Schmudget Blog
Showing blog entries tagged as: Economic Security

President Trump’s budget won’t strengthen the economy. It will harm Washington state

By Misha Werschkul, executive director

President Trump’s 2019 budget does nothing to bolster the economic security of people with middle and low incomes – which is critical to create a thriving economy. Instead, his budget actually threatens the economic security of millions of Washingtonians who rely on federal programs to be able to pay for food on the table, a roof over their head, health care, and other basic needs. Further, it will have profound ripple effects on Washington's local economies. 

While this budget is largely symbolic, since the U.S. Congress just approved a two-year budget deal, these extreme proposals should not be ignored. They are an important signal of the president’s priorities. Many of the specific proposals included in the budget have been introduced before and could be incorporated in future budget proposals or stand-alone legislation this year.  

On the heels of the passage of harmful new federal tax breaks that benefit the wealthy and corporations to the detriment of people with low and middle incomes, President Trump laid out a recipe for increased poverty, homelessness, and inequality. Specifically:

  • He again calls for repealing the Affordable Care Act (ACA) and drastically cutting Medicaid, putting health insurance for millions of Washingtonians at risk.
  • He calls for huge cuts in nutrition, housing, and other basic assistance for millions of Americans below or close to the poverty line, most of whom work for low wages, are elderly or have disabilities, or care for young children. For example, the president cuts nearly 30 percent over 10 years from the Supplemental Nutrition Assistance Program, which currently helps put food on the table for more than 900,000 Washingtonians.
  • He proposes deep cuts to the non-defense discretionary budget that funds education, scientific research, job training, and other core government functions. This would result in massive and unsustainable cost shifts to state governments.  

Instead of pursuing the policies proposed by President Trump, federal leaders should take common-sense steps to support families and grow the economy. They can do this by investing in high-quality job training and apprenticeships; increasing access to safe, affordable, dependable child care and care for family members with disabilities; and advancing policies that create jobs and raise wages for working families. 

For more analysis about this harmful budget proposal, see this statement from Bob Greenstein, president of the Center on Budget and Policy Priorities: "Trump budget offers stark vision."


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Lawmakers must reinvest in WorkFirst to restore the promise of basic support to families facing poverty

Posted by Melinda Young-Flynn at Jan 30, 2018 04:15 PM |
Filed under: Poverty, Economic Security
By Julie Watts, deputy director
We all want to live in a state where, when people fall on hard times, they don’t go without the basics – food, shelter, and necessities of daily life that allow them to look for jobs and get back on their feet. WorkFirst, Washington state’s Temporary Assistance for Needy Families (TANF) program, is the main way our state protects children and families from the trauma and debilitating effects of poverty.
WorkFirst not only provides basic assistance to families in crisis, but it also is supposed to ensure they can move out of poverty through job training, child care, mental health, and support services.(1)

However the program is headed in the wrong direction. As a result of harmful policy changes and budget cuts over the last decade, the program is serving a smaller portion of families in poverty than it was a decade ago. Lawmakers must make investments in WorkFirst to reach more families living in poverty and provide families with more help.

Today, WorkFirst helps only 25 families with children for every 100 living in poverty, down from 50 families for every 100 in 2008. (See graphic below.) The sharp, alarming decline in the number of families being helped by WorkFirst has been driven by dramatic cuts in funding. Since 2008, lawmakers have cut state funding for the program by 47 percent (adjusted for inflation), or $179.6 million, and used those funds to plug holes in other parts of the state budget.

Click on image to enlarge.


Further, beginning in 2010, the governor and the state legislature made changes to the program that made it harder for families who were playing by the rules and meeting program requirements to get extensions to time limits. The changes also punished whole families (including children) when a parent failed to meet program requirements and gave families less time to come into compliance before they are cut off the program. Policymakers also cut the amount of cash assistance families could receive even as the cost of living was rising.

These decisions had a far more damaging impact than anyone anticipated. They sent the caseload into a free fall that continues today.

State lawmakers should make sure any new savings in the WorkFirst program that result from fewer families being served are reinvested to serve more families this legislative session. They must make sure that when families fall on hard times in Washington, they don’t go without the basics.

For more detailed recommendations on how to improve WorkFirst, see our policy brief, "Reinvest in WorkFirst: How we can restore the promise of basic support to Washington families facing poverty." 

[1] In addition, a portion of the state’s WorkFirst caseload are “child-only” cases – children who are living with a family member other than their parents or children who are living with parents who are not eligible for TANF.



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State legislators should focus on advancing shared prosperity during 2018 legislative session

By Misha Werschkul, executive director

As legislators convene in Olympia for the start of the 60-day state legislative session, the Washington State Budget & Policy Center encourages them to approach every budget-related policy decision this year by answering one critical question: Does this policy help put our state on a path toward an inclusive economy that promotes shared prosperity and advances racial equity?

At the Budget & Policy Center, our 2017-19 legislative agenda aims to meet that goal. We know that in order to build prosperity and to advance equity in our state and our economy, policymakers must keep the well-being and economic security of all Washingtonians top of mind. 

We are pleased that a number of our policy priorities advanced during the 2017 legislative session. In particular, elected leaders rightly strengthened supports for families to meet basic needs, closed outdated tax breaks like the sales tax exemption for bottled water and a tax break that largely benefited oil refineries, and approved paid family and medical leave. This progress is thanks in no small part to the work of community organizations, advocacy groups and everyday Washingtonians from across the state. [See the links at the end of this post for more details about our policy priorities that advanced in the 2017 session.]

Now, in 2018, elected leaders must take additional steps to ensure our state budget delivers on the values of our great state. They can no longer leave undone the important task of cleaning up our upside-down tax code – in which the wealthiest people pay the least state and local taxes as a share of their incomes. Cleaning up the tax code will help ensure our state has the revenue to pay for investments in great schools and strong communities. The stakes are higher than ever given that the U.S. Congress has passed new tax breaks benefiting the wealthy and profitable corporations and hasn’t acted to reauthorize funding for the Children’s Health Insurance Program.

When legislators convene in January, they should:

  • Ensure there is ample and equitable funding to raise the salaries of public K-12 teachers, as required by the state Supreme Court, in time for the 2018-19 school year.
  • Support strong investments in our communities and the well-being of Washingtonians into the future by: helping more kids get access to our successful state preschool program, the Early Childhood Education and Assistance Program, by expanding eligibility; passing “breakfast after the bell” legislation that supports student health and readiness through nutrition; increasing supports for people experiencing economic insecurity, homelessness, and behavioral health challenges; protecting health care funding provided by programs like the Affordable Care Act and Apple Health for Kids; and taking steps to correct the short-sighted fixes and accounting gimmicks from the 2017-19 biennial budget.
  • Enact long-term solutions to fix our upside-down tax code by: closing the tax break on capital gains; making the tax on sales of real estate more equitable by reducing the tax rates on the sale of lower-valued properties and increasing the rates applied to properties that sell for more than $1 million; and boosting the incomes of hardworking families through the Working Families Tax Rebate

As a result of the special election in November, the makeup of the legislature, the leadership in the Senate, and the people on the budget-writing committees are different than at the close of the last legislative session. This legislature has a fresh opportunity to set our state on a path toward prosperity and an inclusive economy through our state budget. 

See our Progress in Washington 2018 report, “Building an Inclusive Economy,” for more details on how our state is faring when it comes to building an inclusive economy. And read more about our policy priorities that advanced in the 2017 legislative session in the following schmudget blog posts:


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New report: An inclusive economy is essential for all Washingtonians, our economy, and the future progress of our state

Washington is poised for great economic progress. By many measures, a better future for all people in our state is within our grasp. And yet, economic growth is not reaching all Washingtonians. There are persistent and deep disparities based on race, ethnicity, nativity, class, and geography across every measure of economic progress. Progress is meaningful only if it’s felt by everyone and prosperity is shared by all Washingtonians. To create real progress, our state must have an inclusive economy in which everyone, especially people with low incomes and people of color, can participate in growth and benefit from it. Those are the primary findings of our “Building an Inclusive Economy” report (the first in our Progress in Washington 2018 series of reports).

Inclusive Economy carouselShared economic prosperity is one of the best measures of how our state and country are progressing, but economic growth has not been broadly shared in our state. Gains in income have been concentrated at the top while wages for low- and middle-income people have stagnated or declined. This rise in inequality is the result of many state and federal policy and budget decisions by legislators that have negatively impacted certain Washington state residents. Decades of regressive taxation, deregulation, privatization, cuts to the safety net, as well as the decline of collective bargaining have all played a role in rising inequality.

Washington state’s own upside-down tax code has contributed to the problem. Hardworking families in our state pay as much as seven times more than the wealthiest pay while corporations and the ultra-wealthy benefit from unnecessary tax breaks, making it hard for our state to have the revenue it needs to invest in the foundations that serve us all, such as great schools, quality health care, and other public priorities that make Washington a great place to live. Policymakers must fix our broken tax code. Doing so will allow our state budget to have sustainable sources of revenue to build an inclusive economy and to invest equitably in our communities in the short and long term.

Prosperity should be within reach of all Washingtonians
Making sure all Washingtonians have access to opportunity and resources is essential to ensuring prosperity is within reach of all residents. Across many indicators of economic progress, the data show that people with low incomes and people of color are starting off on unequal footing and are facing greater barriers in large part because of the impact of harmful historical housing, economic development, and financial policies. As Washington grows more racially and ethnically diverse, the future well-being of all of us hinges upon erasing the deep and pervasive racial imbalances that exist across these measures. By 2050, our state population will be majority people of color. Washington state’s young people are already at the forefront of this demographic transformation. Forty-three percent of children are kids of color.

 [Click on graphic to enlarge.]


In an inclusive economy, all Washingtonians – regardless of race, ethnicity, nativity, income, or community of residence – would be able to access quality jobs and have financial security and stability. Our education system would be preparing students and workers for good jobs and jobs of the future. And all Washingtonians would be able to live healthy lives in vibrant communities so they can better connect to and participate in the economy. However, data trends highlighted in our report indicate economic prosperity is out or reach for many residents in three key areas – economic security; education and job readiness; and healthy people and communities. For example:

  • Economic security: Although economic growth holds the promise of prosperity for working people across the state, rising employment has not reached all communities. While unemployment in Washington state has overall dipped to 4.5 percent, for many communities of color – such as Pacific Islanders, American Indians, and Blacks – unemployment rates remain at or near 10 percent. There are geographic differences as well: the unemployment rate has remained high in many rural counties. In Ferry County, the unemployment rate is the highest in the state at 9.1 percent, and in Pacific and Wahkiakum counties, unemployment remains at just above 6 percent.
  • Education and job readiness: While the state’s Department of Early Learning’s goal is for 90 percent of kids to start kindergarten with the skills they need to succeed, currently only 47 percent of kindergartners are meeting that threshold, and there are significant differences by income and race. Only 33 percent of kids with low incomes, 27 percent of Pacific Islander kids, 30 percent of Latino kids, and 32 percent of American Indian kids were kindergarten ready in 2016.
  • Healthy people and communities: In Washington state, many low-income communities, communities of color, and rural communities experience worse health outcomes when it comes to chronic diseases, life expectancy, obesity, and more. Thirteen percent of households in Washington struggle with food insecurity – the inability to have three meals on the table every day as a result of lack of resources. Among 10th graders, Pacific Islander, Latino, and Black students have the highest likelihood of living in families that had to reduce meal sizes or skip meals compared to overall state average.

 [Click on graphic to enlarge.]


Note about data: Disaggregated data is presented to provide a preliminary understanding of disparities by race, ethnicity, and nativity. On its own, the data throughout the report tells a limited story about the population it represents. We encourage users of this data to engage with communities of color to develop a more accurate and meaningful understanding than the data allows.

These and other trends highlighted in the report point to the fact that much work remains to be done for policymakers and all of us to advance shared prosperity and progress for generations to come. Our state budget and tax code are powerful tools to make this happen and to build an inclusive economy. In the upcoming 2018 legislative session and beyond, policymakers can choose to advance shared prosperity by making sure our state budget and policies increase economic security, promote racial equity, ensure all kids have access to great schools, and build thriving communities for everyone.

Stay tuned for the next publications in the Progress in Washington series, which will explore policy solutions that address the barriers to opportunities described in the “Building an Inclusive Economy” report.

“Building an Inclusive Economy” is the first report in our Progress in Washington 2018 series. The report is intended to offer a framework for understanding the challenges before us. To reach the goal of an inclusive Washington state economy with shared prosperity for everyone, we need to know where we are, where we need to be, and how we can get there.


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Governor’s initiative on economic security is a big win for Washington’s families

Posted by Julie Watts at Nov 29, 2017 03:15 PM |

Governor Inslee has created a new inter-agency work group on family economic security that is a big step in the right direction to help families move themselves out of poverty in our state. The work group will be tasked with developing a 10-year strategy for poverty reduction in Washington state, based on an intergenerational approach to addressing poverty.

Intergenerational approaches to poverty promote the economic well-being of whole families across generations so that children can thrive and reach their full potential. The approach is centered around coordinated support for families across five key areas: high-quality early childhood education; higher education and career pathways; asset building; health and well-being; and social capital.

Family economic security

Nationally, similar initiatives that focus on economic success of families, as opposed to a focus on children or adults alone or in silos – are gaining momentum and showing very promising results. In Colorado, Utah, Connecticut, Massachusetts, and Oklahoma – to name just a few states – early investment in intergenerational programs are paying off and are leading to living-wage careers for parents, better education outcomes for kids, and a low rate of return to social benefit programs. 

The governor’s directive to create this work group is an important step to help families move out of poverty. It is also an important step to grow the middle class so that more residents can benefit from economic growth. As more families move out of poverty permanently and contribute to economic activity, that will pay dividends for the state economy.

The directive was the result of bipartisan efforts advance intergenerational strategies to address poverty in Washington. The creation of the work group is a sign that Washington’s leaders are turning a new page on how we go about policy development on economic security. The initiative calls for broad participation by state agencies, stakeholders, employers, people who are in poverty, and other communities that have historically not been included in conversations on public policy. 

Advancing poverty reduction policies using an intergenerational approach has long been a priority of the Washington State Budget & Policy Center. We look forward to continuing to work with the governor and his staff as well as with legislators and other key stakeholders to develop specific data-driven policy recommendations to reach poverty-reduction goals. This is a monumental step toward ensuring that every child, parent, and grandparent in Washington is able to reach their full potential and thrive.


KIDS COUNT Report: Barriers to Opportunity Prevent Children of Color and Immigrant Children from Reaching Their Full Potential

The United States and Washington state are stronger when we harness the talents and drive of all people – including children – who will help build the nation’s future. For our country and state to reach our full economic, democratic, and moral potential, all children must have the opportunity to grow, develop, and thrive. A new Annie E. Casey Foundation report shows that too many young people of color are still facing barriers to a bright future, however. While there have been modest gains in terms of the well-being of kids of color in Washington state over the last three years, the report notes that families of diverse backgrounds, including immigrant families, struggle against barriers to success. Policymakers must enact policies to level the playing field for all kids.


The Casey Foundation report, 2017 Race for Results: Building a Path to Opportunity for All Children, measures children’s progress on the national and state levels in key education, health, and economic milestones by racial and ethnic groups. It shows that, in Washington state, Latino children, Black children, and American Indian children have lower overall scores of wellness compared to White and Asian and Pacific Islander children. Specifically, the report uses a composite score of child wellness based on a range of data indicators – with 1 being the lowest score and 1,000 being the highest. Latino, Black, and American Indian children scored 401, 456, and 459 respectively, while White children and Asian Pacific Islander children scored 719 and 756.

The 2017 Race for Results report also highlights the fact that children in immigrant families face some notable barriers:

  • Two-thirds of Washington children in U.S.-born headed households live in households with a basic-needs income or greater (above 200 percent of the federal poverty level, or $40,320 for a family of three 2016), while just one in two children in immigrant families have an income sufficient to meet their basic needs. That income gap is larger in Washington than at the national level.
  • Children in immigrant families are less likely to grow up with a head of household who has at least a high school diploma.

More than 440,000 (28 percent) of Washington’s 1.6 million kids are children in immigrant families. Four out of five of immigrant children are children of color. Despite the challenges they face, children and young adults in immigrant families are also doing well on some measures:

  • Black and Asian Pacific Islander 3- and 4-year olds in immigrant families have the same or higher rates of enrollment in nursery school, preschool, or kindergarten than the Washington state average overall (60 percent).
  • Young adults aged 19 to 26 in immigrant families also tend to be working or enrolled in a degree, training, or certificate program at the same rates as their U.S.-born peers.
  • Black, White, and Asian Pacific Islander young adults in immigrant families are more likely to have an associate’s degree or other advanced degree.

The report underscores the formidable risks to healthy child development in immigrant families and for children of color that are caused by issues such as lack of access to living-wage jobs, limited educational opportunities, and family separation. These risks are further exacerbated by policies that limit resources and restrict access. Immigrant families are also facing policy proposals that threaten the residency status of 800,000 young people who have been granted a reprieve from fear of deportation through the Deferred Action for Childhood Arrivals (DACA) program. Washington state is home to 19,000 of the 800,000 DACA recipients.

All children need to reach their full potential if we are to reach ours as a nation. This means lawmakers must break down systemic barriers to opportunity placed in front of many children of color and immigrant children. With regard to immigrant children in particular, much of this country’s future success depends on how we equip immigrant families with the tools and skills that enable them to contribute to local economies – as immigrants have done since the founding of this country. The 2017 Race for Results report makes several recommendations to maximize children’s access to opportunity:

  • Keep families together. Immigration authorities and family courts can protect kids from adverse experiences by exercising discretion in choosing whether to separate parents from their children.
  • Help kids in communities of color, both immigrant and U.S.-born, to meet key developmental milestones. Policymakers can do more to link eligible families to quality early learning led by culturally competent teachers. More states, universities, and colleges can help qualified students pay for college without regard to immigration status.
  • Increase economic opportunity. Among the actions state policymakers can take is to increase access to occupational licenses and credentials to income-earning parents who entered their professions in foreign countries, boosting the prospects for higher household income.

To read more about how Washington’s kids are progressing on key milestones across racial and ethnic groups compared to the nation and other states, read the full 2017 Race for Results: Building a Path to Opportunity for All Children report and our KIDS COUNT in Washington press release.

New Census Numbers: To Build Thriving Communities, Invest in Removing Barriers to Economic Security

New data released by the U.S. Census Bureau shows that there is some good news when it comes to poverty rates and access to health care in our state. At the same time, the data shows that many Washingtonians – in particular, some communities of color, women, and people with disabilities – still face barriers to economic security. The numbers make it clear that to build thriving communities, our policymakers must invest in priorities that remove obstacles to prosperity for Washingtonians.

First the good news: Last year, the poverty rate in Washington state declined slightly to 11.3 percent from 12.2 percent in 2015. And between 2013 and 2016, the rate of people with health insurance increased to 94 percent from 86 percent.

The fact that fewer Washingtonians are living in poverty is likely due to economic growth and a low unemployment rate. And the insurance rate is more evidence that the Affordable Care Act has been extremely effective in ensuring more people can afford to have access to a doctor and preventive health services.

Yet the numbers also reveal that despite economic growth, far too many residents of Washington face barriers to economic security, especially people of color, women, and people with disabilities. In fact, the poverty rate for some communities of color in Washington is nearly two to three times that of whites. Systemic barriers are impacting many people’s ability to put food on the table and pay for their housing. For example:

  • Twenty-seven percent of American Indian/Alaska Natives, 23 percent of Blacks, 20 percent of Native Hawaiian/Pacific Islanders, and 19 percent of Latinos live in poverty.
  • Among full-time workers, women earned 75 percent of what men earned in 2016.
  • One in four working age Washingtonians with a disability live below the federal poverty line, compared to one in ten adults without disabilities. 

Further, when looking at the data over a longer time period, they show those facing the greatest hardship are not reaping the benefits of economic growth. In fact, more people in Washington are living in deep poverty – below 50 percent of the federal poverty line, which is less than $10,080 a year for a family of three in 2016 – than in 2006. The number of Washingtonians living in deep poverty grew by 17 percent between over the last decade (See figure below).

(Click on graphic to enlarge)

Washingtonians in Deep Poverty

Our economy and our communities will be stronger when everyone is able to not only to make ends meet, but also to have a better future – and when lawmakers act to undo systemic and institutional barriers that prevent people from having equal access to opportunity.

While it is good news that there is declining poverty overall and greater rates of health insurance coverage in our state, the new Census numbers nevertheless underscore that too many people are still facing financial hardship. In order to build thriving communities, lawmakers in our state need to make investments that enable all our residents to thrive. Further, federal policymakers must protect essential health care coverage – pushing back against continued efforts to repeal the Affordable Care Act – and they must protect programs that ensure that when people hit hard times, they don’t go without the basics.


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Washington state should be a place where all our residents have strong communities, great schools, and the chance for a bright future. Our 2017-2019 Legislative Agenda outlines the priorities we are working to advance to build a better Washington.

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You can watch our Budget Matters 2017 Seattle Policy Summit, which took place on December 6, online. The first part of the day (watch herefeatured Washington State Lt. Governor Cyrus Habib and Race Forward President Glenn Harris. The second part of the day (watch here) featured Budget & Policy Center Senior Policy Analyst Jennifer Tran, and a panel of local leaders moderated by Michael Brown of the Seattle Foundation.