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Removing Barriers to Work: Budget Solutions that Strengthen Ohio's Workforce

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The harsh reality for too many workers is that a job doesn’t mean a living. While Ohio’s families are bringing in less money in an economy that has shifted toward more low-wage, part-time and temporary jobs, the costs to support a family have gone up. By ensuring all Ohioans have the appropriate education and skills to be competitive and the necessary supports to bridge the gap between what they earn and what they need, we make Ohio’s workforce more competitive.

Speakers include:
- Hannah Halbert, Workforce Researcher, Policy Matters Ohio
- Kalitha Williams, Policy Liasion, Policy Matters Ohio
- Wendy Patton, Senior Project Director, Policy Matters Ohio

Published in: Government & Nonprofit
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Removing Barriers to Work: Budget Solutions that Strengthen Ohio's Workforce

  1. 1. Removing Barriers to Work Budget Solutions that Strengthen Ohio’s Workforce
  2. 2. a statewide coalition of almost 500 organizations and thousands of individual advocates. Advocates for Ohio’s Future is…
  3. 3. Overall Policy Objectives: • Ohio should be a great place for all Ohioans to live and work • All Ohioans should have the opportunity to participate in the economy, afford the basics, and pursue a higher quality of life • A job should mean a living, allowing workers to lift themselves and their families out of poverty • Health and human services can play a vital role in supporting Ohioans
  4. 4. Advocate with us! • You’ll receive a follow-up email from this webinar • Look for “Act Now” email alerts, webinar invitations, and new resources • Unsubscribe at any time • Join our coalition to advocate for strong families and communities by endorsing our mission
  5. 5. Webinar Presenters Wendy Patton Senior Project Director Policy Matters Ohio Hannah Halbert Workforce Researcher Policy Matters Ohio Kalitha Williams Policy Liaison Policy Matters Ohio
  6. 6. www.policymattersohio.org Hannah Halbert Researcher hhalbert@policymattersohio.org 614-221-4505 Snap to Skills: Expanding education and training resources in Ohio without limiting food assistance
  7. 7. www.policymattersohio.org Working poor: Too many jobs pay too little. Largest occupations in Ohio, by employment, wage and wage as share of poverty. Occupation Employment Median annual wage As share of poverty level Food Preparation and Serving Workers, Including Fast Food* 163,790 $18,920 94% Retail Salespersons* 157,460 $21,590 107% Registered Nurses 128,030 $62,310 309% Cashiers* 117,390 $19,360 96% Laborers and Freight, Stock, and Material Movers, hand* 111,230 $25,500 127% Waiters and Waitresses* 98,150 $19,040 94% Office Clerks, General 92,350 $29,230 145% Customer Service Representatives 88,310 $31,070 154% Janitors and Cleaners, Except Maids and Housekeeping Cleaners* 85,470 $23,340 116% Stock Clerks and Order Fillers* 84,580 $23,610 117% Source: Bureau of Labor Statistics, Occupation and Employment Statistics, May 2016, at https://www.bls.gov/oes/tables.htm, accessed April 12, 2017. Detailed occupation by largest number employed. Calculation of median annual income as a share of the poverty rate by author. Median annual income based on 2080 hours (full-time, year-round). Poverty rate based on 2016 HHS guideline for family of three, $20,160. *Seven of the largest occupations pay a median wage less than 130 percent of poverty, the gross monthly income threshold for food assistance. Nursing assistants (66,800 workers, median annual wage=$24,880, 123% pov.). Home Health Aides (65,710 workers, median annual wage=$65,710, 104% pov.).
  8. 8. www.policymattersohio.org Employment and Training -- 16,400 participants Literacy skills, vocational training, post-secondary credentials. Challenges Time limits on Able Bodied Adults without Dependents (ABAWDs), slow- growth/low-wage economy, employment barriers. Work Experience Program – 35,059 participants Typical placements include janitorial work, grounds maintenance, office work, or warehouse packing.
  9. 9. www.policymattersohio.org Nonrefundable SNAP to SKILLS • Technical assistance to states and partners on developing E+T programs. • Encourage expansion of federal 50% reimbursement grants. Washington Model (BFET) • Voluntary, • 28,000 served annually, • 30+ community colleges, $30 million budget. Supports students in career and tech ed., basic adult ed, GED, and ESL.
  10. 10. www.policymattersohio.org SNAP to Skills Goals Ensure the hungry are fed and for those who can benefit provide education and training that can help reduce need. -- Voluntary, -- State planning to identify resources, establish guidance, -- State funding to support training initiatives—($1 million). Amendment HC 1476
  11. 11. www.policymattersohio.org State Earned Income Tax Credit Kalitha Williams, Policy Liaison Policy Matters Ohio kwilliams@policymattersohio.org 614.221.4505
  12. 12. www.policymattersohio.org • Nation’s most powerful anti-poverty program • Lifts millions out of poverty • Rewards work • Reduces tax inequality • Boosts local economies Federal Earned Income Tax Credit
  13. 13. www.policymattersohio.org •Over 939,000 families in Ohio claim the federal EITC •Brought in $2.3 billion dollars of refunds into the state. •Average refund is $2,449, or 2-3 months of income for a low wage working family Federal Earned Income Tax Credit
  14. 14. www.policymattersohio.org Nonrefundable Unlike most state EITCs Ohio’s can only reduce income tax liability Capped for incomes over $20,000 Federal EITC designed to smooth benefit cliffs, the cap cuts Ohio’s short Amount too low Ohio’s credit is just 10 percent of the federal EITC
  15. 15. www.policymattersohio.org Nonrefundable Non-refundable Ohio EITC amount: $142 Taxpayer owes $100 EITC eliminates $100 in tax liability. Remaining $42 in EITC is just lost. Refundable Ohio EITC amount: $142 Taxpayer owes $100 EITC eliminates $100 in tax liability. Remaining $42 in EITC is sent to taxpayer in a refund check.
  16. 16. www.policymattersohio.org A well-targeted EITC could lift up Ohio workers: Effect of a 20 percent, non-capped, refundable EITC by income class Poorest Ohioans Low-income Ohioans Middle-income Ohioans Income range Less than $21,000 $21,000- $39,000 $39,000- $60,000 Average income $13,000 $29,000 $49,000 Share receiving tax cut after reforms 38% 30% 14% Change from share of those getting existing credit +30 percentage points +8 percentage points +3 percentage points Average EITC tax savings after reforms $451 $620 $312 Change from existing credit +$381 +$478 +$199 Source: Institute on Taxation and Economic Policy, December 2016. Covers Ohio residents only and is based on 2016 income. Percentages rounded.
  17. 17. www.policymattersohio.org •Contact your state legislator (1-800-282-0253 ) •Contact State Senator John Eklund (614-644-7718) •Write op-eds/letters to the editor What Can You Do
  18. 18. www.policymattersohio.org Wendy Patton Senior Project Director wpatton@policymattersohio.org 614-221-4505 Public Childcare: Improving eligibility, continuity and quality to help working families and young children
  19. 19. www.policymattersohio.org Working poor: Too many jobs pay too little. Largest occupations in Ohio, by employment, wage and wage as share of poverty. Occupation Employment Median annual wage As share of poverty level Food Preparation and Serving Workers, Including Fast Food* 163,790 $18,920 94% Retail Salespersons* 157,460 $21,590 107% Registered Nurses 128,030 $62,310 309% Cashiers* 117,390 $19,360 96% Laborers and Freight, Stock, and Material Movers, hand* 111,230 $25,500 127% Waiters and Waitresses* 98,150 $19,040 94% Office Clerks, General 92,350 $29,230 145% Customer Service Representatives 88,310 $31,070 154% Janitors and Cleaners, Except Maids and Housekeeping Cleaners* 85,470 $23,340 116% Stock Clerks and Order Fillers* 84,580 $23,610 117% Source: Bureau of Labor Statistics, Occupation and Employment Statistics, May 2016, at https://www.bls.gov/oes/tables.htm, accessed April 12, 2017. Detailed occupation by largest number employed. Calculation of median annual income as a share of the poverty rate by author. Median annual income based on 2080 hours (full-time, year-round). Poverty rate based on 2016 HHS guideline for family of three, $20,160. *Seven of the largest occupations pay a median wage less than 130 percent of poverty, the gross monthly income threshold for food assistance. Nursing assistants (66,800 workers, median annual wage=$24,880, 123% pov.). Home Health Aides (65,710 workers, median annual wage=$65,710, 104% pov.).
  20. 20. www.policymattersohio.org Challenge: Initial program eligibility for Ohio’s public childcare program is too low. Annual Family size Initial eligibility (130% FPL) Eligibility at 145% FPL Eligibility at 200% FPL Self Sufficiency, Akron OH Parent with 1 child $20,826 $23,229 $32,040 $43,569 Parent with 2 children $26,208 $29,232 $40,320 $53,429 Hourly Parent with 1 child $10.01 $11.17 $15.40 $20.95 Parent with 2 children $12.60 $14.05 $19.38 $25.69
  21. 21. A positive feature: Those with stable jobs get extended eligibility $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $20,000 $24,120 $29,136 $34,164 $39,180 $44,208 $49,224 $54,252 $59,268 Monthlycostofchildcareforaninfantandatoddler, CuyahogaCounty,Ohio,2015 Annual family income levels Childcare Aid Family Co-Pay Average market cost of childcare for infant and toddler: $1,742 per month
  22. 22. Challenge: Too few have stable jobs. Need continuous eligibility • At present, families get up to 13 weeks once a year if they lose a job and have to find another. • Churning in the low- wage labor market makes staying at one job difficult: Temp jobs start and stop; seasonal jobs end with the season • Need 12 months of eligibility regardless of the parent’s job situation 12-month continuous eligibility promotes • Family stability; • Stability for the child so learning is maximized • Stability in the classroom, where churning of students disrupts everyone
  23. 23. CHALLENGE: Quality in the classroom matters more to young minds than at any other time of life But quality in the pubic childcare program comes at a cost the State of Ohio has been unwilling to pay
  24. 24. www.policymattersohio.org Nonrefundable Reimbursement for Infants (center) Recommended:$1,254 State of Ohio payment:$713 Reimbursement for Pre-schooler (center) Recommended: $910 State of Ohio payment: $570 Recommended reimbursement for public childcare programs: 75th percentile of current market State of Ohio reimbursement: 26th percentile of 2014 market Source: National Women’s Law Center, State Childcare Assistance Policies in 2016, Table 4C: Table 4C: State Reimbursement Rate Amount in 2016 Compared to Market Rate Amount for Child Care Centers
  25. 25. www.policymattersohio.org Key Public Childcare Issues 1) Initial Eligibility: It’s too low, at 130% of poverty. Raise to 200% FPL – maybe phase in, over time. 2) Continuity in the classroom: Kids bounce in and out of the classroom with parent’s job changes. We need continuous eligibility: a child is admitted to a classroom for a full year regardless of changes in mom’s job. 3) Poor Quality: Payment to childcare providers is too low. Raise reimbursement rates so providers can afford to participate in the “Step Up to Quality” program and high quality childcare programs accept more public childcare kids.
  26. 26. • Subscribe to Groundwork Ohio newsletters and read their reports. https://www.groundworkohio.org/ • Read more at Policy Matters Ohio website (search for “public childcare”); sign up for e-newsletter https://www.policymattersohio.org/ • Talk to your elected officials at the state. Tell them what you want for the state’s public childcare program. • Check out what Cleveland, Cincinnati and Dayton are doing locally to provide more funding for public preschool and childcare There’s a lot going on, and your legislators want to hear from you YOU MATTER Lend your interest and your voice to this issue!
  27. 27. • You’ll receive a follow-up email with links to video, slides and resources • Join the conversation on social media: • @Advocates4OH • Facebook.com/advocatesforohio Next Steps • @PolicyMattersOH • Facebook.com/policymattersohio • Use the hashtag #PoorWhileWorking when posting about poverty in Ohio
  28. 28. Please consider making a donation to help us offer more great webinars and info to advocates like you. Your Support Makes Our Work Possible
  29. 29. Thank you for joining us today!

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