Federal Safety Net “Big Dollars” FederalSafetyNet.com

FederalSafetyNet.com

Federal Safety Net“Big Dollars”

Federal Expenditures – FY 2012In Billions


Defense 902Social Security 779 Medicare 485 Welfare Programs 357 Medicaid 269 Unemployment 109 Interest on Debt 225All other 510

3,796

Federal Welfare ProgramsFY 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 2LIHEAP 3

$ 357


Census Bureau Poverty ThresholdsAnnual 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


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


15%

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?


“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.


“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 capVery little information on cumulative use

of programsConclusion – We are inconsistent with the

support we give to the poor. FederalSafetyNet.com

“Extra” – Administrative CostsUSDA – SNAP, Child Nutrition, WICSocial Security Administration – SSIIRS – Negative Income TaxHUD - Housing Assistance U.S. Department of Health and Human Services -

TANF, Head Start, Child Care and LIHEAPDepartment of Education - Pell GrantsDepartment of Labor – Job TrainingFederal Communications Commission - Lifeline


First Goal – Educate the PublicFederal Safety Net must be viewed in

whole (All programs combined) • Ineffective•Expensive•Unfair


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


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Poverty Level and Welfare Spending Per Person in Poverty

Total Federal Welfare spending including MedicaidPercentage of population in poverty

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


Unfair

• Programs have no consistency in qualification

• System is very bureaucratic and hard to use


Second Goal – Support Welfare Reform

Step 1 – Admit we have a problemStep 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


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!


Documents

Federal Safety Net “Big Dollars” FederalSafetyNet.com