Archives

NC Budget and Tax Center

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

News

Robeson County officials settled a complaint with the federal justice department this week, saying it would take steps to improve access for disabled residents to public resources.

The federal agency had found the county had numerous violations of the Americans with Disabilities Act (which was passed 25 years ago) , leaving those with disabilities unable to access county services and programs as easily as other citizens.

A news release from the U.S. Justice Department about the settlement noted that Robeson County, on North Carolina’s border with South Carolina, has a poverty rate of over 30 percent, and nearly 40 percent of its population identities as Native American, and 25 percent are African-American.

According to the settlement, the county agreed to make changes to buildings and county property so that parking, building entrances, restrooms, service counters and drinking fountains can be accessed by those with physical disabilities. The sheriff’s office will also have to devise a plan so that its deputies and emergency responders can communicate with those who are deaf or hard-of-hearing, and accommodations will be made at voting sites so that those that use wheelchairs or who are blind or with vision issues can cast votes without hindrances.

The settlement comes the same week the N.C. Auditor’s Office released an audit that found the public school system in Robeson County misused $3 million in Medicaid funds meant for children with special needs.

From an Associated Press article about the audit:

The audit issued Monday says for three fiscal years starting in 2011, the school system did not use about $1 million per year in Medicaid reimbursements to provide services for special-needs students as required.

The school system said in a letter to the auditor’s office that it wasn’t told by state education officials that the money was required to be used for special-needs students. It acknowledges that reimbursement money went to other district needs.

State schools Superintendent June Atkinson said in a letter that education officials will work with Robeson County and districts statewide on how the reimbursements are used.

Click here to read the entire audit.

Robeson County officials settled a complaint with the federal justice department this week, saying it would take steps to improve access for disabled residents to public resources.

The federal agency had found the county had numerous violations of the Americans with Disabilities Act (which was passed 25 years ago) , leaving those with disabilities unable to access county services and programs as easily as other citizens.

A news release from the U.S. Justice Department about the settlement noted that Robeson County, on North Carolina’s border with South Carolina, has a poverty rate of over 30 percent, and nearly 40 percent of its population identities as Native American, and 25 percent is African-American.

According to the settlement, the county agreed to make changes to buildings and county property so that parking, building entrances, restrooms, service counters and drinking fountains can be accessed by those with physical disabilities. The sheriff’s office will also have to devise a plan so that its deputies and emergency responders can communicate with those who are deaf or hard-of-hearing, and accommodations will be made at voting sites so that those that use wheelchairs or who are blind or with vision issues can cast votes without hindrances.

The settlement comes the same week the N.C. Auditor’s Office released an audit that found the public school system in Robeson County misused $3 million in Medicaid funds meant for children with special needs.

From an Associated Press article about the audit:

The audit issued Monday says for three fiscal years starting in 2011, the school system did not use about $1 million per year in Medicaid reimbursements to provide services for special-needs students as required.

The school system said in a letter to the auditor’s office that it wasn’t told by state education officials that the money was required to be used for special-needs students. It acknowledges that reimbursement money went to other district needs.

State schools Superintendent June Atkinson said in a letter that education officials will work with Robeson County and districts statewide on how the reimbursements are used.

Click here to read the entire audit.

NC Budget and Tax Center

For the 2015-16 school year, the NC Department of Public Instruction reports that around 1,200 public schools are eligible to participate in an initiative that aims to fight hunger in high-poverty schools. Referred to as Community Eligibility, this initiative allows eligible high-poverty schools, groups of schools, or school districts to offer breakfast and lunch to all students free of charge.

When children arrive at school hungry, it is very difficult for them to concentrate and do well in the classroom. Accordingly, community eligibility helps ensure that all children in high-poverty schools arrive to class each day fed and ready to learn. Last year, North Carolina got off to a good start with nearly 650 schools (around half of eligible schools) adopting community eligibility to feed more than 310,000 kids. Participating schools note that more NC children are eating school meals because of community eligibility, with a particular increase in the number of children eating breakfast.

The second year of this initiative provides an opportunity for additional eligible schools to join this initiative. With 1,200 public schools eligible for the upcoming school year, this means that hundreds of schools are not currently participating. Eligible schools that are not currently participating in Community Eligibility have until August 31, 2015 to confirm that they will join the initiative.

The impact of Community Eligibility extends beyond ensuring that children arrive to class fed and ready to learn. By eliminating the need to collect school meal applications, schools are able to use their staff more effectively and reduce administrative costs. These cost savings are likely welcomed by local schools amid limited financial resources and tight budgets.

This is not to say that the transition is easy. For example, a key feature of community eligibility is that schools no longer have to collect school meal applications; however, this paperwork has long been key to determining school funding mechanisms and poverty estimates, among other things. However, the USDA and US Dept. of Education have issued a variety of rules intended to address this issue and viable solutions exist for other particular challenges.

North Carolina has an opportunity to build upon its initial success with fighting child hunger through community eligibility. The overall health and prospects for the state will largely depend on the care and attention given to one of our most valuable assets – our youth. Supporting participating schools and getting more eligible schools to join community eligibility helps promote opportunity for all children.

NC Budget and Tax Center

North Carolina is losing ground on key economic indicators such as child poverty and family economic security. A new report from NC Child  paints a bleak picture of how children are suffering from the fallout of an economy that is downright broken for many North Carolina families, as well as state lawmakers’ recent policy decisions. Genuine progress is within the state’s reach if lawmakers make smart investments and enact better policy choices.

More than a half of a million children belong to families that are living in poverty and struggling to pay the bills, even though the state just entered into the sixth year of the official economic recovery. In fact, child poverty is higher now than it was when the recession hit: 1 in 4 children currently live in poverty compared to 1 in 5 children in 2008. And, poverty has the fiercest grip on children of color and children under age five here and across the United States.

Previous research shows that three-quarters of these children have at least one parent that works, but low wages and unstable employment keep families in the economic struggle. This economic reality is further confirmed in the NC Child report, which finds that nearly 1 in 3 children live in families that lack secure employment, an increase since the recession hit. Read More

NC Budget and Tax Center

Within the last month, policymakers in three states approved tax changes that will strengthen family economic security and support a stronger, more inclusive economy. Policymakers in New Jersey and Rhode Island approved expansions in their state Earned Income Tax Credits (EITC) and California officials adopted its first state EITC, which goes to people that work but earn low wages so that they can better make ends meet and avoid raising their children in poverty.

North Carolina is no longer among the 26 states that have a state EITC. Our state lawmakers allowed the state EITC to expire in 2013 when they enacted deep tax cuts that primarily benefited the wealthy and profitable corporations. The result was a tax shift—away from the wealthy and onto everyone else—that did nothing to improve the financial well-being of people who work hard for low pay and struggle to pay the bills.

On the other end of the spectrum, New Jersey lawmakers approved an increase in its state EITC to 30 percent from 20 percent of the federal credit that will benefit over half a million families. Read More