Hunger and Poverty in Texas: Causes and Solutions Food Insecurity: The Hunger Epidemic Witte Museum San Antonio, Texas February 18, 2010 Celia Hagert Senior Policy Analyst

Overview Hunger and poverty: causes and consequences Solutions –Expand economic opportunity –Ensure a strong federal nutrition safety net (SNAP, school meals, WIC, senior meals, etc.)

The Economic Context Hunger is a symptom of poverty Poverty is deep and widespread in Texas Root causes are structural, not individual Increasing economic opportunity and earnings is the long-term solution

How many people are officially poor in Texas? Who are the poor? The Numbers

Texas Hunger Rate Linked to Poverty Sources: Poverty data are one-year estimates from American Community Survey, U.S. Census Bureau. Food Insecurity data are three-year averages from USDA’s Economic Research Service.

Poverty and Unemployment (with recession impact simulated) Source: U.S. Bureau of Labor Statistics; Comptroller Winter Forecast; Census Bureau CPS. Forecast

Hispanics and African Americans Much More Likely to Live In Poverty as Whites in Texas Source: 2008 American Community Survey, U.S. Census Bureau

Vast Majority of Poor Texans are Citizens Source: 2008 American Community Survey, U.S. Census Bureau

Poverty Rates by Citizenship 679,700 3,080,731 3,760,431 Source: 2008 American Community Survey, U.S. Census Bureau Born-in-U.S.citizen poverty rate: 41 st worst among states

Texas 43 rd Worst Rate of Total Population in Poverty TX = 15.8%; U.S. = 13.2% Source: 2008 American Community Survey, map from KIDS COUNT Data Center,

Texas Poverty 101

Why can’t families escape poverty? The cost of living has outpaced earnings Lack of education, economic opportunity limits earnings, upward mobility

Full-time Work at Minimum Wage ($14,500) Doesn’t Lift Texas Families Above Poverty Line Minimum wage = $7.25 per hour as of July 24, Full-time work = 2,000 hours per year. Minimum wage $70 shy of FPL for Family of 2

Texas Median Income Increases Slightly, But Purchasing Power on General Decline Median Income Median Income Adjusted to Purchasing Power in 2000 Source: KIDS COUNT Data Center, Families with Related Children, American Community Survey, Census Bureau; Data adjusted using inflation calculator from the U.S. Bureau of Labor Statistics

Texas Among Worst States for Income Inequality in 2007 Source: Gini Coefficients (0=perfect equality, 1 = perfect inequality) from Bishaw, A., and Semega, J. (2008). Income, earnings, and poverty: Data from the 2007 American Community Survey. U.S. Census Bureau.

The Consequences

Over Half of Texas’ 4.7M Public School Kids Are Considered Economically Disadvantaged Source: Enrollment Data, Texas Education Agency Economically Disadvantaged = Kids who are eligible for free (below 130% of poverty) or reduced-price lunch (130%-185% of poverty)

“Early disadvantage, if left untouched, leads to academic and social difficulties later in life. Early advantages accumulate, just as early disadvantages do.” Heckman & Masterov, as cited in “Early Childhood Education for All: A Wise Investment”

GAPS IN ACHIEVEMENT: Fewer Economically Disadvantaged Kids Pass the TAKS Tests Source: Percent Students Passing Across Grades Within Each Test, 2009 TAKS data, Texas Education Agency

GAPS IN ATTAINMENT: Economically Disadvantaged and Minority Students Drop Out at Higher Rates Source: Class of 2008 four-year longitudinal dropout rate within group, Texas Education Agency

GAPS IN EARNINGS: More than One of Every Three Texas Dropouts Lives in Poverty Source: Table C17003, 2008 American Community Survey, U.S. Census Bureau

Long-term solution to poverty & hunger: Increase economic opportunity so people can learn more, earn more

Short-Term Solution to Hunger: Improve Nutrition Safety Net Make sure everyone who needs food assistance receives this help

Gaps in the Nutrition Safety Net #1 Many eligible families aren’t getting federal food assistance* –Flaws in the poverty measure prevent needy families from getting assistance #2 Many needy families don’t qualify for federal food assistance –Barriers limit access for eligible families *Federal food assistance = SNAP/Food Stamps, School Lunch/Breakfast, Afterschool/Childcare, Summer Food, WIC, Commodities

#1: Many Texans Qualify for Food Assistance But Do Not Receive It Source: Bridging the Gaps Project, Center for Economic and Policy Research Limited awareness Stigma Inadequate funding Enrollment barriers (staff shortages, red tape, outdated rules) make the benefits hard to access

Many Texans Qualify for Assistance But Do Not Receive It Source: Bridging the Gaps Project, Center for Economic and Policy Research

Too Many Families Relying on Food Banks Not Getting Federal Food Assistance Source: Bridging the Gaps Project, Center for Economic and Policy Research SOURCE: Hunger in America: 2010 Survey, Feeding America

Texas Failing to Process More and More SNAP (aka Food Stamp) Applications on Time Source: Texas Health and Human Services Commission, 2009 Monthly Timeliness Reports

SNAP Not Reaching Its Target Population Source: Bridging the Gaps Project, Center for Economic and Policy Research Almost half (45.4%) of food bank clients believe they are not eligible for SNAP, yet almost one-quarter (24.2%) have income low enough to qualify (<130% FPL). = lack of awareness of SNAP rules. 17.1% report not receiving SNAP benefits because “it is too much hassle." = problems in the eligibility system. SOURCE: Hunger in America: 2010 Survey, Feeding America

#2: Many Needy Families Don’t Qualify for Food Assistance Eligibility for food (and other public) assistance is tied to Federal Poverty Measure The Federal Poverty Measure is flawed: Poverty = 3 x cost of food per family size (methodology from the 1960s) Fails to take into account today’s cost of living Child care Medical costs Housing

Federal Poverty Guidelines Family Size $13,690$14,000$14, ,17017,60018, ,65021,20022,050 Source: U.S. Department of Health and Human Services

Monthly Costs for Single-Parent, 2-Child Family in Fort Worth-Arlington Total Monthly Expenses = $3,042 - $3,540 Source: Family Budget Estimator, CPPP, $212-$1,100 $745 $1,034 $356$339$356

Necessary Income for Single-Parent, 2-Child Family in Fort Worth-Arlington Hourly = $19 - $23/hour Annual = $38,737 - $46,709 – 226% to 272% of poverty line Source: Family Budget Estimator, CPPP,

Total Monthly Expenses for Families in Dallas- Plano-Irving as Percentage of the Federal Poverty Level Note: These budgets are for families where the employer pays 100% of one parent’s health insurance and 50% of premium for spouse and/or dependents. The poverty line is the maximum amount a family can make in a month and still be considered below the 2007 federal poverty level

Public Assistance Programs Not an Option for Many Working Families Sources: U.S. Department of Agriculture; Texas Workforce Commission; Texas HHSC

Public Health Insurance More of an Option for Children, Elderly, Disabled Sources: Texas HHSC Annual income limits: For a family of three in child & parent categories; for SSI & Long- Term Care, income cap is for one person.

Texas Low-Income Children vs. Served by “Safety Net” Source: Texas Kids Count; Texas Health and Human Services Commission; March CPS (FERRET)

Family Budget Estimator (FBE)

Our Shared Challenge Make sure everyone eligible for food assistance is getting it –Less than half of eligible population gets SNAP –Fewer than one in five eligible children get free summer meals Make sure everyone who needs food assistance is getting it –Since eligibility is tied to the official poverty measure, many needy families don’t qualify for federal food assistance –Need to revise poverty measure or income limits for food programs

Contact Information Celia Hagert (512) ext. 110 Sign up to receive notice of our work at: