FRAC News Digest - July 16, 2004

The weekly Food Research and Action Center (FRAC) 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.

Issue 28, July 16, 2004

USDA Grants $5 Million to Make Food Stamp Access Easier
State Budget Crises Not Ending Soon
Child Care Subsidies, Poor Families, Face Uncertain Futures
Public's Opinion on Food Pyramid Sought
Honorees Remarks at FRAC Annual Benefit Dinner
Medicare Calls Obesity an Illness and Opens Door for Coverage
High Gas Prices Hit Poor Workers Hard
Summer Camps Offering Healthier Menus
New York: School Breakfast Participation Up 300% in Pilot Program
South Carolina: Church and State Link Raises Concern
Wisconsin: Dear Washington, What about the hungry?
Minnesota: Economic Recovery not Affecting Growing Food Lines
San Francisco: Restaurants Accept Food Stamps
Rhode Island: Summer Food Demand Outstripping Food Bank's Supply
Delaware: Educators Promote Healthy Habits
West Virginia: Cash Welfare Benefits Cut 25 Percent
Oklahoma: Tax Credits for Poor Upheld
Working Poor Emerge as New Class
New York: Business Group Backs Raise in Minimum Wage
Rise in Maine's Minimum Wage Should Go National

1. USDA Grants $5 Million to Make Food Stamp Access Easier

(U.S. Department of Agriculture, July 8, 2004)

On July 8th, USDA Secretary Ann Veneman announced six grants totaling $5 million to organizations to help eligible recipients access food stamp benefits. In Des Moines, for a grant presentation to the Iowa Department of Human Services, USDA Undersecretary for Food, Nutrition, and Consumer Services Eric Bost said that it is the Administration's goal to simplify the food stamp application process and improve the access of eligible households to benefits. The other grantees: South Carolina Department of Human Services in partnership with Southern Institute on Children and Families and Agape Ministries of Charleston; Community Action Project of Tulsa (OK); Illinois Department of Human Services; Nevada Department of Human Resources; and New Mexico Association of Food Banks, in partnership with the New Mexico Department of Services.

http://www.fns.usda.gov/cga/PressReleases/2004/fsp-grants.htm

2. State Budget Crises Not Ending Soon

("Facing the Fiscal Crisis in State Governments: National Problem; National Responsibilities," Taubman Center for State and Local Government, July, 2004)

The fiscal crisis facing states may not end soon, according to a new report from the Taubman Center for State and Local Government of the JFK School of Government at Harvard. The report claims that the problem facing the states goes beyond the recession of 2001 and a slow recovery because of two trends: state revenues will not grow as fast as its economy; and rising education and health care costs. "The existing, built-in financial demands of the states' current responsibilities are growing more rapidly than are revenues," states the report. Tough fiscal times will continue for years to come unless citizens accept an increase in state taxes, readjust expectations about public services, or fundamental changes in intergovernmental responsibilities change.

http://www.ksg.harvard.edu/taubmancenter/research/FacingTheFiscalCrises.pdf

3. Child Care Subsidies, Poor Families, Face Uncertain Futures

("Child Care, Up in Smoke," New York Times, July 8, 2004)

The TANF reauthorization bill has stalled in Congress and along with it, provisions expanding child care assistance. Currently only 15 percent of eligible children receive federal child care assistance. Without child care help, low-income parents are at greater risk of losing their jobs and returning to welfare. The U.S. House of Representatives proposed only $1 billion in new money for child care in its welfare bill, which would have made the backlog worse by the end of the decade. But U.S. Senator Snowe of Maine got the Senate to raise the figure to $6 billion over the next five years. However, the bill is unlikely to move this year. States have already started dismantling their child care programs due to budget shortfalls and inadequate federal subsidies, turning away eligible children and cutting payments to child care providers.

http://www.nytimes.com/2004/07/08/opinion/08THU2.html?ex=1089950400&en
=274d33cd54180fde&ei=5062&partner=GOOGLE

4. Public's Opinion on Food Pyramid Sought

(U.S. Department of Agriculture, July 2004)

U.S. Secretary of Agriculture Ann Venemen announced that the public is invited to comment on the configuration of the new food pyramid, strategies to improve awareness about the food pyramid, methods to help consumers personalize the system, strategies to improve educational messages, interactive tools to illustrate the messages, and communication media for delivering the message. A public meeting is slated for August 19. The food pyramid is being revised along with the Dietary Guidelines. The final release of the new food pyramid and related customer material is set for early 2005.

http://www.cnpp.usda.gov/pyramid-update/index.html

Federal Register Notice:
http://www.cnpp.usda.gov/pyramid-update/
FGP%20docs/FR%20notice%20%20on%20food%20guidance%20system%207-2-04.pdf

5. Remarks of Honorees at FRAC Annual Benefit Dinner

(Food Research and Action Center, June 15, 2004)

The Food Research and Action Center (FRAC) at its annual dinner on June 15th presented awards to four individuals for their extraordinary efforts to combat hunger in the United States and for their support of FRAC's work. Senator Olympia Snowe (R-ME), U.S. Representative George Miller (D-CA), Pathmark Stores CEO Eileen Scott and Communications Workers of America (CWA) Lobbyist Lou Gerber were all honored for their leadership, their advocacy and their tireless efforts. Their remarks, as well as those of FRAC President Jim Weill, are available at the link below.

http://frac.org/html/news/Press_06.15.04.html

6. Medicare Calls Obesity an Illness and Opens Door for Coverage

("HHS Announces Revised Medicare Obesity Coverage Policy; Policy Opens Door to Coverage Based on Evidence," U.S. Newswire, July 15, 2004)

In a change in Medicare policy, barriers to obtaining Medicare coverage for anti-obesity treatments have been lowered, announced HHS Secretary Tommy Thompson. The new Medicare policy classifies obesity as an illness. By law, Medicare covers "medically necessary services for illness and injury," and prior policy specifically said obesity was not an illness. The announcement allows the public to request Medicare to review scientific evidence to determine if a treatment related to obesity could be covered.

http://releases.usnewswire.com/GetRelease.asp?id=113-07152004

7. High Gas Prices Hit Poor Workers Hard

("For many low-income workers, high gasoline prices take a toll," Motorway News, July 12, 2004)

With gas prices averaging $1.89 per gallon nationally, low-income workers are particularly feeling the effect. Poor workers often live farther from new jobs due to the location of affordable housing, have little access to public transit, and drive older, less fuel-efficient cars. Denise Quenneville drives 30 miles each way to earn $7 an hour, but must spend $23 in gas every two days to get there. For the working poor like Quenneville, the gas price hike amounts to "a palpable pay cut."

http://www.motorway.com/Stories/0,1413,243~25474~2268064,00.html

8. Summer Camps Offering Healthier Menus

("Kids' summer camps clean up menus," The State, July 12, 2004)

Meals are getting healthier at summer camps. "Honestly, it's better than the food I get at home," said 15-year old camper Gabe Wolff as he dug into a salad. Camps are responding to pressure from parents and public health officials who are concerned about childhood obesity. "Ten years ago a camp with a salad bar was an anomaly. Today it's really the norm," said Jeffrey Solomon, executive director of the National Camp Association. The move toward healthier menus helps camps stay competitive. As many as one quarter of campers demand vegetarian options. Camp counselors see a difference when children consume less sugar and caffeine.

http://www.thestate.com/mld/thestate/news/nation/9135930.htm

9. New York: School Breakfast Participation Up 300% in Pilot Program

("Academics & Breakfast Connection Pilot: Interim Report on New York's Classroom Breakfast Project," Nutrition Consortium of New York State, June 2004)

A pilot program that serves free breakfast to children in their classrooms has been found to increase participation in the School Breakfast Program, and decrease student absenteeism, tardiness, visits to the school nurse, and disciplinary referrals. The Academics & Breakfast Connection Pilot (ABC) program was implemented at the beginning of the 2003-2004 school year in 19 schools in upstate New York by the Nutrition Consortium of New York State. The interim report on ABC found breakfast program participation had increased 300% in the pilot schools. Approximately 80 percent of teachers reported fewer complaints of hunger from students in the pilot program.

http://www.frac.org/ABC_Report.pdf

10. South Carolina: Church and State Link Raises Concern

("Government, churches work together," Charleston Post and Courier, July 13, 2004)

The government is recruiting churches for the fight against hunger in South Carolina. The state's Department of Social Services (DSS), which administers the state's food stamp program, established a Faith-Based and Community Initiatives office last year to enlist more churches to open food pantries and after-school snack programs, or provide transportation to welfare-to-work participants. DSS has turned to churches because budget cuts have left the agency with too few social workers. The Low Country Food Bank receives some of its food from the U.S. Department of Agriculture and distributes food to scores of churches. In turn, the churches often offer spiritual guidance. Critics are concerned about linking services and religious messages and say government should not cut funds to trained social service professionals.

http://www.charleston.net/stories/071304/loc_13foodside.shtml

11. Wisconsin: Dear Washington, What about the hungry?

("What question would you ask President Bush?" Fond du Lac Reporter, July 14, 2004))

The Fond du Lac newspaper asked its readers what question they would pose to President Bush if given the opportunity. Cynthia Kutz of West Bend would ask,"What are you going to do for the working poor? A lot of us have to choose between paying our bills or getting food." She said she and other working poor do not qualify for food stamps, food pantries are limited and available jobs do not pay enough to live.

http://www.wisinfo.com/thereporter/news/archive/local_16877979.shtml

12. Minnesota: Economic Recovery not Affecting Growing Food Lines

("No summer vacation for hunger in Minnesota," Workday Minnesota, July 13, 2004)

Sue Kainz, a top official of Minnesota FoodShare, says that despite the claims of a growing economy, food shelf usage is still increasing around the state, mainly in suburban areas. Many working families with children are having a tougher time making ends meet, contributing to a fifteen percent increase over last year's shelf usage. The demand is intensified during the summer because school breakfast and lunch programs are not available. Kainz remarks the end of school causes children to lose their "food safety nets."

http://www.workdayminnesota.org/view_article.php?id=
e209f33130d4b529027c210af6b53b9d

13. San Francisco: Restaurants Accept Food Stamps

("Restaurants on food-stamp menu," Sacramento Bee, July 4, 2004)

Elderly and disabled food stamp participants who are unable to cook for themselves may now use their Electronic Benefits Cards (EBT) at participating eateries in the San Francisco restaurant meal program. In one recent month, San Francisco restaurants had 11,000 food-stamp transactions totaling roughly $58,000 in federal benefits. The program is the first of its kind in California, which now joins 18 other states with restaurant programs for seniors, disabled or homeless persons. Food stamp advocates support the program but also have concerns. "We'd hope you'd be able to get culturally appropriate foods," said George Manalo-LeClair, legislative director at California Food Policy Advocates. He also worries that, if people see food stamps used at fast-food eateries, it would reinforce a misconception that food stamp recipients are buying junk food.

http://www.sacbee.com/content/politics/story/9884379p-10806620c.html

14. Rhode Island: Summer Food Demand Outstripping Food Bank's Supply

("Low in the food chain," Providence Journal, July 7, 2004)

"We're running out of food," says Bernie Beaudreau, executive director of the Rhode Island Community Food Bank, which distributes food to 435 member agencies across the state. The Food Bank hit a record the past year, giving out 7.9 million pounds of food, an increase of 1 million pounds over the previous year. "I'm tired of eating cat food," said one elderly man who asked for assistance at a food bank in Olneyville. The food shortage is partly caused by reduced donations from large supermarket chains.

http://www.projo.com/news/content/projo_20040707_food7.22d5ae.html

15. Delaware: Educators Promote Healthy Habits

("Educators promote healthy habits," Delaware Capitol Review, July 11, 2004)

Nearly one in three Delaware high school students is overweight or obese, and among adults, the rate is 60.2 percent. Schools are a "primary battleground" for the fight against childhood obesity. School lunches provide a "safe haven" -- nutritious meals based on the traditional food pyramid. But during the summer months, nutrition is far more problematic. Delaware Representative Michael Castle was the lead author of the Child Nutrition and WIC Reauthorization Act which was signed into law June 30. The law will reform the eligibility process so that more children who qualify for free and reduced-priced lunches get them, and promote the establishment of locally-driven wellness policies.

http://www.newszap.com/articles/2004/07/11/dm/central_delaware/dsn02.txt

16. West Virginia: Cash Welfare Benefits Cut 25 Percent

("When W.Va. slashes benefits, the welfare state is truly dead," West Virginia Charleston Gazette, July 10, 2004)

This week, West Virginia cut its welfare benefits by $37 million a year. Fourteen thousand low-income families will see their monthly cash assistance checks drop 25 percent starting August 1. For a family of three, the cut means their monthly check of $453 will decline to $340. "The welfare state is on the chopping block and corporate welfare lives? That shouldn't be," states the editorial.

http://www.wvgazette.com/section/Editorials/200407129

17. Oklahoma: Tax Credits for Poor Upheld

("Tax credit program for poor upheld," NewsOk.com, July 6, 2004)

The state Earned Income Tax Credit (EITC) program, which gives tax breaks to low-income workers, was upheld as constitutional by the Oklahoma Supreme Court. The EITC program allows refunds to workers that exceed the amount withheld from their paycheck. An Oklahoma City attorney charged the refunds amounted to cash handhouts to individuals and violated the state Constitution. The court ruled 6-2 that the EITC serves a public purpose to promote the general welfare, economic security, and prosperity of its citizens and "does not constitute a gift by the state to individuals." It cited a U.S. Supreme Court decision upholding the federal program.

http://www.newsok.com/article/1275781/?template=home/main

18. Working Poor Emerge as New Class

("Inside Story: America's New Class," Times Record News, June 27, 2004)

A new class of American workers is emerging --- what economists call the "working poor." For the working poor, expenses caused by illness or a car repair can leave nothing to buy food, even with a full-time job. People are working more, but higher-paying jobs have been cut due to a poor economy. The expected new jobs are mostly low-paying. In Texas, one in two children live in or on the edge of poverty. They are not "poor like you see in the movies," because they have electricity, water and food. But they may have gone without them the month before or the food may have come from a food bank.

http://www.timesrecordnews.com/trn/local_news/article/0,1891,TRN_5784_2993930,00.html

19. New York: Business Group Backs Raise in Minimum Wage

("Business Group Backs Raise in New York Minimum Wage," New York Times, July 15, 2004)

Raising New York state's minimum wage from $5.15 to $7.10 an hour has won backing by the Partnership for New York City, one of the city's leading business groups. A full-time job at the current minimum wage translates to $10,712 a year, a salary below the federal poverty level, the business group said in a letter to the state's Senate majority leader. "New York's competitive position in the world economy is driven, more than anything else, by the outstanding quality of our labor force," wrote Kathryn Wyde, president and CEO of the partnership. A bill to raise the minimum wage was approved by the state assemby in March and awaits action in the Senate.

http://www.nytimes.com/2004/07/15/nyregion/15wage.html

20. Rise in Maine's Minimum Wage Should Go National

("Time to boost federal minimum wage," Portland Maine Press Herald, July 12 2004)

This editorial praises recent increases of Maine's minimum wage (a second increase will make it $6.50 an hour by October 2005) and urges Congress to follow suit by raising the federal minimum wage. Taking inflation into account, the value of the federal minimum wage has dropped considerably since the last time it was raised in 1997. It is currently $5.15 an hour, putting a full-time minimum wage worker far below the federal poverty line, even taking into account assistance such as food stamps and the Earned Income Tax Credit. Not once in the 16 times that the minimum wage has been increased was there an increase in unemployment or small business closings as a result.

http://business.mainetoday.com/news/040712minimum.shtml