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Recession Scars Linger no group unscathed Renell Weathers Outreach Director Michigan League for Public Policy

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Presentation on theme: "Recession Scars Linger no group unscathed Renell Weathers Outreach Director Michigan League for Public Policy"— Presentation transcript:

1 Recession Scars Linger no group unscathed Renell Weathers Outreach Director Michigan League for Public Policy

2 The League’s Mission To foster economic opportunity, independence and security for Michigan families by shaping public policy through objective data-driven research, education and advocacy 1223 Turner St. Suite G-1, Lansing, MI (517) Fax: (517) Web site: A United Way Agency 2

3 Since the Recession Michigan League for Public Policy State EITC refunds drop from $349 million to $105 million Unemployment: 8.9% in December; 413,000 unemployed 1/837 homes foreclosure filing in January 48% of kids receiving free and reduced price lunches Cuts: $26 M $2 M $6 M

4 And… Michigan League for Public Policy One third of working families in Michigan are low- income More Michigan residents lost more employer-sponsored insurance than anywhere in country in past decade (4.2 million to 3 million covered) Income disparity nationwide is at highest levels since Great Depression, and Michigan has a big gap 4

5 What does the number 548,000 represent? 1223 Turner St. Suite G-1, Lansing, MI (517) Fax: (517) Web site: A United Way Agency 5

6 Family of 4 $24,000 Family of 3 $18,000 What is Poverty? Michigan League for Public Policy

7 Poverty in Michigan Continues to Rise Michigan League for Public Policy

8 2011 Poverty Total 17.5% Children 24.4% Families with Children 20.9% Michigan League for Public Policy

9 1 in 6 people live in poverty Total number of people living in poverty 1,693,294 Michigan League for Public Policy

10 1 in 5 families with children live in poverty Number of families with children living in poverty 1,138,970 Michigan League for Public Policy

11 1 in 4 children live in poverty Number of children living in poverty 548,145 Michigan League for Public Policy

12 How Much Do KIDS COUNT in Michigan? Michigan kids in poverty would fill the UM Big House 5 times Michigan League for Public Policy

13 Michigan Trends in Child Well- Being Poverty, ages 0-17 Children 0-5 receiving food assistance Children eligible for FRL Low-birthweight babies Infant mortality Child/Teen deaths, ages 1-19 Births to teens, ages Children in investigated families Confirmed victims Children in out-of-home care MEAP Fourth grade reading MEAP Eighth Grade Math MME High School reading Students not graduating on time Worse Better Economic Security Education Michigan League for Public Policy

14 Income from a full-time year-round minimum wage ($7.40 per hour) job does not lift a family of four above poverty.

15 Young Children, Ages 0-5, Eligible for Food Assistance Program* 2011 (MI – 37.4%) Michigan League for Public Policy

16 Change in Family Poverty, 2007 and 2011 Michigan League for Public Policy

17 Change in Poverty by Race/Ethnicity, Michigan League for Public Policy

18 Poverty by Race/Ethnicity, % white, not Latino Michigan League for Public Policy

19 What Causes/Contributes to Poverty? Michigan League for Public Policy

20 Jobs 400,000 Workers Unemployed Every Month in Michigan League for Public Policy

21 Income Michigan’s Median Income of $45,981 has dropped more than $6,000 since the beginning of the recession. Michigan League for Public Policy

22 Cuts to business taxes Shift the burden to individuals Michigan League for Public Policy Tax Changes FOOD MORTGAGE CREDIT CARDS UTILITIES SAVINGS GAS CAR PAYMENT

23 Michigan Earned Income Tax Credit Cut, 2011 vs Michigan League for Public Policy 70% drop $439 $132

24 Fewer Children Kept Out of Poverty Michigan League for Public Policy 20% = 14,000 6% = 5,000

25 Policy Changes UI benefits Asset test for food assistance Restrictions on FIP Michigan League for Public Policy

26 What Can We Do to Reduce Economic Insecurity? Restore unemployment insurance benefits and index them for inflation. Restore the state Earned Income Tax Credit for low-income working families. Raise the minimum wage to a level that lifts a family of four above the poverty level ($23,000). Raise the eligibility and adjust the sliding scale for the child care subsidy. Michigan League for Public Policy

27 Advocacy 202: YOU CAN MAKE A DIFFERENCE Contact your legislators/ members of Congress Write letters to the editor/OpEds Provide stories of impact of policy decisions

28 You have the power! … Conscience asks the question "Is it right?" And there comes a time when one must take a position that is neither safe, nor politic, nor popular, but he must do it because Conscience tells him it is right.” -- Dr. Martin Luther King, Jr. “Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has” -- Margaret Mead

29 Thank You! Website: Sign up for “ Alerts” Check out our Blog Become a member Michigan League for Public Policy 1223 Turner Street, Suite G-1 Lansing, Michigan Phone: (517)


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