The Application of Federal and State Poverty Related Programs in Southwest Virginia: The Good, the Bad and the Ugly - Mary Beth Dunkenberger

FEDERAL AND STATE POVERTY RELATED PROGRAMS IN SOUTHWEST VIRGINIA:

THE GOOD, THE BAD AND THE UGLY

MARY BETH DUNKENBERGER & HOLLY LESKOVIRGINIA TECH INSTITUTE FOR POLICY AND

GOVERNANCE

Cabell Brand Foundation Poverty Today:

Challenges and Opportunities SymposiumJuly 19th, 2013

State and Federal Programs

Programs to Prevent Poverty and to Increase Incomes of Individual and Families Often referred to as stimulus or step up programs.

Earned Income Tax Credit

Child Care Tax Credit

Unemployment Insurance

Education Grants – Pell Grants, etc.

State and Federal Programs

Programs to Alleviate the Circumstances of Poverty Often referred to as benefit, entitlement or safety net

programs

Medicaid

Temporary Aid to Needy Families (TANF/ VIEW)

Social Security - Supplemental Security Income (SSI)

Supplemental Nutrition Assistance Program (SNAP)

School Lunch Program

State and Federal Programs of Focus

The Quick and Dirty

Medicaid Insurance program for qualifying low-income

individuals or families. Joint state and federal program but operated by the state where coverage may vary.

Temporary Aid to Needy Families (TANF) Federal block grant administered by states targeted to

needy families with children. TANF emphasizes self sufficiency through work participation requirements, benefit time limits, and initiatives to encourage two-parent families.

Supplemental Security Income (SSI) Federal program pays benefits to disabled adults and

children who have limited income and resources.

Once Upon a Time in the West

Once Upon a Time in the West

Once Upon a Time in the West

Source: Virginia Performs

Once Upon a Time in the West

Once Upon a Time in the West

Once Upon a Time in the West

Once Upon a Time in the West

Source: Virginia Performs

Medicaid: A Fistful of Dollars

Fact: Virginia ranks 24th in spending per recipient; and 48th in spending per capita (Virginia Medicaid Innovation and Reform Commission )

Good: Compared with other states Virginia plan has more services covered.

Bad: Virginia plan has limited eligibility criteria, physician reimbursement has historically averaged 50% - 75% of provider cost.

Ugly: No coverage for dental care, only extractions in case of severe infection. Provider shortage in SW Virginia. Cuts to mental health services.

TANF: For a Few Dollars More

Fact: Able-to-work parents receiving TANF, unless otherwise exempted, are required to participate in the Virginia Initiative for Employment not Welfare (VIEW) program. Time limited to 60 total months (24;24;12)

Good: Program provides a range of supports from child care, transportation

Bad: Participation requirements allow little or no time for training and education; limited employment opportunities in SW Virginia.

Ugly: Disincentives to risk move to better jobs, employers cutting hours in advance of ACA requirements; move to require drug testing w/o substance abuse treatment

SSI: The Stage Coach (Not the Destination)

Fact: SSI benefits increased in 2013 to $710 for an individual and $1,066 for a couple. Some States supplement the Federal SSI benefit with additional payments.

Good: Most often those qualifying for SSI also automatically qualify for Medicaid. In Virginia this is a separate process. Work incentives allow individuals to maintain benefits and employment.

Bad: SSI benefits do not alone serve to alleviate poverty. Work incentive supports are fragmented and generally not available in Southwest Virginia.

Ugly: The disabled, even those on SSI, make up the largest proportion of homeless individual's and families.

SSI: The Stage Coach (Not the Destination)

MSA SSI Monthly Payment 9 (2012)

SSI as % of Median Income

% of SSI for 1 bedroom apt

% of SSI for Efficiency apt

NRV $698 17.5% 92% 79%

Roanoke $698 15.6% 129% 121%

National $726 19.2% 104% 90%

True Grit: The Voice of the Individual

http://www.youtube.com/watch?v=rFzCy4mTBsE&feature=youtu.be&noredirect=1

Contact Information

Mary Beth DunkenbergerSenior Program Director/Research FacultyVirginia Tech Institute for Policy and Governance (http://www.ipg.vt.edu/)School of Public and International Affairs 205 West Roanoke StreetBlacksburg, VA [email protected]