Illinois Poverty News: Weekly Update

Here's the latest roundup of news articles highlighting issues related to our efforts to reduce poverty in Illinois.

On the last day of the Spring legislative session, state legislators failed to pass pension reform, which, along with Medicaid reform, were the two biggest issues on the General Assembly's agenda. As a result, Gov. Quinn said he will call legislators back to Springfield this summer.

• Legislators punt on pension reform but pass gambling expansion, by Rick Pearson and Ray Long, Chicago Tribune, 6/1/2012

Both houses of the Illinois General Assembly passed a $33.7 billion budget for fiscal year 2013 beginning in July. Lawmakers cut $700 million but state spending still will increase because of mandated costs such as pensions.

• Lawmakers pass budget after fight over education spending, by Doug Finke, The State Journal-Register, 6/1/2012

The state tax on cigarettes and other tax products will rise by $1 under legislation passed by both houses of the General Assembly. The tax increase is expected to generate $350 million while allowing the state to access another $350 million from the federal government. That money will help close the gap on Medicaid's $2.7 billion budget deficit.

• Lawmakers OK $1-a-pack cigarette tax hike, by Rick Pearson and Ray Long, Chicago Tribune, 5/30/2012

Both houses of the Illinois General Assembly passed legislation (SB 3261) requiring urban hospitals to provide free treatment for patients below 200% of the federal poverty level, or $46,000 a year or less for a family of four. For rural hospitals, free care would go to patients below 125% of the federal poverty level, or $29,000 a year or less for a family of four.

• Illinois bill would require free care for poor, by Carla K. Johnson of The Associate Press, BusinessWeek, 5/29/2012

Illinois Poverty News: Weekly Update

Here's the latest roundup of news articles highlighting issues related to our efforts to reduce poverty in Illinois.

Both houses of the Illinois General Assembly passed $1.4 billion in cuts to Medicaid on May 24. The cuts mean thousands of poor Illinoisans would lose coverage and services would be reduced or eliminated.

• Illinois legislature passes deep health care cuts, by Ray Long, Chicago Tribune, 5/25/2012

Emergency funding for the state's Child Care Assistance Program will keep children of low-income parents in care and providers paid through the end of June. But funding cuts threaten the program for the fiscal year starting in July. Gov. Quinn has proposed cutting $85 million from its budget.

• Illinois subsidy cuts just part of squeeze on child care, by Melissa Westphal, Rockford Register Star, 5/24/2012

Researchers at the University of Illinois found that government spending on public benefits programs stimulate the economy, create jobs, generate tax revenue and increase economic security. Slashing program budgets ignores the immediate human cost and long-term cost savings to taxpayers and the private sector.

• Social welfare cuts ultimately come with heavy price, researchers say, Phys.org, 5/24/2012

A bill to increase Illinois' minimum wage and index it to inflation passed out of the Senate Executive Committee on May 16. Sen. Kimberly Lightford, the bill's chief sponsor, told the Illinois Times: "I think it’s really important that if you are willing to work a 40-hour week, you shouldn’t have to live in poverty."

• Increase minimum wage?, by Neil Schneider, Illinois Times, 5/24/2012

Take Action: Oppose Shortening TANF Lifetime Limits

In these difficult economic times, thousands of Illinois families rely on Temporary Assistance for Needy Families (TANF) to help ensure that their children have clothes on their back and a place to lay their heads.

Gov. Quinn has proposed to reduce the 5-year lifetime limit for TANF to 3 years – eliminating vital assistance for 6,000 children, effective July 1st. This devastating proposed cut comes on the heels of another cut to TANF last week that eliminated needy families’ access to immediate cash assistance. Our families can’t withstand any more cuts to TANF.

Tell the members of the House Human Services Appropriations Committee:

1. Do not to reduce the 5-year lifetime TANF limit to 3 years and
2. Fully fund the TANF program including continuation of the 5-year lifetime limit

May Legislative Update: Advocacy in Springfield

Though work in Springfield is winding down, May is a busy month as legislators try to push through legislation and pass the state's FY 2013 budget during 23 scheduled days in session. Our advocacy efforts are at full force as we work on issues related to Health, Poverty and Asset Building. Here's our latest update: 

HEALTH

Medicaid: On April 19, Gov. Quinn outlined a plan to close Medicaid’s $2.7 billion budget deficit by eliminating programs, reducing eligibility and coverage, decreasing provider rates paid, and raising revenue with the state’s cigarette tax.

New revenue through a $1-per-pack increase to the cigarette tax is only a small portion of the overall package, meaning more than $2 billion in savings will come from reduced eligibility and coverage, eliminated programs and lower provider rates.

While some legislators are proposing a more balanced approach, including Medicaid system delivery reforms and additional ideas to raise new revenue, many others are unwilling to consider anything but devastating cuts.

Heartland Alliance, along with many advocates around that state, has been urging legislators to avoid the higher-costing unintended consequences associated with drastic cuts. For example, eliminating the Adult Dental Program would impact about 172,000 vulnerable Illinoisans and increase barriers to oral health care for thousands of very vulnerable people.

Rally to Raise the Minimum Wage



Melissa Josephs of Women Employed addresses advocates at the rally.

Advocates from across Illinois rallied in Springfield on Thursday, May 17, to press legislators to advance a bill that would increase the state's minimum wage.

More than 100 people joined the rally outside the Capitol building to support passage of SB 1565, legislation sponsored by Assistant Majority Leader Sen. Kimberly Lightford. Later, the group spread out to meet with legislators in person and discuss the benefits of raising Illinois' minimum wage. Heartland Alliance is part of the Raise Illinois coalition and participated in the rally and legislator meetings.

SB 1565 would bring Illinois's minimum wage to $10.65/hour over four years and index future increases to inflation. Currently, minimum-wage workers earn $8.25/hour and struggle to make ends meet. Because the minimum wage has not kept pace with inflation workers today have $2/hour less in puchasing power than minimum-wage workers did in the late 1960s.

Illinois Poverty News: Weekly Update

Here's the latest roundup of news stories highlighting issues related to our efforts to reduce poverty in Illinois.

A bill to raise Illinois' minimum wage to more than $10/hour, bringing it back to its historical value, passed out of the Senate Executive Committee. At $8.25/hour, Illinois' current minimum wage means a full-time worker makes only $16,500 per year.

• Bill increasing Illinois' minimum wage moves forward, by Brianna Ehley, St. Louis Post-Dispatch, 5/16/2012

 

House members overwhelmingly approved legislation to fully fund childcare subsidies for low-income parents through the end of the fiscal year, which ends June 30. The bill allows for unused general revenue funds to cover the $73.6 million shortfall for childcare.

• Illinois House OKs money for child-care program, by David Thomas, The State Journal-Register, 5/16/2012

 

With legislation on Illinois' health insurance exchange stalled, Gov. Quinn may use an executive order to create the insurance marketplace. Doing so would allow Illinois to secure federal grants and meet the January 2013 deadline for the federal government to approve state plans.

• Quinn mulls using executive order to create insurance exchange, by the Associated Press, Crain's Chicago Business, 5/16/2012

Dr. LaMar Hasbrouck, the new director of the Illinois Department of Public Health, is urging support of a higher cigarette tax, which he said would deter smoking and raise revenue to help close Medicaid's $2.7 budget deficit.

• State health chief backs Quinn's $1-a-pack cigarette tax plan, by Debra Pressey, The News-Gazette, 5/15/2012

Illinois Poverty News: Weekly Update

Here's the latest roundup of news stories highlighting issues related to our efforts to reduce poverty in Illinois.

A week after saying the state couldn't pay for childcare subsidies for the last three months of the fiscal year, Gov. Quinn announced he had found a way to close the $73 million funding gap. His solution: unused money budgeted for Medicare premiums. Legislators are considering the plan and ultimately must off on it.

• Child care cuts may be averted, by Monique Garcia, Chicago Tribune, 5/8/2012

Parents and providers have been scrambling since the state announced last week that it has run out of money to pay childcare subsidies for low-income families. Legislation under consideration in the House would set aside $73.6 million to fully fund the program through June 30, the end of the fiscal year.

• Subsidy threat alarms parents, child-care providers, by Dean Olsen, The State Journal-Register, 5/6/2012
• Our Opinion: Restore funds for child-care program, Editorial by The State Journal-Register, 5/8/2012

To generate revenue for Medicaid, Gov. Quinn's has proposed cutting programs and increasing the cigarette tax by $1 per pack. About 9% of the state's Medicaid budget goes toward treating smoking-related diseases. A higher cigarette tax would prompt 60,000-73,000 Illinoisans to quit smoking.

• Raising taxes on cigarettes is justified, Editorial by the Herald & Review, 5/6/2012

U.S. House Proposal Would Harm Progress on Food Security

Testimony before the U.S. House Subcommittee on Nutrition and Horticulture this week provided insight into the success of the Supplemental Nutrition Assistance Program (SNAP) in alleviating poverty. Consider the following:

• 46 million low-income Americans -- or 1 in 7 of us -- receive SNAP benefits to buy food.
• 93% of benefits go to households with incomes below the poverty line.
• 55% of benefits go to households living in extreme poverty, with incomes below half of the poverty line.

• SNAP kept about 4 million people out of poverty, including about 2 million children in 2010. 
• SNAP reduces extreme poverty:
• Counting SNAP benefits as income reduced the number of families with children living in extreme poverty from 1.46 million to 800,000 in 2011.
• Similarly, it reduced by half the number of children in extreme poverty -- from 2.8 million to 1.4 million -- last year.

The statistics of SNAP's impact on poverty came from Stacy Dean, Vice President for Food Assistance Policy at the nonpartisan Center on Budget and Policy Priorities. Dean told committee members that SNAP "is our nation's most important anti-hunger program" as she testified against proposed cuts to the program.

Date Set for 3rd Annual Pub Quiz Against Poverty

Mark your calendars! The 3rd Annual Pub Quiz Against Poverty is set for Wednesday, June 27, at the Darkroom in the Ukranian Village neighborhood.

If you came to last year's fundraiser, you know how much fun the pub quiz is and how many awesome raffle prizes we have. We're furiously working on some great prizes for this year's fundraiser. We'll give you a sneak peak of those soon.

Chris Warland of Heartland's National Transitional Jobs Network has agreed to serve as our Quiz Master again, which is not to be missed.

There will be food and drink and much revelry. So save the date for the 3rd Annual Pub Quiz Against Poverty:

June 27 @ the Darkroom

2210 W. Chicago Ave.

6-9 p.m.

Come have fun and feel good that you're doing it for a good cause. The event supports the From Poverty to Opportunity Campaign and our policy and advocacy work.

Your attendance helps us work toward the goal of decreasing extreme poverty in Illinois. About 6% of our state's population is living in extreme poverty with annual incomes that are less than half of the federal poverty line. That's 764,391 Illinoisans, which is a 23.4% increase over the past decade.

Come out to support our work and have a good time! We look forward to seeing you there.