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5 FUNDAMENTALS OF TANF

February 21, 2012

Filed under: Budget & Tax,Income & Working Families — Tags: low-income children, Mississippi, Poverty, SNAP, TANF — admin @ 8:59 AM

On the national level, there continues to be discussion over the ability of social assistance programs to insulate families from unemployment, underemployment and periods of economic hardship during the economic downturn. A recent Mississippi Public Broadcasting segment explains that many areas of Mississippi have seen increased enrollment in SNAP (formerly food stamps) among families that have never before applied for benefits.

Temporary Assistance for Needy Families (TANF) likewise provides emergency assistance to families with children to cover basics like rent, transportation, food or utilities. The TANF program supplies temporary cash welfare to very low-income families with children that are facing a financial emergency. Today’s post highlights key information on TANF eligibility, enrollment and benefits.

5 FUNDAMENTALS OF TANF IN MISSISSIPPI

Eligibility. In Mississippi, a family with one adult and two children earning less than $458 per month is eligible for TANF assistance. Eligible families must meet work and job search requirements during their participation in TANF. Like most states, Mississippi has a 60-month lifetime limit on family eligibility for TANF benefits.

Enrollment. In late 2011, 12,272 families received support through TANF. Very low-income children make up the bulk of TANF recipients, representing 71% of the overall caseload.

TANF and Poverty. In 2010, 643,880 residents lived in poverty while 25,301 were enrolled in TANF. The TANF caseload equaled 3.9% of the state’s residents living in poverty. Nationally, the number of individuals receiving TANF is the equivalent of 9.5% of individuals living below the poverty line.

TANF and the State Budget. In FY 2010, TANF payments represented 0.1% of the state budget. Mississippi distributed $20 million in TANF support in FY 2010, the bulk of which comes from federal funds.

Benefit Levels. Fourteen states have TANF benefit levels below $300 per month for a family of three. Mississippi is one of these states, and as the chart below shows, Mississippi’s benefit level for a family of three is $170 a month, the lowest in the nation.

The recession brought an uptick in recipients as families turned to TANF during periods of unemployment. However, TANF benefits now cover a smaller share of critical family needs, such as housing or utilities than they did in the late 1990s. As the state and nation continue to face a strained budget environment, it remains important that resources are protected from programs like SNAP, TANF or child care vouchers.

These programs and others that make up the social safety net are instrumental for many families struggling to make ends meet while working hard across Mississippi.

Author: Sarah Welker, Policy Analyst
Sources: U.S. Department of Health and Human Services, Mississippi Department of Human Services, Center on Budget and Policy Priorities, and Urban Institute’s Welfare Rules Data Book.

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State of Working Mississippi 2012 Chapter 5: ADVANCING TO A STRONGER WORKING MISSISSIPPI

February 10, 2012

Filed under: The State of Working Mississippi 2012 — Tags: affordable housing, basic skills education, consumer protections, GED, higher education, income tax, low-wage jobs, Mississippi, sales tax base, sector initiatives, unbanked, wealth building — admin @ 9:02 AM

After looking at the first 4 chapters of The State of Working Mississippi 2012, we have come to the final chapter. Chapter 5 focuses on recommendations.

Mississippi’s labor force remains one of the state’s greatest assets. However, the last ten years have made many Mississippi workers and their families feel less secure.

As Mississippi’s economy, jobs and workforce recover from the two recessions of the last decade, the state has the opportunity to ensure that all employers, workers and families can advance and prosper.

To this end, a variety of strategies can be implemented statewide through the state’s leadership in the private, public and non-profit spheres.

♦INCREASE EMPHASIS ON REGIONAL SECTOR INITIATIVES
Employers need skilled workers and access to quality training for their current employees. The state’s workforce also needs training to access employment with sufficient wages. Mississippi has already experienced success through sector initiatives, but a greater emphasis and more resources are needed. Further developing these efforts with state support can connect more working adults with the training and wrap-around support services they need to raise skills and gain higher wage employment.

♦KEEP POST-SECONDARY EDUCATION AFFORDABLE
Ensuring that tuition is affordable for all students is becoming increasingly important for keeping the doors of higher education open to the state’s workforce and recent high school graduates alike.

♦SUPPORT WEALTH CREATION AND ASSET BUILDING
Building assets and saving for higher education, emergencies and homeownership are important tools for growing wealth and creating income mobility across generations. Making more alternatives to high cost financial services available, strengthening consumer protections, enhancing access to financial education and connecting more unbanked families with financial institutions can all help increase wealth building among Mississippi’s households.

♦BUILD A PIPELINE FROM BASIC EDUCATION TO COLLEGE COURSES
The state stands to gain from better connecting basic skills education, GED preparation, workforce training and college courses. Improving the design of courses, so they stack in pathways from basic skills to post-secondary training, can advance more working adults without a high school degree onto a path to job opportunities with higher wages.

♦STRENGTHEN WORK SUPPORTS
For many adults, working full-time is not enough to provide for all the basic needs of their families. Adults in low-wage jobs need a variety of work supports to make ends meet. To assist these families, Mississippi needs to increase funding for affordable housing, childcare and energy assistance. Doing so helps ensure that parents can work and provide a safe, healthy environment for their families.

♦RESTORE PUBLIC STRUCTURES BY REFORMING TAX SYSTEM
Public investments should provide a quality education for all students, a healthy workforce and an infrastructure for business development that creates more jobs with quality wages. Ways to increase revenue, including adding new brackets to the income tax, closing corporate loopholes, and broadening the sales tax base to include more services, need to be considered to lift Mississippi and its workforce to greater economic competitiveness

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State of Working Mississippi 2012 Chapter 3: INCOME and POVERTY

February 7, 2012

Filed under: Income & Working Families,Poverty,The State of Working Mississippi 2012 — Tags: affordable housing, disparities, income, median household income, Mississippi, Self-Sufficiency — admin @ 9:14 AM

MEPC’s State of Working Mississippi 2012 series continues with a look at household income over the decade from chapter 3. A post on key findings from chapter 2 illustrated that wages have not changed substantially, and a lack of change in wages relates directly to trends in household income.

Across the Mid South, households earned lower median incomes than did U.S. families overall, but changes from the beginning to the end of the decade were not the same for states around the region. Mississippi households have consistently had less income than households in neighboring states.

After falling from 2000 to 2004, Mississippi’s household income fluctuated around $37,000 for the rest of the decade. Mississippi’s household income of $36,851 in 2010 was $4,500 less than in 2000. Louisiana was the only state in the region to experience an increase in median household income over the decade.

In Mississippi, median household income varies considerably by race. While families of all demographics are having a hard time making ends meet in the current financial climate, a larger portion of African- American households struggle to cover all their basic needs and build wealth for long-term economic security. Income for white households ($46,799) was close to twice the median income for African- American households ($24,838) in the late 2000s.

Hear Ed Sivak, MEPC’s director, speak about disparities in income and employment by race on MPB’s Morning Edition radio interview.

RECOMMENDATION

ENSURE EMPLOYMENT-BASED BENEFITS KEEP FAMILIES HEALTHY AND SECURE

Adults in low-wage jobs that are part-time, seasonal or lack employer-sponsored benefits like health insurance or sick leave will often struggle to meet the needs of their families while working. For many families living below economic security a wide range of work supports are necessary to elevate families toward greater security. Programs and funding dedicated to providing affordable housing, health care, and child care are critical to move people along the path towards basic econnomic security and beyond.

Author: Sarah Welker, Policy Analyst

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HOUSE COMMITTEE REPORT: Community College Appropriations

February 3, 2012

Filed under: College,Education — Tags: Adult Basic Education, community college, Community College Board, Dropout Recovery Funds, Eric Clark, GED, House Appropriations Committee, Mid-Level Funding, Mississippi, student — admin @ 9:41 AM

On February 1^st, the House Appropriations Committee heard testimony from the Mississippi Community College Board as they made funding requests for FY2013. Dr. Eric Clark, the Community College Board’s Executive Director, noted that the trend of growing enrollment and additional financial need continues for the colleges and across the education spectrum. Dr. Clark noted the colleges “can’t do more with less indefinitely.

The chart below illustrates that both colleges and universities have seen growth in full-time enrollment since FY2000 and declines in per-student funding.

MID LEVEL FUNDING
The community college leadership outlined two critical priorities in the hearing. First, to advance toward the Legislature’s Mid-Level Funding formula that promises to fund community colleges at the mid-point between per student funding at universities and K-12 schools.

To advance in full to Mid-Level Funding the colleges would need an additional $154 million above prior year funding, but the colleges’ final request is to move to ½ that amount- equal to a request of an additional $77 million in FY2013. Neither the Legislative Budget Recommendation nor the Executive Budget Recommendation includes increases in funding for community colleges.

CRITICAL REQUEST: DROPOUT RECOVERY FUNDS
Importantly, the Community College Board also asked the committee to increase the annual appropriation for Dropout Recovery Funds. Dropout Recovery Funds are resources to enhance the delivery of Adult Basic Education and GED courses offered on the 15 community college campuses.

The goal of additional resources is to increase the number and success of students enrolled in GED preparation, increase support services –child care, tutoring, transportation, mentoring- and integrate job skills into GED curriculums.

In total, the Board is asking for $11.5 million to enhance the delivery of ABE/GED programs, promote more students to college-readiness and equip them with the skills they need to enter and succeed in the workforce.

Dropout Recovery Funds represents an opportunity for Mississippi to raise the job skills, college-readiness, and employment outcomes for the 350,000 adults over 25 years old in the state without a high school credential. In an environment where Mississippi still has unemployment above 10%, adults without a high school degree are disproportionately likely to enter periods of unemployment.

Finding the resources to support efforts such as those proposed through Dropout Recovery Funds should be a priority.

Author: Sarah Welker, Policy Analyst

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Governor Bryant Releases FY 2013 Executive Budget Recommendation

February 2, 2012

Filed under: Budget & Tax — Tags: appropriations, budget, Department of Revenue, Governor Bryant, legislature, MAEP, Medicaid, Mississippi, Mississippi Adequate Education Program, schools districts, smart budget act, State Personnel Board, taxes — admin @ 8:26 AM

Earlier this week, Governor Bryant released his Executive Budget Recommendation for FY 2013. The budget is to provide guidance as the legislature creates the budget.

It will be considered by the legislature in addition to the Joint Legislative Budget Committee’s recommendation and Governor Barbour’s recommendation that was released last Fall.

Bryant’s budget has some good elements as well as some proposals that bring cause for concern. The key components of Governor Bryant’s recommendation are below:

Small Increase for Department of Revenue
Bryant recommends a small $5million increase for the Department of Revenue to fund auditors who will collect more in taxes. It is estimated that the $5 million increase will bring in over $10 million in revenue owed to the state. However, even with the increase, the Department is still recommended for funding at a level below even FY 2011 levels.

Reduced Use of One Time Funds and No New Revenue
Bryant recommends reduced use of so called “one time” special funds for recurring budget items. This budgeting recommendation would make budgeting more straightforward. However, Governor Bryant is opposed to raising taxes and would make up for the reduction in funds with a cuts-only approach.

Lump Sum Authority and State Personnel Board Waiver
Bryant recommends that agencies be given “lump sum” appropriations. Currently, funding is granted with certain amounts provided for specific budget line items, like personnel, travel, equipment , etc. “Lump Sum” appropriations would allow agencies to move funds across budget categories without legislative approval. Waiving State Personnel Board protections would allow agency directors to make personnel changes regardless of an employee’s state service status. State Personnel Board protections promote a public sector work environment free from undue political influence.

Implement Performance Based Budgeting
Bryant recommends passage of the Smart Budget Act which would incorporate Performance Based Budgeting. For more information about Performance Based Budgeting see MEPC’s recent blog series on the subject.

Keep Medicaid Funding Level Despite Projected Increase in Participants
Governor Bryant recommends level funding for Medicaid. However, more participants will likely necessitate either cuts in services provided or cuts to reimbursement rates for providers.

Cuts for Education
Governor Bryant recommends a $72.9 million reduction in state funds for the Mississippi Adequate Education Program. Both Governor Barbour’s and the JLBC budget recommended level funding for MAEP. None of the budgets recommend full funding for the formula that allocates state funding across the state’s school districts. Bryant explains the reduction by suggesting that school districts use their own reserve funds to make up for the cut. School district fund balances are used for cash flow throughout the district’s fiscal year due to irregular funding schedules and for capital expenses. Furthermore, the amount held by schools districts vary greatly from district to district. Intending to address this concern, the Governor recommends only $6 million for an emergency loan fund for school districts with inadequate reserves.

While some of Bryant’s recommendations would improve revenue collection and make the budget process more straightforward, many of the recommendations would continue the “cuts-only” approach of the last administration. A balanced approach that includes new revenue would help the state invest in education and workforce development—both important for the state’s prosperity in the future.

Author: Sara Miller, Senior Policy Analyst

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Budget Reform with Performance Based Budgeting, Part Two

January 31, 2012

Filed under: Budget & Tax,Budget Reform,Performance Based Budgeting — Tags: budget, evaluate performance, funding decisions, Mississippi, performance based budgeting, programs, public programs, smart budget act, tax, tax expenditures — admin @ 8:17 AM

Last week, in part one of our examination of budget reform, we discussed some of the basics of Performance Based Budgeting. This week, we will outline some concerns about the how Performance Based Budgeting might be implemented.

Performance Based Budgeting aims to collect and evaluate performance data on programs and use that data to inform funding decisions. However, its effectiveness much depends on how a program’s performance is defined and how the data collected are used.

First, the standards by which public programs are measured should be crafted with public input and with acknowledgement of the outside factors influencing their results.

By their very nature, state agencies deal with complex problems, often with multiple influencing factors and without easy ways to measure results.

Second, budgeting decisions should continue to be based primarily on public needs and priorities.

While the budget process is not always smooth, the reason budget decisions are made by our legislature is because they reflect the priorities of the public through representative government. The most “successful” programs may not be the priority programs or vice versa. Would one want to cut public safety spending, because the crime rate went up?

Third, after years of budget cuts, how does one account for the chronic underfunding of programs contributing to an agency’s shortcomings?

Many programs have had year after year of budget cuts. The Mississippi Adequate Education Program is in line to be underfunded by about $1 Billion since it was last fully funded in 2008. Responsible implementation of Performance Based Budgeting would take into account lower funding levels and their impact on a program’s performance.

Finally, Performance Based Budgeting, if implemented, should be applied to all state programs, including those administered through the tax code, like economic development tax breaks.

Performance Based Budgeting is designed to judge the effectiveness of programs funded through the appropriations process. However, tax expenditures and incentives should also be reviewed for their effectiveness. They are enacted for a public purpose but are not regularly reviewed and in most cases data are not available to the public about how they are used.

Performance Based Budgeting can be used to inform the budget process and to improve budget transparency. It should not however replace public budget deliberations that take into account the needs and priorities of the people.

In the final post from this three part series, we will look at how Performance Based Budgeting is being used in other states.

Author: Sara Miler, Senior Policy Analyst

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State of Working Mississippi 2012 Chapter 2: WAGES

January 30, 2012

Chapter 2 of MEPC’s latest State of Working report reveals that many members of the state’s workforce have not seen an improvement in their wages during the last ten years as employers and businesses were hit hard by two economic downturns, and state and local budgets tightened.

The table in this post looks at median wages –or the middle wage- for Mississippi workers at the beginning and end of the decade. All Mississippi wages have been adjusted for inflation and are in 2010 dollars.

WAGES BY EDUCATION, GENDER AND RACE

Overall, median wages for Mississippi workers changed by $0.32 over the decade from $13.13 in 2000 to $13.45 in 2010. Mississippi’s median wage falls below Southern norms. Wages for different education levels show that increases in educational attainment lead to wage gains particularly for adults that pursue post-secondary education and college.

In 2010, the median wage for men was $14.29 compared to $12.75 for women. The gap between men’s and women’s wages remains; however, it narrowed in Mississippi between 2000 and 2010. In 2000, the median wage for women equaled 71% of men’s wages and by 2010 median wages for women equaled 89% of their male counterparts. While women’s wages advanced over the decade, two economic downturns and job loss in traditionally male-dominated industries like manufacturing contributed to the reverse effect in men’s wages.

In contrast, wage disparities between white and African-American workers have persisted at a similar level for two decades. The median wage for white workers was $15.66 in 2010 while the median wage for African-American workers was $11.02. In 2000 and 2010, wages for African American workers measured approximately 70% white workers.

RECOMMENDATIONS

Over the last decade tuition at community colleges and universities has increased more rapidly than the small change in hourly wages for Mississippi workers. As a result, the cost of a college education now takes up a larger portion of a family’s income than it did in 2000. The rising cost of college education makes it harder for Mississippians to climb the economic ladder.

Keeping the post-secondary education affordable should remain a priority as the state makes critical decisions through the budgeting process. Mississippi needs a balanced approach that includes raising revenue instead of a cuts only approach that may threaten access to higher education.

The next State of Working Mississippi 2012 blog will feature findings on income and poverty from Chapter 3.

Author: Sarah Welker, Policy Analyst

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State of Working Mississippi 2012 Chapter 1: JOBS

January 26, 2012

The release of MEPC’s State of Working Mississippi 2012 reveals that the 2000s challenged many Mississippi businesses, as well as working adults and their families. Chapter 1 of the report details trends in the state’s workforce, jobs and unemployment.

CHANGE IN EMPLOYMENT BY DECADE

Mississippi’s job losses in the 2000s appear particularly harsh when compared to the growth of the 1990s (see chart). Mississippi’s employment grew by 23.2% during the 1990s, in contrast to a 5.5% decline in the 2000s. The South experienced similar trends of strong job growth during the 1990s; however, the region did not experience the same level of overall decline in the last decade.

The latest data reveals that Mississippi was one of four states with an unemployment rate still above 10% in December 2011.

SHIFTS IN EDUCATIONAL ATTAINMENT AND AGE OF WORKFORCE

The percentage of workers with at least a bachelor’s degree rose to 22.8% during the decade, and 57.1% of the workforce has taken at least some college coursework. Even with gains, the state’s portion of adults with college experience registers below national norms (60.5%). Overall, more than 350,000 working-age adults still lack a high school diploma and college experience.

Older adults now represent a larger share of Mississippi’s workforce. Throughout the economic downturn in the late 2000s, many Americans delayed retirement to build economic security after suffering financial losses. In 2000, 13.3% of Mississippi workers were age 55 or over. By 2010, 18.7% of Mississippi’s labor force was at least 55 years old. In contrast, younger Mississippians now represent a smaller share of the state’s workforce.

RECOMMENDATION: (For full recommendations see complete State of Working 2012).

Increase wrap around supports for adults in adult basic education, job training and post-secondary courses. Strong wrap-around support services are critical for adults returning to school with the hope of gaining skills and moving into higher wage employment. Without these resources, even the strongest students will struggle to meet both the needs of their families and the demands of training. Examples of supports include: transportation vouchers, child care and staff dedicated to helping adults in adults basic education and GED programs transition to college-level classes.

Tomorrow: The SOW 2012 series continues with a closer look at wages by race, gender and educational attainment.

Author: Sarah Welker, Policy Analyst

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INTRODUCING THE STATE OF WORKING MISSISSIPPI 2012

January 25, 2012

Many communities across Mississippi continued to experience persistently high unemployment and underemployment, stagnant wages and economic insecurity. However, the state’s workforce remains resilient and continues to be one of the state’s greatest assets. Understanding how workers, industries and families have been affected over the last decade can lay a foundation for building up the workforce in the years ahead.

MEPC’s latest report, State of Working Mississippi 2012 is a comprehensive piece that looks at key aspects of the economy affecting Mississippi’s workforce from 2000 to the present. Specifically the report:

Inspects changes in critical areas of Mississippi’s economy since 2000 including: jobs, the workforce, wages, income, and state revenue.
Compares information in these areas with trends nationally and among Mid South states.
Examines each of these areas through the lens of race, gender and educational attainment.
Summarizes key takeaways and makes recommendations in each chapter for advancing working Mississippians and their families.

SELECT FINDINGS FROM STATE OF WORKING MISSISSIPPI 2012

TWO RECESSIONS RESULT IN JOB LOSS OVER THE DECADE

In Mississippi, employment peaked in February 2008 and then steeply declined until February 2010. In total, Mississippi lost 76,800 jobs over the two-year period. Mississippi’s job losses in the 2000s appear particularly harsh when compared to the prosperity of the 1990s. Mississippi’s employment grew by almost 25% during the 1990s, in contrast to a 5.5% decline in the 2000s. The Southern region and the United States experienced similar job growth during the 1990s; however, neither the South nor the nation experienced the same level of overall decline in employment in the 2000s.

MISSISSIPPI WORKERS EXPERIENCE LITTLE CHANGE IN WAGES

Many members of the state’s workforce have not seen an improvement in their wages since 2000, as companies were hit hard by two economic downturns, and state and local budgets tightened. The inflation-adjusted median wage in Mississippi grew marginally from 2000 to 2010, from $13.13 to $13.45. The gap between men’s and women’s wages narrowed over the decade, while the wage gap between white and African American workers persisted from 2000 to 2010.

WORKFORCE ADVANCES IN EDUCATIONAL ATTAINMENT

Mississippi’s workforce advanced in educational attainment over the decade, but needs to raise skill levels further to reach national norms. In 2000, 20.8% of the workforce received a bachelor’s degree or higher compared to 22.8% in 2010. Overall 57.1% of the state’s workforce has taken at least some college classes. However, over 350,000 working-age adults still lack a high school degree, and the share of workers without high school equivalency is larger in Mississippi than in the U.S.

Over the next several days we will take a closer look at the key findings and recommendations from each chapter of the report.

Author: Sarah Welker, Policy Analyst

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Budget Reform with Performance Based Budgeting

January 24, 2012

Filed under: Budget & Tax — Tags: budget, Mississippi, performance based budgeting, smart budget act — admin @ 8:01 AM

With the beginning of the legislative session and change in executive leadership, there has been renewed talk of state budget reform. Budget reform is necessary to improve the transparency of the process and to increase budget accountability.

One proposed reform includes Performance Based Budgeting. Performance Based Budgeting reforms aim to use data about the effectiveness of programs to inform budget decisions. Performance Based Budgeting can accomplish some of these goals. Budgeting is complicated, however, and any reform should be made with care.
In this three-part blog series on Performance Based Budgeting, we will delve into those issues. In part one we will go over a few basics about Performance Based Budgeting.

Performance Based Budget reforms seek to collect and evaluate performance data on programs and use that data to inform funding decisions. There are a wide range of budget reforms that can fall under a performance based budgeting system.

According to the National Association of State Budget Officers, twenty five states use some kind of performance budgeting. Mississippi currently collects some performance information that is reported by state agencies to the Joint Legislative Budget Committee annually on their agency budget request.

Last year, the State Senate passed the Mississippi Smart Budget Act (SB 2301) that would have implemented some performance based budgeting reforms. However, the bill was not passed in the House. It is likely that a similar bill will be introduced during this legislative session.

The next blog post in this series will explore some challenges to the implementation of effective Performance Based Budgeting and some concepts/questions that should be considered if it is to be implemented in a constructive manner.

Read my opinion piece on this in the Hattiesburg American.

Budget Reform with Performance Based Budgeting, Part Two

Author: Sara Miller, Senior Policy Analyst

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