NC Budget and Tax Center

Anti-poverty programs matter all year long

The holiday season is a time to reflect on our personal journey over the past year and spend time with family and friends. For many, it is also a time of compassion and willingness to help less-fortunate neighbors make ends meet and secure basic needs.Coming up short image

In Governor McCrory’s Thanksgiving video message, he spends a brief moment encouraging North Carolinians to think of and help people who are struggling to get by. It is rare for the Governor to lift up the plight of families in need. But, a small act of kindness is never wasted and his call for supporting our neighbors is welcome.

The big question remains, however: what have lawmakers done this past year to address poverty?  The scourge of poverty that exists in every Tar Heel community demands sustained and systemic attention. Very few lawmakers give people struggling with economic hardship the attention that they deserve—not in policy agendas, not at the policy tables, and not in public speeches.

These end-of-the-year-only messages that pop up about helping people in need remind me of that one uncle—and we all have one—who talks a big game at family holiday gatherings but lacks follow through when it matters most. Read more

NC Budget and Tax Center, News

Congresswoman Alma Adams urges Governor McCrory to veto measure that unnecessarily restricts food aid for childless adults

Earlier this month, Congresswoman Alma Adams of the 12th District penned a letter urging Governor McCrory to veto a bill that would unnecessarily restrict food aid for childless adults who are very poor and live in areas where jobs are scarce—regardless of how hard they are looking for work.Adams_McCrory

States can temporarily suspend work-related time-limits on federal food aid for areas with sustained high levels of unemployment. North Carolina officials applied for a waiver in July for 77 of the state’s 100 counties due to a severe lack of jobs available that hampers North Carolinians’ ability to meet the work requirements. The bill, however, would permanently ban the Governor from ever pursuing this option irrespective of how local economies are faring or whether employment and training opportunities actually exist.

Between 85,000 and 105,000 unemployed childless adults in North Carolina would lose food aid in 2016 if the Governor signs this bill into law.* See this map of where they live.

“House Bill 318 is [a] significant step backwards for supporting the hungry as they look for work,” wrote Congresswoman Adams. “All this bill does is punish people in high unemployment areas and limits the state’s ability to meet the needs of the unemployed,” she continued.

Congresswoman Adams is part of a growing chorus of voices calling upon the governor to veto this measure, including the NC Justice Center, the NC NAACP, and the state Legislative Black Caucus. Governor McCrory has until October 30th to veto or sign the bill, which will become law if he takes no action.

See Representative Adams’ letter to the Governor below.

Adams_Letter

*Special data request to the Center on Budget and Policy Priorities. September 2015.

NC Budget and Tax Center

Up to 105,000 childless adults in North Carolina would lose food aid in 2016 if legislators prohibit new waiver

North Carolina is the fifth hungriest state in the nation. Yet, the state Senate gave tentative approval to a bill that unnecessarily restricts food aid for childless adults who are very poor and live in areas where jobs are scarce—regardless of how hard they are looking for work.

States can temporarily suspend work-related time-limits on federal food aid for areas with sustained high levels of unemployment. North Carolina officials applied for a waiver in July for 77 of the state’s 100 counties due to a severe lack of jobs available that hampers North Carolinians’ ability to meet the work requirements (see map below). The Senate measure, however, would permanently ban the state from pursuing this option irrespective of how local economies are faring or whether employment and training opportunities actually exist.

Between 85,000 and 105,000 unemployed childless adults in North Carolina would lose food aid in 2016 because they can’t find a job if legislators prohibit the Governor’s administration from seeking a new waiver.*   Read more

NC Budget and Tax Center

High poverty rates persist despite economic recovery, Census data shows

Economic hardship persisted at high levels in the nation and North Carolina in 2014, according to new figures released today from the Census Bureau’s Current Population Survey (CPS). The 2014 national poverty rate remained flat at 14.8 percent and still well-above pre-recession levels five years into the official economic recovery. There were 46.7 million Americans living below the official federal poverty line, which was $11,670 for an individual and $23,850 for a family of four in 2014.

In the Washington Post today, Jared Bernstein—a well-respected national economist—explained that poverty is stuck high despite economic growth because the gains of economic growth are accruing mainly to top earners:

“Clearly, the improving economy and falling unemployment have yet to adequately lift the living standards of middle- and low-incomes. The census data show that almost 3 million more people were working year-round in 2014 than in 2013, yet real median earnings were unchanged for both men and women. Poverty remains higher and median incomes lower than before the recession, and this pattern — taking longer in the upturn to make up the losses from the downturn — seems dangerously embedded in the economy.

What explains this economic disconnect between growth, income and prosperity? While longer-term trends — globalization, technology, the absence of full employment, low bargaining power for many workers — have been in play for decades now, in recent years, fiscal policy has been insufficiently supportive of growth, and, in our age of increased income inequality, it takes longer for expansions to reach middle and low-income households.”

Read more

NC Budget and Tax Center

Missed Opportunities: Investments that are MIA in the joint budget deal

Many pundits and outlets are describing the joint budget deal as a “compromise” between the inadequate House and Senate budgets. But North Carolinians from Murphy to Manteo know that we cannot compromise our future.

By pursuing deeper tax cuts, policymakers have failed to strengthen public education, public health, and safety, and the other building blocks of a strong economy.

The new tax plan will lose $383.6 million over a two-year period, with the annual loss ballooning to $692.9 million by the fifth year. Revenue losses will grow by another $458 million over the next two years when accounting for corporate tax breaks that are already scheduled to go into effect. All of these revenue losses will add to the damage from the 2013 tax cuts, which result in $1 billion in lost revenue each year when fully implemented.

That’s why it’s no surprise that there are a lot of investments in vital public services that are needed but missing from the new budget deal, like public education, public health and safety, and rural economic development. There has been plenty of coverage of what is in the budget over the last day and a half but there has been little coverage of what’s not in the budget.

Below is a short list of investments that are missing in action but still greatly needed to build a stronger, more inclusive economy for us all. Read more