One Safety Net Time Limit Down, More Sweeping Limits in View

June 12, 2017

Here in the District of Columbia, the Council has just made history by eliminating the time limit it had imposed on all Temporary Assistance for Needy Families participants. No state has done this, DC Fiscal Policy Institute’s Executive Director notes in an emailed budget wrap-up.

And proudly because DCFPI played a major role in developing and then advocating for a policy that will ensure very poor families some cash assistance, activities that may get them jobs so they no longer need it and child care so they can meet those activity requirement

The Council’s unanimous vote for a policy more protective than what the Mayor originally proposed is maybe the biggest high point of this budget season.

Meanwhile, we see proposed nationwide safety net program limits of a whole other sort — some retreads, but others new inventions, though champions of so-called entitlement reform have been laying the groundwork for a long time.

SNAP Benefits Limits

The law that created TANF also set a time limit on eligibility for SNAP, but only for able-bodied adults without dependents They usually can receive benefits for only three months in any given three years unless they’re working or participating in a work preparation program at least half time.

Generally speaking, however, SNAP benefits have no time limit. People with incomes low enough to qualify can receive them until their incomes break the threshold.

The Trump administration, as you may have read, would shift 25% of SNAP costs to states — $116 billion during the first 10 years. States could reduce the value of the benefits they provide, notwithstanding ample evidence that current benefits don’t cover the costs of a healthful diet.

But they would also have to adopt new restrictions. These collectively seem to save the federal government an additional $77 billion or so. They would, among other things, revise the way the Agriculture Department sets benefit levels.

As things stand now, they’re based on household size. The more members, the larger the benefits, though they’re smaller on a per person basis due to assumed economies of scale.

So, for example, a two-member household can receive as much as $357 a month, while the maximum for a four-person household is $63 less than double that.

On the flip side, a household with only one or two members will receive no less than $16 a month. Most beneficiaries in this group are elderly and/or disabled.

The Trump administration would deny them any minimum benefit. More than 1.9 million people, most of them living alone would have to spend more on food — and perhaps more importantly, lose the incentive to remain enrolled and thus readily eligible for more assistance if needed.

Returning to the household benefits scale, we find an unadjusted per person increase for each member beyond the eighth. The administration would cap benefits at the six-member rate. Larger households would have to feed about 170,000 people who’d now be factored into their benefit.

This flies in the face of several trends. One is a significant increase in multigenerational households, i.e., those with at least two adult generations. The younger of them or even both may have children in the home too.

We also have unrelated families living together — in some cases, one allowing another to double up rather than rely on their community’s homeless services, in others, more permanent arrangements based on shared rent and other household costs.

Why any policymaker should seek to discourage them when they’re obviously beneficial and cost-saving in various ways, e.g., as an alternative to nursing home care, as a source of child care so that a parent can afford to work.

The answer, one infers, is to cut SNAP costs by about $180 million a year — food insecurity and out-and-out hunger increases notwithstanding.

Disability Benefits Limits

The Trump administration also seeks to cut both Social Security programs for people with disabilities.

For Social Security Disability Insurance, its budget would have Congress establish an expert panel to identify ways to keep workers with disabilities out of the program initially and/or get them out later.

It would also test its own strategies. This, one could guess, is because the expert panel might not recommend changes as radical as those the budget counts on to save about $58.7 million during the first 10 years.

It’s nevertheless the case, as I’ve said before, that experts have proposed various return-to-work proposals that could work for SSDI beneficiaries, as well.

What’s altogether other is the benefits limit the administration proposes for Supplemental Security Income — modest monthly benefit for elderly, blind and otherwise disabled people with little, if any other cash income.

Families can receive a benefit for each of their children severely disabled enough to qualify. As with adults, the amount reflects a complex income calculation, but benefits for each child are the same.

The Trump administration would retain the full benefit for one eligible family member, but ratchet benefits down for the rest. This effectively reduces the income that supports all family members — and $9 million in federal safety net spending.

It’s not the first effort to cut SSI funding. The House Republican Study Group tried to get the program block granted in 2012. The House Budget Committee decided to instead adopt the same cost-cutting approach we find in Trump’s budget.

Both have justified it by alleged economies of scale, e.g. the fact that housing for three people doesn’t cost a third more than housing for two.

But we’ve reliable research  showing that even the maximum benefit didn’t cover the extra costs of raising a severely disabled child. Sixty-two percent of families with just one with SSI benefits suffered at least one material hardship.

To borrow from Washington Post columnist Catherine Rampell, the folks who’ve shaped Trumponomics and translated it into specifics seem to think “that it doesn’t suck enough to be poor.”

 

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Too Quick to Pronounce Trump Budget Dead on Arrival

June 8, 2017

I recently said I was torn between delving into Trump’s proposed budget and picking at less-reported angles because the package was DOA in the Senate.

The Center on Budget and Policy Priorities says no such thing. Some Republicans may balk at some details, but the major thrusts replicate those in budgets the House has passed ever since Republicans gained control in 2010.

These include repeal of the Affordable Care Act (natch), block granting Medicaid and SNAP (the food stamp program) and a range of cuts to non-defense programs that depend on annual appropriations.

We’ve also seen, though CBPP doesn’t mention them, proposals to bar workers without Social Security numbers, i.e., not officially authorized to work for pay, from claiming the refundable Child Tax Credit, even though most of the children who’d benefit are U.S. citizens.

And let’s not forget tax cuts tilted heavily toward very rich people and thriving corporations — revenues the government could otherwise use to shore up programs that serve low-income people’s immediate needs and as both parties are fond of saying, build (or rebuild) the middle class.

What this means is that we could see a joint budget resolution that delivers program-slashing instructions to the committees that initiate definitions of what programs in their area can and can’t do and the maximum agencies can spend on them.

If the House and Senate can then agree on a resolution, the actual spending and/or tax cuts need only a majority vote in the Senate. So Democrats don’t have their usual chance to block bills they object to.

More U.S. Government 101 than perhaps any of you need. What matters more here is legislative strategy — not, one notes, an expertise our President brought to the White House or seems to be learning. But he’s got some high-level officials who have it.

Basically, when House and Senate leaders begin with a proposed budget as extreme as Trump’s, it sets the point from which they move toward the center, which may still be far from a true center that would satisfy, if not altogether please both Republicans and Democrats.

We’re still a long way from a budget for next year. But we’re not that far from the day when Congress must let the Treasury Department borrow more funds so that government can pay what it already owes.

The far-far right House Freedom Caucus says it won’t vote for any debt ceiling increase unless it’s packaged with spending cuts. The “leverage point” one member refers to is more than an idle threat.

The House Republican majority used it six years ago to force agreement on the across-the-board spending cuts and subsequent caps that will automatically kick in again if Congress and the President don’t agree to eliminate them or at least ease their blow.

What’s now called sequestration has already squeezed a range of programs that meet critical needs, including services and supports for low-income people.

Real dollar losses alone leave them with 13% less, CBPP reports. Factor in population growth — a likely measure of increasing needs — and losses rise to 18%.

Only so much blood you can squeeze out of a turnip. And the turnips we’re talking about didn’t have much, if any extra to squeeze.

Best hopes, I suppose, are Congressional Republicans who’ll support their state and/or local economies, e.g., farm state representatives, who know how SNAP increases demand. Also, of course, Democrats.

Their leaders have made very clear that they’ll not support a debt limit increase conditioned on tax cuts for the rich. Beyond that, the scene’s still murky.

Some recent reports suggest that Democrats may put other conditions on the bargaining table, rather than insisting on a “clean bill,” which Trump’s Treasury Secretary wants, but not, it seems, his Office of Management and Budget Director.

As if their boss didn’t generate enough turmoil in enough policy-relevant areas.

I’d like to end with something we progressives can do to push back against threats to even more programs than I’ve cited , e.g. Social Security Disability Insurance.

We surely can make our views known to our elected representatives — unless, of course, if we’re disenfranchised residents of the District of Columbia. We can donate to advocacy organizations, if we can afford to, join their social media campaigns, etc.

Obviously looking here for an antidote against a sense of powerlessness.

Well, I sez to myself, you recall the early days of the Reagan administration — how it tried to roll nearly 90 programs into five maxi-block grants, paired with a 25% funding cut and how much less bad things turned out in the version Congress approved.

Advocacy organizations formed issue-specific and linked coalitions. They, including those I participated in, shared information, developed strategies, lobbied and testified. I’m confident we made a difference.


A Slice of the Trump Budget’s Shrunken Pie for the Needs of Low-Income People

May 26, 2017

Well, we finally have the full version of Trump’s proposed budget for upcoming fiscal year. And we’ve all seen and/or heard news reports, op-eds, social media takes and the like.

They generally have one of two focuses — new cuts, both total and by cabinet-level department or cuts to certain specific programs.

These tacks are basically the same as when the administration released its skinny budget preview, except that we now have a shift prompted by a range of cuts to safety net programs that don’t depend on annual appropriations.

I expect to deal with some of both, but for the time being, I’ll stick with a large perspective on a subset of programs intended to serve human needs — the non-defense discretionary programs, i.e., those annually funded as Congress chooses and the President approves, as Presidents generally do.

We have a broad range of these, of course. They include, bur aren’t limited to programs that support:

  • Some healthcare services, mainly for veterans.
  • Sufficient, healthful diets for mothers and their young children, plus food for nonprofits to give low-income people and/or serve as meals.
  • Public education, mainly for low-income children and those with disabilities.
  • Other opportunities to achieve financial self-sufficiency and security.
  • Child care so that parents can participate in such programs and afford paying jobs.
  • Safe, stable housing that leaves enough income to help pay for other needs.

The Coalition on Human Needs chose 185 such programs and tracked their funding from 2010, the year before Congress passed the Budget Control Act, through the budget the federal government’s operating under now.

All but 32 had been cut, either directly or for want of adjustments to keep pace with inflation, it found. Nearly a third had lost at least 25%, even though the Obama administration and wise heads in Congress agreed to temporarily modify the spending caps the BCA imposed.

Seems that Republicans over on the Senate side aim for another bipartisan agreement to suspend or at least modify the caps, lest they have to ax spending below the too-low levels already in force.

What’s sure as dammit, as the Washington Post reports, is that they’ll not try to push through the extraordinarily harsh cuts the Trump administration proposes as-is.

Most of the new news rightly focuses on the billions of cuts to so-called mandatory spending programs — also sometimes called entitlements.

They’re mandatory because the laws that authorize them require the federal government to spend as much as necessary to cover the costs or its share of costs for the benefits of everyone eligible to receive and enrolled to get them.

Truth to tell, I’m torn between delving into these unprecedentedly sweeping proposals to gut the safety net and giving them short shrift because they’re DOA. So I’ll end here with just a few examples of the proposed NDD cuts and consequences.

The Trump budget would deny affordable housing to more than 250,000 of the country’s lowest-income individuals and families who could otherwise have vouchers to cover all but 30% of their income for rent.

At the same time, it would reportedly increase tenants’ rent responsibility to 35% of adjusted income and impose a $50 minimum on those who had no or virtually no countable income at all. Income regardless, tenants would have to pay for their household utilities, which current law folds in with rent.

Public housing, which subsidizes rents at the same rate, would lose another $18 billion — nearly 29% more than it’s lost through this fiscal year. The stock available has been steadily shrinking due to lack of funds for repairs and renovations.

For these, as well as other reasons, we have and foreseeably will have some 550,000 people who’ve become officially homeless or very soon will unless they get some one-time or temporary help with rent.

Some have been homeless for a long time or repeatedly because they need not only an affordable place to live, but services to help them with physical and/or mental disabilities.

The Trump budget, however, would cut the grants local communities receive for shelters, permanent supportive housing for the chronically homeless I’ve just cited and homelessness prevention or when that’s not possible swift support so people can leave shelters for affordable housing.

The budget would terminate the Low Income Housing Energy Assistance Program, another homelessness prevention program — and a lifesaver too, since people, especially the frail and elderly can freeze to death in their homes or die because they depend on medical equipment that uses electricity, as 26% did when the last survey was conducted.

Roughly 6.7 million families would lose the subsidies they need to keep their homes warm if Congress moves from under-funding LIHEAP to excising it from the safety net altogether.

Turning then to those job opportunities. The Trump budget would cut a range of programs that help people prepare for gainful work — adult basic education, including preparation for GED exams, career and technical education programs in high schools and colleges and the diverse programs funded by the Workforce Innovation and Opportunity Act.

The Trump budget would cut WIOA funding by 43%, as compared to 2015 funding, the Center for American Progress reports. Nearly 571,000 workers nationwide — close to half of the total then served — could be left to muddle through with only what has failed to net them a decent paying job or any at all.

Pretty ironic — or one might say hypocritical — for a President who’s made such a big deal about job opportunities and, more recently, about how he’ll change safety net programs so they no longer discourage work.

More as the dust clears or perhaps as I find angles you’re unlikely to see highlighted in the plethora of conventional and social media stories, analyses and overt budget-bashing.

Meanwhile, we do have ways we can support the defensive campaigns that will give Congressional Republican pause.

CAP and fifteen partners, including CHN have launched an initiative called Hands Off—and #HandsOff as a hashtag for those who want to tweet about programs they want protected.

They’ve got a website where we can contribute stories about how the programs have helped us and what would happen to us, our families or others we know if they’re cut. With our permission, they’ll share our stories.

Reporters, as you know, are always looking for the personal lead-in or thread.

The coalition, CAP says, will also ensure that members of Congress learn from the stories how their own constituents would be affected. How then they may vote, as it doesn’t say, but needn’t.

Some members lean toward — or out-and-out support — less federal spending, especially on so-called welfare programs. But getting reelected and preserving their majority will trump the Trump proposals handily.


What Do Our Federal Income Taxes Pay For?

April 24, 2017

We who didn’t request an extension (gloat) have filed our federal income tax returns. There’s a lot of chatter about where our taxpayer dollars go — even a Congressman who tells his constituents that they don’t pay his salary.

We do, of course. But more generally, what do we pay for? The National Priorities Project answers again this year. So I put what I owed into its online tool and converted the dollars into shares, since these would be the same for everyone.

Here’s what I learned.

The same shares would be true for everyone who owed income taxes. Only the actual dollars would differ.

The single largest share of my income taxes went for healthcare programs29%. About 80% of this helped pay for Medicaid and Medicare (one of its three funding streams).

Next largest share to the military — roughly 24%. Only about 20% of this went for personnel costs of any sort.

NPP also itemizes, for the interested, what the Pentagon pays for nuclear weapons and to Lockheed Martin, whose trouble-plagued F-35 fighter plane has cost us nearly $4 billion. An email from NPP tells me that we pay over six times more to Lockheed than what we spend on all foreign aid.

Third share went for interest on the debt — 13%. You may recall that Congressional Republicans used the government’s urgent need to borrow more so it could pay what it owed as a lever to force down spending through sequestration and the budget caps. And that they later actually shut down the government in hopes of defunding Obamacare.

Doubtful they’ll access their tax receipts. But the bill that simply suspended the debt ceiling expired a little over a month ago. And some are warning of another skirmish.

My fourth largest share paid for unemployment and labor programs — 7.5%, presumably everything federal agencies spend to get people into — or back into—the workforce.

This same share supports what the Labor Department contributes to unemployment insurance benefits when times are especially hard and the rules it issues and enforces to protect workers from workplace health hazards and wage theft. The latter now include updated overtime pay requirements, but may no longer, coming sometime next year.

Then veterans benefits — about 6%. This includes, among other things, payments veterans receive when they’re disabled while serving, the GI bill, home loans and pensions for low-income surviving spouses. Most of the rest of this share goes to the problem-riddled Veterans Health Administration.

Next come food and agriculture — nearly 5%. Here’s where we find, among other things, SNAP (the food stamp program) and the Agriculture Department’s other nutrition aid programs.

Also, in an altogether different mode, the subsidies Congress gives to farmers — mostly big agribusinesses — to cushion them against price drops, insure them against other business risks and more.

Government next — 4.2%. NPP breaks out only three pieces, all enforcement — and two clearly aimed at ramped-up actions against undocumented immigrants and would-be’s.

But we’ve got to assume, I think, that this line item includes spending for all non-military personnel and activities, including Congress members’ salaries — $174,000 this year, plus benefits.

Transportation gets a 3.2% share. Everything the Transportation Department does gets some share of this share. including controlling air traffic and, as all flyers know, vigilantly trying to keep us from hijacking or blowing up planes.

Education gets a 2.8% share, according to NPP’s analysis. I’d put it at 3.2% because NPP classifies Head Start and related programs as community spending.

It’s true that Head Start and Early Head Start for younger kids do more than ready them for kindergarten, e.g. screen them for health and developmental problems, link families to needed services. But their primary aim is starting low-income children off on as level a playing field as possible.

Wherever you put it, Head Start’s share is far from the largest NPP breaks out. That distinction goes to Pell grants, work-study and other forms of federal aid for lower-income college students. These rolled together receive a larger share than federal aid to elementary and secondary schools — 35 %, as compared to 27%.

And I’d be remiss not to note that the National Endowment for the Arts, which Trump wants to eliminate, gets less than .002% of education’s share, as NPP calculates it — and roughly a tenth of that for everything our federal government uses our income tax dollars for.

Shifting Head Start and EHS, as I have, leaves housing and community with a 1.7%, rather than a 2.1% share.

Here we have everything the Department of Housing and Urban Development spends to help make housing affordable for lower-income people, shelter and temporarily house those who are homeless and make lower-income neighborhoods better places to live, e.g., by attracting businesses and thus job opportunities, providing needed services.

The money goes to local communities as grants. The largest of these is the Community Development Block Grant — another program on the Trump hit list because it’s “not well-targeted to the poorest populations and “has not demonstrated results.”

Followers already know what I — and many others — think of that line of argument.

Energy and environment get a 1.6% share of our income taxes. Seems it’s likely to shrink to an even smaller fraction, what with Trump’s seeking a 31% cut in the Environmental Protection Agency’s budget, crippling its ability to fulfill its legal responsibilities for protecting us from range of environmental health hazards, including climate change.

Lastly, we have, in rank order international affairs and science. These together get about 2.8% of the total.

Say you don’t like the way the budget apportions your federal income tax dollars. NPP has a tool that lets you reallocate them — and gives you trade-offs.

These are mostly shifts from the $528.5 billion Defense Department budget, which NPP has long viewed as excessive. Interesting to see what even small nicks could do for lower-income people.


Bowser Budget Scants Needs of Homeless and Others at High Risk

April 20, 2017

Picking up where I left off, some major parts of Mayor Bowser’s proposed budget don’t link as obviously to the inclusive prosperity road its title promises as, for example, adult education and available, affordable child care.

Yet two other parts we care about do because both are virtual preconditions to earning income and having enough left over after basic needs to invest in boosting one’s marketable knowledge and skills.

But I don’t want to leave impression that I equate “prosperity” with income or wealth, as I think Bowser’s budget title does because it seems an indirect way of referring to the extraordinarily high level of income inequality in the District.

The Latin root of “prosperity” means made successful, but also made happy, according to one’s hopes. One can surely make a homeless family happy by providing it with decent, stable housing it can afford without—or before — doing whatever necessary to boost its income so that it can pay full rent.

So we need to look at the following from multiple perspectives.

Affordable Housing

No one, I suppose, needs anything further said about the acute shortage of housing in the District that its lowest-income residents can afford.

Such prosperity as they might achieve — through taking college courses, for example — is beyond their means because, if they’re not homeless, most are paying more than half their income for rent and more than half of those at least 80%.

The Mayor, to her credit, would again commit $100 million to the Housing Production Trust Fund, plus $10 million to a new fund dedicated solely to preserving existing affordable housing.

But helping developers finance new affordable housing construction and/or renovations isn’t enough to produce units affordable for the lowest-income residents.

Those units need housing vouchers attached to cover the difference between what tenants must pay — no more than 30% of their income — and ongoing operating costs, e.g., maintenance, utilities, staff wages. The Mayor fails to propose funding to increase the number of these so-called project-based vouchers.

And as I earlier said, additional funding could be needed merely to sustain vouchers now in use because if Congress extends the current funding level for federal Housing Choice vouchers, the DC Housing Authority won’t have the money to issue any.

If the Republican majorities in Congress accede to anything like Trump’s budget plan, a larger loss, as yet unestimated at the state/District level.

Homelessness

Want of affordable housing obviously causes homelessness. But it does more than that. It’s hard to get and keep a job when you’re living in a shelter.

That’s especially true if the shelter’s for adults only because they generally have to get in line in mid-afternoon to get back in. And those who make it may not be able to wash themselves and are highly vulnerable to theft.

There goes the cell phone that’s the only way to contact them — and the photo ID they’ll need, if they have one.

All but impossible to get a job if they’re among the chronically homeless without the safety, stability and appropriate services they’d get in permanent supportive housing.

The Mayor does increase PSH funding by $2.7 million. But that would meet only 30% of what’s needed to end chronic homelessness, the DC Fiscal Policy Institute reports. (The target year set by the strategic plan the Mayor’s embraced obviously won’t be met,)

Other single homeless people get shorted in several different ways. No additional rapid re-housing for them, though some temporarily down on their luck could pick up the full rent when their short-term subsidies end.

About 46% for less for families as in the current fiscal year. But its success in ending homelessness — or as the program’s formally titled achieving “stabilization” — is at the very least debatable.

And the District’s youngest homeless people — those under 25 who’re on their own in the city — will continue to suffer from neglect, in addition to the egregious neglect (or abuse) that caused some to leave home to begin with.

Others became homeless when they became legally adults. Various reasons for this. For example, they were either kicked out by their parents (something that can happen earlier) or reached the maximum age for foster care and didn’t have foster parents who’d foster them for free — or any one else who’d take them in.

These young people need safe, stable housing, but also education and/or training and mentoring because, as the National Network for Youth puts it, many are in a state of “extreme disconnection.”

In other words, they’re worst cases of youth commonly referred to as “disconnected” — or more hopefully, “opportunity.” They’re not only neither in school or working. They lack basic life skills, e.g., how to keep themselves healthy, look for a job, manage such money as they make.

The DC Interagency Council on Homelessness developed a five-year plan specifically for homeless youth, based on census (no link available) that’s surely an undercount. It nevertheless captured 545 youth who were either homeless or insecurely housed, e.g. couch-surfing.

The ICH developed a five-year homeless youth plan, as an amendment to the District’s basic homeless services plan requires. The Mayor’s budget invests $2.4 million — less than half what the upcoming (and first) year requires.

Homeless now — others to become so. How then will the District make not only youth, but former youth homelessness brief, rare, brief and non-recurring  — let alone enable these potential contributors to our economy and our civic life share in the prosperity the Mayor dangles before us?


Inclusive Prosperity Programs Shortchanged in Mayor Bowser’s Budget

April 17, 2017

My last post merely mentioned shortfalls in the Mayor’s proposed budget, due at least partly to the $100 million or so she chose to forfeit by doing nothing to halt the automatically triggered tax cuts.

I’ll turn now to my picks for programs she shortchanges, based on how she styles her budget — a roadmap to inclusive prosperity.” Still only summaries. And not all programs some advocates have flagged.

Nevertheless, more than I can cover in a single post with enough substance to convey what’s under-funded — or unfunded — and why that violates the budget’s promise. So I’ll deal here with what seem the most obvious and followup with a couple of others that matter too.

Education and Training

We also all know that education and relevant job training generally move people along the road to some modicum of prosperity. For many adults in the District, the first step must be remedial education — basic literacy in reading and math, help in preparing for the GED exams.

For others, appropriate programs include those leading to a regular high school diploma and /or vocational education courses in other publicly-funded institutions, e.g., charter schools and alternative education in regular public schools like the Ballou High School’s STAY program.

Several surveys have found that adult learners miss classes because they can’t come up with the transit fare. Eighty-six percent of the youngest who had subsidized transportation said it would hard or altogether impossible to attend without it.

No reason to believe that’s not true for at least as many older adults, who’ve often got to spend more of such income as they have on basic needs for both themselves and their children. And, of course, we’ve got to assume that some of all ages drop out.

The Deputy Mayor for Education recommended an adult learner parallel to the Kids Ride program, which covers the public transit costs of getting to and from school.

Not a big ticket item—a mere $1.5–2 million. But no money in the Mayor’s budget for it.

Double-Duty Work Support

The full, unsubsidized cost of child care in the District is higher, on average, than in any state. Though low-income parents are officially eligible for subsidies that help pay for it, as a practical matter it’s difficult, if not impossible to find a center that will accept them.

This is a long-standing problem rooted in the insufficient rates the District uses to reimburse providers. For this, among other reasons, it was shy roughly 14,000 slots for infants and toddlers in 2015.

They’re the most costly to care for properly, what with diaper changing, feeding and all — hence local center charges averaging $22,658 a year.

The kids are too young for pre-K, of course. But the quality of care, e.g., nurturing relationships, talking to, has more impact on brain development than at any later stage. The very young children who get it will do better in school — and thus have a better chance of sharing in prosperity.

Now, if you can’t find trustworthy care for your child, you’re unlikely to work. Nor enroll in an education or training program that would prepare you to do so. And you won’t do either if you can’t pay for it.

Charges for licensed childcare are likely to increase, since the District recently set new licensing standards that require not only teachers, but their assistants to have at least a two-year college degree, unless they’ve got an independently-awarded Child Development Associate credential.

Those who manage to get either surely — and reasonably — will expect increases in their pay. It’s already, on average, extremely low — $26,470, on average, according to the latest figures.

If they don’t get them they can find employers that will. And that’s likely to further reduce open slots, since replacing them would be as difficult as keeping those who left.

Yet the Mayor’s budget doesn’t nothing about this. It would instead put $15.3 million into a new initiative to increase center capacity. But the new slots would be market rate — helpful for better-off parents, but no help at all for the most in need of affordable care to move down her road.

Paid Family Leave

The Mayor proposes no funding to translate the paid family leave law the Council passed into an operating program.

That requires both the creation of a new agency to administer the law, e.g., to ensure employers pay what they owe, pay out to eligible workers for the time off they take, and a new computer system to make all this possible.

We know the Mayor doesn’t like the law. But the essence of being an executive is executing laws.

Forcing more than half a million workers to wait for who knows how much longer to either keep working when they need time off for compelling  for compelling family reasons — or at least as likely forgo needed income — hardly comports with including them in prosperity.

Her refusal to propose the $20 million needed to get the program started doesn’t, I think, reflect only spending constraints imposed by her deciding not to even hit the pause button on the tax cuts. But they do perhaps provide some cover.


DC Mayor Bowser Won’t Halt Triggered Tax Cuts to Gain Needed Funding

April 13, 2017

Just finished my annual dialogue with my tax preparation software. So as always, my thoughts turn to the tax laws that determine what I have to pay. A sweeping federal tax reform is much in the news. And I’ll probably have things to say about that.

But I’ll start with the automatically triggered tax cuts Mayor Bowser has decided to let alone in her proposed budget, styled “DC Values in Action: A Roadmap to Inclusive Prosperity.”

These because they don’t hinge on new legislation. And they push down spending because the District, like most states must balance its budget every year.

As you may know, the triggered tax cuts reflect recommendations made by the Tax Revision Commission in 2014. It didn’t recommend triggering them whenever a certain revenue projection exceeded the version the budget was built on.

That was the work of DC Council Chairman Phil Mendelson, who folded them, ranked according to his preferences into the final version of the legislative package that accompanied the Fiscal Year 2015 budget.

A last minute thing. Other Councilmembers had no chance to consider them — perhaps didn’t even know they were there.

The triggered tax cuts have already reduced revenues by $102 million — none a one-time loss. The rest will all kick next fiscal year, unless the Council decides to instead recoup about $100 million.

Some of the cuts, would benefit lower and moderate-income residents, though not those with incomes so low they already don’t owe income taxes, once they’ve taken all now allowable exemptions, credits and the like. Nor, of course, those who’ve no taxable income at all.

These cuts include a further increase in the standard deduction, which a very large percent of DC filers with incomes less than $75,000 choose because they don’t have more costly specific deductions like interest on a mortgage or real property taxes high out-of-pocket medical expenses. (The District relies on the federal government’s Schedule A for these.)

The other of this sort is a multi-part increase in the personal exemption, which applies to all filers and their dependents, except apparently those whose incomes exceed $275,000.

But the surplus also triggers a second increase in the threshold for the estate tax, bringing it to $5.49 million if left by an individual and twice that for a married couple — the same as in federal law.*

Why the District should aim to mirror a tax giveaway to heirs of the very most prosperous that Congressional Republicans insisted on as part of the deal that pulled us back from the fiscal cliff is a mystery.

Additional cuts in the business franchise tax, coupled with a further cut in the business income tax are, at the very least questionable.

Sure, we want profit-making businesses in the city — a source of jobs, among other things. But a recent survey indicates that the taxes they must pay are a relatively minor factor in their decisions on whether to locate here or elsewhere.

Topping the list is the ready availability of workers with the knowledge and/or skills they need. One could do a lot to help residents qualify for and get jobs with the potential loss of $35.7 million.

Advocacy organizations of various sorts have already flagged a wide range of shortfalls in the Mayor’s proposed budget. We’ll have a fuller accounting from the DC Fiscal Policy Institute fairly soon — and undoubtedly more from other concerned nonprofits too.

I’d thought to cite examples, based on the Mayor’s prosperity promise and my own topmost concerns. But even summaries made this post far longer than my somewhat flexible maxim. So I’ll return to them shortly.

Yet I don’t want to leave the impression that the Mayor’s budget shortchanges her low-income constituents in every way.

The most significant example of how it would benefit them is the funding she proposes to begin the Temporary Assistance for Needy Families time limit reforms recommended by diverse working group the Department of Human Services convened.

This will not only save roughly 6,500 families from losing all their benefits when the new fiscal year begins — and more as time goes on.

It will preserve those benefits for all children and all parents who’re meeting their work preparation and/or job requirements until they’ve found jobs or otherwise gained enough income to put them over the eligibility cut-off.

Cash benefits being as low as they are — and will be — the initiative in and of itself hardly shares the non-inclusive prosperity reflected in the District’s tax revenues. But it does save very poor families from the most dire poverty.

And the non-cash benefits — free training and, in some cases, formal education, no-cost child care and transportation — give parents a chance to move from welfare to decent-paying work and, in the process, improve their children’s future prospects.

* The thresholds were somewhat lower when the Council adopted the triggers, but the legislation refers to raising the threshold “to conform to the federal level.” And the federal level rises with the inflation rate.

UPDATE: I’ve learned that the Mayor’s budget doesn’t altogether reflect the working group’s recommendations. They would significantly protect children if their parents had their benefits cut for not complying with their work requirements by allocating 80% of the family grant to them.

The Mayor would split the grant 50-50. As a practical matter, this might not make much difference. The parents will have the same amount to spend, and it will surely go for the same basic needs. We will need to see how the Mayor justifies her split, assuming she or a Department of Human Services official is asked.