Recession Scars Linger no group unscathed

Renell WeathersOutreach Director

Michigan League for Public Policyrweathers@mlpp.org

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The League’s Mission

To foster economic opportunity, independence and security for Michigan families by shaping public policy through objective data-driven research, education and advocacy

1223 Turner St. Suite G-1, Lansing, MI 48906-4369 (517) 487-5436Fax: (517) 371-4546 Web site: www.MiLHS.org

A United Way Agency

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Since the Recession

Michigan League for Public Policy

State EITC refunds drop

from $349 million to $105 millionUnemployment:

8.9% in December; 413,000

unemployed

1/837 homes foreclosure filing

in January

48% of kids receiving free and reduced price lunches

Cuts:2001 - $26 M 2012 - $2 M 2013 - $6 M

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3

4

5

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And…

Michigan League for Public Policy

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One third of working families in Michigan are low-

incomeMore Michigan residents lost

more employer-sponsored insurance than anywhere in country in past decade (4.2 million to 3 million

covered)

Income disparity nationwide is at

highest levels since Great Depression, and Michigan has a big gap

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What does the number548,000 represent?

1223 Turner St. Suite G-1, Lansing, MI 48906-4369 (517) 487-5436Fax: (517) 371-4546 Web site: www.MiLHS.org

A United Way Agency

Family of

4

$24,000

Family of

3

$18,000

What is Poverty?

Michigan League for Public Policy

Poverty in Michigan Continuesto Rise

2007 2010 20110%

10%

20%

30%ChildrenFamilies with ChildrenAll People

Michigan League for Public Policy

2011 Poverty

Total

17.5%Children

24.4%Families with Children

20.9%

Michigan League for Public Policy

1 in 6 peoplelive in poverty

Total number of people living in poverty

1,693,294Michigan League for Public Policy

1 in 5 families with children live

in poverty

Number of families withchildren living in poverty

1,138,970Michigan League for Public Policy

1 in 4 childrenlive in poverty

Number of children livingin poverty

548,145

Michigan League for Public Policy

How Much Do KIDS COUNT in Michigan?

Michigankids in poverty would fill the UM Big House

5 times

Michigan League for Public Policy

-60 -50 -40 -30 -20 -10 0 10 20 30 40

5

1

3

18

31

28

14

5

11

8

2

33

55

28

Health

Family/Commu-nity

MichiganTrends in

Child Well-Being

2005-2010

Poverty, ages 0-17

Children 0-5 receiving food assistance

Children eligible for FRL

Low-birthweight babies

Infant mortality

Child/Teen deaths, ages 1-19

Births to teens, ages 15-19

Children in investigated families

Confirmed victims

Children in out-of-home care

MEAP Fourth grade reading

MEAP Eighth Grade Math

MME High School reading

Students not graduating on time

Worse Better

60 40 20 0 20 40

Economic Security

Education

Michigan League for Public Policy

Income from a full-time year-round minimum wage ($7.40 per hour) job does

not lift a family of four above poverty.

Young Children, Ages 0-5,

Eligible for Food

Assistance Program*

2011 (MI – 37.4%)

Michigan League for Public Policy

Change in Family Poverty, 2007 and 2011

Michigan League for Public Policy

Change in Poverty by Race/Ethnicity, 2007 - 2011

Michigan League for Public Policy

Poverty by Race/Ethnicity, 2011

13.3% white, not Latino

Michigan League for Public Policy

What Causes/Contributesto Poverty?

Michigan League for Public Policy

Jobs

400,000 Workers Unemployed Every Month in 2012.

Michigan League for Public Policy

Income

Michigan’s Median Income of $45,981 has dropped more than $6,000 since the beginning of the recession.

Michigan League for Public Policy

• Cuts to business taxes

• Shift the burden to individuals

Michigan League for Public Policy

Tax Changes

FOOD

MORTGAGE

CREDIT CARDS

UTILITIESSAVINGS

GAS

CAR PAYMENT

Michigan Earned Income Tax Credit Cut, 2011 vs. 2012

Michigan League for Public Policy

70% drop

$439$132

Fewer Children Kept Outof Poverty

Michigan League for Public Policy

20% = 14,0006% = 5,000

Policy Changes

• UI benefits

• Asset test for food assistance

• Restrictions on FIP

Michigan League for Public Policy

What Can We Do to ReduceEconomic Insecurity?

• Restore unemployment insurance benefits and index them for inflation.• Restore the state Earned Income Tax Credit for

low-income working families.• Raise the minimum wage to a level that lifts a

family of four above the poverty level ($23,000).• Raise the eligibility and adjust the sliding scale

for the child care subsidy.Michigan League for Public Policy

Michigan League for Public Policy

Advocacy 202: YOU CAN MAKE A DIFFERENCE

• Contact your legislators/ members of Congress

• Write letters to the editor/OpEds

• Provide stories of impact of policy decisions

You have the power!… Conscience asks the question "Is it right?" And there comes a time when one must take a position that is neither safe, nor politic, nor popular, but he must do it because Conscience tells him it is right.”

-- Dr. Martin Luther King, Jr.

“Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has”

-- Margaret Mead

Thank You!

rweathers@mlpp.orgWebsite: www.mlpp.org

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Michigan League for Public Policy1223 Turner Street, Suite G-1

Lansing, Michigan 48906-4369Phone: (517) 487-5436