NC Justice Center's Living Income Initiative E-mail Update

May 31 , 2002

Volume 2, Issue 3

The Living Income Initiative is a special project of the NC Justice and Community Development Center. It is
supported completely through contributions and foundation support. You can contribute directly by mail at
Living Income Initiative, P.O. Box 28068, Raleigh, NC 27611. Email us at sorien@ncjustice.org

YOU SHOULD READ THIS IF YOU CARE ABOUT IMMIGRANTS OR THE POOR
OR ABOUT THESE PROGRAMS: PUBLIC HOUSING, CHILD CARE AND DEVELOPMENT BLOCK GRANT, FOOD STAMPS, WIA, SOCIAL SERVICES BLOCK GRANT, AND MANY OTHER PROGRAMS INCLUDING TANF.

IN THIS ISSUE:
US House Passes Harmful Welfare Bill - Action Goes to Senate starting June 3rd
Alert! Now is the Time To Call or Email Senator John Edwards
State Budget Update and Two BTC Reports with Helpful Budget Information


US HOUSE PASSES HARMFUL WELFARE BILL - ACTION GOES TO SENATE JUNE 3

On Thursday, May 16 the House of Representatives passed, by a vote of 229-197, H.R. 4737 to renew the Temporary Assistance for Needy Families (TANF) program and the Child Care and Development Block Grant (CCDBG) for five years. The bill is closely modeled on the Presidents TANF/CCDBG proposals and does not implement the changes recommended by the Justice Center and many others in North Carolina and the Nation who have been following welfare reform.

Narrow and Harsher Work Requirements
For one thing, the bill imposes harsh new work requirements on welfare recipients. Recipients would have to work 40 hours per week rather than the current 30. The types of work activities that would count toward the state's federal participation rate is more narrowly defined. There is an emphasis on families participating in subsidized employment and a complete neglect of education, treatment or other training. Subsidized employment is one of the most expensive activities a state/county can offer and is not appropriate for all recipients.

In addition, 70% of the remaining Work First recipients would have to be participating in a work activity. Now that North Carolina's cash assistance rolls are down over 60% the majority of the people left on the rolls have multiple problems that need to be addressed before they can work 40 hours per week. Things like how and who will care for a disabled family member or child they now care for, or high unemployment in their county and few skills of their own. This combination of new requirements would lead to drastic changes in North Carolina's Work First program and still it is likely the state could not meet such narrowly drawn, unreasonably high, unrealistic requirements.

Not Enough Money
The House bill also offers states no new TANF money with which to implement expensive new subsidized employment programs. After tremendous pressure from constituents, they did eventually add $1 billion in additional funds for child care over the next five years. That means only another $200 million per year for all fifty states and DC to share. NC could use that much by itself.

Superwaiver and Other Executive Branch Authority to Waive Federal Law - THIS AFFECTS LOTS OF PROGRAMS
Most egregious is a proposal to grant sweeping new authority to the Executive Branch to waive, at a governor's request, most provisions of law related to a range of low-income programs. This provision is known as the "superwaiver". In addition, the bill includes a provision which would allow five states to elect a food stamp block grant in lieu of the regular food stamp program. A state's block grant would be frozen at the level of funding that state received in fiscal year 2002. These two provisions, could be even more harmful than the above TANF changes.

This superwaiver provision would allow federal government to wave statutory and regulatory provisions related to:

the Food Stamp program
Child Care and Development Block Grant
public housing
the Employment Service under the Wagner-Payser Act
most job training programs under the Workforce Investment Act
TANF block grant
Social SErvices Block Grant
Adult Education and FAmily Literacy Act
homelessness programs under the McKinney-Vento Act
and a small program known as the Job Opportunities for Low-Income Individuals Program.

Under the superwaiver, all 50 states could ask for a food stamp block grant, making it more dangerous than the limited food stamp block grant proposal. And, the superwaiver has a damaging impact on a wide array of other programs. For example if food stamps are block granted, it will mean that no poor family or child will have a right to food stamp assistance and states could ignore current program rules, both bad and good ones. In that case, it would be a state's discretion who they serve with food stamps and when money runs out they just put eligible people on a waiting list. Congress is also notorious for cutting block grant funds in subsequent years.

In addition, the White House is aggressively pushing the superwaiver proposal, terming it one of their top priorities. They have made no similar move to garner support for the five state food stamp block grant proposal and we do not believe that they will insist on the block grant in conference. Some Senators might oppose the block grant, but believe it more acceptable to support the superwaiver. It is important that they understand the dangers of both and oppose both.

On to the Senate
This week the Senate has been on Memorial Day recess, but starting June 3 the Senate Finance committee will be taking up TANF Reauthorization. It is expected to get to the floor of the Senate for a vote by the third week of June. In an attempt to change the tenor of the debate Senator Kennedy and 17 other Democratic senators sent a letter to Senators Baucus and Grassley, the chairman and ranking Republican on the Finance Committee, spelling out their key principles for welfare reauthorization. A copy of the letter with signatures is attached as a PDF file. The following senators signed the letter: Kennedy (MA), Wellstone (MN), Reed (RI), Bingaman (NM), Dodd (CT), Clinton (NY), Murray (WA), Levin (MI), Leahy (VT), Feingold (WI), Corzine (NJ), Wyden (OR), Boxer (CA), Akaka (HI), Schumer (NY), Sarbanes (MD), Stabenow (MI), and Mikulski (MD). In addition, Senator Durbin (IL) is sending a separate letter to the same effect.

For More Information
Full text of the House TANF bill and a summary are available at http://thomas.loc.gov/cgi-bin/bdquery/z?d107:h.r.04737

Center on Budget and Policy Priorities has revised its detailed analysis of the superwaiver proposal to reflect recent changes to the proposal and it can be found on their web site at: www.cbpp.org/5-13-02tanf.htm. In addition, CBPP has a shorter piece on the impact of the superwaiver proposal on food stamps: www.cbpp.org/5-13-02fs2.htm and on the five state block grant: www.cbpp.org/5-13-02fs.htm.


NOW IS THE TIME TO CONTACT SENATOR JOHN EDWARDS

Senators have been responding to the calls and emails of their constituents during this debate. They may not be starting the debate where we would like, but it will never move to where we want it to go unless they hear from us about What North Carolina Needs.

Call or Email As Soon as You Can and Ask Your Friends, Relatives and Colleagues to do the same:

Email Senator John Edwards - you can email him directly at senator@edwards.senate.gov
or use the form on his web page at http://edwards.senate.gov/mailform.html

OR

Phone Senator John Edwards - In Washington D.C. (202) 224-3154 fax (202) 228-1374

Because of Jesse Helms' ill health and recent surgery he likely will not be able to vote on this issue. If things change I will alert you to contact him later.

Make your Message Clear and To the Point

1.

State that you are a North Carolina constituent.

2.

State that you are calling about the Reauthorization of TANF and the Child Care Fund.

3.

State your main points, here are some you could make:

A.

The Senate must pass a much different and better bill than the House Reauthorization Proposal, HR 4737.

B.

Congress must maintain authority over these and other programs and the Senate should not pass a "superwaiver" provision or allow states to block grant Food Stamps.

C.

These five changes are needed in TANF for North Carolina to be able to continue to improve its welfare efforts and family outcomes:
 

i.

Increase TANF and Child Care funding. Make the Supplemental TANF grant permanent.

ii.

Allow states flexibility to define allowable work activities more broadly so that families can participate in education and other activities that will help them get or keep a job or move up in wages, get benefits, retrain for new employment/industries or increase their job security.

iii

Allow states to serve legal immigrants. Don't tie the state's and local communities hands from using federal TANF funds to meet the needs of their residents.

iv.

Allow states to turn on and off the federal time clock to address economic downturn or devastation from hurricanes AND allow states to exempt or extend benefits to families meeting the requirements but needing more time.

v.

Make it an explicit goal of TANF to reduce poverty. Gradually remove the caseload reduction credit and replace it with a credit for helping clients retain jobs and progress in wages.

Also see the attached letter (PDF, 112kb) for more ideas on what you might want to say to Senator Edwards.


STATE BUDGET UPDATE

The state is facing a huge budget deficit for the 2002-2003 budget year. The legislature began session this Tuesday, May 28 to officially begin crafting the 2002-03 budget. Legislators have been meeting since April, however, hoping to bring the first version of the budget to the Senate floor by next week. It appears that the Senate budget process has bogged down and a bill won't go to committee for public debate until the week of June 10 now.

In the meantime, many concerned individual and groups have begun to urge that the legislature raise new revenues rather than making the devastating cuts being considered. Currently, legislators are looking to cut over $330 million from Health and Human Services programs alone. To understand more about the budget crisis, cuts already made and the revenue options available to legislators see the NC Budget and Tax Center's report, "How North Carolina Got into this Budget Deficit and How We Can Get Out."

The Governor released his budget proposal in mid-May, making over $430 million in cuts to programs, staff and services. He filled the rest of the budget hole by implementing a lottery tax, transfers from the Highway fund and Highway Trust Fund, transfer from the Tobacco Settlement Trust Funds, deferment of middle class tax credits and suspension of reimbursements to local government. To learn more see the NC Budget and Tax Center report, "The Governor's Proposed Budget: One Step Forward, Two Steps Back." A virus-free version of the full report is attached to this email in Adobe
Acrobat format. On Tuesday, June 4 the report can be accessed on the web at: http://www.ncjustice.org.

More information and alerts will be coming on this!

HAVE A GREAT WEEKEND, NOW THAT I HAVE BROUGHT UP YOUR SPIRITS!

Return to Top

CONTACTS & LINKS

Living Income Email Update and Advocacy
Sorien K. Schmidt 919-856-2151 sorien@ncjustice.org
Living Income Research and Grassroots Campaigns
Kim Cartron 919-856-3193
kim@ncjustice.org
Living Income Grassroots Education and Organizing
Sheila Kingsberry Burt 919-856-3194 sheila@ncjustice.org
Elaine Mejia
NCJCDC Budget & Tax Center
NC Equity The Living Income Agenda (PDF)
Subscribe to the Living Income Email Update How to Take Action Living Income Fact Sheet
Working for a Good Living Workshop brochure (PDF) Earned Income Tax Credit (EITC) Fact Sheet North Carolina EITC Tax claims by county and as a percent of income tax filers for 1998.
  Learn more about public assistance in North Carolina.