Michigan Catholic Conference Calls for Maintaining the Michigan Earned Income Credit for Working Poor

With the Michigan Earned Income Tax Credit received by thousands of lower-income families apparently on chopping block, groups are launching an effort to save it.

Gov. Rick Snyder today unveils his “Citizens Guide to Michigan’s Financial Health,” and its release will serve as a launching pad for months of negotiations over how to close a $1.8 billion budget deficit and finance on top of that a business tax cut in the range of $1.5 billion.

Michigan’s EITC, approved in the Granholm administration with bipartisan support, provides a refundable credit equal to 20 percent of the federal credit EITC qualifying families receive. But it’s also expensive, costing some $354 million in fiscal 2011.

House Republicans say they want to repeal the credit that the Michigan League for Human Services say benefits 700,000 working parents and their children and keeps 25,000 families out of poverty.

Paul Long, president and CEO of the Michigan Catholic Conference said saving the credit is one of the group’s top legislative priorities.

“The expense of the Michigan EITC is mitigated by the amount that is spent in the local economy by those who receive the credit; therefore, the EITC has a dual purpose: to act as a barrier to poverty and an incentive to work, and as an economic boost for local communities,” said Long.

“At a time when Michigan’s unemployment rate continues to hover above 11 percent, we are urging those who craft state policy to seriously evaluate how any reform of state government will impact the elderly and frail, the poor and disadvantaged,” he added.

www.mlive.com/politics/index.ssf/2011/01/michigan_catholic_group_vows_t.html

Now, let's hope some Baptists, Christian Reformed, Episcopals, Jews, Lutherans, Methodists, Muslims, and all other manner of denominations get on board.

Tougher Bankruptcy Laws: Have They Hurt More than Helped?

When tougher bankruptcy laws took effect more than five years ago, Congress wanted to raise the bar against perceived abuse of the system by ne’er-do-well debtors.

But since then?

Lawyers’ fees have more than doubled, online “credit counseling” is the norm, and the pace of personal bankruptcies is growing, nearing 2004 pre-reform levels.

“The impact was not much — other than to make it more costly and make more hoops to jump through for anyone filing bankruptcy,” local attorney David Andersen said.

... Many families have been wedged between job loss and mortgage.

“I was let go while my husband was still in the hospital with a brain aneurysm,” said Lynnette Tilton, who now works as a legal assistant in attorney David Andersen’s law office. “It was devastating.”

Before disaster struck, life was smooth-sailing, Tilton said.

“We had everything — good-paying jobs, 800-plus credit scores, a mortgage,” she said. “We were able to live comfortably.”

About four years ago, after they were laid off, the Tiltons sought help to save their Southeast Grand Rapids ranch home.

“The mortgage company granted us a couple of forbearance agreements, but they wouldn’t restate our mortgage,” Tilton said.

She and her husband lost the house, filed for Chapter 13 bankruptcy and took a series of part-time jobs, waiting for the local economy to recover. Today, they both work full time and are renting a home they love.

www.mlive.com/business/west-michigan/index.ssf/2011/01/5-year-old_federal_bankruptcy.html

Michigan Legislature Considers Tax Increase on the Working Poor

The idea of the Earned Income tax Credit, giving people who have low-income jobs a bit of a tax break, has been around for a while. In 1975, a Michigan Republican, Gerald Ford, signed the first federal credit into law while he was president.

Since then, the federal credit has been expanded by subsequent presidents, including Ronald Reagan. President Reagan had high praise for it as part of the Tax Reform Act of 1986:

“It’s also the best anti-poverty bill, the best pro-family measure, and the best job creation program ever to come out of the Congress of the United States.”

The Earned Income Tax Credit was popular because gave people an incentive to get off welfare and go to work. Prior to the credit, a person on welfare would find it paid more to stay on public assistance because by the time taxes were taken out of the paycheck, they were worse off financially.

Alex Rosaen is a Consultant with the Anderson Economic Group. He’s written on the issue:

"The original kind of revolutionary idea with the Earned Income Tax Credit as opposed to simply providing families with direct cash aid was that it flipped things upside down; it got the incentives right instead of getting them wrong.”

So, that federal credit became a basic building block of the welfare-to-work effort.

www.michiganradionews.org/post/michigan-legislature-considers-tax-increase-working-poor

Every Kind of People: A Musical Note

Sometimes we all just need a little reminder that Southwest Michigan is One Community, One People. We try to advocate in these spaces for ALL people in Southwest Michigan, black, white, Hispanic, Native, Asian, rich, poor, those with disabilities, gay or straight, old and young, men and women.

Sometimes music can be a wonderful reminder of just that. As a former disc jockey with Armed Forces radio, I could pull from a slew of songs to make that point. However, this morning this song comes to mind.

So, as Robert Palmer sang many years ago:

"It Takes Every Kind of People To Make What Life's About"

Enjoy:

www.youtube.com/watch?v=Ne1lkEEmRCI

Underground Railroad Society of Cass County Acquires Bonine House

The Underground Railroad Society of Cass County (URSCC) is very pleased to announce that the organization recently completed the purchase of the James E. Bonine House and Carriage House at M-60 and Calvin Center Road, with the intent to preserve and restore both properties for use as education and community centers.

The mission of URSCC is “to provide a focal point for exploration into the origins and activities of the Underground Railroad; the unique role the people of Cass County and the surrounding region played throughout its existence; and how it impacted local, state and national history.”

URSCC president and building/grounds committee chair Mike Moroz of Dowagiac said, “Acquiring these properties has been challenging. We thought we had them a year ago, and the deal fell through. We felt this was our last opportunity since the Bonine House is coming to the point of being irreparably damaged due to years of neglect. When the property came back on the market recently, everyone rallied to the cause and we were able to close within two weeks. We have a long road ahead of us, but with everyone’s help we can restore these iconic buildings to the glory they deserve.”

The properties are important for their architectural significance; as the ancestral home of the Bonine Family; and for their intimate connection to Underground Railroad activity in this area.

www.dowagiacnews.com/2011/01/24/urscc-buys-bonine-house/

National report says homelessness rife among young adults

Kayla Cathcart was 18 the first time she was rendered homeless.

She was living place to place, staying wherever she could, splitting the rent with whichever friend had an extra couch, moving on a moment’s notice when it didn’t work out.

“I was never on the street exactly, wondering where I was going to lay my head,” Cathcart says, “but my housing just wasn’t stable.”

If she uses the word “stable” once, she uses it at least two dozen times over the course of a two-hour conversation.

“You have no idea what it’s like,” she says. “It’s ridiculous.”

In many ways, Cathcart is the “new face” of the young and the homeless, says Heather Wiegand, the chief operating officer of Every Woman’s Place/Webster House of Muskegon where she works with runaway and homeless youth. Wiegand is also the board chair of the Michigan Network for Youth and Families.

Young adults like Cathcart confound the stereotypes of “the homeless living in cardboard boxes on street corners or under bridges like we see on the news in big cities,” Wiegand says.

www.mlive.com/news/muskegon/index.ssf/2011/01/americas_secret_homelessness_r.html

Medicaid Cuts Likely: Lansing State Journal

One of the biggest budget challenges facing Gov. Rick Snyder is reining in the skyrocketing costs of serving nearly 2 million people now on Medicaid in the state.

And though that's not exactly a new issue in Michigan, Snyder's task may be harder this year because - among other things - a provision of the federal health care reform act prohibits states from using one budget-cutting tool that has been used before: This year, states can't cut people from the program.

In fact, the number of people on Medicaid - the public health plan for primarily low-income, elderly and disabled people - is expected to rise.

"It's a huge budget challenge," said Marianne Udow-Phillips, who heads the Center for Healthcare Research and Transformation, an Ann Arbor think tank.

"We're looking at a $1.6 billion deficit, and Medicaid is the single largest item in that budget."

The state's recession has led to a 54 percent spike in Medicaid enrollment since 2002 as more and more people have lost their jobs and health insurance.

Between 1999 and 2010, the number of Medicaid recipients rose from just over 1 million to 1.9 million...

Though Medicaid cuts alone won't come close to solving the state's budget crisis, there are some targets that Snyder's team may consider based on history:

• Cuts to optional services, such as dental care for adults.

• Mental health services not currently protected under Medicaid.

• Reimbursement rates to doctors and hospitals that serve Medicaid patients...

"We're hopeful that Gov. Snyder will maintain ... his recognition that provider rates of reimbursement should be not cut but increased in order to preserve access to care for the citizens of Michigan," said David Finkbeiner, senior vice president of advocacy for the Michigan Health and Hospital Association.

"The important sidebar to that is when a service is reduced or limited as a result of government underfunding, that service goes away not only for those covered by Medicaid but those covered by other forms of insurance as well."

Human impact

Medicaid advocates say they know cuts are inevitable but hope Snyder and his team will keep one thing in mind.

"At the end of the day, what is the real human impact?" said Gilda Jacobs of the Michigan League for Human Services.

"We're not just talking about numbers."

www.lansingstatejournal.com/article/20110123/NEWS04/101230471/Health-care-cuts-likely-as-Michigan-struggles-with-budget

Michigan Works Launches Alternative School in Benton Harbor

For students who don't succeed in traditional school settings, the road ahead can feel daunting. High school dropouts reach a point where catching up is mathematically impossible, while their adult peers confront many personal issues that prevent them from improving their lives as they would like, says Chris Fielding, chief executive officer for Southwest Michigan Works! Last fall, the agency opened its answer in the Bridge Academy, at 777 Riverview Drive, Benton Harbor.

Several rationales drove the agency's decision. When we really looked at it, all our programs had a common goal, and that was education. It gave us the opportunity to put everything under one facility and reduce administrative overhead, Fielding said. The academy also fills a void left by the closing of Twilight, Benton Harbor's alternative school, around three years ago. We were seeing ourselves having to turn students away every year, because of the maximum capacity of every program, he said.

bentonspiritnews.com/michigan-works-launches-alternative-school-bridge-academy-promotes-success-p3943-1.htm

Immigration Raids in West Michigan

As reported in the Grand Rapids Press:

"U.S. Immigration and Customs Enforcement arrested 77 illegal residents, immigration fugitives and immigration violators in a four-day enforcement project in Western Michigan, the agency said this morning.

Those arrested face deportation and criminal charges.

The operation targeted the Grand Rapids area, with arrests reported in Kent, Ottawa, Kalamazoo, Berrien, Calhoun, Mason and St. Joseph counties.

Of those arrested, 22 had prior convictions. Six had previously been deported, but returned to the U.S. Illegally, an ICE official said."

www.mlive.com/news/grand-rapids/index.ssf/2011/01/77_arrested_in_immigration_cra.html

P.S.

“From the depth of need and despair, people can work together, can organize themselves to solve their own problems and fill their own needs with dignity and strength."

- Cesar Chavez

EITC At Risk of Elimination: Where's the Shared Sacrifice in That?

The state has a budget deficit of somewhere in the vicinity of $1.5 billion-$2 billion. On top of that, many say that the recently enacted Michigan Business Tax is a disaster and discourages small businesses from expanding and growing in our state, something that we need desperately for job growth.

I hope that new Gov. Rick Snyder will call us together and inspire us to work as one people, one Michigan in shared sacrifice to solve these problems. But instead, I am concerned that what is being discussed in Lansing is not shared sacrifice, but more likely budget cuts that will hurt the most vulnerable. If we have significant problems with our budget, I agree that we should be talking about ways to run our schools, our county and local governments, our institutions of higher learning, and our prisons more efficiently. I agree that we should look at social welfare and human services programs and see which ones work, fund them as best we can, and discard those programs that don't work, ineffective "feel good" programs.

But what concerns me is that almost all that I hear being discussed are cuts to programs that benefit or help the poor or disadvantaged. I am most troubled about discussions to eliminate the Michigan earned income tax credit (EITC), a tax benefit that helps the working poor. The average recipient of the EITC received a credit of $392 from their 2009 taxes, according to figures from the Michigan League for Human Services. In Berrien County last tax year, the average EITC family made less than $20,000 a year, far less. A tax increase of $392 for these families is not just.

One of our elected leaders in Lansing is fond of saying that we all need to take a "hair cut" in these tough times. I don't disagree. I just feel that families living on less than $20,000 a year have far less "hair" to cut than I and more affluent Michiganders do. And I think that we need to work together so that as Steve Miller sang in "Fly Like an Eagle" we ensure that we:

"Feed the babies
Who don't have enough to eat
Shoe the children
With no shoes on their feet
House the people
Livin' in the street
Oh, oh, there's a solution"

The solution to Michigan's budget woes is shared sacrifice, not just cuts to programs for the poor.

heraldpalladium.com/articles/2011/01/19/opinion/editorials/3209838.txt

Vow to enforce limit on welfare benefits could be 'devastating to some'

It’s hard to predict exactly how the proposed (4-year) welfare limit would affect the 235,784 people on cash assistance in Michigan in November. In Kent County, there were 13,375, and 1,126 in Ottawa County.

But at the Women’s Resource Center, Executive Director Sharon Caldwell-Newton predicts it will only hurt the most vulnerable. The nonprofit agency helps low-income women with employment preparation and career planning through connections to local employers.

“You make these kind of cuts and you are putting women into poverty, and you are taking the children right along with them,” she said. “I don’t think there’s an argument about the need to break the cycle of poverty. The question is, if you eliminate the safety net, how is that breaking the cycle of poverty?

“These women will still be poor. Those children will still be poor, but they will be in much more distress than they are in now.”

Caldwell-Newton conceded some recipients can be comfortable staying on cash assistance.

“But our experience at the center is that that is a very, very small percentage. Most of them are very motivated to make a better life, not only for themselves but especially for their kids.”

But she said many recipients are hindered by a lack of education needed for higher-paying jobs, lack of transportation or other handicaps. On top of that, West Michigan’s economy continues to sputter, with unemployment near 10 percent in Kent County.

www.mlive.com/politics/index.ssf/2011/01/advocate_republicans_vow_to_en.html

Bobby Kennedy: The Day After the Murder of Dr. Martin Luther King

The day of and the day after the murder of Dr. Martin Luther King, Bobby Kennedy was a clarion voice. Many of us remember the speech that Bobby made in Indianapolis the day of Dr. King's death in which he announced to a gathered crowd that Dr. King had been murdered.

Personally, I do not recall the speech that he made the following day. A powerful speech from a man who was clearly moved deeply by the death of one of the greatest Americans of the 20th Century.

Here is some of what Bobby said the day after the King assassination:

"... we seemingly tolerate a rising level of violence that ignores our common humanity and our claims to civilization alike. We calmly accept newspaper reports of civilian slaughter in far-off lands. We glorify killing on movie and television screens and call it entertainment. We make it easy for men of all shades of sanity to acquire whatever weapons and ammunition they desire.

Too often we honor swagger and bluster and wielders of force; too often we excuse those who are willing to build their own lives on the shattered dreams of others. Some Americans who preach non-violence abroad fail to practice it here at home. Some who accuse others of inciting riots have by their own conduct invited them.

Some look for scapegoats, others look for conspiracies, but this much is clear: violence breeds violence, repression brings retaliation, and only a cleansing of our whole society can remove this sickness from our soul.

For there is another kind of violence, slower but just as deadly destructive as the shot or the bomb in the night. This is the violence of institutions; indifference and inaction and slow decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. This is the slow destruction of a child by hunger, and schools without books and homes without heat in the winter.

This is the breaking of a man's spirit by denying him the chance to stand as a father and as a man among other men. And this too afflicts us all."

For an audio presentation of Bobby Kennedy's speech April 5, 1968 please see:

www.vsotd.com/Article.php?art_num=4651&goback=.gmp_2183910.gde_2183910_member_39945995

Caring for Those With Alzheimer's and Their Care Givers

"When people are dealing with a loved one who has Alzheimer's, they are dealing with grief and loss, just the same as with a death. The family might become angry at first at having someone else caring for a loved one. We spend a lot of time with families to help them through this.

"It comes to a point when people are exhausted dealing with their loved one's behavior. There are behaviors that are hard to manage, whether the person is abusive or combative or if they're wandering or people have trouble with lifting the person."

There also are several programs in Southwest Michigan that help people with Alzheimer's and their families.

The Area Agency on Aging offers a variety of services, including a toll-free help line and classes.

"The classes help people know that they're not alone," says Dianne Carlson, community service director at the agency. "They also give people a chance to learn about the disease process, which is different for different people. Caregivers need to realize to not take their loved one's actions personally."

She recommends people visit the www.areagencyonaging.org website or call the 800-654-2810 toll-free information line to get information.

The Alzheimer's Association Support Group also offers advice and help.

www.heraldpalladium.com/articles/2011/01/11/features/3051941.txt

Kalamazoo (& the region) Celebrate Martin Luther King

"Bringing Life to the Dream" is the theme for this year’s community wide tribute to civil rights champion Dr. Martin Luther King Jr.

Activities from educational sessions and forums to book readings and panel discussions are planned by partners Western Michigan University, Kalamazoo College, the city of Kalamazoo and the Northside Ministerial Alliance. They begin Friday, Jan. 14, with an MLK Chapel Service in Kalamazoo College's Stetson Chapel and continue through March 30.

Among the numerous activities on Monday, Jan. 17, the national holiday honoring King, will be the city’s annual Community Day of Service and a march to MLK Jr. Park.

www.mlive.com/news/kalamazoo/index.ssf/2011/01/communitywide_celebration_for.html

Some of the other events in the region follow:

Lake Michigan College & Andrews University in Berrien County are hosting several events in remembrance of the work of Dr. King. These are listed at:

www.heraldpalladium.com/articles/2011/01/09/local_news/3045670.txt

In Battle Creek, the JONAH (the Joint-religious Organizing Network for Action and Hope) is sponsoring a community prayer breakfast this coming Saturday:

search.battlecreekenquirer.com/localevents/event//8508-Dr-Martin-Luther-King-Jr-Community-Prayer-Breakfast

South Bend is also planning numerous events in honor of Dr. King. Information on South Bend area events can be found at:

www.southbendtribune.com/article/20110109/News01/101090390/1130

Branch County United Way: More Donors, But Fewer Dollars

More donors; fewer dollars. That’s been the confounding theme for United Way volunteers as they head down the stretch of their annual fundraising campaign.

With just a short time remaining to reach its $300,000 goal, Branch County United Way is projecting that it will come up $40,000 short. United Way raised just over $300,000 in 2009.

“Because we set challenging goals and because of the nature of the campaign, we’re always running short of goal at this time of year,” said Judy Krzeminski, United Way’s director...

... “More than 20,000 local residents used United Way programs last year, and the number is expected to rise higher this year,” said Krzeminski. “Homeless shelters, energy assistance programs and food pantries are experiencing record highs for those in need.”

It’s not too late to become a part of the solution. United Way volunteers make 2011 funding decisions in early February, based on the amount of dollars available to allocate.

www.thedailyreporter.com/newsnow/x389483510/United-Way-40K-short-of-300K-goal

Eleanor's Pantry in Paw Paw Seeks Volunteers

The community food bank, Eleanor's Pantry in Paw Paw, is in need of volunteers, willing to take time to assist in the efforts of feeding the area's hungry.

A training session, lasting approximately one hour, will be held at the pantry, 221 Drew Street, on January 12 at 10 a.m.

According to volunteer coordinator Sue Miller, "We are asking people to donate a few hours each week to help those in need."

www.zwire.com/site/news.cfm?newsid=20453429&BRD=2188&PAG=461&dept_id=414962&rfi=6

The web site for Eleanor's pantry is at:

www.vbcuw.org/Eleanors_Pantry.html

Census Bureau Working on Alternative Method of Gauging Poverty

The Census Bureau took a baby step toward redefining what is considered poor in America on Tuesday when it released several alternative measurements of poverty, fundamentally revising a one-size-fits-all formula developed in the 1960s by a civil servant.

Under a complex series of eight alternative measurements, the Census Bureau calculated that in 2009, the number of Americans living in poverty could have been as few as 39 million or as many as almost 53 million. Under the official calculation, the census estimated that about 44 million were subsisting on incomes below the poverty line of about $21,750 for a family of four. The alternatives generally set the poverty threshold higher, as much as $29,600 for a couple with two children.

In September, the census estimated the nation's poverty rate in 2009 was 14.3 percent. Under the alternatives, it could have been as low as 12.8 percent or as high as 17.1 percent.

For the time being, the government will continue to use the original poverty definition to determine eligibility for federal programs. The alternatives are experimental and will be revised every year, eventually winnowing them to one.

www.washingtonpost.com/wp-dyn/content/article/2011/01/04/AR2011010405677.html

Economic downturn exacerbates inequality of high school sports programs

According to Wiki.answers.com, there is a slim chance that a high school basketball player will progress to the level of playing for a Division I university (one of the major college programs). Wiki.answers estimates that only 5,400 out of 10 million high school athletes will play for a Division I program. That's 0.054% chance.

The odds are even slimmer that those high school players will get an NBA contract. Wiki.answers.com estimates that only 40 out of 10 million high school basketball players will sign a contract with the NBA. That is 0.0004% chance.

(Admittedly, high school basketball players do have better odds of making the NBA than folks who play Lotto have of winning the Grand Prize for either Mega Millions or Powerball.)

wiki.answers.com/Q/What_are_the_odds_of_a_high_school_basketball_player_making_it_into_the_NBA

So, why does it matter when the Grand Rapids Press reports that there is an increasing disparity between high school athletic programs? Wealthier communities can afford to send their students to summer camps, to play on far flung travel athletic teams, to have new uniforms and better locker rooms for their student athletes. Poorer communities struggle to maintain a program.

So, why does it matter?

It is certainly true that our society over emphasizes major college and professional sports. The same could be said of Hollywood movie stars. (How many kids in a school play are going to someday be starring in a Hollywood blockbuster produced by Steven Spielberg?)

I propose that for some youngsters that a chance to play on a high school athletic team is a chance to gain self confidence, a chance to learn team work and discipline, a chance to feel part of something more than self. High school athletics is not a ticket for most players to a life of inflated salaries in professional sports. High school athletics is simply another chance for our young people to grow and learn.

The GR Press article which discusses the disparity in high school sports programs can be found at:

www.mlive.com/sports/grand-rapids/index.ssf/2011/01/7_trends_in_2011_sports_west_m.html