Overview

1. Hunger and Poverty in Texas:Causes and SolutionsFood Insecurity: The Hunger EpidemicWitte MuseumSan Antonio, Texas February 18, 2010 Celia HagertSenior Policy Analyst

2. Overview • Hunger and poverty: causes and consequences • Solutions • Expand economic opportunity • Ensure a strong federal nutrition safety net (SNAP, school meals, WIC, senior meals, etc.)

3. The Economic Context • Hunger is a symptom of poverty • Poverty is deep and widespread in Texas • Root causes are structural, not individual • Increasing economic opportunity and earnings is the long-term solution

4. The Numbers How many people are officially poor in Texas? Who are the poor?

5. Texas Hunger Rate Linked to Poverty Sources: Poverty data are one-year estimates from American Community Survey, U.S. Census Bureau. Food Insecurity data are three-year averages from USDA’s Economic Research Service.

6. Poverty and Unemployment(with recession impact simulated) Forecast Source: U.S. Bureau of Labor Statistics; Comptroller Winter 08-09 Forecast; Census Bureau CPS.

7. Hispanics and African Americans Much More Likely to Live In Poverty as Whites in Texas Source: 2008 American Community Survey, U.S. Census Bureau

8. Vast Majority of Poor Texans are Citizens Source: 2008 American Community Survey, U.S. Census Bureau

9. Poverty Rates by Citizenship 679,700 Born-in-U.S.citizen poverty rate: 41st worst among states 3,760,431 3,080,731 Source: 2008 American Community Survey, U.S. Census Bureau

10. Texas 43rd Worst Rate of Total Population in Poverty TX = 15.8%; U.S. = 13.2% Source: 2008 American Community Survey, map from KIDS COUNT Data Center, www.kidscount.org/datacenter

11. Texas Poverty 101 www.cppp.org/research.php?aid=96

12. Why can’t families escape poverty? • The cost of living has outpaced earnings • Lack of education, economic opportunity limits earnings, upward mobility

13. Full-time Work at Minimum Wage ($14,500) Doesn’t Lift Texas Families Above Poverty Line Minimum wage $70 shy of FPL for Family of 2 Minimum wage = $7.25 per hour as of July 24, 2009. Full-time work = 2,000 hours per year.

14. Texas Median Income Increases Slightly, But Purchasing Power on General Decline Median Income Median Income Adjusted to Purchasing Power in 2000 Source: KIDS COUNT Data Center, Families with Related Children, American Community Survey, Census Bureau; Data adjusted using inflation calculator from the U.S. Bureau of Labor Statistics

15. The Consequences

16. Over Half of Texas’ 4.7M Public School Kids Are Considered Economically Disadvantaged Economically Disadvantaged = Kids who are eligible for free (below 130% of poverty) or reduced-price lunch (130%-185% of poverty) Source: 2008-2009 Enrollment Data, Texas Education Agency

17. “Early disadvantage, if leftuntouched, leads to academic and social difficulties later in life. Early advantages accumulate, just as early disadvantages do.” Heckman & Masterov, as cited in “Early Childhood Education for All: A Wise Investment”

18. GAPS IN ACHIEVEMENT:Fewer Economically Disadvantaged Kids Pass the TAKS Tests Source: Percent Students Passing Across Grades Within Each Test, 2009 TAKS data, Texas Education Agency

19. GAPS IN ATTAINMENT:Economically Disadvantaged and Minority Students Drop Out at Higher Rates Source: Class of 2008 four-year longitudinal dropout rate within group, Texas Education Agency

20. GAPS IN EARNINGS:More than One of Every Three Texas Dropouts Lives in Poverty Source: Table C17003, 2008 American Community Survey, U.S. Census Bureau

21. Long-term solution to poverty & hunger:Increase economic opportunity so people can learn more, earn more

22. Short-Term Solution to Hunger: Improve Nutrition Safety Net • Make sure everyone who needs food assistance receives this help

23. Gaps in the Nutrition Safety Net #1 Many eligible families aren’t getting federal food assistance* • Flaws in the poverty measure prevent needy families from getting assistance #2 Many needy families don’t qualify for federal food assistance • Barriers limit access for eligible families *Federal food assistance = SNAP/Food Stamps, School Lunch/Breakfast, Afterschool/Childcare, Summer Food, WIC, Commodities

24. #1: Many Texans Qualify for Food Assistance But Do Not Receive It • Limited awareness • Stigma • Inadequate funding • Enrollment barriers (staff shortages, red tape, outdated rules) make the benefits hard to access Source: Bridging the Gaps Project, Center for Economic and Policy Research

25. Many Texans Qualify for Assistance But Do Not Receive It Source: Bridging the Gaps Project, Center for Economic and Policy Research

26. Too Many Families Relying on Food Banks Not Getting Federal Food Assistance SOURCE: Hunger in America: 2010 Survey, Feeding America Source: Bridging the Gaps Project, Center for Economic and Policy Research

27. Texas Failing to Process More and More SNAP (aka Food Stamp) Applications on Time Source: Texas Health and Human Services Commission, 2009 Monthly Timeliness Reports

28. SNAP Not Reaching Its Target Population • Almost half (45.4%) of food bank clients believe they are not eligible for SNAP, yet almost one-quarter (24.2%) have income low enough to qualify (<130% FPL). • = lack of awareness of SNAP rules. • 17.1% report not receiving SNAP benefits because “it is too much hassle." • = problems in the eligibility system. SOURCE: Hunger in America: 2010 Survey, Feeding America Source: Bridging the Gaps Project, Center for Economic and Policy Research

29. #2: Many Needy Families Don’t Qualify for Food Assistance • Eligibility for food (and other public) assistance is tied to Federal Poverty Measure • The Federal Poverty Measure is flawed: Poverty = 3 x cost of food per family size (methodology from the 1960s) • Fails to take into account today’s cost of living • Child care • Medical costs • Housing

30. Federal Poverty Guidelines Source: U.S. Department of Health and Human Services

31. Monthly Costs for Single-Parent, 2-Child Family in Fort Worth-Arlington $745 $212-$1,100 $1,034 $356 $339 $356 Total Monthly Expenses = $3,042 - $3,540 Source: Family Budget Estimator, CPPP, www.cppp.org/fbe

32. Necessary Income for Single-Parent, 2-Child Family in Fort Worth-Arlington Hourly = $19 - $23/hour Annual = $38,737 - $46,709 226% to 272% of poverty line Source: Family Budget Estimator, CPPP, www.cppp.org/fbe

33. Total Monthly Expenses for Families in Dallas-Plano-Irving as Percentage of the Federal Poverty Level Note: These budgets are for families where the employer pays 100% of one parent’s health insurance and 50% of premium for spouse and/or dependents. The poverty line is the maximum amount a family can make in a month and still be considered below the 2007 federal poverty level

34. Public Assistance Programs Not an Option for Many Working Families Sources: U.S. Department of Agriculture; Texas Workforce Commission; Texas HHSC

35. Public Health Insurance More of an Option for Children, Elderly, Disabled Annual income limits: For a family of three in child & parent categories; for SSI & Long-Term Care, income cap is for one person. Sources: Texas HHSC

36. Texas Low-Income Children vs. Served by “Safety Net” Source: Texas Kids Count; Texas Health and Human Services Commission; March CPS (FERRET)

37. Family Budget Estimator (FBE) www.cppp.org/fbe

38. Our Shared Challenge • Make sure everyone eligible for food assistance is getting it • Less than half of eligible population gets SNAP • Fewer than one in five eligible children get free summer meals • Make sure everyone who needs food assistance is getting it • Since eligibility is tied to the official poverty measure, many needy families don’t qualify for federal food assistance • Need to revise poverty measure or income limits for food programs

39. Contact Information Celia Hagert hagert@cppp.org (512) 320-0222 ext. 110 Sign up to receive notice of our work at: www.cppp.org