The Weekly Food Research and Action Center News Digest highlights what's new on hunger, nutrition and poverty issues at FRAC, at the U.S. Department of Agriculture, around the network of national, state and local anti-poverty and anti-hunger organizations, and in the media. The Digest will alert you to trends, reports, news items and resources and, when available, link you directly to them. 1. SNAP/Food Stamp Boost Will Be Early Indicator of Economic Recovery Bill Success Precise measurements of the success of the recently-passed Economic Recovery Act will be hard to measure. “The problem is, we don’t know what trajectory the economy would take without the stimulus package,” said J. Bradford DeLong, economics professor at the University of California-Berkeley. Direct assistance to the poor and unemployed, through SNAP/Food Stamp increases and unemployment extension, will be the first noticeable effects, followed by tax credits for individuals and families. These are considered to be the most effective stimulus measures. Job creation is the most important goal of the package, although lower unemployment and rising consumer confidence will not be evident until late 2009 at the earliest. “If you are living hand-to-mouth, you should have greater access to food stamps and other assistance right away,” said Steve Ellis, vice-president at Taxpayers for Common Sense. “If you’re employed and not doing as well but hanging on, you won’t see much change unless a [federally-funded] construction project starts up nearby.” Mark Zandi, chief economist at Moody’s Economy.com, forecasts the number of unemployment insurance claims to start dropping in summer 2009 and on into the fall, if the economic recovery package follows Washington’s plan. However, he warns that layoffs that offset some of the gains will cause the unemployment rate to fall slowly. 2. States May Find Difficulty in Instituting Economic Recovery’s Safety Net Benefits State budget cuts are thinning the ranks of social services staff at the same time that demand for SNAP/Food Stamps and other assistance are soaring and straining already maxed-out computer and phone systems. Consequently, some states may find it difficult to take advantage of federal funds – up to 30 percent increases in funding over the next two years – in safety net programs. “We just spent more than a decade under welfare reform pushing people away,” said Chauncy Lennon, vice president of Seedco, a nonprofit that helps low-income families access public assistance. “Now we’re going to tell them it’s important to take the money and spend it.” According to Jack Tweedie, director of poverty programs for the National Conference of State Legislatures, “Most states will not be willing or able to increase their [cash welfare] rolls quickly enough to take advantage of the new funding.” The amount of increased funding is unprecedented. Past recessions have seen increased SNAP/Food Stamp participation, more Medicaid spending, and extension of unemployment benefits. This recession, however, marks the first time that the entire safety net has been “fortified” through the Economic Recovery Act. In order to receive these extra dollars, more than half of states will have to enact new legislation. Then they will have to deal with their shrinking workforce, as many states have cut staff responsible for implementing SNAP/Food Stamps, unemployment, and other safety net programs, at the same time demand has become overwhelming. In the case of SNAP/Food Stamps, experts say offices will be even more overwhelmed with work as they retool computer systems to calculate the new benefits. Vermont laid off 600 state employees earlier this month, although more than $1 billion was on the way from the stimulus package. California also continues to cut, welfare spending, as has Connecticut (although that state hasn’t cut back on employees.) 3. Rhode Island Advocates Call for More SNAP/Food Stamp Workers Advocates recently protested outside the governor’s executive office in the Rhode Island state house, and said they would be back every day at noon to call for the state to hire more SNAP/Food Stamp workers. The advocates say 60,000 residents are missing out on the nutrition assistance program, and that the state can hire the additional caseworkers even without the upcoming stimulus money. “The governor has within his power to hire the 40 workers and to open up the rules – open up at night, open up on the weekends,” said Henry Shelton of the George Wiley Center. Advocates also called for the income eligibility limit to be raised from 130 percent to 165 percent of the federal poverty level. The state ranks last in the nation for getting eligible applicants into the SNAP/Food Stamp program. 4. Milwaukee Mom, Unable to Get SNAP/Food Stamps, Skips Meals so Kids Can Eat Milwaukee County (Wisc.) resident Stephanie Serbin has been trying to get on FoodShare, the state’s name for the SNAP/Food Stamp program, for about a year. She has two teenagers at home, and she wants them to do well, so she sometimes skips meals. “And I don’t mean just one day, I mean like maybe five days where I make sure that my kids eat but I don’t have to.” She applied for the benefit with the help of her boss, faxed the paperwork in, but received nothing back. She tried to get a hearing to review her application, which required she submit more paperwork. She did and heard nothing back, and since January 2009, still hasn’t heard from the state, in spite of a visit to the mobile registration van. In February, the state took over administration of FoodShare in Milwaukee County, responding to months of criticism over the county’s performance. 5. SNAP/Food Stamp Needs and Requests Increase Across the Country Florida
Ohio
Kentucky
Arizona
6. Texas Representative Urges Needy to Apply for SNAP/Food Stamps Food banks in Texas are unable to keep up with the demand for food, prompting Rep. Ciro Rodriguez (D) to promote SNAP/Food Stamps to needy constituents, calling the benefit “a good investment in our community,” as well as “a good investment [in] getting people back to work…and…a good investment in ourselves.” Not only do SNAP/Food Stamps feed the hungry, they stimulate local economies, bringing in $1.73 worth of economic stimulus for every $1 in benefit money spent. 7. State Senator Criticizes NYC for Plan to Deny SNAP/Food Stamps, will Introduce Counter Legislation State Senator Liz Krueger, in a statement released last week, criticized New York City’s Bloomberg Administration for declining to take advantage of a provision in the federal stimulus bill that overturns a 1996 rule that placed limitations on the length of time some citizens could receive food stamps. “As food prices soar and the economy plummets, we need to use every option available to maximize benefits and support hungry New Yorkers,” said Krueger in the release; she will introduce legislation in the state Senate that will mandate that New York City and the state “take full advantage of federal Food Stamp program waivers that allow increased participation in the Food Stamp program.” In the release, Krueger cites the facts that SNAP/Food Stamps “are 100% federally funded and are the most successful economic stimulus program available – every $1 in Food Stamps translates into over $1.70 in economic activity in our local economy immediately.” 8. States Introducing SNAP/Food Stamp Name Change Vermont’s name for the SNAP/Food Stamp program is 3SquaresVT, and this segment on Vermont Public Radio’s Vermont Edition highlights the program’s “new, more inclusive eligibility guidelines that could mean more food purchasing power for tens of thousands of Vermonters.” The name change and eligibility rules changes afforded an opportunity for Renee Richardson, director of Food and Nutrition Programs for the Vermont Agency of Human Services, and Angela Dieng-Smith of the Vermont Campaign to End Childhood Hunger, to discuss how 3SquaresVT “could funnel millions of federal dollars to Vermont food producers and stores and into the Vermont economy at large.” Meanwhile, in Texas, the change in name from Food Stamps to the Supplemental Nutrition Assistance Program (SNAP) announced by the Texas legislature is not being embraced across the board, according to Stephanie Goodman of the State Health and Human Services Commission. The Commission, she said, “has been working to make the language it uses for all its programs easy to understand, especially for low-literacy audiences.” She said some information sent to recipients will refer to the program as “SNAP food benefits.” Most of the time, she said, “we’re going to call it food.” [Editor’s note: States have the option to adopt SNAP, the new federal name for the Food Stamp Program, or to choose another name for the program.] 9. County Missing Out on Millions in SNAP/Food Stamp Dollars California’s San Joaquin County has 63,000 food insecure residents – “a city-sized population” – that could benefit from SNAP/Food Stamps and bring millions of federal dollars to the region that could also help “growers, grocers, works and [create] general prosperity.” However, 47 percent of those eligible don’t receive SNAP/Food Stamps, leaving $79 million of federal funds on the table. This is money the county needs and deserves notes this editorial, which focuses on barriers to participation in the program. A local official states “Most poor, low-income families don’t have the wherewithal or the time to make three visits probably totaling nine or 10 hours to the county’s single site.” The county is under “tremendous budget pressure,” said Rich Fowler, director of Catholic Charities. “I just think with a little bit of creativity we could do a lot better.” The editorial lists outreach ideas from other counties: “post staffers at food banks, community centers or nonprofits. [T]rain outsiders to prescreen applicants and feed them to the county via computer.” Until measures are taken, Fowler notes “a lot of people are going to go hungry.” 10. North Carolina County Hammered by Economy North Carolina’s Alamance County has seen an economy-induced rise in SNAP/Food Stamp participation. In December 2008, the county Department of Social Services took in 742 applications, compared to 503 the previous December. The state foresees that in the 2009-10 budget year, county residents could receive $11.2 million more in SNAP/Food Stamp benefits, for a total of more than $26.94 million going to the county. “That certainly was a shocker to us,” said Department of Social Services (DSS) assistant director Linda Allison. “I think it has a tremendous amount to do with the economy.” DSS created a “crisis closet,” a food pantry to help with the demand and fill emergency needs, since these days applicants are “already hungry and out of food” when they apply for the benefit. 11. More “First-Timers” Visiting Food Banks, SNAP/Food Stamp Offices Food banks across the country are opening their doors to increasing numbers of “the next layer of people” – “child-care workers, nurse’s aides, real estate agents and secretaries” struggling with the financial crisis. Across New York State, SNAP/Food Stamp demand is up 17 percent, and in New Jersey demand is up 12 percent (figures comparing November 2008 to the year before). “It’s a canary in a coal mine,” said Kathleen DiChiara, executive director of Community FoodBank of New Jersey. “If one of our richest counties has people signing up for food stamps who have never signed up before, that indicates the depth of this problem with the lack of food.” Experts note that working-class people are lost when faced with this kind of need in their lives, unsure of where to get help or embarrassed to ask, while the chronically poor have learned to adapt to rough financial times by asking friends for help and seeking social services. Joan Verba, 53, is an example of those struggling and asking for assistance; she quit her job as an accountant after her husband became ill with cancer. When her husband died, she had to put off re-entering the work force. “The job market is so bad now,” she said. “My son eats 24-7. I just need this to supplement my food bills.” 12. SNAP/Food Stamp Applications Swamp Staff in Virginia Increased numbers of caseloads in Virginia’s Manassas Family Services office are creating longer and harder work hours for staff. “I think we are reaching a breaking point in terms of the staff we have to handle the increased number of applications we are receiving,” said director Ray Spicer. In fiscal year 2008, the department received 1,605 new SNAP/Food Stamp applications, up 73 percent from 2007. More people are also seeking expedited SNAP/Food Stamps, which speeds up the processing time for the benefit from 30 days to 7. Also, more and more people are meeting eligibility requirements. Also up: TANF, which went from serving an average of 118 families in 2007 to 141 in 2008. Nonprofit organizations are reporting increased demand – the Prince William Area Free Clinic is now seeing 130 people a week, up from 100, as more people who have been laid off and lost health insurance seek out free health services. 13. Philadelphia Needs to Continue Its Successful School Meals Program This editorial supports Philadelphia’s school breakfast and lunch pilot program, which provided the meals free of charge to 121,000 children at schools with high enrollment of low-income students and bypassed “bureaucratic red tape” by eliminating application forms. The program has been in place for 17 years, but it is slated to be discontinued in 2010, although schools across the country are interested in the program for themselves. Ending the city’s pilot program would cost schools $800,000 “and have a devastating impact on the education and nutrition of thousands of children.” Studies show that students who eat breakfast perform better academically, have less behavior problems, and show up to school more often than those who skip the meal. Mayor Nutter has gone on record to say that ending the program would not be wise. The editorial concludes “The federal government should not only restore the pilot meal program in Philadelphia but expand it around the country.” 14. Virginia’s Children Hit Hardest by Recession According to Voices for Virginia’s Children, 250,000 children statewide live in poverty. Should unemployment rates continue to rise, The Commonwealth Institute forecasts from 122,000 to 218,000 additional people could be living in poverty this year, with children making up from 44,000 to 73,000 of the increase in number. The statistics appear in a joint report from the two organizations; the report notes that increases in SNAP/Food Stamp caseloads, food bank demands, TANF and Medicaid enrollment are early indicators of “economic vulnerability.” John Morgan, Voices’ executive director, sees the numbers as a “perfect storm” of economic distress, and recovery could take years. The stimulus package is expected to bring $355.8 million for SNAP/Food Stamps, $800 million in Medicaid, and up to $189.6 million in unemployment insurance to the state. Currently, only 27 percent of unemployed Virginians collect unemployment benefits; the report notes that this is an indicator that many in the state are unprotected by the inadequate UI system. 15. Some Worry that Stimulus Package May Not Reach All Unemployed The economic stimulus package’s support to the unemployment compensation system, intended to upgrade computer systems, increase eligibility, extend benefits and increase payouts, may not reach all unemployed. In Missouri, many are waiting six to eight weeks for claims approval, and some have already waited weeks for the state’s new EBT card. Across the country, some jobless are finding their former employers are holding up their claims by challenging them, or blocking them entirely. Then there are those who aren’t able to collect benefits – people who left jobs “voluntarily,” those fired “for cause,” people receiving workers’ compensation, others who didn’t work enough hours or make enough money in their previous jobs to qualify for benefits, part-time workers, workers taking classes during the day, others who are unable to work for physical or mental reasons, people collecting pensions or considered retired, and unemployed who fail to report to the unemployment office as required. For those workers who are collecting unemployment, the average weekly check is slightly less than $300. 16. Earned Income Tax Credit – Useful for Unemployed, Underemployed During Recession Earned Income Tax Credit (EITC), a refundable tax credit for low to moderate-income working individuals and families, can help tax filers struggling through the recession. Qualified taxpayers, even those who did not make enough to file a tax return, can take advantage of the credit; “In this economy there could be people who lost a job or had their income reduced who are now eligible for the EITC,” said Internal Revenue Service (IRS) commissioner Douglas Shulman. The IRS is promoting the credit nationally this year, and has opened up 12,000 volunteer tax sites across the country. “We really want people to claim all they can.” Many have taken advantage of EITC in past years, with 75 to 80 percent of eligible taxpayers claiming the credit. One local initiative in Texas’s Rio Grande Valley aims to raise awareness of Refund Anticipation Loans (RALs) – normally obtained before tax refunds, but carrying fees and interest to borrowers that can be costly, especially for EITC recipients. “RALs strip an enormous amount of wealth from people in our community who can least afford it,” said one local official. 17. Financial Crisis and Budget Cuts Outrage Seniors Elderly Americans in New York City and across the country are angry because the recession has made it almost impossible to buy medication and make ends meet. Now services are being cut, especially in New York, as the city and state tax revenues have dropped, outraging seniors who point to the abuse of bank bailouts and Wall Street bonuses. New York City’s Department of Aging cut its 2009 budget by $4 million, and will cut $9.5 million in 2010. Mayor Bloomberg is making the cuts to close a $4 billion budget gap caused by Wall Street’s collapse; the financial industry previously pumped corporate tax revenues into the city and state. The state faces a $13 billion shortfall, and is proposing cuts in health care and elderly services. "We are outraged that the government, which has spent hundreds of billions of dollars to bail out financial institutions… has no funds to support vital services for their senior citizens," said Muriel Beach, New York City head of the State Wide Senior Action Council. State Wide and other groups formed the "Senior Outrage Coalition" to mobilize protest among the city's 1.3 million citizens aged 65 and over. In 2006, one fifth of the city’s 65 and over population lived in poverty, twice the average of the nation, and advocacy groups say now that figure has most likely climbed to one-third. New York City is in second place among U.S. cities with high rates of elderly poverty; Detroit ranks number one. 18. Illinois Adding Workers to Handle Unemployment Surge To handle the “sheer volume of benefit applications from jobless workers,” the Illinois Department of Employment Security (DES) will add at least 100 employees over the next three months, and investigate adding another 50 after that. DES is also adding more than 200 telephone lines to its 650 current lines, all of which will be open for calls from 5 a.m. to 9 p.m. Monday through Friday. Agency officials are encouraging people to apply online to “avoid delays.” SNAP/Food Stamp use has skyrocketed in the state too. In December 2008, nearly 1.4 million people received the benefit, compared to less than 1.3 million in December 2007.
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