Public Policy Blog

What firefighters can teach us about budgeting

2008-05-01T15:52:00.002-05:00

Recently, Sprint began running a TV commercial entitled “What if firefighters ran the world?” It shows a legislature composed of firefighters in full turn-out gear using their cell phones’ push-to-talk features to solve the country’s problems. What do the firefighters do? They balance the budget, cut taxes, and increase spending on roads and water treatment.

If only it were that simple. Obviously, being a policymaker is more difficult than portrayed in the advertisement, as is being a firefighter. (How many of us would run into a burning building?) Elected officials must attempt to balance competing interests and conflicting priorities. They hear from advocates, lobbyists, constituents, caucuses, and other Members, on the entire gamut of possible issues. Good policymakers attempt to see into the future to try to anticipate consequences, and even the very best sometimes make mistakes. On the other hand, the firefighters are the epitome of decisiveness and consensus, two things we would sometimes like our legislators to display more frequently.

The problem is that the type of faulty reasoning – that we can lower taxes while increasing spending and have a balanced budget – used for comical effect in the commercial sometimes works its way into real-world policy debates. As a recent New York Times editorial pointed out, “To restore the health of the budget, let alone keep ambitious campaign pledges for spending more money, the next president, regardless of which party wins, will have to tax the American people more than any of the candidates has been willing to admit.”

It is not just the federal level where policymakers are up against difficult budget realities. Our state is facing a budget shortfall, and it would be a shame to see the significant progress on health and human service programs made in the SFY 2008-2009 budget erased due to economic downturn and a resistance to exploring additional revenues. There are options to meet this challenge, but few are politically popular. Unlike firefighters in a Sprint commercial, we can’t have it all. Correcting Ohio’s budget shortfalls will mean either a reduction in services or an increase in revenues, or both. These are real issues that require real discussion. Unfortunately, outfitting the General Assembly with push-to-talk mobile phones probably won’t help.

Good News for Ohio!

2008-04-24T06:26:00.002-05:00

Good news for Ohio! For months advocates and policymakers have called foul on a directive released last year by the Centers for Medicare and Medicaid Services (CMS). The directive limited the ability of states to expand their SCHIP programs to children in families above 250% of poverty. With Ohio looking to expand its SCHIP program to 300% of poverty, the directive took the wind out of the sails of the bipartisan effort to provide health care to more of Ohio’s children.

Last week the General Accountabiity Office and the Congressional Research Service released opinions stating that, under the Congressional Review Act, the August 17th directive should have been sent to Congress for review before being implemented.

The new legal opinions help to validate the perspective that the directive has illegally, abruptly and unilaterally changed longstanding SCHIP rules through a “backdoor” mechanism. By making these far-reaching and harmful changes through a mere letter to state officials, Governors, families, and others were left with no opportunity to comment on how they might damage children’s coverage.

In Ohio, the directive already has meant that 35,000 children will not be able to take advantage of the SCHIP expansion.

In light of the growing evidence of the illegality of the August 17th directive and its ongoing harm to Ohio, and other states, efforts to cover more uninsured children, we need to continue the effort to see that the directive is suspended until SCHIP reauthorization can be completed. It is only fair to the nation’s children that far-reaching decisions about which of them can be covered through SCHIP are addressed in a public, open debate, rather than through a backdoor process that illegally circumvented even the chance for Congress to provide input.

Revenues Starting To Show Economic Slowdown

2008-04-16T10:29:00.003-05:00

The April LSC and OBM budget reports are out. The past few budget reports have warned that the weakened economy would start to show itself through lagging tax revenues, and the April reports seem to bare this out. However, expenditures remain below estimate so far this year, and LSC expects them to stay below estimate as the executive branch implements its budget reduction plan to reduce general revenue fund (GRF) FY2008 spending by about $202M. We saw large inflation in March according to the U.S. Labor Department. Although, LSC reports that if there is a national recession, analysts expect it to be shallow with a quick recovery.

Revenues - Tax revenue is up a meager .4% year-to-date compared to this time last year. All GRF sources are $517M (2.7%) below estimate year-to-date and $371M (18.4%) for the month of March. Every major tax source came in below estimate in March, and LSC reports they will probably remain below estimate for the rest of this fiscal year. GRF tax receipts are down $262.4M (1.9%) so far this year and down $110.7 million (7.3%) in March, mostly because of the personal income tax, which is most affected by economic conditions. The March sales and use tax, which also reflects the strength of the economy, also lowered, at 10.4% below estimate. The commercial activity tax came in 13.2% below estimate in March, and LSC predicts it will finish the year below estimate. Other tax revenue streams that are below estimate year-to-date include the corporate franchise tax, auto sales tax, public utility tax, earnings on investment, and the cigarette tax.

Expenditures – Most categories remain below estimate except for Medicaid, which is $18.8M (.3%) above estimate year-to-date. Medicaid caseloads have exceeded estimates for 8 consecutive months, and expenditures would be higher if it weren’t for delays in program expansions and provider rate increases. JFS will receive $8.9M for Medicaid due to a settlement with Merck & Co., Inc. - every bit helps. Additionally, spending in three higher education grant programs has been delayed next fiscal year.

FY 2008-09 Budget Corrections – we’re still waiting for the legislature to weigh in on most of the Governor’s proposed budget fixes, which require legislative action. Executive budget cuts are already being implemented. He has not yet proposed use of the rainy day fund or touching any tax reforms from the past few years.

FY 2010-11 Budget – OBM expects state revenue growth to remain flat in 2010-11 and acknowledged that this is because of the tax reforms of HB 66 and the weakened economy. OBM’s Operating Budget Guidance limits department requests to 90 and 95% of adjusted 2009 appropriations, even for GRF funds used for state match of federal funds. This limit is by fund, not by appropriation line item, which means that departments have to prioritize funding across all programs. Therefore, advocacy for the next budget should begin now at the state agency level as departments are preparing their budget requests for submission by September 15.

Budget reports show increasing needs

2008-03-27T20:29:00.007-05:00

Nationally, more and more economists are acknowledging the likelihood of recession. The increase of 63,000 to February's unemployment, the largest increase since 2003, didn’t help things. Personal income and consumer spending are down, according to OBM. Mortgage issues continue to haunt Ohio. LSC reports that Ohio has one of the highest ratios of homeowners who have less than 50% equity. Some good news for Ohio, LSC reports that Ohio’s unemployment levels dropped from 5.8% to 5.5% in February after gaining some jobs in January. Given that Ohio’s economy can lag others, some might expect the current state’s budget shortfall to be worse than the latest OBM and LSC reports indicate. However, the numbers are likely to look worse in the coming months as the economy adds pressure to our safety net programs and continues to affect tax collections.

Revenue
General revenue fund tax receipts continue to lag and are $151.7M (1.2%) below estimate year-to-date. Total general revenue fund is down $184.3M (1.1%) year-to-date, although it is 4.6% higher than at this point last year according to LSC. Taxes that are below estimate year-to-date include personal income tax (-$118.2M/-2.1%), corporate franchise tax (-$35.6M/-11.3%, although up in February), auto sales tax (-$22.3M) public utility tax, the foreign insurance tax, estate tax, and the cigarette tax. Earnings on investment are below estimate $40M year-to-date. Non-auto sales tax remains above estimate year-to-date, but LSC and OBM do not expect this to continue. The commercial activity tax (which goes to schools and local government for loss from phase-out of the tangible personal property tax) is down $16.4M (2.2%) year-to-date.

Expenditures
Expenditures are $310.3M (1.75%) below estimate year-to-date and $52.7M below for February. Program spending in the first half of the fiscal year, for which payroll entries were complete, was $134.3M (1.0%) below estimate. All categories are below estimate except Public assistance and Medicaid, which was $34.2M (.6%) over estimate according to LSC. Medicaid is $10.6M over estimate year-to-date. Medicaid expenditures would be higher if the program expansions and provider rate increases had been implemented as planned for this past January. Caseload increases and unrealized cost containment measures have added to Medicaid expenditures. OBM expects the net of these Medicaid savings and increases to add another $132.4M in spending this fiscal year. Most of the Medicaid caseload increase has been in the Covered Children and Families category, where the need increases as the economy weakens, but much of the cost increase is in the more expensive Aged, Blind, Disabled category. Ohio continues to pursue the Medicaid expansions that were approved in HB 119, which not only serve those who need health care, but brings federal dollars to Ohio.

TANF – LSC reports that ODJFS expects TANF reserve dollars (unspent from previous years) will be completely depleted by early FY09. Ohio’s reserve dollars had topped $894M in federal fiscal year 2005 before the secret got out, and they've been well utilized ever since. These reserves must be spent for “assistance,” which means that they must be spent in the Ohio Works First program. Once the reserves are gone, Ohio Works First will have to be funded from the same TANF federal and state current year funds as the other programs that HB 119 funded through TANF.

Medicaid Buy-in for Workers with Disabilities:
The federal government approved Ohio’s program, which allows people with disabilities to work while keeping their Medicaid. Beginning April 1, 2008, participants up to 250% of the federal poverty level can pay a premium to keep their Medicaid coverage. See more at http://jfs.ohio.gov/ohp/mbiwd.stm

Estate Tax Redux

2008-03-13T09:49:00.001-05:00

As debate over the budget resolution continues on the Senate floor, Senators are once again discussing the estate tax. Currently the estate tax effects one out of every 200 estates. Once scheduled changes are implemented in 2009, that number will drop to three out of every 1000.

Despite the fact that the 2009 exemption of $7 million per couple would shield 997 out of every 1,000 estates from tax, Senator John Kyl of Arizona has introduced an amendment to further reduce the estate tax by raising the exemption to $10 million per couple and lowering the top rate from 45 percent to 35 percent rate. All of the additional benefits would go to the 3 in 1000 estates that would be taxable under 2009 law. According to the Joint Committee on Taxation, Kyl’s amendment would amount to repeal of more than three-quarters of the estate tax.

So what do all these numbers mean? Because Senator Kyl’s amendment does not provide any offsets to make up the lost revenue, his amendment is likely to add another $300 billion to the deficit over ten years (when interest costs are included). Alternatively, if the lost revenue were made up with spending cuts, then we would see an increased burden on state budgets seeking to maintain programs in the face of sharply reduced federal funding.

Reductions in a tax for so few should not put essential investments for so many at risk. At a time when Americans are asking for increased commitment to health care, education, and veterans’ assistance, among other things, the Senate should think carefully about whose priorities it puts first.

Senators George Voinovich and Sherrod Brown need to hear from their constituents about the need to defeat the Kyl amendment on the estate tax in the interest of protecting essential programs and preventing further strain on already strapped Ohio state budget.

Ohio Revenues up in January, but Budget Expected to Tighten in 2009

2008-03-04T12:50:00.002-05:00

Ohio, along with about half the states, faces a budget shortfall in fiscal year 2009, according to the Center for Budget and Policy Priorities. Both the OBM and LSC February monthly budget reports describe a slowing national economy in late-2007 and early-2008. The President signed a federal fiscal stimulus on February 13 of $168 billion for fiscal years 2008-09, which is good news (despite debate about the form of the stimulus) considering that approximately half of economic forecasters are now predicting a national recession this year. Ohio faces its own challenges, including high foreclosure rates, with 1.8% of Ohio households in foreclosure at some point of 2007, according to LSC. LSC also reported that Ohio’s unemployment rate rose to 6% and is forecast to average 6.3% in FY 2009 (our current budget used a forecast of 5.5% for this year and 5.4% for next), which is expected to affect state revenues and the need for Medicaid and other public assistance programs.

Revenues – Although General Revenue Fund (GRF) tax receipts were above estimate by $31.9 million in January, they remain below estimate so far this state fiscal year by $86.6 million (.8%), and OBM and LSC do not expect the January surplus to continue. OBM reported that the tax reforms of H.B. 66 continue to phase in and affect year-over-year revenue growth.

Expenditures – Expenditures have been $171.4 million under estimate so far this state fiscal year (1%) and came in $33.1 million (1.5%) below estimate in January, according to OBM. All spending categories came in under estimate in January except for Tax Relief, however, they are expected to come in closer to estimate once December and January payroll close. Medicaid GRF spending was $27.7M (3.5%) below estimate in January per OBM, at least partly because expansions and rate increases that were planned for January 1 have not happened, however, expenditures are about $5.6 million above estimate year-to-date (.1%) because of increased caseloads, especially in the Aged, Blind and Disabled category. The good news is that Ohio’s federal share is set to increase in federal fiscal year 2009 by about $40 million over the budgeted amount because of an increase in Ohio’s federal matching FMAP rate. Ohio continues to work with the federal government to expand Medicaid to serve the increasing need and to maximize federal matching funds. TANF spending was over-estimate $6.2 million in January and $7.1 million year-to-date. OBM reports that TANF will only fund Prevention, Retention and Contingency services and Child Care from the TANF general revenue fund for the rest of this fiscal year.

OBM testimony
J. Pari Sabety, OBM Director, testified in front of Ohio’s House Finance Committee on February 26 about a shortfall of between $733 million and $1.9 billion for the current biennium budget. Director Sabety outlined three possible scenarios for Ohio’s economic picture – low growth, no growth, and recession. Based on its analysis, OBM found the low growth scenario the most likely ($733 million shortfall) and used it to balance the budget. Strategies to correct the budget deficit include budget cuts (52%), lapses to the General Revenue Fund (21%), transfer to the General Revenue Fund ($50.3 million), additional tobacco securitization interest income ($25 million) and proceeds from enhanced lottery proceeds including keno ($73 million). Director Sabety explained that the Governor’s plan maintains his priorities to maintain tax cuts and to avoid new or increased taxes or fees. Most of the savings would be accomplished through administrative action, but some pieces will require legislative authority, probably in April or May. The two main reasons given for the shortfall were reduced revenues and increased Medicaid spending for reasons including unrealized savings from Medicaid cost containment ($51 million in SFY 2008 and $164 million for SFY 2009). Medicaid caseloads have exceeded estimates for six consecutive months. Director Sabety answered Committee questions about the reliability of the latest projections, the extent a downturn will impact Medicaid and cash assistance caseloads, plans for an increasing older population, the unified longterm care budget, the timeline for Medicaid enrollment expansions, postponement of increased provider rates, and unrealized Medicaid cost containment savings.

Governor Strickland congressional testimony
Governor Strickland testified before the U.S. House of Representatives Committee on Energy and Commerce, Subcommittee on Health, February 26, 2008. He opposed the President’s cuts in Medicaid spending and state flexibility and CMS regulations that would cut program funding (which Congress has put a moratorium on), saying that they’re budget cuts made outside the legislative process that have been disguised as regulation.

Report Finds "Economic Stimulus Good, But More Needed"

2008-02-19T10:57:00.001-05:00

The Center for Community Solutions released a new report that evaluates the federal economic stimulus package signed by President Bush last week and examines its impact on Ohio. The report concludes that while the package’s tax rebates are reasonable, additional stimulus may be necessary. According to the authors, “Because of economic downturn, Ohio is facing budget shortfalls that the recently enacted federal stimulus package does nothing to address.” It cites several other stimulus options that would have a greater effect on Ohio including federal aid to states in the form of block grants, an increase in federal Medicaid match, expansion of LIHEAP, emergency food assistance, unemployment insurance, and the Highway Trust Fund.

To view the full report, visit http://www.communitysolutions.com/images/upload/resources/EconomicStimulusMoreNeeded021508_2.pdf

“The State of the State is Resolute”

2008-02-06T14:19:00.000-05:00

Governor Strickland gave his State of the State address today. He focused primarily on education and economic development. He spoke of investing in Ohio’s future through an educated workforce, infrastructure, and emerging industries.

Education – To create a more educated workforce, the Governor has proposed a 10-year plan in which associates and bachelors degrees will be available within 30 miles of everyone in the state. He also put forth the ‘Seniors to Sophomores’ initiative, where, starting next school year, high school seniors will be able to earn college credit at Ohio’s public universities - for free. He also proposed creating the position of Director of Department of Education to oversee K-12 education. The position would be appointed by the Governor. Governor Strickland will offer his full education plan next year based on his stated principles.

Economic development - Creation of good jobs, infrastructure investment, and investment in emerging industries like biomedicine and advanced/renewable energies to stimulate the state’s economy and maintain Ohio as a strong industrial base. ‘Building Ohio Jobs’ would invest $1.7 billion (funded through restricted bonds) to create 80,000 good jobs. This would be done through advanced and renewable energy, distribution infrastructure, bioproducts with renewable sources, biomedicine, downtown revitalization, Clean Ohio Fund, and the Ohio Public Works Commission.

Other issues - Governor Strickland wants to create the Ohio Department of Veterans Affairs to consolidate veterans’ programs. He also would like the legislature to keep electricity rates stabilized as part of the Energy Jobs and Progress Plan. He addressed the foreclosure crisis with plans to implement rules and possible legislation that incorporate elements of the compact that Ohio offered to mortgage companies, which they declined.

The Governor seemed to respond to suggestions that he wait until next fiscal year to begin cutting budgets by emphasizing the need to be proactive and plan for the future. Overall, he showed commitment to investing in the things that add promise to Ohio’s future, even during fiscally tight times.

Economic Stimulus: Bang for the Buck

2008-02-04T14:03:00.000-05:00

Fiscal stimulus has been the hot topic in Washington for the past several weeks. The House already passed a stimulus package created with the input of the White House, and the Senate will take up consideration this week. We will likely see a stimulus package hit the President’s desk very soon, with a good chance that he will sign it.

Unfortunately, in the rush to build consensus on a stimulus package, Congress jettisoned an important method of stimulus that has the potential to be most effective: direct government payments to individuals, which could come in the form of an increase in food stamp benefits or an extension of unemployment insurance. Not only would an increase in these programs provide much-needed support to low-income families, who are likely to feel the impact of an economic downturn most deeply, but according to economists, they would provide the swiftest impact on the economy.

When measuring “bang for the buck”, or how much economic activity is generated by spending on certain policies, food stamps and unemployment insurance come out ahead, according to the industry research firm Moody’s Economy.com. For every dollar spent on the food stamp benefit, $1.73 is generated throughout the economy in what economists call the ripple effect. $1.64 is generated for every dollar spent on unemployment insurance.[1] And unlike tax breaks, which individuals may use to pay down debt or increase savings, recipients must spend additional food stamp benefits, quickly infusing money into the economy.

In testimony before the Senate Finance Committee, Peter Orszag, Director of the non-partisan Congressional Budget Office stated, “The most effective fiscal stimulus polices share two common features: they focus on the time period when stimulus is most likely to be needed, and they are designed to increase economic activity as much as possible for a given budgetary cost.”[2] He went on to site food stamp increases and unemployment insurance extensions as the only two proposals currently being considered that are both fast acting and highly effective stimulus.

It appears unlikely that food stamps and unemployment insurance will be a part of the first stimulus package sent to the President. There are rumors that a second round of stimulus will be considered later in the year. Let’s hope that the passage of a bill does not mark the end of the discussion.

[1] “Food stamps offer best stimulus – study.” CNN Money.com, 29 January 2008.
[2] Statement of Peter R. Orszag, CBO Director, “Options for Responding to Short-Term Economic Weakness.” Before the Committee on Finance, United States Senate, 22 January 2008.

Ohio's December financial reports

2008-01-16T22:39:00.000-05:00

The December monthly financial reports from the Governor’s Office of Budget and Management (OBM) and the Ohio Legislative Service Commission (LSC) seem to indicate that the rest of the country may soon feel some of the economic strain that Ohio has experienced. Unemployment is up nationally, the housing market is stagnant, and oil prices continue to rise.

So far this state fiscal year, Ohio’s general revenue fund tax receipts have been slightly less than projected (1.6%) and expenditures are slightly more than projected (1.6%) according to OBM, with November a particularly rough month. The OBM report indicated that the corporate franchise tax and personal income tax contributed to the revenue shortfall, and tax reforms continued to affect revenue growth. Expenditure increases were partly due to rising caseloads in Public Assistance and Medicaid. Although Medicaid disbursements were only 1.1% above estimate so far this fiscal year, a one percent increase costs an additional $109 million according to OBM. Most other expenditure categories were below estimate year-to-date.

The Governor’s Counsel of Economic Affairs expects Ohio’s GDP to grow at a slow rate (1.6% annually) through mid-2008. It attributes this to higher energy costs, a tightening of credit conditions, and a softening labor market. According to LSC the Federal Reserve has indicated that it does not expect a rebound in this region’s housing and construction markets until 2009. The good news is that many analysts suspect that Ohio’s housing market has already seen the bulk of expected damage from the sub-prime mortgage situation, whereas much of the rest of the country is just beginning to see the effects. Perhaps the worst is behind us.

SCHIP Picks Up 6 New Votes and Loses One

2007-09-26T15:51:00.000-05:00

In an inspiring display of bipartisan government, 12 Ohio members of the House of Representatives voted to insure 4 million more low-income children. The Children’s Health Insurance Program Reauthorization Act passed the house 265-159 with Representatives Hobson, Kaptur, LaTourette, Pryce, Regula, Ryan, Space, Sutton, Tubbs Jones, Turner, and Wilson voting in favor. These members deserve our thanks for standing up for Ohio’s children. Just click on the names and you will be linked to their contact page.

But the work is not done. The Senate will vote on the bill in the Thursday. Senator Brown supported the bill in its earlier version, but Senator Voinovich was opposed. We are hoping he will be able to support it the second time around.

All indications are that President Bush will use his veto pen for only the fourth time in his presidency to veto this bipartisan legislation for children. And then the fight goes back to the House. The House is 25 votes shy of having the necessary 290 to override a veto. Ohio has five members who voted against the compromise bill. If the president vetoes the bill, the focus will be on maintaining the six votes we picked up last night and urging Representatives Boehner, Chabot, Jordan, Kucinich, and Schmidt to reconsider their opposition. Representative Kucinich said he would not support the compromise bill because it does not include coverage for legal immigrant children.

But for now...on to the Senate!

Can I Put That On My Credit Card?

2007-09-17T11:36:00.000-05:00

Can you imagine putting $2.9 trillion on your credit card? Well that is exactly what the U.S. Government has done since 2001 when President George Bush took office. Since that time Congress has raised the statutory federal debt limit four times and last week the U.S. Senate Finance Committee approved legislation to raise it yet again. The total limit will now stand at a mind boggling $9.815 trillion. The next time you wonder why the dollar continues to lose value, why the U.S. Federal Reserve Bank is reluctant to lower interest rates, why credit markets continue to tighten I hope you will remember the role that current administration federal fiscal policy – cutting taxes without cutting spending – has and continues to play in producing this fiscal mess. Citizens for Tax Justice has released a paper on this sobering subject.

Oh and by the way that $2.9 trillion dollars is on all of our credit cards, as well as those of future generations, for many, many years to come.

Poverty in Ohio Remains High

2007-08-30T15:11:00.000-05:00

Well the numbers are in and while they are better than some may have expected, they aren’t good. Every year the human services advocacy community awaits the poverty numbers with conflicted anticipation. One the one hand hoping numbers are down because more people are moving toward self-sufficiency. But at the same time knowing that higher numbers means more press coverage and hopefully more attention from policymakers. In many ways, the tone to this year’s poverty numbers could be characterized as “To be continued….” While most figures remained close to 2005 levels, other indicators, such as health insurance, are cause for alarm.

Let’s look at the big picture first. Poverty in the United States is down from 12.6% in 2005 to 12.3%, 36.5 million people, in 2006. Most of that reduction comes from seniors as poverty among children and working age adults went basically unchanged. On the whole, Ohio is doing slightly better than the national figures with 1.4 million Ohioans, or 12.2%, living in poverty. But Ohio is the only state with more than one city in the top 10 of the nation’s poorest cities, Cincinnati is 3rd and Cleveland is 4th. Median income is up nationally, but down in Ohio from $44,919 in 2005 to $44,532 last year.

With the exception of the drop in median income, one could say we are holding steady. But there are some disturbing factors inside the numbers. Specifically, where we are in relation to where we were during the last recession and the growing numbers of the uninsured.

In 2001, the last recession was at its lowest point. For the first time on record, the national poverty rate is lower in the fifth year of an economic recovery than it was during the recession. Most growth in the economy since the last recession has been concentrated among those in the top income brackets which has resulted in a very uneven recovery. Low-income and middle-income Americans have not seen the same gains over the last five years.

Most alarming in Tuesday’s census figures was the increase in the number of uninsured Americans. 2006 saw an additional 2.2 million people (47 million total) join the ranks of the uninsured, including 600,000 children (8.7 million total). This is the sixth year in a row that the number of people without health care coverage has increased; further fueling national discussions about the need to address what continues to be a growing crisis.

Ohio faired much better than the rest of the country in the number of uninsured, but still had 1.1 million Ohioans without health care coverage in 2006, 10.1 percent of the population compared to 15.8 percent nationally. State and county officials have made a yeoman’s effort at enrolling as many eligible children as possible in Medicaid and the State Children’s Health Insurance Program (SCHIP), but with available federal funds dwindling and new restrictions enacted in 2006, making sure that low-income children without health care get the coverage they need is becoming more difficult.

Recently President Bush, through the Centers for Medicare and Medicaid Services (CMS), has released a series of new rules that would significantly limit the ability of all states to cover as many low-income children as possible. In Ohio these rules could have a devastating effect on the recent SCHIP expansion enacted by the Governor and the Ohio General Assembly to cover children up to 300 percent of the poverty level. Governors, legislators, and advocates have spoken out on a bipartisan basis on the dangers of enforcing the CMS restrictions.

Going forward we need to continue to shine a light on the impact of low wages, poverty, and lack of health care coverage on Ohioans, directly and indirectly. We cannot move forward as a state with one hand tied behind our backs. Resources must be dedicated to programs designed to help people lift themselves out of poverty if Ohio to succeed at catching up with the rest of the rest of the country in this most recent economic recovery. Human capital investments such as job training programs, and food and health care supports are essential to providing both the safety net and the ladder.

Head Start Reauthorization Moving?

2007-08-16T10:04:00.000-05:00

The Head Start program has not been reauthorized since 1998, but earlier this spring and summer reauthorization legislation began to move. On May 2, 2007, the House approved H.R. 1429, “Improving Head Start Act of 2007.” On June 19, 2007, the Senate approved its version of Head Start reauthorization, “The Head Start for School Readiness Act.”

In the past the Bush administration proposed to transfer control of the program from local grantees to the state – in effect block granting the program. That proposal is no longer considered a viable option. In the most recent House debate an amendment was narrowly defeated that would have allowed Head Start providers affiliated with religious groups to hire employees based on religious preferences. Both the House and Senate versions authorize increases in spending, increase program eligibility to 130 percent of the federal poverty level, increase the set aside for Early Head Start, terminate the national reporting system (testing), and emphasize increasing staff qualifications and salaries.

According to the Federal Funds Information for States the funding levels authorized in the both the House and Senate bills are about $14 million higher for Ohio in federal fiscal year 2008 than what is currently contained in the pending appropriation bills and almost $20 million higher than what the President proposed in his 2008 budget.

The Senate appointed members of the Senate Health Education Labor and Pensions Committee as Senate conferees, but the House has yet to appoint their conferees. Ohio U.S. Senator Sherrod Brown is a member of the Senate Health Education Labor and Pensions Committee and as such will have a voice in the conference process. There is no scheduled date for beginning the conference committee, and the prospects for successfully moving the legislation are unclear as the 2008 elections move ever closer. The Bush administration opposes several provisions in the legislation, particularly the proposal to terminate the national reporting system.

Essential Information for HHS Advocates

2007-08-16T09:15:00.000-05:00

If you are all interested in how the budget treated health and human services you need to read Dick Sheridan's most recent State Budgeting Matters. Part 1 deals with Medicaid and Part 2 deals the Children and Family Services division of ODJFS. Dick will be reviewing other departments through the fall. Stay tuned.

Hurry Up and Wait

2007-06-26T08:32:00.000-05:00

Nothing illustrates that phrase better than a state budget conference committee and Tuesday provided yet another example of this. A hearing that was originally scheduled to begin at 1:30 p.m. on Monday was re-scheduled on Sunday night to begin at 5:00 p.m.. Then at 5:00 p.m. the hearing was delayed until 6:30 p.m. and then delayed again until 7:30 p.m. (I don’t think we got started much before 8:00 p.m.). A lot of those present were expecting an all night affair and were already drinking coffee, but it soon became clear that it was not going to be an all-nighter and that we would have to wait to finish today (Tuesday, June 26). Of course that left the coffee drinkers wondering how they were going to get to sleep.

Here are a few of the items that the conferees approved last evening:

· New Taxing Districts/Student Special Services District: Authorized two or more school districts in Cuyahoga County to create a taxing district for the joint funding of special education and behavioral health services for students and their immediate families.

· Executive Medicaid Administration “to manage all Medicaid policies and functions and promote the efficient and effective delivery of health care." Under the language, the governor would appoint an executive director of the Administration to "implement the recommendations of the Ohio Medicaid Administrative Study Council, except its recommendation for the creation of a separate Medicaid department."

· Approved Senate language related to the creation of a unified long-term care budget workgroup, but they removed minority leader appointment authority for the workgroup.

· The committee moved Senate language on the child and family health services line item. Chairman Matt Dolan indicated that conferees are still working on creating a separate line item for the breast and cervical cancer screening provision.

· The committee earmarked $200,000 annually in federal money within the Rehabilitation Services Commission budget for an adaptive technology initiative of the Cleveland Sight Center. The committee also accepted Senate language requiring the state auditor to complete a performance audit of RSC.

At this point the conferees have resolved all the reported differences for the following departments: Commission on African-American Males, Aging, Agriculture, Air Quality, Alcohol and Drug Addiction Services, Civil Rights Commission, Commerce, Development, Environmental Protection, Expositions Commission, Health, Historical Society, Inspector General, Insurance, Judiciary/Supreme Court, Legal Rights Services, Legislative Services Commission, Lottery, Mental Health, Mental Retardation and Developmental Disabilities, Natural Resources, Board of Nursing, Public Defender Commission, Public Safety, Public Utilities Commission, Rehabilitation and Corrections, Rehabilitation Services Commission, Secretary of State, and Transportation. Of course the conferees are free to go back and revisit items that they have already decided or they can amend provisions with new language.

So what’s left? More than half of the budget (at least in dollar terms) and that includes the Department of Education, Job and Family Services and the Board of Regents. Outstanding issues include access to health care coverage for all children, restoring Medicaid coverage for working parents with incomes below 100% of FPL, the homestead exemption, and of course it still isn’t clear how budget writers will make up the projected shortfall of $167 million gap identified by OBM Director Pari Sabety in budget testimony last week. There seems to be a consensus (at least among the Speaker, the Senate President and the Governor) to make up some of the shortfall with the additional $80 million in state funds given to skilled nursing facilities.

The conference committee is slated to restart later today. I’m betting on a 1:30 p.m. start time if the Senate decides to cancel their session today. If they don’t, I would predict a 3:00 p.m. starting time. At this point 144 of 325 items remain to be resolved. These include 45 items within the Department of Education, 56 items within the Department of Job and Family Services, and 26 items within the Board of Regents. Stay tuned, once the committee finishes it works and it’s approved by both chambers we will have to wait and see what the Governor is going to veto.

U.S. Census Releases State and Local Fiscal Data

2007-06-21T07:30:00.000-05:00

In May the U.S. Census Bureau released state and local financial data for fiscal year 2005. This is the data that most analysts use to allow meaningful comparisons of between states (in contrast to the data that comes from the Tax Foundation and other groups with an ideological bias). We will write more about the census data later this summer, but recently Federal Funds Information for States issued a brief report comparing revenue generation at the state level. I thought it might be useful to share this data now.

The U.S. Census looks at 3 broad categories of revenue: total, general and own-source. Total revenue includes any money that state and local governments collect for any purpose. The Census then subtracts revenue that is generated by quasi-private services (e.g. liquor stores, utility, insurance) to arrive at an amount of general revenue. The Census then subtracts revenue that comes from the federal government (intergovernmental revenue) to calculate the state and local government own-source revenue.

Here are some of the rankings:

· 21/50 State and Local Revenue Generate Per Capita (Below U.S. Average)
· 24/50 State and Local Government Intergovernmental Revenue Per Capita (Above U.S. Average)
· 28/50 Intergovernmental Revenue as a Percentage of State and Local General Revenue (Above U.S. Average)
· 22/50 State and Local Own-Source General Revenue Per Capita (Below U.S. Average)
· 16/50 State and Local Own-Source General Revenue as a Percent of Personal Income (Above U.S. Average)
· 39/50 Percent of State and Local Tax Collections by State Government (Below U.S. Average)

There are numerous reasons for why states rank they way they do, many of them historical. For example one of the reasons that Ohio ranks 39 out of 50 in terms of state and local tax collections by state government is that the state allows local governments to levy a larger variety of taxes than other states. If Ohio’s personal income rankings continue to fall further below national averages we will likely see our state and local own-source general revenue as a percent of personal income ranking rise higher above the national average. That’s because wealthier states can generate more revenue with relatively low tax rates. At the same time if Ohio’s population continues to drop it will drive up our per-capita rankings (e.g. less people to share the overall tax burden).

Ohio House/Senate Budget Conference To Start Today

2007-06-21T06:04:00.000-05:00

The Ohio House/Senate Conference Committee on Am. Sub. H.B. 119 (State Budget) begins today at 1:00 p.m. in hearing room 313. The committee meeting should be relatively brief as the members will only hear testimony from the Office of Budget and Management and the Legislative Services Commission on revised revenue estimates (which fall into the category of worst kept secret because it’s already widely known that they will be lower). I have talked to both Republican and Democratic policy makers and no one seems to believe that it will be very difficult to figure out a way to balance the budget even with the lower revenue figures (of course this may have the effect of creating/increasing a structural deficit if the budget is balanced with more one-time funds).

House appointees to the conference committee include Representatives Matt Dolan, Larry Flowers and Mike Skindell. Senate appointees include Senators John Carey, Tom Niehaus and Dale Miller. As an interesting aside, it’s been awhile since half of the conference committee was made up of Northeast Ohio legislators.

The conference committee will resume on Friday at 9:30 a.m. to begin the process of accepting either the House or Senate version of various budget proposals. If past practice is any guide, the committee will begin by dealing with the easier issues (those where an agreement has already been worked out) first and the hearing on Friday may be relatively speedy.

Conferees will not return until Sunday at 3:00 p.m. This will give the conferees (along with the Speaker, the Senate President and the Governor and their respective staffs) time on Saturday and Sunday morning to work out those issues where differences remain. The conference committee session on Monday is not scheduled to start until 1:30 p.m. and the Tuesday session will begin at 9:00 a.m. The Sunday, Monday, and Tuesday sessions might feature more breaks to allow members to caucus on sticking points in the budget. But hopefully those caucus breaks won’t last for hours like have during past conference committee hearings (I still haven’t forgotten the one that lasted until 6:30 the following morning!). This time the goal seems to be to have everything wrapped up by Tuesday so that the House and Senate can proceed to ratify the conference report in their respective chambers.

The Governor continues to push the legislature to adopt his plan to provide all children with access to health care coverage and to restore Medicaid coverage for several thousand low-wage working parents whose earnings keep them below the poverty line.

Strange Bedfellow - Rep. Fessler & ACLU

2007-06-13T08:55:00.000-05:00

I would hazard a guess that you won’t often find the American Civil Liberties Union of Ohio and State Rep. Diana Fessler on the same side of many issues. But the ACLU of Ohio is supporting HCR 18 which was introduced by Rep. Fessler last month. It’s a joint resolution that calls on the President and the U.S. Congress to repeal the Real ID Act of 2005. There will be sponsor testimony today (6/13/07) on the resolution before the Ohio House Infrastructure, Homeland Security & Veterans Affairs Committee at 2:30 p.m in room 114.

The federal REAL ID (Identification) Act of 2005 was signed into law on May 11, 2005. This act in effect created a national ID by requiring state IDs to meet federal requirements by May 2008. State motor vehicle departments are also required to create a national database. On March 1, 2007, after many months of delay, the U.S. Department of Homeland Security finally issued draft regulations to instruct states on how to comply with the Real ID Act of 2005. It’s projected that the total cost of implementing these new rules will rise above $23 billion.

While the ACLU objections are primarily related to privacy concerns, I've wondered about the impact of these new requirments on low-income persons who will be hard pressed to afford the increased cost of obtaining a drivers license as well as the time of work that will likely be required for multiple visits to the bureau of motor vehicles. Is anyone else following this issue?

ODJFS Offers A Wealth of Data

2007-06-12T14:44:00.000-05:00

The Ohio Department of Job and Family Services regularly reports detailed information about Ohio Works First, Title-IV-E Foster Care and Adoption Assistance, Disability Assistance, Food Stamps, Medicaid, and Child Care programs as part of their Public Assistance Monthly Statistics. The information is worth reviewing from time to time to get a sense of what is happening at the state and county level from a variety of perspectives.

One of the things you can track is TANF caseloads and spending at the state level. For example, the March 2007 OWF combined caseload is 7% smaller than a year earlier and that TANF spending in March, 2007 was 6.5 percent less than a year earlier. In the first three months of 2007 the caseload shrunk by 1,200 assistance groups and TANF spending has dropped every month through March.

It’s not just state level data that’s available. There is also a wealth of county level data available. For example Auglaize, Putnam, and Van Wert counties report in March, 2007 that they had zero adults on Ohio Works First, while Adams, Fulton, Hancock, Hardin, Henry, Huron, Washington, Wyandot, counties each reported having less than 10 adults on Ohio Works First.

Two of these counties, Adams and Huron counties, had estimated unemployment rates in January, 2007 of 10.3 and 10.4 percent – well above the state average of 6.2 percent. The incredibly detailed Public Children Services Association 2007 Fact Book reported that in 2004 nearly 3 out of every 10 residents of Adams County lived below 100% of poverty and that the percentage of people living in poverty has increased 63% since the beginning of the decade. The story is the same for Huron County where 1 out of every 10 residents had incomes below 100% of the poverty level and where poverty has increased by 45% since 2000. This obviously begs the question whether or not these counties are reaching those families living in poverty who aren’t able to obtain employment and likely require assistance meeting their basic needs.

Yesterday Community Solutions co-released a report with the Ohio Association of Community Action Agencies on poverty in Ohio. The authors of the report stated that poverty was at the highest recorded rate since the early 1970s and that child poverty has increased dramatically since 2000 in Ohio. Later this summer the U.S. Census Bureau will release updated poverty statistics for the country, and Ohio.

I am hoping to spend some time this summer looking at Public Assistance Monthly Statistics data. I am interested in looking at the number of number of children who are living in extreme poverty and comparing that with the number of children who are receiving some type of cash assistance. I want to look at county penetration rates for Medicaid and Food Stamps and compare that with poverty rates, unemployment rates and other related data.

Of course it doesn't do much good to just moan and groan about the bad news without talking as well about how we might improve the lives of Ohioans who are struggling to just get by. I'm interested in thinking about ways to make sure Ohioans who are eligible for assistance get the assistance they need (the Benefit Bank!) or promoting the creation of a state earned income tax credit that would put more money into the hands of low-wage working Ohioans who've seen their state and local tax burden increase over the past several years. I would be interested in hearing your ideas as well, send them to jcorlett@communitysolutions.com

Can You Sing Kumbaya?

2007-06-12T12:26:00.000-05:00

Senator Ray Miller (D-Columbus) had it right when he remarked at the brief meeting of the Ohio Senate Finance and Financial Institutions Committee this morning that legislators “should just join hands and sing Kumbaya.” He was referencing the fact that Republicans and Democrats alike were singing the praises of the omnibus amendment to the Senate substitute version of H.B. 119 (the two-year state budget bill). Of course the singing may come to an end when the Office of Budget and Management and the Ohio Legislative Services Commission come to the conference committee (possibly as early as Thursday) with revised revenue estimates that nearly everyone expects to be lower (around $200 million over the biennium is the current rumor). The conferees will have a limited set of options available to them to deal with the shortfall, but hopefully the bipartisan spirit will continue and proposed increased investments in health, social services and education won’t end up cut out on the conference room floor.

It should be noted that the omnibus amendment actually spends very little new money; most of it consists of either earmarking existing line items, or moving money between years or line items. There are a few items in the omnibus amendment that deserve special mention and they include:

· The Health Assistance for Children with Catastrophic Illness Council is placed in temporary law, but eliminated the authority of the ODFJS Director to implement any Council recommendations without legislative approval.

· It creates the Special Education Scholarship Pilot Program for students with disabilities in grades K-12 to attend alternative public or private special education programs in fiscal years 2009 through 2014. The scholarships would be a minimum of $20,000.

· Makes changes in the behavioral health pilot program that was in the Senate substitute bill and limits the pilot to a small, medium, large, and one board consortium , and clarifies the services are for behavioral health and requires coordination with Medicaid managed care plans.

· It requires the Ohio Department of Education to submit an annual report to the General Assembly of each school district’s aggregate employee salary and benefits.

· It requires the Development Department to convene a task force to study state, regional, and local economic development incentives and to report on how to strengthen Ohio’s economy by making the incentives more effective.

· It requires that as of July 1, 2009, that county departments of JFS applications for Medicaid be submitted and store electronically.

· Requires ODJFS to contract with a third party to conduct a child care market rate survey in each even numbered year.

· It requires ODJFS and ODE to develop a fiscal model that joins and early care and education programs under one funding system.

· Transfers $318,000 from ODJFS IT account and gives it to the Ohio Civil Rights Commission IT budget

· It allows FQHCs to participate in the medical liability insurance reimbursement program, and allows the Department of Health to place two FQHCs within or adjacent to a hospital emergency department.

· Earmarks additional TANF dollars to the Alliance Early Childhood Education Pilot Project (anyone know what this is?), the Economic and Community Development Institute, Ohio Council of Urban Leagues,

· Takes $400,000 a year from the ODJFS 600-523 line item (children and family services) and transfers it to a new line item for adult protective services for a total of $500,000 a year (the Senate had already created this line and added $100,000 a year in the Senate sub bill), and specifies how counties are to create maintenance of effort to receive APS funding.

Of course there are a lot more amendments, but these are the highlights (or the lowlights). Now onto the Senate floor on Wednesday and the question is whether the Senate will also cast a unanimous vote for the budget.

Meanwhile, all together now…

Kumbaya my Lord, kumbaya

Kumbaya my Lord, kumbaya

Oh Lord, kumbaya

Erosion of the Food Stamp Benefit Must Stop

2007-05-17T14:07:00.000-05:00

The food stamp benefits received by over one million Ohio families are eroding in real value with each passing year, making it harder for struggling families to afford an adequate diet, according to a report released by The Center for Community Solutions, in conjunction with the Center on Budget and Policy Priorities (Washington, D.C.). Advocates are calling on Congress to stop the erosion in the value of food stamps as it crafts this year’s Farm Bill, which will renew the Food Stamp Program.

“Every month we serve people here whose food stamps ran out before the end of the month,” said David Riggs, coordinator of the Newport Community Food Pantry in Newport, Ohio. “Food stamps are a crucial support for many Ohioans, but each recipient now gets only about $1.10 per meal. That’s just not enough to help families put food on the table every day.”

Congressman Tim Ryan (17th District) has taken up the challenge of living on a food stamp budget for one week. “I wasn't able to get much protein and produce was almost completely out of the question,” Ryan wrote. “I already notice a difference in my energy level. After only a day on this diet, I’m tired and hungry…” Ryan is documenting his experience on his blog.

577,000 households in Ohio cannot always afford adequate food, a condition the government calls “food insecurity.” Many of these households receive food stamps but still aren’t able to afford sufficient food because their food stamp benefits don’t stretch through the month.

Every year the value of the food stamp benefit decreases because of budget cuts Congress made in the program in 1996. The impact of the cuts is growing every year. Next year, a typical working parent with two children will lose about $350 in food stamp benefits as a result of the cuts.

In all, Ohio residents will lose $66 million in food stamp benefits next year as a result of the cuts, according to the new report, The Value of Food Stamp Benefits in Ohio - and Across the Country -Is Shrinking.

“In recent years the reductions in food stamps have placed an added burden to food pantries,” said Anne Goodman, executive director of the Cleveland Foodbank. “We don't have the resources to make up for the lost food stamp benefits resulting in increased food pantry use. It is a significant drain on pantries that were originally designed to deal with emergencies not sustained long-term provision of food."

An inadequate diet can do a great deal of harm to a child’s health and development. “Research studies have shown that an inadequate diet can affect many aspects of a child’s life, from their health to their ability to succeed at work and in school,” said Jean Therrien, RN, MS, executive director of Neighborhood Family Practice in Cleveland.

In addition to improving the health and quality of life of recipients, the report notes, food stamps boost local economies by increasing total food purchases. Thus, the steady decline in food stamp values is hurting Ohio’s economy. If food stamps continue to shrink, Ohio will lose $121.44 million in economic activity in FY2008.

By improving food stamp benefits Congress can help protect needy households in Ohio and other states from going hungry while also improving local economies. At a minimum, the report concludes, Congress should stop the problem from getting worse.

War Debate Snags Children’s Health Care and More

2007-05-08T13:43:00.000-05:00

Lost in the debate over the Iraq war supplemental is the fact that the $124 billion legislation doesn’t just contain support for the war effort in Iraq but also much needed funds for programs essential to low-income families. Assistance with home energy bills, health insurance for children, and presidential approval of the increase in the federal minimum wage are among the items included in the supplemental.

The bill includes $400 million for LIHEAP (Low Income Home Energy Assistance Program) to help low-income families and seniors with heating and cooling costs. Ohio would get approximately $10 million for its energy programs. Despite the steady rise of energy costs, in recent years Congress made cuts to this vital program that often means the difference between paying energy bills or buying groceries. The $400 million restores some of that lost funding.

Fourteen states are currently facing a shortfall in funding their SCHIP (State Children’s Health Insurance Program) plans. The war supplemental includes $750 million for SCHIP to help those states make up those shortfalls so states can provide uninterrupted health care to children while Congress moves forward with reauthorizing the program which expires at the end of this year. Without this funding, hundreds of thousands of low-income children could lose their health care.

Final passage of the minimum wage increase that Congress approved earlier this year is also in the war supplemental. Both the House and Senate attached their minimum wage bills to the war supplemental when they couldn’t come to agreement and then negotiated a package when the supplemental went into conference that included a gradual increase to $7.25 an hour over three years and tax breaks for small businesses.

President Bush vetoed the supplemental largely on the grounds that he opposed setting specific dates for the withdrawal of troops from Iraq, but he also expressed opposition to including the additional funding for domestic programs such as LIHEAP and SCHIP as well others including support for health care for active duty military and veterans. As Congress and the White House work out their differences on the war, these other problems remain unaddressed and it is not clear if they will make their way into the next supplemental agreement.

Rep. Boyd Proposes to Reestablish Welfare Oversight Council

2007-05-08T13:30:00.000-05:00

State Representative Barbara Boyd (D-Cleveland Heights) introduced Ohio House Bill 201 on May 3, 2007. The legislation, co-sponsored by Representatives Skindell, Williams S., and Miller, would reestablish the Welfare Oversight Council. According to the legislation the council would advise the Ohio General Assembly on the performance of the Department of Job and Family Services, county departments of job and family services, child support enforcement agencies, and public children services agencies. The council could also submit recommendations to the general assembly for any changes in law that the council considered necessary or appropriate.

The original Welfare Oversight Council was created in response to welfare reform and its members traveled around the state learning about how welfare reform was being implemented at the local level. State Representative Boyd was one of the original members. In a report that I wrote for the Brookings Institution last year I observed that the Welfare Oversight Committee was regarded warily by some at ODJFS and some local departments of Job and Family Services were even less enthused, and over time it met less and less. When original legislative members like former Rep. Bob Netzley and Representative Boyd left the legislature because of term limits the committee gradually lost steam and its charge was eventually repealed by the legislature in 2003.

The TANF Earmark Train

2007-05-07T13:57:00.000-05:00

All the Ohio House Human Services Subcommittee talk of Temporary Assistance for Needy Families (TANF) budget sustainability didn’t stop the Ohio House of Representatives from adding new TANF spending earmarks to H.B. 119.

It brings back memories of the state fiscal year 2002-2003 budget when the state fiscal crisis was hitting and TANF represented one of the only games in town for earmark seekers. At the time Governor Bob Taft put out the word that he the administration wouldn’t accept TANF earmarks and would veto them (he did veto earmarks for a TANF housing program, the Ohio Association of Second Harvest Foodbanks, the Ohio Association of Boys and Girls Clubs, funding for child welfare activities, and for abstinence only programs – only to agree to sign a budget corrections bill shortly thereafter that restored the earmarks). Of course that was the year that the Governor and legislature orchestrated the biggest TANF raid ever when they used TANF funds to supplant $175 million of state general revenue funds that had previously been used to fund state Head Start programs and then moved $60 million from the TANF Title XX account into the general revenue fund for the “purpose of balancing the general revenue fund.”

So who are newest winners in the TANF earmark chase? Well the Children’s Hunger Alliance saw the size of their earmark double from the last budget and the Ohio Association of Second Harvest Foodbank got a TANF earmark as well. New earmark winners were the American Academy of Pediatrics, the Corporation for Ohio Appalachian Development, Providence House, American Red Cross/Berea Children’s Home and Family Services, and the Center for Families and Children – Rap Art Center. Project GRAD which had an earmark of $185,000 a year in the current budget wasn't in either the governor or house version of the 2008-2009 budget.

The Governor’s budget included some of these earmarks plus it earmarked funds for things like the Governor’s Office of Faith Based Initiatives, and the Closing the Achievement Gap program.

Of course there was one group that got left behind in the rush to earmark the TANF block grant; the Ohio House turned back efforts by some legislators (Rep. Jimmy Stewart) and advocates to provide a cost of living increase to families and children receiving the monthly cash assistance grant beginning on July 1, 2007. At this point TANF recipients will have to wait until January1, 2009 for their grant increase.