poverty rate in the rest of the nation was 21.7%, slightly lower than California’s rate. Latino and African American children have higher poverty rates than other groups. The child poverty rates for Latinos (30%) and African Americans (31%) are much higher than the rates among Asian children (12.1%) and whites (10%) in California. However, in the rest of the country poverty rates among Latino and African American children are even higher (39% and 33%, respectively). Child poverty rates are significantly higher in families headed by immigrants than in families headed by American-born adults (27.6% vs. 16.8%). But most poor children in California are U.S.-born (90.6%) and the majority (63.5%) are U.S.-born Latinos. Child poverty varies considerably across California. In five San Francisco Bay Area counties (San Mateo, San Francisco, Contra Costa, Santa Clara, and Marin), child poverty rates are in the bottom quarter (below 13%). By contrast, rates in most Central Valley counties (Fresno, Tulare, Kings, Merced, Kern, Madero, and Stanislaus) are in the top 10, all at 29% or higher. More than a quarter (28.5%) of poor children in California live in Los Angeles County. Poverty rates are particularly high among single-mother and less-educated families. Poverty rates are higher for children living with single mothers (45%) than for those in married-couple families (14.6%) or with a single father (29.2%). The child poverty rate in single-mother families in the rest of the U.S. is even higher (48.1%). Most poor children (in terms of absolute numbers, not the rate of poverty) are part of marriedcouple families (48.7%). The child poverty rate in families where neither parent has a high school diploma is high in California (44.7%), but not as high as in the rest of the country (52.3%). Most poor children are in working families. A majority of poor children live in families where one or both parents are working: 37.2% of poor children have a parent working full-time and an additional 23.8% have a parent working part-time. That is, 61% of poor children are in families with a working adult. This is down substantially since 2006, before the recession, when 77% of poor children were in working families. www.ppic.org CHILD POVERTY IN CALIFORNIA December 2011 California’s child poverty rates have been similar to those in the rest of the nation in recent years 30% Children in poverty 25% 20% 15% CA Rest of U.S. 10% 5% 0% Source: Current Population Survey, Annual Social and Economic Supplement (March). Child poverty rates vary widely across California’s counties County or county group Child poverty rate (%) County or county group Child poverty rate (%) Alameda Alpine, Amador, Calaveras, Inyo, Mariposa, Mono, Tuolumne 16.99 Placer 11.09 13.15 Riverside 23.63 Butte 24.24 Sacramento 24.28 Colusa, Glenn, Tehama, Trinity 24.82 San Bernardino 24.94 Contra Costa 12.73 San Diego 19.05 Del Norte, Lassen, Modoc, Siskiyou 29.56 San Francisco 10.89 El Dorado 11.53 San Joaquin 27.86 Fresno 38.00 San Luis Obispo 13.80 Humboldt 14.59 San Mateo 7.03 Imperial 29.97 Santa Barbara 23.62 Kern 31.17 Santa Clara 12.88 Kings 32.23 Santa Cruz 15.32 Lake, Mendocino 30.38 Shasta 25.06 Los Angeles 24.01 Solano 16.98 Madera 29.51 Sonoma 16.48 Marin 13.08 Stanislaus 28.73 Merced 32.09 Sutter, Yuba 26.66 Monterey, San Benito 24.20 Tulare 32.45 Napa 16.20 Ventura 14.77 Nevada, Plumas, Sierra 19.54 Yolo 19.77 Orange 16.25 Total 21.81 Source: American Community Survey, 2010. Note: For some counties, poverty rates cannot be calculated individually; these counties are grouped with nearby counties. Sources: American Community Survey (2010) for demographic and geographic breakdown; Current Population Survey Annual Social and Economic Supplement (1970–2011) for trends. Both from the U.S. Census Bureau. Contact: bohn@ppic.org www.ppic.org September 13, 2011 New Data Show That More Than 6 Million Californians – Over One-Third of Them Children – Lived in Poverty in 2010 Census Bureau data released today show that the share of Californians with incomes below the federal poverty line rose in 2010 for the fourth straight year. The state’s 2010 poverty rate rose to 16.3 percent, the highest rate since 1997 (Figure 1). More than 6 million Californians – nearly one out of six – had incomes below the federal poverty line. In addition, 2.2 million of the state's children – nearly one out of four – were living in poverty in 2010 (Figure 2). The new data also show a sharp drop in inflation-adjusted income for the typical California household. The state's median household income dropped by $2,602 (4.6 percent) to $54,459 in 2010 – the largest single-year drop on record (Figure 3). Figure 1: California's Poverty Rate Increased Significantly Between 2006 and 2010 The State's 2010 Poverty Rate Was the Highest Since 1997 Percentage of People With Incomes Below the Federal Poverty Line 19% 18% 17% 16.3% 16% 15.1% 15% 12.9% 14% 12.7% 12.3% 13% 12.8% 12% 12.2% 11% 11.3% 10% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 California Source: US Census Bureau US Figure 2: California's Child Poverty Rate Increased Significantly Between 2009 and 2010 Nearly One Out of Four California Children Lived in Families With Incomes Below the Poverty Line in 2010 29% Percentage of Children Under Age 18 in Families With Incomes Below the Federal Poverty Line 27% 25% 23.4% 22.0% 23% 22.0% 21.0% 21% 20.7% 20.6% 16.4% 18.1% 19% 17% 17.4% 16.3% 15% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 California US Source: US Census Bureau Figure 3: The Inflation-Adjusted Income of the Typical California Household Dropped by $2,602 Between 2009 and 2010, the Largest Single-Year Decline on Record $62,000 $59,821 $59,274 Median Household Income (2010 Dollars) $60,000 $58,000 $57,061 $56,042 $56,000 $54,000 $53,164 $52,124 $54,459 $52,000 $50,000 $49,076 $49,445 $48,000 $46,000 $44,000 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 California US Source: US Census Bureau 2 Specifically, the new Census data show that: In 2010, 6.1 million Californians (16.3 percent) had incomes below the federal poverty line. California’s poverty rate increased by a statistically significant 4.1 percentage points from 12.2 percent in 2006, the year before the recession began. The federal poverty line varies by family size. The 2010 federal poverty line was $22,113 for a family of four with two children. California’s inflation-adjusted median household income – the income of the household at the middle of the income distribution – fell by $2,602 (4.6 percent) to $54,459 between 2009 and 2010. This is the largest singleyear decline – in inflation-adjusted dollars – on record and also a statistically significant decline of $5,362 (9.0 percent) from 2006, the most recent peak. The US poverty rate rose to 15.1 percent in 2010, up by a statistically significant 2.8 percentage points from a recent low of 12.3 percent in 2006. California’s 2010 poverty rate – 16.3 percent – was 1.2 percentage points higher than the national rate. The inflation-adjusted US median household income dropped to $49,445 in 2010. This is a decline of $1,154 (2.3 percent) from the prior year and a decline of $2,679 (5.1 percent) from 2006 – both statistically significant decreases. The gap between California’s median household income and that of the nation narrowed in 2010. California’s median household income was $5,014 above the nation’s in 2010, down from $6,462 in 2009. More than one out of five Californians under the age of 65 (21.4 percent) lacked health coverage in 2010, compared to 19.6 percent in 2006 – a statistically significant increase (Figure 4). The share of Californians under the age of 65 with job-based health coverage was 52.9 percent in 2010, down from 56.4 percent in 2006 – a statistically significant decrease (Figure 5). In addition to these overall trends in household income and economic standing, the new Census data indicate a substantial increase in the number of California's children living in poverty. The data show that: In 2010, 2.2 million California children – nearly one out of four – lived in families with incomes below the federal poverty line. The share of California’s children living in families with incomes below the poverty line rose to 23.4 percent in 2010, up from 21.0 percent the prior year and up from 18.1 percent in 2006 – both statistically significant increases. Children accounted for a disproportionately large share of Californians living in poverty. While children were one-quarter of the state’s population (25.5 percent) in 2010, they accounted for more than one-third of Californians with incomes below the federal poverty line (36.6 percent). With a historic share of California families facing challenges brought on by the Great Recession, the data released today highlight the need for policies that put people back to work, promote economic security for families, and boost economic growth. 3 Figure 4: More Than One Out of Five Californians Under Age 65 Lacked Health Coverage in 2010 Percentage of People Under Age 65 Without Health Coverage 25% 21.4% 20% 19.9% 19.7% 19.2% 19.8% 19.6% 19.1% 20.0% 19.3% 16.8% 16.4% 17.1% 16.5% 16.7% 16.6% 15.7% 15.2% 14.7% 18.4% 18.2% 18.2% 15% 21.4% 10% 5% 0% 2000 2001 2002 2003 2004 2005 2006 2007 California 2008 2009 2010 US Source: US Census Bureau Figure 5: The Share of Californians Under Age 65 With Job-Based Coverage Declined During the Past Decade Percentage of People Under Age 65 With Job-Based Health Insurance 80% 70% 69.2% 61.8% 67.7% 60.2% 66.6% 65.0% 61.7% 58.6% 60% 64.0% 63.9% 56.1% 56.8% 63.5% 56.4% 63.4% 62.3% 59.4% 58.0% 56.7% 52.8% 58.6% 52.9% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 California 2006 2007 US Source: US Census Bureau 4 2008 2009 2010 Rising Poverty Could Limit Our Future Poverty imposes enormous costs on society through the lost potential of children who grow up in families with very low incomes. Research finds that children raised in poverty tend to: Have lower levels of educational attainment. They are more likely to score lower on standardized tests, be held back a grade, and drop out of high school, and they are less likely to get a college degree than their peers whose families have higher incomes.1 These outcomes reflect the fact that children living in poverty tend to attend schools with fewer resources; suffer from poor nutrition, chronic stress, and other health problems that interfere with their school work; and change residences and schools frequently as their families struggle to find affordable housing – disruptions that can limit their success in school.2 Have lower earnings and are more likely to live in poverty as adults.3 Since growing up in poverty can limit children’s success in school, it can diminish their prospects in the job market when they become adults. Research shows, for example, that children who lived in poverty during their first five years of life earned just $17,900 per year, on average, as adults – less than half as much as similar adults whose families had incomes above twice the poverty line when they were children.4 Even “recession-induced” poverty, brought about by downturns in the economy, can have devastating consequences for children. One study, for example, found that children whose families fell into poverty during a national recession were substantially less likely to graduate from high school; earned about 30 percent less, on average, as adults; and were more than three times as likely to live in poverty as adults, relative to their peers whose families did not fall into poverty during the same recession.5 These findings are significant because both groups of children started off in similar circumstances before the downturn began. This analysis concludes that children who fall into poverty during a downturn: Will live in households with lower incomes, they will earn less themselves, and they have a greater chance at living in or near poverty as adults. They will achieve lower levels of education, and they will be less likely to be gainfully employed. Children who experience recession-induced poverty will even have poorer health than their peers who [stay] out of poverty during the childhood recession.6 Given that the Great Recession was far more severe than any downturn in recent history, its impact on children is likely to be more substantial than that of prior recessions, with longer-lasting consequences. The negative effects of poverty extend beyond the children directly affected to society as a whole. Since children who grow up in poverty tend to have lower educational attainment and earnings, poverty can diminish the productivity of the nation’s workforce and reduce the nation’s ability to compete in an increasingly globalized economy. While quantifying the costs of poverty is challenging, one estimate suggests that even before the Great Recession began, childhood poverty cost the nation around $500 billion per year in lost adult productivity and wages, increased crime, and higher health expenditures – equivalent to 4 percent of national Gross Domestic Product (GDP) – the value of all goods and service produced in the US.7 By way of comparison, US GDP growth averaged 2.5 percent over the past 15 years.8 In other words, economic growth could more than double if none of the nation’s children grew up in poverty. 5 ENDNOTES 1 Center for the Future of Children and The David and Lucile Packard Foundation, The Future of Children: Children and Poverty 7:2 (Summer/Fall 1997), p. 2; Harry J. Holzer, Penny Wise, Pound Foolish: Why Tackling Child Poverty During the Great Recession Makes Economic Sense (Half in Ten: September 2010); Jeanne Brooks-Gunn and Greg J. Duncan, “The Effects of Poverty on Children” in Center for the Future of Children and The David and Lucile Packard Foundation, The Future of Children: Children and Poverty 7:2 (Summer/Fall 1997), pp. 55-71; and Kristin Anderson Moore, et al., Children in Poverty: Trends, Consequences, and Policy Options (Child Trends: April 2009), p. 4. 2 Coalition on Human Needs, The Recession Generation: Preventing Long-Term Damage From Child Poverty and Young Adult Joblessness (July 2010), p. 8 and Kristin Anderson Moore, et al., Children in Poverty: Trends, Consequences, and Policy Options (Child Trends: April 2009), p. 4. 3 Greg J. Duncan and Katherine Magnuson, “The Long Reach of Early Childhood Poverty” Pathways Magazine (Winter 2011), pp. 22-27; Greg J. Duncan, Kathleen M. Ziol-Guest, and Ariel Kalil, “Early-Childhood Poverty and Adult Attainment, Behavior, and Health” Child Development 81:2 (January/February 2010), pp. 306-325; and Kristin Anderson Moore, et al., Children in Poverty: Trends, Consequences, and Policy Options (Child Trends: April 2009), p. 5. 4 Greg J. Duncan and Katherine Magnuson, “The Long Reach of Early Childhood Poverty” Pathways Magazine (Winter 2011), p. 27. 5 First Focus, Turning Point: The Long-Term Effects of Recession-Induced Child Poverty (May 2009). 6 First Focus, Turning Point: The Long-Term Effects of Recession-Induced Child Poverty (May 2009), p. 13. 7 Harry J. Holzer, et al., The Economic Costs of Poverty in the United States: Subsequent Effects of Children Growing Up Poor (Center for American Progress: January 24, 2007). 8 US Bureau of Economic Analysis. 6 2011 HHS Poverty Guidelines The 2011 HHS Poverty Guidelines One Version of the [U.S.] Federal Poverty Measure [ Latest Poverty Guidelines ] [ Federal Register Notice, January 20, 2011 — Full text ] [ Prior Poverty Guidelines and Federal Register References Since 1982 ] [ Frequently Asked Questions (FAQs) ] [ Further Resources on Poverty Measurement, Poverty Lines, and Their History ] [ Computations for the 2011 Poverty Guidelines ] There are two slightly different versions of the federal poverty measure: The poverty thresholds, and The poverty guidelines. The poverty thresholds are the original version of the federal poverty measure. They are updated each year by the Census Bureau (although they were originally developed by Mollie Orshansky of the Social Security Administration). The thresholds are used mainly for statistical purposes — for instance, preparing estimates of the number of Americans in poverty each year. (In other words, all official poverty population figures are calculated using the poverty thresholds, not the guidelines.) Poverty thresholds since 1973 (and for selected earlier years) and weighted average poverty thresholds since 1959 are available on the Census Bureau’s Web site. For an example of how the Census Bureau applies the thresholds to a family’s income to determine its poverty status, see “How the Census Bureau Measures Poverty” on the Census Bureau’s web site. The poverty guidelines are the other version of the federal poverty measure. They are issued each year in the Federal Register by the Department of Health and Human Services (HHS). The guidelines are a simplification of the poverty thresholds for use for administrative purposes — for instance, determining financial eligibility for certain federal programs. The Federal Register notice of the 2011 poverty guidelines is available. The poverty guidelines are sometimes loosely referred to as the “federal poverty level” (FPL), but that phrase is ambiguous and should be avoided, especially in situations (e.g., legislative or administrative) where precision is important. Key differences between poverty thresholds and poverty guidelines are outlined in a table under Frequently Asked Questions (FAQs). See also the discussion of this topic on the Institute for Research on Poverty’s web site. NOTE: The poverty guideline figures below are NOT the figures the Census Bureau uses to calculate the number of poor persons. The figures that the Census Bureau uses are the poverty thresholds. 2011 HHS Poverty Guidelines Persons in Family 48 Contiguous States and D.C. Alaska Hawaii 1 $10,890 $13,600 $12,540 2 14,710 18,380 16,930 3 18,530 23,160 21,320 4 22,350 27,940 25,710 5 26,170 32,720 30,100 6 29,990 37,500 34,490 7 33,810 42,280 38,880 8 37,630 47,060 43,270 For each additional person, add 3,820 4,780 4,390 SOURCE: Federal Register, Vol. 76, No. 13, January 20, 2011, pp. 3637-3638 The separate poverty guidelines for Alaska and Hawaii reflect Office of Economic Opportunity administrative practice beginning in the 1966-1970 period. Note that the poverty thresholds — the original version of the poverty measure — have never had separate figures for Alaska and Hawaii. The poverty guidelines are not defined for Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam, the Republic of the Marshall Islands, the Federated States of Micronesia, the Commonwealth of the Northern Mariana Islands, and Palau. In cases in which a Federal program using the poverty guidelines serves any of those jurisdictions, the Federal office which administers the program is responsible for deciding whether to use the contiguous-states-and-D.C. guidelines for http://aspe.hhs.gov/poverty/11poverty.shtml[1/4/2013 3:19:50 PM] 2011 HHS Poverty Guidelines those jurisdictions or to follow some other procedure. The poverty guidelines apply to both aged and non-aged units. The guidelines have never had an aged/non-aged distinction; only the Census Bureau (statistical) poverty thresholds have separate figures for aged and non-aged one-person and two-person units. Programs using the guidelines (or percentage multiples of the guidelines — for instance, 125 percent or 185 percent of the guidelines) in determining eligibility include Head Start, the Food Stamp Program, the National School Lunch Program, the Low-Income Home Energy Assistance Program, and the Children’s Health Insurance Program. Note that in general, cash public assistance programs (Temporary Assistance for Needy Families and Supplemental Security Income) do NOT use the poverty guidelines in determining eligibility. The Earned Income Tax Credit program also does NOT use the poverty guidelines to determine eligibility. For a more detailed list of programs that do and don’t use the guidelines, see the Frequently Asked Questions (FAQs). The poverty guidelines (unlike the poverty thresholds) are designated by the year in which they are issued. For instance, the guidelines issued in January 2011 are designated the 2011 poverty guidelines. However, the 2011 HHS poverty guidelines only reflect price changes through calendar year 2010; accordingly, they are approximately equal to the Census Bureau poverty thresholds for calendar year 2010. (The 2010 thresholds are expected to be issued in final form in September 2011; a preliminary version of the 2010 thresholds is now available from the Census Bureau.) The computations for the 2011 poverty guidelines are available. The poverty guidelines may be formally referenced as “the poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. 9902(2).” Go to Further Resources on Poverty Measurement, Poverty Lines, and Their History Go to Frequently Asked Questions (FAQs) Return to the main Poverty Guidelines, Research, and Measurement page. Last Revised: 02/02/12 ASPE Home | HHS Home | Questions? | Contacting HHS | Accessibility | Privacy Policy | FOIA | Plain Writing Act | No FEAR Act | Disclaimers The White House | USA.gov | Flu.gov U.S. Department of Health & Human Services – 200 Independence Avenue, S.W. – Washington, D.C. 20201 http://aspe.hhs.gov/poverty/11poverty.shtml[1/4/2013 3:19:50 PM] How is poverty status related to age? In 2010, the age distribution of people in poverty was 35% of the people in poverty were under 18 years of age; this age group accounted for 24% of the total population 57% of the people in poverty were 18 to 64 years of age; this age group accounted for 63% of the total population 8% of the people in poverty were 65 years or older; this age group accounted for 13% of the total population The poverty rates by age were 22% of all people under 18 years of age were poor 13.7% of all people 18 to 64 years of age were poor 9% of all people 65 years or older were poor Source: DeNavas-Walt, Carmen, Bernadette D. Proctor, and Jessica C. Smith, U.S. Census Bureau, Current Population reports P60-239, Income, Poverty, and Health Insurance Coverage in the United States: 2010, [Table 4: People and Familiies in Poverty by Selected Characteristics: 2009 and 2010], U.S. Government Printing Office, Washington, DC, 2011. Accessed 2/14/2012. How does nativity relate to poverty status? In 2010, the breakdown of people in poverty by immigration status was 83% of people in poverty were native born; this group accounted for 87% of the total population 17% of the people in poverty were foreign born; this group accounted for 13% of the total population - 4% of the foreign born people in poverty were naturalized citizens; this group accounted for 6% of the total population - 13% of the foreign born people in poverty were not citizens; this group accounted for 7% of the total population Source: DeNavas-Walt, Carmen, Bernadette D. Proctor, and Jessica C. Smith, U.S. Census Bureau, Current Population reports P60-239, Income, Poverty, and Health Insurance Coverage in the United States: 2010, [Table 4: People and Familiies in Poverty by Selected Characteristics: 2009 and 2010], U.S. Government Printing Office, Washington, DC, 2011. Accessed 2/14/2012. How does gender relate to poverty status? In 2010, the gender distribution of people in poverty was 45% of people in poverty were male; males accounted for 49% of the total population 55% of the people in poverty were female; females accounted for 51% of the total population The poverty rate by gender were 14.0% for males 16.2% for females Source: Annual Social and Economic (ASEC) Supplement 2010 Poverty Table POV01: Age and Sex of All People, Family Members and Unrelated Individuals Iterated by Income-to-Poverty Ratio and Race, Below 100% of Poverty. Accessed 2/17/2011 LAO 7 0 Y E A R S O F S E RV I C E May 10, 2011 Overview on Poverty L E G I S L A T I V E A N A L Y S T ’ S Presented to: Senate Committee on Human Services Hon. Carol Liu, Chair O F F I C E May 10, 2011 LAO 7 0 Y E A R S O F S E RV I C E Poverty Measurements Definition of Poverty. Poverty thresholds were developed by Mollie Orshansky of the Social Security Administration in the early 1960s. Because expenditure data then indicated that families spent about one-third of their income on food, she developed the poverty threshold as equal to three times the “economy food plan.” Drawbacks of This Measure. For decades there have been criticisms of this approach. These criticisms include (1) not accounting for changes in household expenditure trends or regional differences in cost of living, and (2) ignoring government benefits and certain taxes. A Consistent Measuring Stick. Despite its flaws, the poverty thresholds allow researchers and policy makers to examine trends over time using a consistent measure. Substantial Changes Set for 2011. In September 2011, the Census Bureau will publish two sets of poverty data. One report will be based on the historical measure, and another will make several adjustments including: regional cost of living, certain government benefits, home ownership status, taxes, certain medial costs, and updated household expenditure trends. Poverty Policy. Although this handout focuses on California’s cash assistance programs, poverty prevention policy is much more complicated, including many aspects of human behavior and economics. LEGISLATIVE ANALYST’S OFFICE 1 May 10, 2011 LAO 7 0 Y E A R S O F S E RV I C E Poverty Trends in California and the Nation Percentage of Population in Poverty 20% 18 16 14 12 10 8 United States 6 California 4 2 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 From 1970 until about 1990, the poverty rate in California was a few percentage points below the national average. From about 1991 through about 2006, the poverty rate in California exceeded the national rate. The California poverty rate peaked in 1993 at about 18 percent, about double the rate in 1970. After 1993, the poverty rate slowly declined reaching a low of 12.2 percent in 2006. Since then, the poverty rate has risen to 15.3 percent in 2009. LEGISLATIVE ANALYST’S OFFICE 2 May 10, 2011 LAO 7 0 Y E A R S O F S E RV I C E Historical Cash Assistance by Program Relative to Poverty SSI/SSP Couples. Historically, Supplemental Security Income/ State Supplementary Program (SSI/SSP) couples received the highest level of cash assistance in California. Specifically, from 1994-95 through 2007-08, couples on SSI/SSP received cash benefits between 130 percent and 140 percent of the poverty guideline. (Effective October 2009, the Legislature reduced SSI/SSP grants to 116 percent of the federal poverty guideline.) SSI/SSP Individuals. Historically, individuals on SSI/SSP received less than couples on SSI/SSP but more than California Work Opportunity and Responsibility to Kids (CalWORKs) families. Typically, the SSI/SSP grant was just above the poverty guideline. CalWORKs Families. In terms of cash assistance, CalWORKs families have been the furthest below the federal poverty guideline. Typically, the combined CalWORKs grant and CalFresh (formerly Food Stamps) benefits were between 75 percent and 80 percent of poverty. LEGISLATIVE ANALYST’S OFFICE 3 May 10, 2011 LAO 7 0 Y E A R S O F S E RV I C E CalWORKs Grants CalWORKs Maximum Monthly Grant and Food Stamps Family of Three Change January 2011 July 2011 $694 460 $1,154 75% $638 476 $1,114 72% -$56 16 -$40 -8% 3 -3% $661 470 $1,131 73% $608 484 $1,092 71% -$53 14 -$39 -8% 3 -3% Amount Percent High-Cost Counties Grant CalFresha Totals Percent of Poverty Low-Cost Counties Grant CalFresha Totals Percent of Poverty a Formerly Food Stamps. Recent Grant Reduction. Chapter 8, Statutes of 2011 (SB 72, Committee on Budget and Fiscal Review) reduced CalWORKs grants by 8 percent effective July 1, 2011. At that time the combined grant and CalFresh benefit will be 72 percent of poverty in high-cost counties and 71 percent in low cost counties. Further Reduction. In addition, Chapter 8 imposes additional graduated 5 percent reductions for child-only and safety-net cases when families reach five, six, and seven years of cumulative aid. LEGISLATIVE ANALYST’S OFFICE 4 State of California Health and Human Services Agency California Department of Social Services Data Systems and Survey Design Bureau Public Assistance Facts and Figures For the Month of November 2012 Cash Grant Programs California Work Opportunity and Responsibility to Kids (CalWORKs) Foster Care (FC) Supplemental Security Income/State Supplementary Payment (SSI/SSP) General Relief (GR) Non-Cash Grant Programs Federal Food Stamp Program (FS) California Food Assistance Program (CFAP) In-Home Supportive Services (IHSS) PLEASE NOTE: THIS REPORT CONTAINS PRELIMINARY PROGRAM DATA FROM REPORTS NOT YET RELEASED AND MAY NOT MATCH SUBSEQUENTLY PUBLISHED REPORTS. State of California California Department of Social Services Health and Human Services Agency Data Systems and Survey Design Bureau Public Assistance Facts and Figures Monthly Caseload Trend Graphs with Current Month Value Displayed November 2012 January 16, 2013 AFDC/CalWORKs Monthly Caseload - July 2002 through November 2012 700,000 560,022 600,000 500,000 400,000 300,000 200,000 100,000 O J 2012 J A O J 2011 J A O J 2010 J A O J 2009 J A O J 2008 J A O J 2007 J A O J 2006 J A O J 2005 J A O J 2004 J A O J 2003 J A O J 2002 - Foster Care Monthly Caseload - July 2002 through November 2012 120,000 100,000 80,000 64,532 Data obtained from the CWS/CMS system beginning 7/1/01. Data prior to this period was obtained from the CA 237 FC Monthly Caseload Movement Reports. 60,000 40,000 20,000 O A J 2012 J O A J 2011 J O A J 2010 J O A J 2009 J O A J 2008 J O A J 2007 J O A J 2006 J O A J 2005 J O A J 2004 J O A J 2003 J O J 2002 - SSI/SSP Monthly Caseload - July 2002 through November 2012 1,350,000 1,289,525 1,300,000 1,250,000 1,200,000 1,150,000 1,100,000 1,050,000 1,000,000 Data available at: http://www.cdss.ca.gov/research/ O J 2012 J A O A J 2011 J O A J 2010 J O A J 2009 J O A J 2008 J O J 2007 A J O J 2006 A J O J 2005 A J O J 2004 A J O J 2003 A J O J 2002 950,000 State of California California Department of Social Services Health and Human Services Agency Data Systems and Survey Design Bureau Public Assistance Facts and Figures Monthly Caseload Trend Graphs with Current Month Value Displayed November 2012 January 16, 2013 General Relief Monthly Caseload - July 2002 through November 2012 180,000 148,495 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 O J 2012 J A O J 2011 J A O J 2010 J A O J 2009 J A O J 2008 J A O J 2007 J A O J 2006 J A O J 2005 J A O J 2004 J A O J 2003 J A O J 2002 - Supplemental Nutrition Assistance Program (SNAP) Monthly Caseload July 2002 through November 2012 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - O A J 2012 J O A J 2011 J O A J 2010 J O A J 2009 J O A J 2008 J O A J 2007 J O A J 2006 J O A J 2005 J O A J 2004 J O A J 2003 J O J 2002 1,886,715 IHSS Monthly Caseload - July 2002 through November 2012 500,000 405,270 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 Data available at: http://www.cdss.ca.gov/research/ O J 2012 A J O A J 2011 J O A J 2010 J O J 2009 J A O A J 2008 J O J 2007 A J O A J 2006 J O J 2005 A J O J 2004 A J O A J 2003 J O J 2002 - State of California Health and Human Services Agency California Department of Social Services Data Systems and Survey Design Bureau Public Assistance Facts and Figures November 2012 January 16, 2013 Recipients Average Monthly Benefits November 2012 Change from October 2012 1,352,173 1,062,942 560,022 $260.2 (1,836) 1,713 1 ($2.1) (0.1) 0.2 0.0 (0.8) (3.2) (2.7) (2.7) (3.3) Two Parent Families - persons…………………………………… Children……………………………………………………………… Cases……………………………………………...………………… Payments ($ in millions)………..…………………………….…… Zero Parent Families - persons…………………………………… Children…………………………………………………….……… Cases………………………………………….…………………… Payments ($ in millions)…………………………………………… All Other Families - persons………………………………………… Children……………………………………………………………… Cases……………………………………………………………… Payments ($ in millions)…………………………………………… TANF Timed-Out - persons.....................................................… Children…………………………………………………….……… Cases……………………………………………………………… Payments ($ in millions)………………………………...……...… Safety Net - persons ………………………………………………… Children……………………………………………………………… Cases……………………………………………………………… Payments ($ in millions)…………………………………………… 182,111 105,405 49,993 $28.4 (1,631) (666) (429) ($0.4) (0.9) (0.6) (0.9) (1.5) 360,869 360,869 183,926 $77.6 4,773 4,773 2,239 $0.7 1.3 1.3 1.2 1.0 (7.0) (5.2) (6.2) (6.4) (3.5) (3.5) (3.7) (4.2) 564,524 374,264 226,790 $111.3 82,510 60,245 27,803 $14.1 162,159 162,159 71,510 $28.8 (6,043) (3,504) (2,254) ($2.2) (140) (95) (155) ($0.2) 1,205 1,205 600 $0.1 (1.1) (0.9) (1.0) (2.0) (0.2) (0.2) (0.6) (1.5) 0.7 0.7 0.8 0.2 (4.3) (3.8) (3.2) (4.1) 14.7 15.4 11.9 11.3 (2.2) (2.2) (0.9) (0.8) Foster Care (FC) Program - children ……………………………… Relative Home placements......................................................... Foster Family Agency placements…………..…………………… Foster Family Home placements…………………………………… Group Home placements…………………………….……………… Guardian Home placements........................................................ Supervised Independent Living placements b/…………………… Other/Unspecified Home placements......................................... Other Facility placements............................................................ Supplemental Security Income/State Supplementary Payment (SSI/SSP) - persons c/……………………………….…… Aged…………………………………………………………………… Blind…………………………………………………………………… Disabled……………………………………………………………… SSI/SSP payments ($ in millions)………………………………… 64,532 23,882 16,695 5,937 8,820 6,924 1,048 995 231 360 210 (128) 12 19 46 137 39 25 0.6 0.9 (0.8) 0.2 0.2 0.7 15.0 4.1 12.1 1.5 4.8 (6.4) (2.5) 1.5 1.0 #DIV/0! (7.1) (10.5) 1,289,525 358,226 19,014 912,285 $787.3 (1,609) (24) (60) (1,525) ($8.4) (0.1) (0.0) (0.3) (0.2) (1.1) General Relief (GR) - persons…………………………………….… 148,495 (3,251) (2.1) Programs California Work Opportunity and Responsibility to Kids (CalWORKs) - persons a/………………… Children…………………………………………...………………… Cases…………………………………..……………………………… CalWORKs payments ($ in millions)……………………………… California unemployment rate (seasonally adjusted)…………………… California population on assistance d/…………………….…………… a/ b/ c/ d/ Percent Change from October November 2011 2012 November 2012 $ November 2012 9.8% October 2012 10.1% November 2011 11.3% 7.5 7.6 7.7 $ 464.68 467.65 568.55 569.93 421.98 424.23 490.75 495.45 507.18 509.78 402.68 402.16 0.6 (0.4) (1.1) 1.0 2.4 508.27 652.15 649.87 495.97 637.67 640.00 (1.6) 219.67 219.81 All CalWORKs data is for cash grant cases only. Supervised Independent Living is a newly added placement type as of October 2012. Estimate based on preliminary data from the Social Security Administration. Persons receiving CalWORKs, Foster Care, SSI/SSP and GR. Data represents the most current statistics available at the time of publication. Current month data includes prior month(s) data if current month is not reported timely by the County. Prior period data is updated to include the most current information, including County reported changes/updates. For additional information, visit our web site at: http://www.cdss.ca.gov/research/ November 2011 State of California Health and Human Services Agency California Department of Social Services Data Systems and Survey Design Bureau Public Assistance Facts and Figures November 2012 January 16, 2013 Recipients Programs November 2012 Average Monthly Benefits Percent Change from Change from October 2012 October 2012 November 2011 November 2012 $ CalFRESH and California Food Assistance Program (CFAP) Persons……………………………………….………………………… Assistance: persons……………………………….………… households…………………………….………… Nonassistance: persons…………………………………………… households…………………………….………… Expenditures paid ($ in millions)……………….…………………… CalFRESH Persons……………………………………….………………………… Assistance: persons……………………………….………… households e/…………………………….……… Nonassistance: persons…………………………………………… households e/…………………………….……… Expenditures paid ($ in millions)……………….…………………… California Food Assistance Program (CFAP) f/ Persons………………………………………………..……………… Assistance: persons…………………………………………… households g/…………………………………… Nonassistance: persons…………………………………………… households g/…………………………………… Expenditures paid ($ in millions)………………………………...… November 2011 $ Average Benefit Per Person 4,148,434 797,451 315,884 3,350,983 1,570,831 $618.8 1,079 365 190 714 (1,338) ($3.8) 0.0 0.0 0.1 0.0 (0.1) (0.6) 6.0 (5.0) (4.8) 9.0 11.7 5.4 149.17 149.98 4,108,567 791,659 314,148 3,316,908 1,556,527 $614.0 1,024 363 191 661 (1,287) ($3.4) 0.0 0.0 0.1 0.0 (0.1) (0.6) 6.0 (5.0) (4.8) 9.0 11.7 5.5 149.44 150.20 39,867 5,792 1,736 34,075 14,304 $4.9 55 2 (1) 53 (51) ($0.4) 0.1 0.0 (0.1) 0.2 (0.4) (6.7) 4.2 (4.7) (4.7) 5.8 6.6 (1.2) 121.76 128.40 Average Cost Per Person In-Home Supportive Services (IHSS) 405,270 Persons receiving paid services…………………………………… Hours of service paid………………………………………………… 34,381,583 $363.2 Expenditures paid ($ in millions)…………...……………………… (12,282) (1,548,693) ($17.6) (2.9) (4.3) (4.6) (3.3) (2.2) (2.0) 896.19 884.29 e/ Combined count of Federal only and a portion of Federal-CFAP mixed households based on the percentage of Federal persons in Federal-CFAP mixed households. f/ Combined count of State only and a portion of Federal-CFAP mixed households based on the percentage of State persons in Federal-CFAP mixed households. g/ Based on paid cases for the month. CalWORKs Non-Exempt Assistance Unit Maximum Aid Payment (MAP) and CalFRESH Allotment MAP (Effective 07/01/12 - 06/30/13) Eligible persons in the same home Region 1 Region 2 1 2 3 4 5 6 7 8 9 10+ $317 516 638 762 866 972 1,069 1,164 1,258 1,351 SNAP Allotments (10/01/12-09/30/13) Eligible persons in the Maximum SNAP household SNAP Allotment 1 2 3 4 5 6 7 8 9 each additional person $300 490 608 725 825 926 1,016 1,109 1,198 1,286 SSI/SSP Grant Levels (Effective 01/01/12) Total Individual $ Independent………………………………………….………………………………… Household of another………………………………..……….………………………… Non-medical Out-of-Home Care……………………..…………………………….… Couple Independent, neither member blind…………………..……………………………… Independent, one member blind………………………………………...…………… Independent, both members blind…………………………………..………………… Non-medical Out-of-Home Care………………………………………..…………...… Aged or Disabled SSI $ $200 367 526 668 793 952 1,052 1,202 1,352 150 SSP $ Blind SSI Total $ $ SSP $ 854.40 625.17 1,110.00 698.00 465.34 698.00 156.40 159.83 412.00 909.40 680.17 1,110.00 698.00 465.34 698.00 211.40 214.83 412.00 1,444.20 xxx xxx 2,220.00 1,048.00 xxx xxx 1,048.00 396.20 xxx xxx 1,172.00 xxx 1,591.20 1,535.20 2,220.00 xxx 1,048.00 1,048.00 1,048.00 xxx 543.20 487.20 1,172.00 Public Policy Example SENATE COM M ITTEE ON B UDGET AND FISCAL REVIEW Mark Leno, Chair Bill No: Author: As Amended: Consultant: Fiscal: Hearing Date: AB 1471 Committee on Budget June 26, 2012 Jennifer Troia Yes June 26, 2012 Subject: Budget Act of 2012: Human Services Omnibus Summary: Contains the necessary statutory and technical changes to implement the Human Services provisions of the Budget Act of 2012. Proposed Law: This bill includes the following provisions: 1) CalWORKs: Makes changes to the California Work Opportunity and Responsibility to Kids (CalWORKs) program that result in savings of approximately $469.1 million General Fund, as follows: a) Changing Time Limits and Work Participation Requirements: i. Modifies the number of welfare-to-work participation hours to conform to current federal requirements and eliminates requirements related to participation in core and non-core activities. ii. Changes welfare-to-work requirements applicable to CalWORKs recipients, on or after January 1, 2013, by creating a new 24-month time limit. Unless otherwise exempt from participation, applicants and recipients would receive 24 months of welfare-to-work services and activities under current state rules, and would then be required to meet federal participation requirements to access the remainder of the months toward their 48-month lifetime time limit. Provides that this 24-month time limit is a prospective change, and that months of assistance prior to January 1, 2013 shall not be counted toward the 24-month time limit. iii. Further, specifies that months of assistance during which the recipient has been sanctioned or excused from participation for good cause, qualifies for an exemption, or is a custodial parent who is under 20 years of age and who has not earned a high school diploma or its equivalent, do not count toward the 24-month time limit. Additionally, months during which the recipient is participating in job search or assessment, is in the process of appraisal, or is participating in the development of a welfare-to-work plan, as specified, do not count toward the 24-month time limit. Finally, months in which the recipient is meeting federal participation requirements do not count as a month of activities for purposes of the 24-month time limit. iv. Provides for notice requirements to recipients regarding the 24-month time limit that explain the process by which recipients may claim exemptions from, and extensions to, the 24-month time limit when the individual applies for aid, during the recipient’s annual redetermination, and at least once after the individual has participated for a -1- total of 18 months, and prior to the end of the 21st month, that count toward the 24 month time limit. v. Requires the Department of Social Services (DSS), in consultation with stakeholders, to convene a workgroup to determine further details of the noticing and engagement requirements for the 24 month time limit, and to instruct counties by way of an allcounty letter, followed by regulations, no later than 18 months after the effective date of January 1, 2013. vi. Provides that counties may extend assistance for no more than 20 percent of recipients, as specified, upon expiration of the 24-month time limit. Requires DSS to consult with stakeholders and to develop and issue instructions on the process for implementing these extensions and calculating this 20 percent limitation. vii. With respect to extensions of the 24-month time limit, allows recipients to submit evidence that the following circumstances exist: a) is likely to obtain employment within six months; b) has encountered unique labor market barriers preventing employment; c) has achieved satisfactory progress in an educational or training program; d) needs additional time to complete a welfare-to-work activity included in the case plan due to a diagnosed learning or other disability; or e) has submitted an application to receive SSI disability benefits and is awaiting an established hearing date. Subject to the 20 percent limitation described above, requires counties to grant extensions of time under these circumstances, unless they determine that the evidence presented does not support the existence of the circumstances. If the county makes such a determination and there is a hearing disputing the denial of an extension, establishes that the burden of proof is on the county to establish that the extension was not justified. viii. Provides that a county may, again subject to the 20 percent limitation, grant an extension of the 24-month time limit if, as a result of information already available to a county, the county identifies that a recipient meets the circumstances described above. ix. States that it is the Legislature’s intent that the state shall work with the counties and other stakeholders to ensure that the extension process will be implemented with minimal disruption to the impending completion of welfare-to-work plans for recipients. x. Provides that for a recipient who is not exempt or granted an extension pursuant to the above, and who does not meet the federal participation requirements between their 24th and 48th month time limits, the same policies regarding the removal of the adult portion of the grant and opportunities for engagement and curing are available as those applicable to sanctions pursuant to current law. For purposes of this new policy, however, states that the procedures referenced shall not be described as sanctions. b) Changes Related to Exemptions from Work Participation Requirements: i. Extends the current temporary exemptions provided in relation to the reduction in the county single allocation from July 1, 2012 until January 1, 2013, when these exemptions will sunset. These temporary exemptions are provided to a parent or other relative who has primary responsibility for personally providing care to one -2- child who is from 12 to 23 months of age, inclusive, or 2 or more children who are under 6 years of age. These exemptions are commonly referenced as “temporary young child” exemptions. ii. States that reduced funding, including a reduction to the county single allocation, for the period between July 1, 2012 and January 1, 2015, will result in insufficient resources to provide the full range of welfare-to-work services during that time period. iii. Extends through January 1, 2015, the option for a county to redirect funding appropriated for CalWORKs mental health employment assistance services and CalWORKs substance abuse treatment services, from and to other CalWORKs employment services that are necessary for individuals to participate in welfare-towork activities. iv. Requires counties to reengage recipients who had received the temporary young child exemption in welfare-to-work activities starting January 1, 2013 and over a period of two years (unless those recipients are otherwise exempt from participation). Recipients will not be required to participate until the county welfare department reengages them. v. Creates a similar, ongoing, one-time young child exemption for caregivers of a child 24 months of age or younger, and provides that a month during which this exemption applies would not be counted as a month of receipt of aid for the recipient. c) Other Changes: i. Requires DSS to convene a workgroup to identify best practices and other strategies to improve early engagement and barrier removal efforts, as specified, and to report back to the Legislature by January 10, 2013 regarding its related actions and recommendations. ii. Requires DSS to annually update the Legislature regarding the changes made by this bill to the CalWORKs program, and to contract with an independent, research-based institution for an evaluation and written report, with specified contents, which would be provided to the Legislature by October 1, 2017. iii. Exempts a CalWORKs assistance unit that does not include an eligible adult from periodic reporting requirements other than annual redetermination and makes corresponding changes. iv. Restores the earned income disregard policy to that which existed prior to the enactment of the 2011-12 Budget Act, allowing a participant to retain $225 and $.50 of each dollar thereafter of monthly earnings (altering the 2011-12 policy that allows retention of $112 and $.50 of each dollar). This policy will apply to the entire caseload with earnings and will take effect October 1, 2013. v. Delays the effective date for the Work Incentive Nutritional Supplement (WINS) program until January 1, 2014 and reduces the amount of the WINS benefit, which is an additional food assistance benefit for each eligible food stamp household, from $40 to $10 per month. Correspondingly, delays dates associated with the development of policy toward a pre-assistance employment readiness system -3- (PAERS) program and other options that may benefit the CalWORKs program, as specified. 2) Phase-in and Reporting Related to Cal-Learn Program: Restores the operation of intensive case management services provided through the Cal-Learn program within CalWORKs. State funding for these services was suspended during the 2011-12 fiscal year. From July 1, 2012 to March 31, 2013, inclusive, authorizes counties to provide full or partial year funding, depending on the pace of their progression to full implementation, by April 1, 2013. Additionally requires the Department of Social Services (DSS) to annually report specified information related to the program to the budget committees of the Legislature. The phase-in approach included in this bill provides for savings in 2012-13 of approximately $10 million GF. 3) Child Support Payment Trust Fund: For the 2012-13 fiscal year only, authorizes money in the Child Support Payment Trust Fund accounts to be invested in specified securities or alternatives that offer comparable security, including mutual funds and money market funds. The provision does not authorize an investment or transfer that would interfere with the objective of the Child Support Payment Trust Fund. 4) Continues Suspension of Child Support Incentive Payments : Extends the suspension of performance and health insurance-related incentive payments to local child support agencies (LCSAs) through the 2014-15 fiscal year. Existing law, in the absence of a suspension, would award the ten highest performing counties with an additional share of collections and require the state to provide payments to LCSAs of $50 per case for obtaining 3rd -party health coverage or insurance of Medi-Cal beneficiaries. 5) Continues Suspension of Fingerprint Fee Exemption: Extends the suspension of a prohibition on the state charging fees for fingerprinting in order to conduct background checks of applicants for licenses to operate specified community care facilities that serve children. 6) Changes to Implementation Date for Sales Tax on Support Services: Delays the date when the state can implement existing law related to the extension of the sales tax to apply to support services (i.e., homecare)- from July 1, 2010 to January 1, 2012. Under existing law, corresponding supplementary payments would be made to specified providers of those services. 7) Repeals Sections Related to Statewide Eligibility and Enrollment Processing: Repeals a statute that was enacted as part of the 2009 Budget Act that required the Administration to develop a statewide eligibility and enrollment determination process for the California Work Opportunity and Responsibility to Kids (CalWORKs), Medi-Cal, and Supplemental Nutrition Assistance Program (SNAP, also known as CalFresh or food stamps) programs, and directed the development of a comprehensive plan with respect to a centralized eligibility and enrollment process. Subsequent statutes changes related to the Statewide Automated Welfare System have obviated these requirements. Thus, this repeal resolves potential statutory conflicts with respect to the state’s information technology systems and enrollment processes. 8) Moratorium on Group Home Rate-Setting: Permanently extends the moratorium on the licensing of new group homes or approvals of specified changes for existing providers, with some allowable exceptions. This moratorium was initially established as a part of the 2010 Budget Act. New provisions further limit, for one year, exceptions for any programs with rate classification levels below 10 to those associated with a program change. -4- 9) Cost-of-Living Adjustment for Dual Agency Rates : Requires annual adjustment by changes in the cost of living (as measured by the California Necessities Index) of rates payable for care and supervision of children who are dually eligible for the Child Welfare Services and Developmental Services systems. This change is consistent with changes made last year to foster family home and related rates in response to litigation. Under the provisions of this bill, the change to dual agency rates would begin retroactively with the 2011-12 fiscal year. 10) Repeal of Medication Dispensing Machine Pilot: Repeals statute that required the Department of Health Care Services (DHCS) to establish a medication dispensing machine pilot project for certain at-risk Medi-Cal recipients. This pilot project was also associated with a reduction, with some exceptions, in authorized hours of service for In-Home Supportive Services (IHSS) recipients that would have been triggered if savings from the pilot had not been achieved. This bill would repeal both of these policies. 11) Extension of 3.6 Percent Reduction in Authorized IHSS Hours: Extends, for the 2012-13 fiscal year, an existing reduction of 3.6 percent in authorized IHSS hours that is otherwise scheduled to sunset on July 1, 2013. This reduction is anticipated to save approximately $58.9 million GF in 2012-13. 12) Criminal Offender Record Information (CORI) Sharing: Authorizes local public authorities or nonprofit consortia to share Criminal Offender Record Information (CORI) background reports with DSS in specified circumstances. More specifically, allows the public authority or nonprofit consortia to share this information when an individual who is applying to become an IHSS provider has requested from the department an exception to a prohibition on his/her ability to become a provider because of his/her criminal record. 13) Rate-setting for IHSS Public Authorities: Extends by one year, to the 2013-14 fiscal year, the required time by which DSS, in consultation with designated stakeholders, must develop a new rate-setting methodology for estimating the costs of public authorities with respect to administration of specified requirements related to the state’s IHSS program. 14) Rehabilitation Appeals: Eliminates the Rehabilitation Appeals Board, which currently serves as the entity which hears appeals by applicants for, or clients of, programs provided by the Department of Rehabilitation. Instead provides for fair hearings to be held before an impartial hearing officer and establishes standards, training, and due process requirements related to those fair hearings. 15) Kids’ Plates Funding: Amends existing requirements related to distribution of funds in the Child Health and Safety Fund that are derived from the Have a Heart, Help Our Kids specialized license plate program (Kids’ Plates). Specifically, redirects $501,000 from child abuse and injury prevention programs to support specific Department of Social Services’ (DSS) responsibilities related to child day care licensing. 16) Child Welfare Services Automation System: Requires DSS to use specified funding included in the 2012 Budget Act for the next steps necessary to move forward with the recommendation of the Child Welfare Automation Study Team (CWAST) to proceed toward procuring a new information technology system to replace the existing Child Welfare Services/Case Management System (CWS/CMS). Further, requires the Office of Systems Integration (OSI) and the department to report the results of these activities, in addition to key milestones and anticipated timelines, to the Legislature by March 1, 2013, for review during 2013 budget hearings. -5- 17) Assessment of Automation Costs: Requires DSS and the Office of Systems Integration (OSI) to have a qualified 3rd party conduct a cost-reasonableness assessment of specified costs related to changes in the Statewide Automated Welfare System (SAWS). More specifically, requires this assessment with respect to costs that will be proposed by the project vendor in order to consolidate two of the state’s three existing consortia systems into one new consortium (leaving the state with a two-consortium system). This migration will consolidate data and functionality for the counties currently served by Consortium-IV into the Los Angeles Eligibility, Automated Determination, Evaluation and Reporting (LEADER) Replacement System, which is newly being developed. The cost reasonableness assessment is intended to assist the state in determining whether the proposed overall costs for this migration are within range of reasonableness, based on specified factors. Support: Unknown Opposed: Unknown -6- ARTICLES California Poverty Rate Highest In Nation Based On New Census Department Figures The Huffington Post By Aaron Sankin Posted: 11/15/2012 11:06 am EST Updated: 11/16/2012 6:04 pm EST California has a poverty rate of 23.5 percent, the highest of any state in the country, according to figures released this week by the United States Census Bureau. The only other geographic region with an equivalent poverty rate is the District of Columbia, with 23.2 percent. The second most poverty-stricken state was Florida, at 19.5 percent. The recognition of California's shockingly high poverty rate comes as a part of a shift in the way the Census Bureau measures its data. When the government began examining poverty back in the early 1960s, the line for determining who fell underneath the threshold was determined solely by looking at food costs. In the decades since, there's been increasing criticism this benchmark, as it doesn't take into account tax rates and assistance programs such as food stamps, child care expenses and medical costs. In examining its most recent data, the Census Bureau considered these previously ignored factors, deemed the "supplemental poverty measure." These new metrics have yielded quite different results than in past years. Under the traditional definition of poverty, for example, California's rate is 16.3 percent. "We're seeing a very slow recovery [nationally], with increases in poverty among workers due to more new jobs which are low-wage," University of Wisconsin-Madison economist Timothy Smeeding told the Associated Press. "As a whole, the safety net is holding many people up, while California is struggling more because it's relatively harder there to qualify for food stamps and other benefits." The Golden State's jump between the supplemental and conventional measures was the largest swing of any state, and the Sacramento Bee attributes it to California's high cost of living. "There are several important differences between the official and supplemental poverty measures," explained Census Bureau economist Kathleen Short in a statement. "For instance, the supplemental measure uses new poverty thresholds that represent a dollar amount spent on a basic set of goods adjusted to reflect geographic differences in housing costs. The official poverty thresholds are the same no matter where you live." Under the supplemental measures, the national poverty rate jumped by a full point up to 16.1 percent, or just under 50 million individuals. The poverty rate for minors dropped from 22.3 percent down to 18.1 percent, while the rate for seniors (ages 65 and above) nearly doubled to 15.1 percent. Education Week: New Student-Poverty Measures Proposed for National Tests Published Online: December 11, 2012 Published in Print: December 12, 2012, as NAEP Seeks to Test New Measure of Student Poverty New Student-Poverty Measures Proposed for National Tests Proposed indicators go broader, deeper By Sarah D. Sparks Washington Aiming to get a clearer picture of how students' home and community resources affect their academic achievement, America's best-known K12 education barometer, the National Assessment of Educational Progress, is building a comprehensive new way to gauge socioeconomic status . The new measure, being developed by the National Assessment Governing Board and the National Center for Education Statistics, is intended to look beyond a traditional measure of family income to a child's family, community, and school supports for learning. "This issue has just been on the burner for so, so long," said Maria V. Ferguson, the executive director of the Washington-based Center on Education Policy. "When NAGB starts talking about it, that does elevate it to a place where it could be part of a bigger policy debate," she said. "I wonder if the folks at NAGB are hoping this could be an opening salvo into a bigger conversation about how [different SES measures] might affect other programs." The governing board commissioned eight researchers in education, economics, statistics, human development, and sociology that have been working on the new indicators since 2010. The panel released its initial proposal at a NAGB meeting here Nov. 29. "We rapidly learned that socioeconomic status contains multiple dimensions and categories that don't neatly collapse back to 'low' versus 'high,' " said Charles D. Cowan, the chief executive officer of the San Antonio-based research group Analytic Focus and a member of the governing board's expert panel. "Over the last 10 to 15 years, there's been an explosion in the data available" on student characteristics, Mr. Cowan said. "Perhaps now is the time to think about alternative measures of SES simply because now we are able to think about it." Beyond Free Lunch For decades, the universal proxy for students' socioeconomic status— for NAEP and nearly every federal education and child-health program —has been just such a high-low indicator: eligibility for subsidized under the National School Lunch Program. meals Socioeconomic Status Reconsidered The National Assessment Governing Board is considering a new method of identifying a student’s socioeconomic status when Federal food aid does capture a huge swath of students in poverty: disaggregating the results of the National The school lunch program alone provides meals for more than 31 Assessment of Educational Progress. NAEP million children, at reduced cost to those living at or below 185 percent researchers now rely primarily on a of the federal poverty line , and free to those who are at or below student’s eligibility for the National School http://www.edweek.org/...ic_ep.h32.html?tkn=QMZF%2BRA46kM9ELQh0DGNOnC06otQ6MdJPimG&cmp=clp-edweek&print=1[1/4/2013 3:30:00 PM] Education Week: New Student-Poverty Measures Proposed for National Tests 130 percent of the poverty line or who are homeless, in foster care, or Lunch Program—which as of 2011 provided in certain other programs. In 2012 in the lower 48 states and the free or low-cost meals to more than 31 million students in poverty each day—as a District of Columbia, children living in a family of four on $40,000 or proxy for socioeconomic status. This less a year would be eligible for reduced price meals; the free-lunch traditional indicator is bolstered by cut-off for the same family would be $30,000. From a research and policy perspective, however, experts say food-aid eligibility gives an incomplete picture of the resources of students in poverty, and no information about students who don't qualify. Moreover, those poverty counts notoriously underrepresent students as they get older and more self-conscious about applying for free or reduced-price lunch. "There are many problems regarding the use of free and reduced-cost lunch," said Henry M. Levin, a research panelist and an economics and education professor at Teachers College, Columbia University, who is now on sabbatical at Peking University in Beijing. "It does not distinguish in a sensitive way differences along the entire spectrum of SES," he noted in an email to Education Week. "Even for the poor or relatively poor, there are large differences" within the range of free-lunch eligibility. background questions on home possessions, such as washing machines, encyclopedias, and mobile phones. Proposed New “Core” SES Indicators • Family income and indicators of home possessions and that have been shown to be linked to educational access, such as Internet availability and number of books in the home • Parents’ educational attainment • Parents’ occupational status Potential “Expanded” SES Indicators • Family: For example, family structure, stability, and the presence of extended family and other supportive adults • Neighborhood: Including the The governing board has tried in the past to fill in the gaps using the concentration of poverty or linguistic background questionnaire students complete along with NAEP, isolation, the percentage of unemployed according to William Ward, a senior research scientist for assessment adults, and the availability of museums, at NCES, which administers NAEP. But some of those questions have parks, or safe walking routes become outdated or have not been found to be relevant to a child's • School: The aggregate SES composition of real socioeconomic status. students at the school the child attends, as "We used to ask, 'Do you have a washer-dryer?' but now everyone has distinct from the neighborhood SES level a washer-dryer," Mr. Cowan said. "We used to ask, 'Do you have a cellphone?' Now, do any of your students not have a cellphone?" More Than Income The updated measure of socioeconomic status will look at broader resources and learning supports, Mr. Cowan said. It will start with the "big three": the family's income, parents' level of educational attainment, and whether and where they are employed. This year's administration of NAEP has also tried out new background questions, including how long the child has lived in the United States, how many family members live with the child, and how many adults in the home have a job. Potential Additional Context Indicators • Physical stressors: Local rates of illness or environmental problems • Psychological stressors: Levels of crime in the school and community • Psychological protectors: Student perception of parent involvement and expectations SOURCE: National Assessment Governing Board Because elementary students in particular may have difficulty RELATED BLOG identifying these, the governing board is considering supplementing the data with information from the U.S. Census Bureau's American Community Survey, an annual study of a representative sample of 3.5 million households nationwide that asks about family structure, employment and income, transportation, and other details. The NAEP student survey would still include questions about home possessions that research has shown to be related to student http://www.edweek.org/...ic_ep.h32.html?tkn=QMZF%2BRA46kM9ELQh0DGNOnC06otQ6MdJPimG&cmp=clp-edweek&print=1[1/4/2013 3:30:00 PM] Education Week: New Student-Poverty Measures Proposed for National Tests achievement, such as access to the Internet and the number of books Visit this blog. in the home, Mr. Ward said. But the board is considering supplementing the "core" SES measures with other indicators of resources in the child's neighborhood and school that could highlight differences between students living at the same income level in different areas. For example, an 8th grader in New York's Spanish Harlem neighborhood could still have access to libraries and museums, while a peer in rural southern Utah may have no local library but live a bike ride away from national parks. Indicators of school and neighborhood supports also may be pulled from administrative data and from the Census Bureau, such as the degree of concentration of poverty or linguistic isolation, the average educational degree earned, and the employment levels in the neighborhood. The governing board panel plans to present its proposed socioeconomic indicators at the annual meeting of the American Educational Research Association in April before piloting their use in 2014 and reporting the results in 2015. Vol. 32, Issue 14, Pages 6-7 http://www.edweek.org/...ic_ep.h32.html?tkn=QMZF%2BRA46kM9ELQh0DGNOnC06otQ6MdJPimG&cmp=clp-edweek&print=1[1/4/2013 3:30:00 PM] The latest on California politics and government June 26, 2012 California bill details welfare-to-work time limit exemptions California welfare-to-work recipients could receive six-month extensions beyond a new 24-month time limit for aid if they are making progress in a treatment program, on the verge of finding work or struggle with a learning disability, according to new bill language released today. The guts of the welfare-to-work compromise between Gov. Jerry Brown and Democratic lawmakers is contained in Assembly Bill 1471. The deal struck last week would generally cut off aid and services to CalWORKs recipients if they cannot find employment after 24 months. The new rules take effect starting in January. Months on aid before January do not count against the new time limit. Democratic lawmakers insisted on a series of exemptions that would protect one-fifth of welfare recipients who go past that time limit without finding a job. AB 1471 allows counties to grant extensions in six-month blocks to people who meet any of the following criteria: • Are likely to obtain a job within six months. • Face a difficult job market with high unemployment. • Have made "satisfactory progress" in a program such as vocational education or drug treatment that would increase the likelihood of finding a job. • Needs additional treatment for a learning disability or other diagnosed problem. • Has filed to receive SSI benefits for disability. • "Other circumstances as determined" by the Department of Social Services. The bill caps extensions at 20 percent of a county's caseload that has exhausted the 24-month time limit. Counties and program advocates have until November 2013 to figure out how to calculate that 20 percent. AB 1471 also requires counties to presume that a CalWORKs recipient qualifies for an extension -- and enables that recipient the right to a hearing if denied for additional time in the program. "It's not perfect, and we wouldn't design it this way if we were writing it," said Mike Herald, a lobbyist with the Western Center on Law and Poverty. "But it was at least an attempt to address our concerns about folks with special needs who would be harmed." Herald added that because only a fifth of the people who use up their time can receive an extension, "in our judgment harm is going to occur to some of these families because we picked an arbitrary number out of the air."
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