Why Policy Matters to Southeast Michigan

July 10, 2013, 10 a.m.

Gilda Z. Jacobs, President & CEORenell Weathers, Outreach Director

Why Policy Matters to Southeast Michigan

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1223 Turner St. Suite G-1, Lansing, MI 48906-4369 (517) 487-5436Fax: (517) 371-4546 Web site: www.mlpp.org

A United Way Agency 2

The League is a nonprofit, nonpartisan research and advocacy organization dedicated to economic opportunity for all in Michigan.

The Community Foundation for Southeast Michigan is a permanent community endowment that works to improve the quality of life in Southeast Michigan by connecting those who care with causes that matter.

The Jewish Fund The Jewish Fund was established in 1997 from the proceeds of the sale of Sinai Hospital to the Detroit Medical Center. The Jewish Fund continues the tradition of assuring excellent and compassionate care for those in need in Metropolitan Detroit through its annual grantmaking.

The Council of Michigan Foundations is a nonprofit membership association of more than 350 grant-making organizations working together to strengthen, promote and increase philanthropy in Michigan.

Used with permission3

• Child poverty in region up by 28%• Detroit has most concentrated

poverty of 50 largest cites• Unemployment in region higher

than before Great Recession

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SE Michigan families struggle long after Great Recession receded

A decade of disinvestment

-30%

-15%

0%

15%

30%

45%

60%53%

21%

-7%-0.8% -5%

-29% -25%

16%7%

Perc

ent C

hang

e

Change in DetroitCPI FY 2003-FY 2013: 21%

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The (wrong) solutions

• Cut business taxes

• Raise taxes on working poor

• Cut programs for kids and families

• Disinvest in education

• Fight Obamacare

• Sequestration…. 6

The cost of not expanding Medicaid

0%

10%

20%

30%

40%

50%

Wayne Oakland Macomb Livingston Monroe St. Clair Washtenaw

47%

38% 38%34%

38%41%

45%

Percent of Uninsured In SE MI That Would Be Covered with Medicaid Expansion

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• Without expanded Medicaid, many women will not get needed preconception care.

• Infant mortality reduction plan remains underfunded at $2 million in FY14.

Infant Mortality

Michigan7.1 deaths per

1,000 live births

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$132(201)

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$132(201)

Many children still can’t

visit dentists

• 442,000 children now covered in 75 of MI’s 83 counties.

• Only five counties are not covered including Oakland, Macomb, and Wayne counties.

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Poverty in Michigan

20.7%

8.6% 8.3%5.9% 6.8%

12.3% 12.7% 14.0%

25.9%

11.1%

14.3%

6.5%

12.2%

15.9% 16.9% 17.5%

0%

5%

10%

15%

20%

25%

30%

Wayne Oakland Macomb Livingston Monroe St. Clair Washtenaw Michigan

2007 2011

25% 29% 72% 10% 79% 29% 33% 25%PercentChange

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Poverty in SE Michigan

0%

10%

20%

30%

Total Poverty Child Poverty

13.7%

20.0%17.8%

25.7%

2007 2011

Source: American Community Survey, U.S. Census Bureau

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Overall ranking in child well-being

County RankLivingston 2Oakland 5Washtenaw 6Monroe 16Macomb 18St. Clair 33Wayne 76

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Average monthly

recipients for all public

assistanceprograms

FY 12

Michigan$148.9 million

1.1 million people

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Cash Assistance caseloads in SE MI

31,610

4,385

272

4,037811 1,055 1,275

20,566

2,955172

3,210447 673 769

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Wayne Oakland Livingston Macomb Monroe St. Clair Washtenaw

2010 2013 83,085

54,161

0

20,000

40,000

60,000

80,000

100,000

2010 2013

Michigan

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Average number of households

receiving food

assistance in SE MI

49.7% of all Food Assistance Program cases are in these seven

counties

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Median Household Incomein SE Michigan

$42,470

$66,483

$55,101

$70,735

$53,750

$45,873

$61,049

$47,950

$38,479

$61,888

$50,891

$67,441

$53,744

$45,676

$56,612

$45,981

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Wayne Oakland Macomb Livingston Monroe St. Clair Washtenaw Michigan

2007 2011

-9.4% -6.9% -7.6% 4.7% 0.0% -0.4% -7.3% -4.1%PercentChange

Adjusted for inflation

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SE Michigan Unemployment Rate

7.3%8.4%

14.4%13.3%

11.0%10.0%

2007 2008 2009 2010 2011 2012

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The Big Tax Shift

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Taxes on Businesses CUT

83%

Taxes on Individuals UP23%

$132(201)

EITC losses for families

in SE Michigan

total $125

million

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$132(201)

Michigan2011: $353,494,0822012: $106,048,225

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Tax policy changes hurt

Food Bank Council of Michigan20

SE Michigan sequester fallout

Automaticacross-the-board cuts

Head start, education, healthcare, job training

21,000 kids losing clothing allowance

for one year21

Changes since 2010• 48-month lifelong limit on cash assistance.• Asset test added to limits on who can receive food assistance. • Annual clothing allowance rules tightened for kids on cash assistance• Clothing allowance eliminated in FY13• Unemployment benefits reduced• Cash assistance cut to parents of truants• Pending bill to reimburse the department if they’ve won more than $600 from the Michigan

Lottery in the past decade• Pending legislation would mandate public assistance applicants or clients undergo testing if

they’re suspected of drug use. Those testing positive would have to undergo treatment to keep their benefits.

• New legislation would create an asset test to further limit the number of parents qualified for public-funded child care.

• The state Earned Income Tax Credit rate was dropped last year to 6 percent of the federal rate, down from 20 percent.

• The homestead property tax credit, also a state income tax write-off, was reduced.• A $600 per-child state income tax exemption was eliminated. It applies to everyone, but hits

low-income people the hardest.• Charitable tax deductions were eliminated, causing a drop in donations to food banks,

homeless shelters and other resources for the poor. 22

Policy changes impact SE MI

ANNUAL LOSS OF ASSISTANCE:

= $82.2 Mil = $53.6 Mil

TOTAL = $135.8 million each year for region

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Education matters

• State has cut $1.6 billion a year in spending over the last decade

• Half came from education

• Good news: $65 million for preschool

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ORType your question in the webinar tool box.

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• Put it in writing

• Make a call

• Put in face time

• Build a relationship

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Advocacy tools

• Friends• Title or position• Information• Numbers• Constituents• Money

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What influences decision makers

Voices Leadership Training Michigan's Children

Voices Leadership Training Michigan's Children

Fur Affection

Costliness

Sneezing

Shedding

Kitty LitterCleanliness

Cat Food

Vets

Cat frame

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“When you need a friend, it’s too late to

make one.”—Mark Twain

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Tips

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Form emails

Form letters

Phone calls

Individualized emails

Individualized letters

In-person meetings

0% 20% 40% 60% 80% 100%

A lot ofinfluence

Someinfluence

No influenceat all

Influence of Advocacy Communications on Legislators

Source: Congressional Management Foundation

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o Learn if you need to be a registered lobbyist, and if you do, register to be a lobbyist and become an active participant in impacting policy decisions.

o Registration handled by the Michigan Secretary of State’s office - http://www.michigan.gov/sos/.

Know the rules

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No No's• Nonprofits classified 501(c)(3) cannot endorse,

contribute to, coordinate with, or align in any way with candidates or political parties.

• Nonprofits may not lobby using government funds.

When in doubt…• As an individual, you are entitled to engage in

unlimited lobbying and political activity, provided you do so on your own time without using nonprofit assets.

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• The Michigan League for Public Policy is here as a resource to you as you advocate for low-income Michigan residents

• Sign up for our Budget Briefs series at www.mlpp.org

• Join the Prosperity Coalition• Access the League’s advocacy trainings

We can help!

1223 Turner St. Suite G-1, Lansing, MI 48906-4369 (517) 487-5436Fax: (517) 371-4546 Web site: www.mlpp.org

A United Way Agency34