1. Federal Safety Net “Big Dollars” FederalSafetyNet.com

2. Federal Expenditures – FY 2012 In Billions FederalSafetyNet.com Defense 902 Social Security 779 Medicare 485 Welfare Programs 357 Medicaid 269 Unemployment 109 Interest on Debt 225 All other 510 3,796

3. Federal Welfare Programs FY 2012 Expenditures - Billions Negative Income Tax $ 72 SNAP 80 Housing Assistance 47 SSI 48 Pell Grants 39 TANF 17 Child Nutrition 19 Head Start 9 Job Training 7 WIC 8 Child Care 6 Lifeline 2 LIHEAP 3 $ 357 FederalSafetyNet.com

4. Census Bureau Poverty Thresholds Annual Income One person household $11,484 Two person household $14,657 Three person household $17,916 Four person household $23,021 Five person household $27,251 Six person household $30,847 FederalSafetyNet.com

5. Census Bureau 2012 Poverty Reports Number of people in poverty – 12.6 Million Individuals – 9.8 Million Families Income gap to get out of poverty – Individuals averaged $6,542 – Families averaged $9,785 FederalSafetyNet.com

6. Safety Net Review Cost to move all Americans out of Poverty - $178 Billion Spent $357 Billion on support for low- income Americans Where did all the extra go? Who got it? FederalSafetyNet.com

7. “Extra” – People above poverty line Examples SNAP – 130% of poverty threshold WIC - 185% of poverty threshold Rental Assistance – 50% of median income in a local area (50% of median income totaled $24,723 for the U.S. as a whole). Conclusion – We are inconsistent in the definition of who is in need. FederalSafetyNet.com

8. “Extra” – People Moved Above Threshold Benefits from programs rarely used in income tests for qualification No maximum number of programs a person can participate in No maximum benefit or cap Very little information on cumulative use of programs Conclusion – We are inconsistent with the support we give to the poor. FederalSafetyNet.com

9. “Extra” – Administrative Costs USDA – SNAP, Child Nutrition, WIC Social Security Administration – SSI IRS – Negative Income Tax HUD - Housing Assistance U.S. Department of Health and Human Services - TANF, Head Start, Child Care and LIHEAP Department of Education - Pell Grants Department of Labor – Job Training Federal Communications Commission - Lifeline FederalSafetyNet.com

10. First Goal – Educate the Public Federal Safety Net must be viewed in whole (All programs combined) Ineffective Expensive Unfair FederalSafetyNet.com

11. Ineffective System traps the poor – doesn’t empower them Doesn’t “Make Work Pay” Penalizes Marriage Doesn’t encourage increased responsibility Doesn’t have time limits or goals “Hand Out” Vs “Hand Up” FederalSafetyNet.com

13. Expensive Combined program costs are high Combined benefits are not calibrated to poverty levels No cap on combined benefits 13 programs run in 8 agencies FederalSafetyNet.com

14. Unfair Programs have no consistency in qualification System is very bureaucratic and hard to use FederalSafetyNet.com

15. Second Goal – Support Welfare Reform Step 1 – Admit we have a problem Step 2 – Address the whole system Step 3 – Define Reform which would include simplification, focus and cost savings (Suggested plan is on the Website) Step 4 – Adopt meaningful change with an act of Congress signed by the President FederalSafetyNet.com

16. Conclusion We know the Federal Safety Net needs fixing We can save billions and help the poor. We need a citizen led effort to affect change Help us spread the word and participate in our grassroots effort! FederalSafetyNet.com