What’s a Poor Mother With No Childcare Subsidy to Do?

July 10, 2014

Perhaps you’ve read about Sanesha Taylor. She’s the Scottsdale, Arizona mother who left her baby and toddler in the car while she interviewed for a job.

Got arrested and put in jail. Lost custody of her children. Story picked up by a local TV channel and spread all over the internet. So no job, of course. And dimmer prospects because she’s already got a felony charge on her record — and could be convicted.

No one — least of all Sanesha — thinks it’s okay to leave your kids in a car unattended, especially on a hot day. But she was between the rock and the hard place because she needed that job and had no one to look after her children.

She had thought she would until the last minute, but the informal babysitting arrangements she’d relied on fell though. So she felt she had no choice but to blow off the interview — and the chance of a job that would pay more than enough to end her family’s homelessness — or to take the kids with her and leave them in the car.

This story would be altogether different — and we would never have read it — if she’d had affordable, high-quality child care. For her — and many, many other low-income parents — that means child care subsidized with public funds.

She once had a child care subsidy, but lost it when her employer cut her work hours — and then fired her when she took time off to prevent a miscarriage. Reportedly was offered a job elsewhere, but couldn’t take it because she couldn’t find child care.

Arizona isn’t the only state that terminates childcare subsidies when parents lose their jobs and don’t find another PDQ.

Witness for Hunger member Tangela Fedrick, who lives in Philadelphia, tells of a similar experience. Like Sanesha, she managed to piece together part-time childcare arrangements.

But, she says, her five-year-old son no longer has “a sense of stability and security.” And “he’s not learning anything,” the way he did when he was at a childcare center that gave him “instruction and pushed [him] to learn more.”

She worries that he won’t have the “tools” to help him “excel” when he starts grammar school — and that the months without high-quality child care “will always be a time of lost potential.”

In short, we have two major problems here: parents whose lack of reliable child care is an obstacle to getting a job and children who miss out on early learning experiences, which scads of research tell us provide lifelong benefits — both to them and our society.

The problems are obviously related because they’re both rooted in lack of money — for parents to afford high-quality child care without a subsidy and for state and local agencies to provide subsidies to all parents who need them.

Not only to provide them, but to reimburse providers at a rate that doesn’t cause them to limit the number of subsidized children they’ll accept and/or to skim on investments in quality, e.g., staff training.

To some extent, the money shortage reflects choices by state and local governments. In 2012, for example, three states cut spending on childcare assistance by more than 30%. All three — Georgia, North Dakota and South Carolina — also cut state taxes.

But the federal government is to blame as well. The Child Care and Development Block Grant, a.k.a. the Child Care and Development Fund, hasn’t kept pace with rising needs and costs.

Nor, as I’ve said over and over again, has the TANF block grant — another major federal funding source. Combining CCDBG with states’ uses of their federal TANF funds and funds they must spend to get those, childcare spending was lower in 2012 than in any year since 2002.

The multiple funding streams make it hard to put a figure on the total number of children served — and not. This much we know. The number of children served by CCDBG was the lowest since 1998 — only one in six eligible children.

That leaves more than 5.6 poor and near-poor preschoolers without child care subsidized by the largest federal source. And at least some older children with working parents need child care too.

In 2011, 13.6% of poor preschoolers whose mothers worked had no regular childcare arrangements — as of course, did some unknown percent whose mothers were actively seeking work. And this was when at least some states still had Recovery Act money for child care—and before sequestration had taken a bite out of CCDBG.

Tangela has a job now. She hopes this means she’ll get her childcare subsidy back. If she doesn’t she’ll probably still have to rely on her network of friends and relatives because center-based child care for her son would set her back somewhere around $8,600 for the year.

That’s 36.4% of the median income for Pennsylvania’s single-mother families. And its far from the costliest, whether measured in dollars or as percent of median income.

President Obama has proposed increases for CCDBG totaling $807 million, including $200 million states would have to use to support improvements in childcare quality. This would leave somewhat under $5.9 billion for subsidies.

The National Women’s Law Center says that “the additional funding would help maintain low-income families’ access to help paying for child care.”

Not, you’ll note, make subsidies available for anywhere near the number of low-income families that need them — and at reimbursement rates that would ensure access to high-quality care.

One would think that a program that supports both work and early learning could get more — or at least one would if one knew nothing at all about this Congress.


DC Budget Should Fund Help With Disability Benefits Applications

March 31, 2014

The Fair Budget Coalition recommends, among many things, a $3.9 million increase for the District of Columbia’s Interim Disability Assistance program — a temporary income supplement for low-income residents with severe disabilities.

The increase would bring local funding for IDA to somewhat over $5.9 million — a significant increase, but still less in real dollars than the program had in Fiscal Years 2009 and 2010.

It would be enough, Fair Budget says, to provide benefits — a modest $270 a month — to 1,200 more disabled residents while they wait … and wait for the Social Security Administration to render decisions on their applications for SSI (Supplemental Security Income).

If they’re successful, SSA pays their benefits retroactive to the day they applied, less what they received from the IDA program. That goes to the District, making the program partly self-sustaining.

The program could probably serve more residents with less local money if a larger number could obtain SSI benefits swiftly and/or the SSDI (Social Security Disability Insurance) benefits some are entitled to.

As it is, the process is complex and, more often than not, successful only after appeals — sometimes several stages thereof. This is when applicants have attorneys or other experts who know how to write, document and argue a claim.

Ms. I, for example, worked for many years cleaning offices, hospitals and nursing homes. She eventually suffered from a variety of serious ailments, plus side effects from the medications she had to take. She applied for SSI and SSDI in February 2009. Nearly two years passed before her application was approved.

But at least she got those benefits. Less than a third of SSI applications are initially approved. All but 10% ultimately are when applicants have attorneys to represent them in the appeals process, according to a pro bono attorney who spoke at an IDA briefing last fall.

But, of course, not all applicants do have attorneys. They’re hard put to gather the required proof that they’re not only income-eligible, but too disabled “to do any substantial gainful activity” for some considerable period of time.

They can easily miss one of the deadlines in the appeals process — especially, Fair Budget notes, if they’re homeless and so don’t have a mailbox to check every day.

Other applicants may also find the demands especially formidable, e.g., people unable to work because they’re developmentally disabled or suffering from a severe psychiatric disorder.

Special barriers aside, many prospectively eligible applicants decide at some point that they’ve just had enough of the time-consuming process — and the frustration.

As one who didn’t remarked at the briefing, “Either SSI is fickle or it’s set up to make people give up.” Perhaps both. Judges apply the complex regulations arbitrarily, said another of the pro bono attorneys.

A splendid example from Bread for the City, whose attorneys persuaded a judge to overturn a ruling which held that a father was demonstrably able to work because he could care for his son, with help from his family and the community.

Well, there’s nothing the District can do about the way the Social Security Administration conducts its business or the unpredictable proclivities of judges.

But they help explain why the District recovers, on average, only about 40% of the money it spends on IDA benefits — a reason Mayor Gray has taken a dim view of the program.

And they suggest that one of the items on his last wish list, i.e., funding priorities if revenues were higher than projected, should be put into the budget itself, as Fair Budget recommends.

I’m referring to funding for services to help residents apply for SSI. They’d then know, insofar as anyone can, what records they need to collect. Also, one hopes, how to describe their disabling condition(s) so as to ping the SSA checklist. They’d get help with appointments, Fair Budget suggests — and those who need it, a mailing address.

The investment should lead to more and quicker approvals, thus moving beneficiaries out of the IDA program to make way for others.

At the same time, more approvals would boost the reimbursement rate. So the District could tide over more SSI applicants without commensurate budget increases. It might, in fact, no longer have a waiting list, which undermines the whole point of interim assistance.

As things stand now, the Department of Human Services has capped IDA “customers” at 1,000 for this fiscal year. The DC Fiscal Policy Institute estimates that it will actually serve 825 — about 30% as many as it served in Fiscal Year 2009.

I need hardly add, I hope, that it would be a whole lot better for low-income residents with severe disabilities to receive SSI benefits, low as they are, than the $270 a month IDA provides. SSA might find some eligible for SSDI, which could be even better for them.

Fair Budget recommends $580,000 for SSI application assistance — about 60% of what the Mayor put on his wish list. The ask seems to me very small. But at least it would get the program started — without, one hopes, compromises in quality.

If it proves effective, as a particular model for homeless people has, then the District will have home-grown results justifying an increase.


More to Bad Jobs Than Low Hourly Pay

March 24, 2014

New York Times columnist Steven Greenhouse profiles a nurse’s aide and several other low-wage workers in Chattanooga, Tennessee to show why low-wage workers generally are “finding poverty harder to escape.”

One reason is simple enough. Their hourly pay rates are too low. All the profiled workers get somewhat more than the federal minimum, which applies in Tennessee and 28 other states — not, however, as much as the proposed $10.10 an hour. So the increase would help.

But low pay rates alone don’t account for the troubles the workers have paying for basic expenses. The nurse’s aide, for example, like a growing number of low-wage workers across the country, doesn’t have a regular work schedule, let alone a full-time job.

“For today’s low-wage, hourly workers, … scarce, unstable and unpredictable hours are the new norm,” write Professors Charlotte Alexander and Anna Haley-Lock.

Employers aren’t only cutting back on full-time jobs. Those that can are, in many cases, relying on “just-in-time” scheduling, i.e., adding and subtracting workers’ hours according to immediate need.

It’s reportedly common in restaurants and other retail businesses, which can now establish very short shifts — 15 minutes, in some cases — and use software to fill them, based on customer traffic, sales or predictors like weather conditions.

Workers may show up for what they think is a five-hour shift and be sent home early. They may be told they’ll need to put in extra hours — or to be available for them, with no guarantee they’ll be working.

They may have no regular hours at all, but instead have to call in daily — or be constantly accessible by phone. More commonly, their work days and/or hours change from week to week. And they don’t know what their schedule will be until a day or so before they’ve got to meet it.

“Even then,” said one chain restaurant worker, “it was only a guesstimate.”

Likewise, of course, the budget planning that low-income people are enjoined to practice. “I have been scheduled for as few as six hours in a week and as many as forty,” says a New York City sales associate. “How is anyone … supposed to plan a budget with such erratic schedules?”

And how is a parent supposed to manage childcare arrangements, when she’s sometimes needed, sometimes not, sometimes for far longer than scheduled — or at altogether different hours?

And how will she afford child care when a center may tack on a hefty fee for late pick-ups — or when her hours are suddenly, though perhaps (or perhaps not) temporarily cut in half?

Iffy schedules pose other problems for low-wage workers. For example, they can’t take on a second part-time job because they can’t commit to any work schedule, even if not another “just-in-time.”

They often can’t try to improve their prospects by getting more education or specialized training because they never know when or how often their work schedule will conflict with their classes.

The surges and plunges in working hours also wreak havoc on eligibility for many public benefits and the support they provide because recipients generally have to recertify, i.e., periodically reapply.

A woman in Massachusetts says, “A good month, I can work thirty-eight to forty-five hours and it just happens to be that month they want my pay stubs for food stamps. OK, the next month comes around I’ve worked three hours one week, twelve hours another week … They don’t want my pay stubs for that month.”

So she could lose at least part of her food stamp benefit — and then have to try to recover it. Temporary hours spikes can also jeopardize childcare subsidies, WIC, housing assistance and Medicaid.

On the other hand, earnings plunges make it even more difficult for low-wage workers to qualify for unemployment benefits. Yet they’re at high risk for unemployment — in part because they’re expected to work whenever.

Finally, as many have written, the on-again, off-again, never-know-when schedules create high levels of stress for workers. They’re also harmfully stressful for their children, whose daily routines and caregivers constantly change.

CLASP and partners have identified two policies that some employers have adopted to mitigate the problems of unstable schedules for low-wage workers.

One, also favored by Professors Alexander and Haley-Lock, guarantees workers who’ve reported when told to a certain number of hours of pay.

Seven states and the District of Columbia actually have so-called “reporting pay” laws, but they vary considerable in whom they cover, the number of hours guaranteed and the required pay rate.

These laws may be on the books, but it’s doubtful they’re consistently enforced, since they hinge on vulnerable workers filing complaints. And, of course, they do nothing about schedules that constantly change.

Nor does the other policy, though it comes closer. It guarantees workers a set number of hours a week — or pay for those hours if there’s not enough work for them to do. Costco, among others (probably not very many), has a version of this policy.

There’s a business case to be made for a work guarantee. It can help reduce turnover, for example, and increase productivity — not only because workers know their jobs, but because they want to do them well.

But, as the CLASP report says, “relying solely on voluntary employer action will not suffice.” We’ll need new and/or revised laws and regulations to make bad jobs better in the rapidly-growing low-wage service sectors.


EITC Reforms Would Give Childless Workers a Fair Shake

February 27, 2014

As the tax filing season opens, the Internal Revenue Service, local government agencies and nonprofits across the country have launched their annual campaign to inform potentially eligible workers about the Earned Income Tax Credit and to help them claim it.

IRS estimated that about 21% didn’t in 2010. Roughly 26% didn’t here in the District of Columbia — a higher percent than in all but five states.

The District workers missed out not only on the federal credit, but on the credit the District provides in its own tax code. Twenty-five states have their own EITC as well, though one of them — North Carolina — won’t after this filing year.

Notwithstanding the missing claimants, the EITC is one of the most powerful anti-poverty programs we have — second only to Social Security. Last year, it lifted 6.5 million people, including 3.3 million children above the poverty threshold.

This is partly because it’s a refundable credit. In other words, if claiming it reduces what filers owe to less than zero, IRS pays them the negative balance. The EITC is also refundable in all but four states that have one.

The EITC enjoys broad support across the political spectrum — something you can hardly say for most other programs that only people below a certain income level qualify for. This is because it’s available only to people who’ve earned income by working — and thus widely viewed as a work incentive.

A substantial body of research indicates that it actually is — or at any rate, has been, since much of the work has focused on single-mother employment in the late 1990s, shortly after welfare “reform” and several expansions of the EITC.

Yet, as I’ve written before, the EITC shortchanges childless workers. Those under 25 aren’t eligible for the credit at all. For those who are older, the credit is very small — just 7.65% of earned income to a maximum of $496 for this tax year.

And there will be no more credit available for a single childless workers when earnings reach $14,590 — less than what a full-time, year round job at the federal minimum wage pays. Hardly better for childless married couples.

These restrictions doubly disadvantage childless workers in the District and most of the EITC states because their tax credits are pegged to the federal. In other words, workers are eligible for a fixed percent of their federal EITC benefit.

Here in the District, it’s 40%. So the maximum childless workers can to receive this year is $195 — a partial explanation perhaps for those missing claimants.

The Center on Budget and Policy Priorities notes that some prominent conservatives have recently recommended reforms to make the EITC a more effective support for childless workers — mainly as a substitute for raising the minimum wage.

Such reforms are nevertheless one anti-poverty measure that might bring conservatives and progressives together, CBPP cautiously suggests.

Caution is certainly called for here — and not only because conservatives are pumping the EITC as a way of dumping on the long-overdue federal minimum wage increase.

We’ve got EITC reform bills in Congress right now that would drop the eligibility age to 21, double the maximum credit for childless workers, boost the rate at which their earnings rise to the maximum and extend the phase-out.

No Republican cosponsors. One reason may be that expanding the EITC will result in more and larger refunds. As Politico notes, they’re counted as federal spending — something we’d hardly expect Republicans to support more of (except for defense).

Thus, for example, Presidential-hopeful Marco Rubio’s anti-poverty plan would replace the EITC with a wage subsidy that would benefit childless workers and families with children equally. But, says his spokesperson, the proposal will be revenue neutral. So it will take from one needy group to give to another.

If President Obama really thinks that he and Rubio can work together to strengthen the EITC for single childless workers, as his State of the Union address suggested, he’s probably in for another disappointment.

And clearly disappointment from lead House Republicans, who swiftly found reasons to oppose the as-yet unseen EITC expansion in his Fiscal Year 2015 budget.

As with the minimum wage, the District may just forge ahead rather than wait for Congress to do what it seems unlikely to do in the near future.

The DC Tax Revision Commission has recommended changes that would make the District’s EITC significantly more beneficial to childless workers. They would:

  • Raise the maximum credit to 100% of the federal credit.
  • Extend the availability of the maximum credit to $17,235 of adjusted gross income for both single and married childless workers.
  • Fully phase out when AGI reaches $22,980.

The EITC is often referred to as a measure that makes work pay. The Commission’s proposal would certainly make work pay more for childless workers at the low end of the income scale.

A good step, though not the only one to make the District’s tax code more progressive. And it might reduce the poverty rate too.


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