Michigan League for Human Services

As expected, the Revenue Estimating Conference confirmed that general fund revenues will be reduced for Fiscal Year 2013 as a result of changes last year that slashed business taxes.

While there is no evidence that the business tax cuts will create new jobs, we do know there will be less revenue for investing in public structures that will help grow the economy. Even more alarming is that this news comes at a time when the Legislature is looking to further reduce business taxes by cuts to the Personal Property Tax, reducing revenue for local governments and schools.

Statement may be attributed to Michigan League for Human Services Policy Director Karen Holcomb-Merrill

###

The Michigan League for Human Services is a statewide, nonprofit, nonpartisan policy and advocacy group dedicated to achieving economic security for all in Michigan. It is celebrating 100 years of research and advocacy in 2012.

Workers in Detroit, Battle Creek, Saginaw, West Mich. lose the most

The Michigan League for Human Services released reports today showing the impact of the reduced Michigan Earned Income Tax Credit for each state legislative district. The reports detail the major tax increase imposed on working families by the new law – a tax increase that may well damage businesses those families frequent.

“Michigan’s poorest working families will see their taxes increased by an estimated $244 million next year due to the reduction of the state’s Earned Income Tax Credit from 20 percent of the federal EITC to just 6 percent,” said Gilda Jacobs, president and CEO of the Michigan League for Human Services. “That’s money that would otherwise have gone to small businesses across the state that serve the needs of working families, particularly in rural Michigan communities and inner cities.”

The major tax increase on low-income families, combined with tax cuts to businesses, resulted in Michigan having one of the most regressive tax systems in the nation. The EITC in 2009 reduced taxes for low-income families by $349 million; estimates for 2012 show the credit will drop to $104 million.

“Low-income families pay a larger share of their income already in sales and property taxes than do the wealthy,” Jacobs said. “It’s hard to understand how anybody in Michigan can support a tax system that tilts heavily in favor of upper-income families.”

The list of the regions hit hardest by the tax increases may surprise some. In the Senate, Detroit lawmakers represent the regions that will see the largest average decrease in EITC going to families – a step that will only add to that’s city’s problems, as small business in four primarily Detroit districts will see a loss of $22 million in purchasing power.

But among the 10 most impacted Senate districts as measured by the average per recipient reductions in the credit were those of Sens. Mike Nofs, R-Battle Creek, Roger Kahn, R-Saginaw Twp., Dave Hildenbrand, R-Lowell and John Proos, R-St. Joseph.

“Many lawmakers don’t realize the impact that the EITC has on rural regions of our state, particularly in northern Michigan, which have high levels of poverty,” said Jacobs. “As we seek ways to improve rural economies, cutting the EITC may well put out of business some small businesses such as independent grocers, small auto repair shops and second-hand stores that cater to low-income working families in rural communities.”

The latest IRS data indicates that nearly 800,000 Michigan households currently claim the Earned Income Tax Credit. That isn’t going to change under the new law. But the average tax increase provided by its elimination will be $307 per filer.

For more information or to see the projected effects of Michigan’s Earned Income Tax Credit reductions, visit www.saveoureitc.com.

###

The Michigan League for Human Services is a statewide, nonprofit, nonpartisan policy and advocacy group dedicated to achieving economic security for all in Michigan. It is celebrating 100 years of research and advocacy in 2012.

Too many babies don’t get the ‘Right Start’
Too many babies born in Michigan are not getting the “Right Start” in life, a new report concludes, with dramatic disadvantages for children in some areas of the state as well as those born to African American and Hispanic mothers.

The report, released by the Michigan League for Human Services’ Kids Count in Michigan project, looks at eight maternal and infant health measures. It also provides an overall ranking for 81 of the 83 counties. (Click here to see individual country reports.)

“These data are early indicators of how successful our next generation will be — and in turn how successful our state will be,” said Kids Count in Michigan Project Director Jane Zehnder-Merrell. “We know we won’t have a well-educated and healthy citizenry without giving children the foundation they need.”

The top 10 (best) counties are: Houghton, Ottawa, Livingston, Leelanau, Midland, Grand Traverse, Oakland, Emmet, Clinton and Washtenaw. The bottom 10 (worst) counties are: Berrien, Calhoun, Alcona, Genesee, Clare, Lake, Saginaw, Wayne, Crawford and Luce. Ontonagon and Keweenaw counties had too few measures with reliable rates for an overall ranking.

“This information will be given to local and state policymakers with the hope that looking at areas of success as well as areas where improvements are needed will help guide resources,’’ said Gilda Z. Jacobs, president & CEO of the League.

For example, the report calls for additional funding to implement strategies from the Department of Community Health’s October summit on infant mortality. Gov. Rick Snyder has recommended less than $1 million and that was rejected by the appropriations subcommittees in both houses.

Low-birthweight babies — born weighing less than 5.5 pounds — represent more than half of infant deaths in Michigan. Almost 10,000 low-birthweight babies are born each year in the state. 

Between 2000 and 2010, the rate of low-birthweight babies worsened by 7 percent.  African Americans babies had double the risk of being born too small – 14 percent compared with 7 percent of white and Hispanic babies.

African American babies were at higher risk on seven of the eight indicators (on all but mothers who smoked during pregnancy) while Hispanic babies had higher risks on five of the eight.

Of the eight indicators, the report looks at five measures that can be tracked over time. The good news is that three of the trends are improving — with drops in the percentage of births to teens, repeat births to teens and preterm births between 2000 and 2010.

The biggest improvement is a 15 percent drop in the percentage of babies born to teens who were already mothers. Repeat teen births represented 18 percent of all teen births in 2010, down from 21 percent in 2000.

The two worsening trends were the low-birthweight babies and the dramatic increase in births to unmarried women, rising from 34 percent in 2000 to more than 41 percent in 2010.

“This is a troubling trend because moms who are single at the time of birth are less likely to receive child support and their child is at very high risk for growing up in poverty,” Zehnder-Merrell said.

The report calls on policymakers to:

• Approve a Michigan-based state health exchange, to implement the Affordable Care Act, which will provide many additional health benefits to women. The Senate has passed legislation, and Gov. Snyder indicates he will sign the legislation, but the state House of Representatives needs to pass it.

• Fund the recommendations from the 2011 Summit on Infant Mortality, including the promotion of awareness of environmental exposures on women as well as good preconception health.

• Strengthen the safety net programs such as food stamps and cash assistance that help low-income families and their children during economic downturns.

• Consider the impact of decisions on communities of color. As diversity has increased, better opportunities for healthy births are the best route to producing a vibrant, strong and educated workforce.
• The report can be found online at www.milhs.org

###

Resources for reporters: Please visit www.kidscount.org/datacenter for more data or to create charts on trend information. A conference call with Jane Zehnder-Merrell will be held at 10 a.m. today, (Monday). Please call 1-888-291-0079 and enter 9118 162#. Individual interviews can also be arranged by calling (517) 487-5436.

Right Start is part of the Kids Count in Michigan project, which is funded by the Annie E. Casey Foundation, The Skillman Foundation, Blue Cross Blue Shield of Michigan Foundation and United Ways. The Kids Count in Michigan project is a partnership between the Michigan League for Human Services and Michigan’s Children.

McGregor Fund supports economic security work

LANSING – The Detroit-based McGregor Fund has awarded a $40,000 grant to the Michigan League for Human Services to preserve and strengthen the social safety net.

The McGregor Fund is a private foundation established in 1925 by gifts from Katherine and Tracy McGregor “to relieve the misfortunes and promote the well-being of mankind.’’

“Helping families achieve economic security is critical to making sure we have a recovery and an economy that works for all,’’ said McGregor Fund President C. David Campbell. “We are pleased to support the work of the League as it advocates to improve the lives of those children, families and individuals struggling with basic needs.’’

The League is a nonprofit, nonpartisan advocacy organization dedicated to helping low-income families achieve economic security. It has a network of more than 1,800 representing business, labor, human service professions, faith-based organizations as well as concerned citizens.

Areas of research include families in poverty, low-wage workers, tax policy, child well-being (Kids Count) and analyses of state and federal budgets and programs.

“This grant will support critical research and advocacy work highlighting what can be done to help struggling families in Michigan. How can we reduce poverty, lift up families and help low-skilled adults improve their skills?” said League President & CEO Gilda Z. Jacobs. “The economy is improving but many families have a long way to go to achieve economic security.’’

The foundation awards grants to organization in the following areas: human services, education, health care, arts and culture, and public benefit. The area of principal interest of the foundation is the city of Detroit and Macomb, Oakland and Wayne counties. The McGregor Fund has granted over $200 million since its founding and had assets of $165 million as of June 30, 2011.

Visit www.mcgregorfund.org for additional information.

# # #

The Michigan League for Human Services is a statewide, nonprofit, nonpartisan policy and advocacy group dedicated to achieving economic security for all in Michigan. It is celebrating 100 years of research and advocacy in 2012.

April 10, 2012
Contact: Judy Putnam at (517) 487-5436

Budget report paints grim picture for Mich. workers, families

Michigan’s fragile economic recovery could be stalled by reductions in federal programs and services, according to a report released today by the Michigan League for Human Services and the Washington D.C.-based Coalition on Human Needs.

Helping the People of Michigan During Tight Budget Times details the impact from automatic cuts proposed by the Budget Control Act last summer after the Super Committee failed to reach consensus. While the automatic cuts would hurt, far worse would be the impact from additional cuts in the House-passed budget known as the Ryan plan – potentially impacting 2 million residents who use the Food Assistance Program, formerly known as food stamps.

“Making the necessary investments to ensure that all Michigan families have the resources they need to thrive and contribute to the state’s economy requires thoughtful choices about our long-term fiscal health,” said Michigan League for Human Services President & CEO Gilda Z. Jacobs. “Unfortunately, many of the options before Congress threaten serious cuts in vital human needs programs that would undermine both our fragile recovery and our future growth.”

If automatic cuts mandated by the Budget Control Act go into effect, Michigan future prosperity may be damaged because young children and students won’t get the education they need.

In 2013 alone, Michigan would receive:

• $20.9 million less for Head Start
• $5.5 million less for early care and education
• $42.1 million less for K-12 education
• $31.2 million less for special education
• $8.8 million less for vocational rehabilitation

Michigan will also face significant cuts in the programs that help families survive during hard times, including $15.1 million less for the Women, Infants and Children nutrition program, $12 million less for the Community Development Block Grant program, and $13.5 million less for the Low Income Home Energy Assistance Program.

Among those that would be affected in 2013, nationally, are 550,000 poor adults, 100,000 dislocated workers and nearly 20,000 youth who would not receive job training; 12,200 people who would not be able to afford AIDS treatment; 1.5 million low-income K-12 students who would be harmed by program cuts as well as 734,000 households that would no longer get help with utility bills.

The cuts could be worse if military spending is protected.

The automatic cuts will go into effect in January 2013, unless Congress finds another solution. Choices that have emerged so far include:

• Reducing the deficit solely by cutting spending. This means abiding by the budget deal established under the Budget Control Act of 2011.
• Reducing the deficit solely by cutting spending, but protecting wasteful military spending. This modifies the Budget Control Act to protect the military budget at the expense of human needs programs and other domestic spending.
• Making drastic reductions in spending and shredding the safety net while giving the wealthy new tax cuts. This is the approach taken in the House Republican leadership’s budget proposal.
• Adopting a balanced approach that includes new revenues and investment in job creation. This is the approach President Obama’s budget proposal takes.

Jacobs said that starting in 2014, cuts will be significantly deeper. In addition, programs that are exempt from the automatic cuts under the Budget Control Act would also be reduced. For example, if the House leadership proposal for food assistance goes into effect, Michigan would see a $5.3 billion reduction in the benefit over the next decade leaving potentially 2 million state residents with diminished resources for food and less to spend in our communities.

Though the economy is starting to recover, the debate comes at a time when people in Michigan are still struggling:

• More than one out of every six Michiganians and more than one out of every five children live in poverty ($23,050 for a family of four in 2012).
• Unemployment in Michigan peaked at 14.2 percent in the summer of 2009 and still remains unacceptably high at 8.8 percent today.
• The number of unemployed or underemployed rises to 19.2 percent when those who have given up looking for work or can’t get as much work as they want are included.

“We need to make the right choices this year, to protect our children and our future,” said Karen Holcomb-Merrill, the League’s policy director. “Both the cuts stipulated in the Budget Control Act and the House leadership proposal decimate so many programs that the consequences to Michigan health, education and well-being would be immediate and far-reaching. Our economy is struggling, and Michigan families are suffering – lawmakers in Michigan and our state’s members of Congress must take immediate action to address this critical issue.”

To access the full report or for more information about the Michigan League for Human Services, visit www.milhs.org.

# # #

 Michigan League for Human Services is a nonprofit, nonpartisan statewide advocacy group dedicated to achieving economic security for all. It celebrates 100 years of research and advocacy in 2012. 

Coalition on Human Needsis an alliance of national organizations working together to promote public policies that address the needs of low-income and other vulnerable people. he Coalition conducts analyses of federal budget proposals and policies to determine their impact on people in need. The Coalition’s members include civil rights, religious, labor and professional organizations and those concerned with the well-being of children, women, the elderly and people with disabilities. 

CHN is located at. 1120 Connecticut Ave. NW, Suite 312, Washington, D.C. 20036. Visit us at www.chn.org

Posted April 9th, 2012 to Press Releases | Comments (2)

SAGINAW, Mich. – More than 120 Michigan and national organizations sent a letter to Senate Agriculture Committee Chairwoman Debbie Stabenow, urging her to strengthen and protect the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) in the upcoming reauthorization of the Farm Bill.

The letter, circulated by the Center for Civil Justice and Michigan League for Human Services, was delivered to Stabenow today, and included signers from a number of anti-hunger groups, anti-poverty advocates, and other allies. Also signing the letter were several unions, including:  AFL-CIO; UAW; United Food and Commercial Workers International Union (UFCW); American Federation of Teachers (AFT); the Department for Professional Employees, AFL-CIO; and the International Federation of Professional & Technical Engineers.

“When our economy is in trouble, SNAP is there to help people put food on the table. Cuts to this important program would be cataclysmic for people in Michigan,” said Terri Stangl, Executive Director of the Center for Civil Justice.

More than 1.84 million Michigan residents receive SNAP, a figure driven by a slowly recovering economy that continues to leave many without work or with reduced wages.

“SNAP’s responsiveness to unemployment and underemployment has proved it to be one of the most effective safety net programs, providing families with a stable source of food during a time of uncertainty, “ said Gilda Jacobs,  president & CEO  of the Michigan League for Human Services. 

Americans also recognize the strengths of this program. A January poll conducted by Hart Research for the Food Research and Action Center (FRAC) demonstrated broad support among Americans for the federal nutrition programs and opposition to cuts.  Seven in 10 voters said the federal government should have a major role in ensuring that low-income families and children have the food and nutrition they need. Seventy-seven percent of voters said that cutting SNAP would be the wrong way to reduce government spending.

“Households are facing impossible choices among food, home heating, gasoline, rent, medicine and other basic needs. Cutting SNAP would have real consequences for these struggling households, forcing them to make even harder decisions between food for their families or paying bills,” said Stangl. “SNAP is a program that is important for Michigan and for the nation, and it must be strengthened and supported so it can be there when people need it the most.”

Click here for the letter and full list of signers.

# # #

The Center for Civil Justice fights poverty through  advocacy and strategy partnerships. Based on Flint and Saginaw,  CCJ’s advocacy focuses on  assuring  that critical safety net programs in Michigan are available to vulnerable people in accordance with state and federal law.   

The Michigan League for Human Services is a statewide, nonpartisan policy and advocacy group dedicated to achieving economic security for all in Michigan. It is celebrating 100 years of research and advocacy in 2012.

Report: Mich. to Join States Taxing Working Poor Into Poverty

LANSING, Mich. – Michigan is poised to join the small list of states that levy an income tax on working families living in poverty in 2012 thanks to tax policy changes made last year, according to an annual report on state income tax trends.

The Impact of State Income Taxes on Low-Income Families in 2011 found that Michigan was one of the better states when it comes to tax policies on the working poor. But passage of a law that cut taxes for corporations while raising them for the working poor and seniors means that Michigan will  soon impose income taxes on those living slightly below the poverty line.

By restoring the state’s Earned Income Tax Credit  – cut from 20 percent of the federal credit to 6 percent for tax year 2012 – Michigan could avoid joining the list and help these families work their way toward the middle-class, the report concludes.

“Unless we restore the EITC, Michigan will soon tax the working poor deeper into poverty, instead of helping families climb into the middle class,” said Karen Holcomb-Merrill, policy director of the Michigan League for Human Services. “Reducing income taxes for the working poor both encourages work and reduces poverty, while setting families – and our state economy — on the path toward a better future.”

The report examined state income taxes in 2011, prior to the new tax law championed by Governor Rick Snyder, ,that cut the Michigan EITC and the Homestead Property Tax Credit. Michigan was one of three states to recently scale back its EITC. The overall change will mean that corporate income taxes will drop by 83 percent while income taxes will increase by 23 percent.

In 2011, 15 states taxed families of four living below the national poverty line — $23,018 per year for a family of four – according to the report. Michigan was one of 16 states that not only avoided taxes on working poor families but also offered tax credits that produced refunds to families of four living at the poverty line. It is one of 18 states that offered refunds to families of three at the poverty line.

The report found that a two-parent Michigan family living at the poverty line will see their tax bill jump by $678 in the 2012 tax year.  In 2011, a two-parent family of four in Michigan only faced income taxes if their earnings were at least 34 percent above the poverty line.  But, that threshold will fall slightly below the poverty line under the new law.

The findings were released today by the Center on Budget and Policy Priorities, a nonpartisan policy research organization based in Washington, D.C.

Taxing the incomes of working-poor families is contrary to years of bipartisan efforts at both the federal and state levels to help such families work their way into the middle class, the Center’s report shows. States have used a variety of tax exemptions, deductions, and credits, particularly state Earned Income Tax Credits, to reduce or eliminate the income tax obligations of the working-poor.

State Earned Income Tax Credits, modeled after the highly successful federal version, reward work by allowing struggling families to keep more of what they earn. For two decades, an increasing number of states adopted such tax credits and deductions, but progress has stalled in recent years.

“Exempting working-poor families from state income taxes is good for Michigan’s economic future,” said Phil Oliff, co-author of the report and policy analyst at the Center on Budget and Policy Priorities.  “Raising the income of poor families boosts children’s chances of academic success and their earning potential in adulthood.”

###

The Center’s full report can be found at: http://www.cbpp.org/cms/index.cfm?fa=view&id=3740

                            
The Michigan League for Human Services is a statewide, nonpartisan policy and advocacy group dedicated to achieving economic security for all in Michigan. It is celebrating 100 years of research and advocacy in 2012.

Posted March 28th, 2012 to Press Releases | Comments (1)

March 28, 2012
Contact Judy Putnam at (517) 487-5436

46,000 kids have lost cash assistance since September
State hasn’t released case closure reasons yet

More than 46,000 children in Michigan are in families that have lost cash assistance since September, when the state started closing cases because of new time limits. A Genesee County judge ruled Tuesday, however, that the Department of Human Services exceeded its authority in using a 60-month limit with different rules than the 48-month limit enacted by the Legislature.

DHS has not yet released numbers on how many cases were actually closed due to time limits but the department reports monthly on the number of cases and people receiving benefits, which show a 30 percent drop between September 2011 and February 2012. Nearly 66,000 people, including 46,000 children, lost benefits.

“The dual time limits – one set by the Legislature and one set by the Department of Human Services – have created mass confusion for many vulnerable families with children in Michigan,’’ said Michigan League for Human Services Policy Director Karen Holcomb-Merrill. “The 60-month limit looks back to 1996 and does not take into account the circumstances of a recipient caring for a child or spouse with a disability.”

A recent report in Bridge magazine made it clear that this is not what the Legislature intended.

Though Michigan’s cash assistance program, the Family Independence Program that is also known as Temporary Assistance to Needy Families, has had time limits for years, exceptions were made for families that were struggling the most – such as taking care of a disabled spouse or child, living in an area of exceptionally high unemployment, or being a working family that simply did not make enough to survive. 

Michigan lawmakers enacted a stricter 48-month limit on the benefits starting in October and the department started using a 60-month lifetime limit that removed all exceptions and started counting the 60 months back to 1996 when federal welfare reform was enacted.

“The economy is improving but we know that it hasn’t improved enough – especially for those with multiple barriers to employment — to make up for such a dramatic downsizing of this program,’’ Holcomb-Merrill said. “This means that more than 46,000 children are in families losing basic support, and some emergency providers report a growing demand for emergency food and shelter.’’

Click here for a table that shows the cuts by county from September to February, including the number of recipients, the number of children and the monthly amount cut from each county.  Note that the table represents all cases closed between September 2011 and February 2012.  An exact count of how many of the case closures were due to the stricter time limits is not available, but the drop is substantial enough to assume that many recipients lost their benefits when the new policies were implemented.

The 10 counties with the highest number of children losing cash assistance benefits:

Wayne: 25,759
Genesee: 5,068
Muskegon: 2,061
Kent: 1,919
Oakland: 1,791
Kalamazoo: 1,452
Macomb: 1,440
Saginaw: 1,380
Berrien: 712
Calhoun: 511
                            

The Michigan League for Human Services is a statewide, nonpartisan policy and advocacy group dedicated to achieving economic security for all in Michigan. It is celebrating 100 years of research and advocacy in 2012.

MLHS Statement:
Supreme Court Case: Affordable Care Act must move forward for Michigan to prosper

“The Affordable Care Act is especially important in Michigan. With more than 1 million uninsured people in our state, it is critical that we expand health care coverage as outlined in the national reform legislation. Michigan had the second-highest number of people in the country losing employer-sponsored health insurance over the past decade.

Good health care is key to rebuilding our battered economy and creating the best and brightest workforce we can offer. It comes down to this: Will we continue to improve and expand coverage or will we return to the days of unaffordable insurance, rising numbers of uninsured and denials based on pre-existing conditions and lifetime limits?”

These comments may be attributed to Michigan League for Human Services Policy Director Karen Holcomb-Merrill

Creating opportunity for all in Michigan
How budget priorities can reduce inequities

As Michigan legislators continue work on the Fiscal Year 2013 budget, a new Michigan League for Human Services report shines a light on opportunities to increase equity across the state for a more successful economy.

How the Budget Can Create Economic Opportunity looks at the state budget as a statement of priorities and how it can break down structural inequities that hurt communities of color.

“Where a person starts out in life should not determine where they end up,’’ said Michigan League for Human Services President & CEO Gilda Z. Jacobs. “Every child born in Michigan deserves a chance to achieve their full potential and give back to society.’’

While the recession has hurt all communities, it has particularly impacted communities of color with disparities in health, education and income across the board. For example, infant mortality rate of African American babies is three times that of white infants. In addition, large wage gaps persist with the 2010 median household income for whites at $48,125; African Americans at $28,718 while Hispanics were at $36,355.

This is important to the state’s future. While about one fourth Michigan’s population are people of color, children of color now make up nearly a third of all of the state’s children. Projections to 2020, predict growth in Asian, Latino and African American youth populations and a decline in white youth.  A growing share of Michigan’s future workforce will be people of color.
The report detailed reductions to the very public structures that can help create more economic opportunity, specifically  health care, poverty-reduction programs, education and worker training.

“It’s in our best interest to ensure that everyone enjoys full and equitable opportunity in Michigan,’’ Jacobs said. “If we do not attend to inequities by removing barriers to opportunity, Michigan’s economy will suffer.’’

The report recommends that policymakers:

• Examine how state policy and budget decisions affect racial inequities.
• Restore funding for the annual child clothing allowance for the state’s poorest children and increase the hourly rate for the Child Care Assistance Program.
• Return the state Earned Income Tax Credit to 20 percent of the federal credit.
• Improve access to health care for low-income residents by supporting Medicaid and the Affordable Care Act.
• Expand education and training through more robust support of K-12, community colleges, higher education and adult education.

The Michigan League for Human Services is a statewide, nonpartisan policy and advocacy group dedicated to achieving economic security for all in Michigan. It is celebrating 100 years of research and advocacy in 2012.