Hunger and Poverty in Texas:Causes and Solutions

Food Insecurity: The Hunger EpidemicWitte Museum

San Antonio, Texas February 18, 2010

Celia Hagert

Senior Policy Analyst

Overview

• Hunger and poverty: causes and consequences

• Solutions– Expand economic opportunity

– Ensure a strong federal nutrition safety net (SNAP, school meals, WIC, senior meals, etc.)

The Economic Context

• Hunger is a symptom of poverty• Poverty is deep and widespread in

Texas• Root causes are structural, not

individual• Increasing economic opportunity and

earnings is the long-term solution

How many people are officially poor in Texas?

Who are the poor?

The Numbers

Texas Hunger Rate Linked to Poverty

Sources: Poverty data are one-year estimates from American Community Survey, U.S. Census Bureau. Food Insecurity data are three-year averages from USDA’s Economic Research Service.

15.6%

16.3%16.6%

17.6%

16.9%

16.3%

14.8% 14.9%

16.4%

16.0% 15.9%

14.8%

15.8%

16.3%

2002 2003 2004 2005 2006 2007 2008

Poverty

Food Insecurity

Poverty and Unemployment(with recession impact simulated)

16.9%

7.0%

0

3

6

9

12

15

18

1995 1997 1999 2001 2003 2005 2007 2009 2011

Texas rate (%)

Poverty (Census CPS)

Unemployment

Source: U.S. Bureau of Labor Statistics; Comptroller Winter 08-09 Forecast; Census Bureau CPS.

Forecast

Hispanics and African Americans Much More Likely to Live In Poverty as Whites in Texas

14.1%

24.0%22.9%

10.7%

18.3%

White, NotHispanic

Hispanic (anyrace)

AfricanAmerican

Asian AmericanIndian/Alaska

Native

Source: 2008 American Community Survey, U.S. Census Bureau

Vast Majority of Poor Texans are Citizens

U.S. Citizens,

3.1 million (82%)

Non-citizens, 679,700 (18%)

Source: 2008 American Community Survey, U.S. Census Bureau

Poverty Rates by Citizenship

15.8% 14.6%

25.9%

Total Poverty Citizens only Non-Citizens

Po

vert

y ra

te w

ith

in g

rou

p

679,700

3,080,7313,760,431

Source: 2008 American Community Survey, U.S. Census Bureau

Born-in-U.S.citizen poverty rate: 41st worst among states

Texas 43rd Worst Rate of Total Population in Poverty TX = 15.8%; U.S. = 13.2%

Source: 2008 American Community Survey, map from KIDS COUNT Data Center, www.kidscount.org/datacenter

www.cppp.org/research.php?aid=96

Texas Poverty 101

Why can’t families escape poverty?

• The cost of living has outpaced earnings• Lack of education, economic opportunity limits

earnings, upward mobility

Full-time Work at Minimum Wage ($14,500) Doesn’t Lift Texas Families Above Poverty Line

66%

FP

L

79%

FP

L

99%

FP

L

$22,050

$18,310

$14,570

Family of 2 Family of 3 Family of 4

100% FPL

Minimum Wage

Minimum wage = $7.25 per hour as of July 24, 2009. Full-time work = 2,000 hours per year.

Minimum wage $70 shy of FPL for Family

of 2

Texas Median Income Increases Slightly, But Purchasing Power on

General Decline $47,900

$45,500

$44,600$44,200$43,600

$44,900$44,100$44,200

$39,781$38,865$39,325

$40,292$40,803

$42,978$42,879

$38,000

$40,000

$42,000

$44,000

$46,000

$48,000

2000 2001 2002 2003 2004 2005 2006 2007

Median Income

Median Income Adjusted to Purchasing Power in 2000

Source: KIDS COUNT Data Center, Families with Related Children, American Community Survey, Census Bureau; Data adjusted using inflation calculator from the U.S. Bureau of Labor Statistics

The Consequences

Over Half of Texas’ 4.7M Public School Kids Are Considered Economically Disadvantaged

Not Economically

Disadvantaged 2.06 million

(43%)

Economically Disadvantaged

2.68 million (57%)

Source: 2008-2009 Enrollment Data, Texas Education Agency

Economically Disadvantaged =

Kids who are eligible for free (below 130% of poverty) or reduced-price lunch (130%-185% of poverty)

“Early disadvantage, if leftuntouched, leads to academic

and social difficulties later in life. Early advantages accumulate,

just as early disadvantages do.”

Heckman & Masterov, as cited in “Early Childhood Education for All: A Wise

Investment”

GAPS IN ACHIEVEMENT:

Fewer Economically Disadvantaged Kids Pass the TAKS Tests

78%89

%

89%

68%

71%

82% 90

%95%

96%

86%

86%94

%

Reading Math Science SocialStudies

Writing AveragePassing Rate

Economically Disadvantaged Non-Economically Disadvantaged

Source: Percent Students Passing Across Grades Within Each Test, 2009 TAKS data, Texas Education Agency

GAPS IN ATTAINMENT:

Economically Disadvantaged and Minority Students Drop Out at Higher Rates

10.5

%

15.7

%

16.1

%

14.4

%

5.1%

3.6%

Overall Rate Econ. Disadv. AfricanAmerican

Hispanic White Asian/ PacificIslander

Source: Class of 2008 four-year longitudinal dropout rate within group, Texas Education Agency

GAPS IN EARNINGS:

More than One of Every Three Texas Dropouts Lives in Poverty

36%

14%

9%4%

Less than H.S. H.S. Grad (includesequivalency)

Somecollege/Associate's

degree

Bachelor's degree orhigher

Pe

rce

nta

ge

wit

hin

ea

ch

ed

uc

ati

on

lev

el

Source: Table C17003, 2008 American Community Survey, U.S. Census Bureau

Long-term solution to poverty & hunger:

Increase economic opportunity so people can learn more, earn more

Short-Term Solution to Hunger: Improve Nutrition Safety Net

Make sure everyone who needs food assistance receives this help

Gaps in the Nutrition Safety Net

#1 Many eligible families aren’t getting federal food assistance*

– Flaws in the poverty measure prevent needy families from getting assistance

#2 Many needy families don’t qualify for federal food assistance

– Barriers limit access for eligible families

*Federal food assistance = SNAP/Food Stamps, School Lunch/Breakfast, Afterschool/Childcare, Summer Food, WIC, Commodities

#1: Many Texans Qualify for Food Assistance But Do Not Receive It

Source: Bridging the Gaps Project, Center for Economic and Policy Research

• Limited awareness• Stigma• Inadequate funding • Enrollment barriers (staff shortages,

red tape, outdated rules) make the benefits hard to access

Many Texans Qualify for Assistance But Do Not Receive It

10%

23%

9%

16%

4%

26%

2%

11%

2%

12%

1%

24%

Housing Food Stamps Child Care Children'sMedicaid/CHIP

TANF EITC

Eligible Receive Assistance

Source: Bridging the Gaps Project, Center for Economic and Policy Research

Too Many Families Relying on Food Banks Not Getting Federal Food

Assistance

Source: Bridging the Gaps Project, Center for Economic and Policy Research

SOURCE: Hunger in America: 2010 Survey, Feeding America

Texas Failing to Process More and More SNAP (aka Food Stamp) Applications on Time

Source: Texas Health and Human Services Commission, 2009 Monthly Timeliness Reports

Percentage processed late (after 30 days)

10%

15%17%

19%

38%

Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

Federal standard = 95% processed w iithin 30 days 56,328

SNAP Not Reaching Its Target Population

Source: Bridging the Gaps Project, Center for Economic and Policy Research

• Almost half (45.4%) of food bank clients believe they are not eligible for SNAP, yet almost one-quarter (24.2%) have income low enough to qualify (<130% FPL).= lack of awareness of SNAP rules.

• 17.1% report not receiving SNAP benefits because “it is too much hassle." = problems in the eligibility system.

SOURCE: Hunger in America: 2010 Survey, Feeding America

#2: Many Needy Families Don’t Qualify for Food Assistance

• Eligibility for food (and other public) assistance is tied to Federal Poverty Measure

• The Federal Poverty Measure is flawed: Poverty = 3 x cost of food per family size (methodology from the 1960s)

• Fails to take into account today’s cost of living

• Child care

• Medical costs

• Housing

Federal Poverty Guidelines

Family Size 2007 2008 2009

2 $13,690 $14,000 $14,570

3 17,170 17,600 18,310

4 20,650 21,200 22,050

Source: U.S. Department of Health and Human Services

Monthly Costs for Single-Parent, 2-Child Family in Fort Worth-Arlington

Total Monthly Expenses = $3,042 - $3,540Source: Family Budget Estimator, CPPP, www.cppp.org/fbe

$212-$1,100 $745 $1,034

$356 $339 $356

Necessary Income for Single-Parent, 2-Child Family in Fort

Worth-Arlington

• Hourly = $19 - $23/hour

• Annual = $38,737 - $46,709– 226% to 272% of poverty line

Source: Family Budget Estimator, CPPP, www.cppp.org/fbe

Total Monthly Expenses for Families in Dallas-Plano-Irving as Percentage of the Federal

Poverty Level

Note: These budgets are for families where the employer pays 100% of one parent’s health insurance and 50% of premium for spouse and/or

dependents. The poverty line is the maximum amount a family can make in a month and still be considered below the 2007 federal poverty level

Texas Eligibility for Family Support Programs, 2009

185% 185%

130% 130%

243%

150%

12%

WIC Reduced-PriceSchool Meals

Free SchoolMeals

Food Stamps(SNAP)

Max. Child Care Typical ChildCare

TANF CashAssistance*

Dollar amounts: Annual income levels for a family of three

$23,803

$42,703

$2,256

$33,874

* Income limit show n is for applicants. Once on TANF, some families w ith earnings disregards and other allow ances for w ork-related expenses can have higher incomes yet continue to receive some cash assistance.

$23,803$27,465

$33,874

Public Assistance Programs Not an Option for Many Working Families

Sources: U.S. Department of Agriculture; Texas Workforce Commission; Texas HHSC

Public Health Insurance More of an Option for Children, Elderly, Disabled

Sources: Texas HHSC

Income Caps for Texas Medicaid & CHIP, 2009

74

200

12.3

133

133

100

20.2

222

185Pregnant Women &

Ages 1 to 5

Ages 6 to 18

TANF Parent of 2,

Working Parent of 2

SSI (aged ordisabled)

Long-Term Care

CHIP

Federal Minimum State Option

Percent of federal poverty line ( % )

No Income

Newborns$33,874

$24,352

$18,310

$2,256

$3,696

$7,884

$24,264

$36,620

Annual income limits:

For a family of three in child & parent categories;

for SSI & Long-Term Care, income cap is for one person.

Texas Low-Income Children vs. Served by “Safety Net”

Children below 100% of poverty

Children living from 100 to 200% of

poverty

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1995 1997 1999 2001 2003 2005 2007

Medicaid orCHIP

Medicaid

Food Stamps

AFDC/TANF

SSI

Millions of Texas children under 19

Source: Texas Kids Count; Texas Health and Human Services Commission; March CPS (FERRET)

Family Budget Estimator (FBE)

www.cppp.org/fbe

Our Shared Challenge

• Make sure everyone eligible for food assistance is getting it– Less than half of eligible population gets SNAP– Fewer than one in five eligible children get free

summer meals

• Make sure everyone who needs food assistance is getting it – Since eligibility is tied to the official poverty measure,

many needy families don’t qualify for federal food assistance

– Need to revise poverty measure or income limits for food programs

Contact InformationContact Information

Celia Hagert

hagert@cppp.org

(512) 320-0222 ext. 110

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