Congress Should Preserve SNAP Policies That Help States Shield More Families From Hunger

June 19, 2013

The federal Supplemental Nutrition Assistance Program (SNAP) — called CalFresh in California — provides food assistance to more than 4 million low-income Californians, mainly families with children. At a modest $1.63 per person per meal, CalFresh benefits have helped many households put food on the table during difficult economic times. Unfortunately, changes currently under consideration at the national level could weaken this critical resource for struggling California families.

Congressional efforts to reauthorize the Farm Bill — the package of legislation that, if passed, will set much of the nation’s agriculture and nutrition policy for the next several years — have picked up steam in recent weeks, and both the House and the Senate versions of the bill would make large cuts to SNAP. One proposed change included in both bills would restrict the flexibility that states now have in administering SNAP, thus scaling back or eliminating program features that have helped California to respond to high poverty and unemployment in the wake of the Great Recession. On top of any new cuts that occur, an already scheduled across-the-board reduction in benefits will affect all SNAP recipients starting November 1, costing a household of four approximately $25 a month in lost benefits — the equivalent of about half a month’s worth of meals over the course of a year.

The Senate’s version of the Farm Bill, which passed on June 10 with bipartisan support, contains about $4.1 billion in cuts to SNAP. The bill would impose restrictions on state “Heat and Eat” policies, which enhance SNAP assistance for families who also participate in the federal Low-Income Home Energy Assistance Program (LIHEAP). In addition to boosting benefits for many households, the Heat and Eat option helps states simplify paperwork and reduce administrative costs. California’s Heat and Eat policy went into effect January 1, 2013 and would be affected by the proposed change. Nationwide, it is estimated that the Senate bill’s cuts would reduce SNAP food assistance for 500,000 households by an average of $90 per month.

The House version of the Farm Bill, which is being debated this week, would have even more damaging repercussions for low-income families living with food insecurity. This bill would cut about $21 billion from SNAP, causing nearly 2 million people nationwide to lose benefits. The House version, like the Senate’s bill, includes restrictions on the Heat and Eat policy, but on a larger scale, affecting approximately 850,000 households. It would also impose a number of other restrictions. Most notably, the House bill would eliminate the “broad-based categorical eligibility” option, which over 40 states — including California — have used to broaden SNAP eligibility to more families in need, particularly low-income working families with high child care and housing costs.

The House bill would also cut funding for nutrition education, end SNAP incentive payments to states for improving program administration, and cause more than 200,000 low-income children to lose access to free school meals. On Monday, the White House issued a statement that the President would veto the House version in its current form, pointing out that the bill takes too much from programs like SNAP that prevent hunger and does not include needed reforms to crop insurance subsidies.

One in six California households have difficulty affording a nutritionally sufficient diet. CalFresh has proved critical in softening the harshest effects of hunger, particularly for children — who make up nearly three-fifths of CalFresh recipients. Researchers examining the impact of early childhood access to SNAP benefits (formerly known as food stamps) have found that those who participated in the program have significantly better outcomes as adults in terms of health, educational attainment, earnings, and self-sufficiency.

As Congress shapes the direction of the nation’s agriculture and nutrition policy for the coming years, federal policymakers should preserve states’ ability to connect more families with SNAP and augment the amount of food assistance households may receive. This is especially important for states — like California — that are still struggling with high poverty and unemployment after the deepest economic downturn in generations.

— Hope Richardson


Expert on Civic Engagement to Keynote Annual Conference — Don’t Miss Early Bird Registration

February 14, 2013

The next several days are your last chance to sign up for the CBP’s annual policy conference on March 14 at the early bird rate of $90 — a savings of nearly 30 percent. Register online or by faxing or mailing the form in the conference brochure.

Our 2013 conference — Turning the Corner: Restoring Balance and Reinvesting in California’s Future — will be a wide-ranging and information-packed event with discussions about the key questions and challenges the state must address moving forward. Register on or before next Tuesday, February 19, to receive the early bird discount. After the 19th, registration increases to $125.

We are very pleased to have Carolyn Lukensmeyer, executive director, National Institute for Civil Discourse, providing our conference keynote. Carolyn is a long-time advocate for civic engagement and civil discourse. She previously served as founder and president of AmericaSpeaks, an award-winning organization that promotes nonpartisan initiatives to engage citizens and leaders through the development of innovative public policy tools and strategies. Carolyn’s luncheon keynote, “Putting the ‘Civil’ Back in Civil Discourse: Creating a Shared Vision for Our Future,” will examine political polarization in the debates surrounding fiscal policy, immigration reform, and other timely issues.

Here’s Carolyn speaking at the 2012 annual conference of the National Coalition for Dialogue & Deliberation last October. Her plenary talk discussed ways of building the foundation for a healthy, inclusive policy debate.

We hope you can join us on March 14. For additional information or if you have any questions, contact the CBP at cbp@cbp.org or (916) 444-0500.

— Steven Bliss


New CBP Report: Congress Should Maintain States’ Flexibility To Expand SNAP Food Assistance

August 13, 2012

A new CBP analysis examines deep cuts that Congress is considering making to the federal Supplemental Nutrition Assistance Program (SNAP, formerly food stamps). Known as CalFresh in California, this program provides food assistance to nearly 4 million low-income individuals across the state, over three-fifths of them children. The need for food assistance has increased due to the Great Recession and its aftermath. Since mid-2007, when the economic downturn started in California, CalFresh enrollment has risen steadily and nearly doubled.

As part of the reauthorization of the federal Farm Bill, the US House of Representatives is considering slashing SNAP funding by more than $16 billion over the next 10 years, largely by eliminating the flexibility that states have to broaden SNAP eligibility to more low-income working families. This change would end SNAP food assistance for roughly 2 million to 3 million low-income individuals in 40 states, including California.

The cuts under consideration in the House would jeopardize improvements that California has made – or is considering making – to CalFresh. For instance: as we’ve blogged before, a bill now in the Legislature – AB 1560 – would bring more low-income individuals into CalFresh by both simplifying eligibility rules and creating a direct link between CalFresh and the Medi-Cal Program. The proposed House cuts to SNAP would prohibit this effort to expand access to CalFresh and would reduce nutrition assistance at the worst possible time: with many families still struggling in the wake of the worst economic downturn since the Great Depression.

– Steven Bliss


A Federal Balanced Budget Amendment Would Threaten the Economy and Force Deep Program Cuts

November 18, 2011

To Californians accustomed to hearing about big budget challenges in Sacramento, debates in Washington, DC, over how to balance the federal budget may seem unconnected to our daily lives. In fact, federal budget decisions have a significant impact on the Golden State. Federal dollars support an array of programs and services that touch the lives of all Californians, as we show in our new Policy Basics. For example, of the more than $330 billion in federal funds spent in California in federal fiscal year 2010 – which ended September 30, 2010 – more than one-third (36 percent) paid for Social Security and Medicare benefits, and another 12 percent supported an array of programs that provide assistance to millions of Californians, such as unemployment insurance (UI), CalFresh food assistance, and veterans benefits.

The importance of federal spending in California helps put into perspective the debate in the House of Representatives this week over whether to amend the US Constitution to require a balanced federal budget each year. While the balanced budget amendment (BBA) was defeated in the House today, the Senate is required to vote on the BBA by the end of the year as part of the “debt-ceiling” deal reached in August. A BBA “would threaten significant economic harm,” according to a recent report by the Center on Budget and Policy Priorities (CBPP). Why? Because it “would force policymakers to cut spending, raise taxes, or both just when the economy is weak or in recession – the exact opposite of what good economic policy would advise.”

Furthermore, if the votes to raise revenues cannot be found – a likely prospect – then the federal budget would have to be balanced through cuts alone. As a result, the CBPP estimates that a BBA could force deep reductions across a range of programs. Social Security, for example, could be cut by almost $1.2 trillion between 2018 and 2021, which we estimate would mean a reduction of roughly $110 billion to income support for millions of California retirees and people with disabilities. An estimated $750 billion reduction to Medicare between 2018 and 2021 would translate into an $83 billion cut in California, affecting millions of California seniors.

A persuasive case against the BBA was recently made by Rep. David Dreier, a 16-term, conservative Republican from southern California. Dreier, who supported a BBA in 1995, reminded his House colleagues this week that Congress managed to balance the federal budget in the late 1990s without amending the US Constitution. “I was wrong,” Dreier said of his support for a BBA in 1995. “Two short years later, we balanced the federal budget … without touching that inspired document, the US Constitution.” Recent experience in California also argues against a BBA. California’s restrictive budget rules – which hamstring fiscal policymaking – show that changing the budget process will not bring a budget into balance. Our nation, like our state, needs significant new revenues to responsibly balance its budget.

– Scott Graves


Some of California’s Wealthiest CEOs Run Corporations That Paid No Federal Income Tax

November 4, 2011

The gap between the wealthiest Californians and the less well-off has widened substantially in recent decades, as illustrated in a new CBP report, A Generation of Widening Inequality. The average income of the middle fifth of California’s taxpayers was approximately $35,000 in 2009 – almost 15 percent lower than in 1987 on an inflation-adjusted basis. In contrast, the average income of the top 1 percent was $1.2 million in 2009 – approximately 50 percent higher than in 1987, after adjusting for inflation. That means the average Californian in the top 1 percent earned in less than eight workdays what the average middle-income Californian earned in a year.

Who are the wealthy? Contrary to popular perception, entertainers and professional athletes make up just a small fraction of the wealthiest 0.1 percent of US taxpayers. Instead, six out of 10 of the top 0.1 percent are executives, managers, or financial professionals. And according to Forbes, many of the nation’s highest-paid executives run California-based companies, including Walt Disney’s CEO, Robert A. Iger, whose annual compensation of $53.3 million makes him the third-most-highly compensated chief executive of a US company.

Interestingly, a report released yesterday by Citizens for Tax Justice (CTJ) and the Institute on Taxation and Economic Policy (ITEP) shows that some of the most highly compensated CEOs run California-based companies that paid no federal income tax in recent years, even though these companies earned profits. For example, San Francisco-based PG&E paid no federal income tax in 2008, 2009, or 2010 even while it earned profits in each of those years totaling nearly $5 million. In addition, San Diego-based Sempra Energy paid no federal income tax in 2008, even though the company earned a profit of more than $1 million that year. According to Forbes, the annual compensation of PG&E’s CEO, Peter A. Darbee, was $7.3 million last year, while that of Sempra’s CEO, Donald E. Felsinger, was $20.6 million.

The CTJ and ITEP report examined a total of 280 companies on the Fortune 500 list that were profitable in each of the last three years and provided sufficient and reliable information in their financial reports about their profits and taxes paid. Overall, 78 of the companies (27.9 percent) paid no federal income taxes in at least one of the past three years.

– Alissa Anderson


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