A new supplemental poverty measure will enhance the ability of policy makers to allocate resources by providing a more adequate account of the constraints American families face today and how well federal programs are working in providing pathways out of poverty.  The additional “make ends meet” indicator would represent a more secure level of income for families not only to meet their basic needs, but to get a foothold on the bottom rungs of the middle class.   Together these two indicators would provide better information to Members of Congress in crafting policy to promote family economic security.

Read the full text of the letter below.

Dear Senators Inouye and Cochran and Representatives Obey and Lewis:

The undersigned organizations write to respectfully request that the Senate and House Appropriations Committees fully fund the President’s FY2011 Budget request for development of a supplemental income poverty measure in the amount of $5 million to the U.S. Census Bureau and $2.5 million to the Bureau of Labor Statistics. This funding will ensure that agencies have the necessary resources to release the new measure in September of 2011. We are also writing to request that Congress provide funding to develop and implement an additional economic indicator of what it takes to “make ends meet” that alongside the supplemental measure would be helpful in informing government policy to strengthen pathways to the middle class.

Developed in the early 1960s, the traditional measure of poverty was based on the cost of an emergency food diet at the time multiplied by three. That was because in the most recent expenditure data available, for 1955, food only made up one-third of an average American family’s budget. Since then, however, this poverty line has merely been indexed to inflation, amounting to only approximately $22,000 per year for a family of four in 2009. This outdated budget is inconsistent with today’s reality. Food now makes up approximately one-seventh of an American family’s budget while other family expenses such as housing, child care, and medical out of pocket costs have risen disproportionately.

The result is that a family of four living at the federal poverty line today has an income amounting to only about 28 percent of the median income, whereas when the measure was first designed in the 1960s, the same family would have had an income equivalent to 50 percent of the median. Certainly, this discrepancy masks the hardships and struggles of working families who are at or above the outdated poverty threshold. We need a supplemental measure of poverty that reflects these 21st century realities.

By funding the supplemental poverty measure requested by the Obama administration, Congress will not replace the existing poverty measure in terms of determining eligibility for programs or disbursement of federal dollars, but instead will provide a more accurate statistical measure of income poverty in America.

The objective of this new poverty statistic can be compared to that of the unemployment rate, which in and of itself does not make a family eligible to receive unemployment benefits, but provides an aggregate picture of how the economy is faring and prompts action to create jobs and better target public policies. Similarly, the new supplemental poverty measure will enhance the ability of policy makers to allocate resources by providing a more adequate account of the constraints American families face today and how well federal programs are working in providing pathways out of poverty.

Beyond the supplemental measure, additional standards are needed to tell how many families are able to obtain a foothold on the bottom rungs of the ladder into the middle class. The undersigned organizations therefore ask for funding for the speedy development and implementation of a measure would more accurately reflect the amount of income it takes families to “make ends meet.” This additional indicator would represent a more secure level of income for families not only to meet their basic needs, but to save for the future and have a cushion for emergencies.

Thank you for considering our request to fully fund the administration’s request of $5 million for the Census Bureau and $2.5 million to the Bureau of Labor Statistics for release of a supplemental poverty measure and additional funding for development and implementation of a standard that would reflect the income it requires to “make ends meet.” These statistics will provide a more realistic picture of the struggles millions of American families are facing and in doing so, help create better, more effective policy.

Respectfully,

National Organizations

9to5, National Association of Working Women
American Association of University Women (AAUW)
Bread for the World
Center for Law and Social Policy
Center for the Study of Social Policy (CSSP)
Center for Women Policy Studies
Center of Concern
Coalition on Human Needs
Community Action Partnership
Evangelical Lutheran Church in America
Every Child Matters
First Focus Campaign for Children
Generations United
Global Justice Ministry, Metropolitan Community Churches
Insight Center for Community Economic Development
National Assembly on School-Based Health Care
National Association of Commissions for Women
National Association of County Human Services Administrators
National Association of Social Workers
National Center for Law and Economic Justice
National Council of Jewish Women
National Council on Aging
National Women’s Health Network
National Women’s Law Center
New America Foundation
Northwest Federation of Community Organizations (NWFCO)
PolicyLink
PTA
Raising Women’s Voices for the Health Care We Need
RESULTS
Rose Foundation for Communities and the Environment
Sargent Shriver National Center on Poverty Law
School Sisters of St. Francis
Secular Franciscan Order
Sojourners
Sugar Law Center for Economic & Social Justice
The Episcopal Church
The United Methodist Church – General Board of Church and Society
Union for Reform Judaism
United Church of Christ, Justice and Witness Ministries
United for a Fair Economy
USAction
Wider Opportunities for Women
Women of Reform Judaism

State and Local Organizations:

Alabama:
Community Service Programs of West Alabama, Inc.
YWCA Central Alabama

Arizona:
Arizona Advocacy Network
Arizona Community Action Association
Association of Arizona Food Banks
Community Action Human Resources Agency
Desert Mission Food Bank
Grand Canyon Synod of the Evangelical Lutheran Church in America
Protecting Arizona’s Family Coalition (PAFCO)
Save the Family Foundation of Arizona
United Food Bank
United Way of Tucson and Southern Arizona

California:
9to5 Bay Area (CA)
9to5 Los Angeles
Area Agency on Aging
Artful Children
California Senior Leaders Alliance
California/Nevada Community Action Partnership (state association)
Catholic Charities of California
Community Action Partnership of San Bernardino County
Community Living Campaign
Congregation B’nai Chaim
Congress of California Seniors
County of Santa Barbara Department of Social Services
County Welfare Directors Association of California
Dixon Family Services
Echo Park United Methodist Church
Eldertouch Consulting
Elsdon, Inc.
First 5 Alameda County
First 5 Marin Children and Families Commission
Food for People
Grass Roots Organizing Grows
Healy Senior Center of Southern Humboldt
In-Home Supportive Services Consortium of San Francisco
Libreria del Pueblo, Inc
Lutheran Office of Public Policy – California
McKinleyville Family Resource Center
National Council of Jewish Women, California
North Coast Resource Center
Northcoast Children’s Services
Opportunity Fund
Pacifica’s Environmental Family
Parent Voices Southern Alameda County Chapter
Plumas Rural Services
RAVEN Project
San Francisco Department on the Status of Women
San Luis Obispo County (California) Department of Social Services
Sisters of Mercy
Supportive Parents Information Network, Inc.
The Alliance for Children’s Rights
United Methodist Church
United Way of the Bay Area
Voices for Justice
Wiyot Tribe
Women’s Initiative
Women’s International League for Peace and Freedom (WILPF), San Diego

Colorado:
9to5 Colorado
Colorado Center on Law and Policy
Colorado Progressive Coalition
Colorado Springs Branch NAACP
Girls Inc. of Metro Denver
Lutheran Advocacy Ministry – Colorado
Metro CareRing
Sisters of St. Francis
Stride

Connecticut:
All Our Kin
CAFCA
Collaborative Center for Justice, Inc.
Community Action Agency of New Haven
Holy Family Home and Shelter, Inc.
Poor People’s Alliance
Willington Youth, Family & Social Services

District of Columbia:
Capital Area Food Bank

Florida:
Alachua County
Coalition to End Homelessness
GAL
Miami Coalition for the Homeless
Moderator, Metropolitan Community Churches
Whole Child Manatee

Georgia:
9to5 Atlanta Working Women
Family Development Task Force, Inc.
Macon Bibb County Economic Opportunity Council, Inc.

Hawaii:
Aloha United Way
Catholic Charities Hawaii
Hawaii People’s Fund
Hawaii Public Health Association
National Association of Social Workers, Hawaii Chapter
Waianae Coast Comprehensive Health Center

Illinois:
Heartland Alliance for Human Needs & Human Rights
Illinois Maternal and Child Health Coalition
Lutheran Advocacy–Illinois
National Association of Social Workers
National Council of Jewish Women Illinois State Public Affairs Committee
Pax Christi Illinois
St Thomas Free Clinic

Indiana:
Anderson Community Schools
Children’s Bureau, Inc.
Church Women United, Network
Concerned Citizens of Johnson County
Indianapolis Jewish Community Relations Council
Influencing State Policy
Middle Way House, Inc.
North Madison County Public Library System
Our Lady of Victory Missionary Sister (OLVM)
Second Harvest Food Bank of East Central Indiana
Sisters of St. Francis
The Madison County Literacy Coalition

Kansas:
Kansas Association of Community Action Programs
Sisters of Charity of Leavenworth

Kentucky:
Jefferson Community & Technical College
Kentucky State University
Sisters of Charity of Nazareth Congregational Leadership

Louisiana:
Agenda for Children
Avoyelles Coalition

Massachusetts:
AWARE
Boston Medical Center
Boston Partners In Mentoring, Inc.
Care Caucus
Catholic Charities
Community Care Services
HESSCO Elder Services
Masssachusetts WIC Program
Reflexology For Health
Survivors Inc.

Maryland:
Hunger Team, National Capital Presbytery
Interfaith Works, Inc.
Maryland Alliance for the Poor (MAP)
Public Justice Center
Sisters of Mercy of the Americas Institute Justice Team

Maine:
Hospitality House, Inc.

Michigan:
Cabrini Clinic
Call To Action – Michigan
Center for the Education of Women, Universitiy of Michigan
Kellogg Community College
Lutheran Family & Children’s Services of Missouri
Michigan League for Human Services
Midwest Coalition for Responsible Investment
Poverty Reduction Initiative
Shield of Faith International Ministries
St. Christine Christian Services

Minnesota:
A Minnesota Without Poverty
Aldersgate United Methodist Women
Episcopal Diocese of Minnesota
Jewish Community Action
Lutheran Coalition for Public Policy in Minnesota
Minnesota Community Action Partnership
Minnesota Housing Partnership
St. Catherine University
United Methodist Church
United Methodist Women

Missouri:
Beyond Housing
Central Missouri Community Action
Lighthouse Shelter (Domestic Violence Shelter)
National Council of Jewish Women – Missouri State Public Affairs
Northeast Community Action Corp.
Sisters of St. Joseph of Carondelet, St. Louis Province
University of Missouri – Kansas City School of Medicine

Mississippi:
Public Policy Center of Mississippi
Sisters of Mercy

North Carolina:
Action for Children North Carolina
National Association of Social Workers – NC Chapter
Rosenwald Center for Cultural Enrichment, Inc.
Southeastern North Carolina Food Systems Program
St. Brendan Social Concerns Committee /Calabash Associates Franciscan Sisters of Allegany
UHURU Community Development Corporation
Urban Ministries of Wake County

Nebraska:
Center for People in Need
Sisters of Mercy West Midwest Justice Team

New Jersey:
Advocate for a Better Life for Our Children
Hope Lutheran Church
Hopes Inc.
National Council of Jewish Women – New Jersey State Public Affairs Committee
New Jersey Peach Action
Princeton’s Center for Research on Child Wellbeing

New Mexico:
Hunger and Poverty Task Force of the Unitarian-Universalist Congregation of Santa Fe, NM
La Plaza de Encuentro Gathering Place
Lutheran Advocacy Ministry-New Mexico
RESULTS-Santa Fe

Nevada:
Lutheran Advocacy Ministry in Nevada (LAMN)
Washoe Legal Services

New York:
Action for a Better Community, Inc.
ARISE
BronxWorks
Brooklyn Bureau of Community Service
Daughters of Wisdom
Dutchess Community Action Partnership
Early Care & Learning Council
Early Educators’ Network
Emergency Food & Shelter Program of NYC
Empire Justice Center
Gloria Dei and Bethlehem Lutheran Churches
Good Shepherd Services
Hopps Memorial CME Church
Human Services Council
Long Island Cares, Inc.–The Harry Chapin Food Bank
Mid Hudson Valley Homeless Management Information System
Morris Heights Health Center
Neighborhood Family Services Coalition
New York Citizens’ Committee on Aging, Inc.
New York City Employment and Training Coalition
New York Statewide Senior Action Council
Nonprofit Coordinating Committee of New York
NYS Community Action Association
One Stop Senior Services
Schuyler Center for Analysis and Advocacy
Sisters of Mercy of the Americas, New York, Pennsylvania, Pacific West Community
SUNY Empire State College
Supportive Housing Network of New York
The Children’s Village
Westchester Children’s Association
Women of Color Policy Network, NYU Wagner
Wyandanch UFSD
YWCAs of the Northeast Region

Ohio:
Community Development Corporation Resource Consortium (CDCRC), Inc
Congregation of St. Joseph
Contact Center
National Education Association (NEA)
Ohio Department of Alcohol & Drug Addiction Services (ODADAS)
Second Harvest Food Bank of the Mahoning Valley

Oklahoma:
Gatesway Foundation, Inc

Oregon:
Children First for Oregon
Oregon State Council for Retired Citizens
Partners for a Hunger-Free Oregon
Plant Oregon
Portland Tenants Union

Pennsylvania:
Community Action Program of Lancaster County
Dignity Housing
Essential Energy
Family Services of Montgomery County / Keys to Success
Feast of Justice
Greater Philadelphia Coalition Against Hunger
Greater Pittsburgh Community Food Bank
Health Federation of Philadelphia
Lutheran Advocacy Ministry in Pennsylvania
Maternity Care Coalition
PA Hunger Action Center
Pennsylvania Council of Churches
Pennsylvania Partnerships for Children
Philadelphia Veterans Multi-service & Education Center, Inc
Pittsburgh Community Services, Inc.
Providence Connections
Sisters of St. Joseph NW PA
Spring Gardens Children’s Center
The Lutheran Theological Seminary at Philadelphia
The Open Line
The Salvation Army of Greater Philadelphia
Women’s Law Project
YWCA of Lancaster

Rhode Island:
Community Relations Council of the Jewish Federation of Rhode Island
HousingFirstRI
National Association of Social Workers -Rhode Island
Rhode Island College
Rhode Island Interfaith Coalition
The Poverty Institute

South Carolina:
SC Appleseed Legal Justice Center
Spring of Life Lutheran Church

Tennessee:
Plants, Inc.
Volunteers of America

Texas:
Center for Public Policy Priorities
Incarnate Word
La Fe Policy Research and Education Center
McLennan County Hunger Coalition
Methodist Healthcare Ministries
Senior Community Outreach Services, Inc.
Sisters of St. Joseph
United Methodist Church

Utah:
Community Action Partnership of Utah
Salt Lake Community Action Program

Vermont:
Clarina Howard Nichols Ctr.
Peace & Justice Center
Voices Against Violence / Laurie’s House
WomenSafe

Virginia:
2-1-1 Virginia
Bethany Hall, Inc
Blue Ridge Independent Living Center
Cabell Brand Center
Depaul Community Resources
King of Kings Lutheran Church
Toward Educating America’s Children (TEACH)
Virginia Association of Personal Care Assistants (VAPCA)
Virginia Community Action Partnership
Virginia Interfaith Center for Public Policy

Washington:
American Federation of Government Employees Local 3937, AFL-CIO
Catholic Charities Housing Services
Citizens for Responsible Justice
Food Lifeline
Housing Hope
Legal Voice
Lutheran Public Policy Office of Washington State
North Urban Human Services Alliance
Triumph Treatment Services

Wisconsin:
9to5 Milwaukee
Community Advocates Public Policy Institute
Doing Government
Racine Dominicans Justice and Rights Commission
Sinsinawa Dominicans
St. Matthew Justice & Human Concerns Committee
Surplus With A Purpose (SWAP)

West Virginia:
Direct Action Welfare Group Inc.
NAACP
Southern Appalachian Labor School
West Virginia Statewide Independent Living Council (WVSILC), Fairshake Network

Wyoming:
Senior Housing

One important way to provide these job opportunities for unemployed youth is through federal funding for summer jobs. In fact, last Friday, May 28, the House passed a bill (H.R. 4213) that provided for $1 billion in summer jobs funding. According to estimates by Northeastern researchers, this “$1 billion federal infusion” has the potential to “create some 300,000 job slots this summer.” The passage of this bill in the House marks an essential first step towards assisting unemployed youth in the months to come. However, this funding for summer jobs is not included in the Senate version of the tax extender bill. Fortunately, it is not yet too late—there is still a critical window of opportunity for funding for summer jobs to be included in the final version of this bill after the Senate returns from its Memorial Day recess. To provide economic opportunity and security to America’s youth in both the short run and the long term, the final Congressional version of the tax extender bill must support summer jobs funding of at least $1 billion. Without federal action, unemployed youth will remain, in the words of Adele McKeon, a career specialist with the Boston Private Industry Council, the “silent victims of the economy.”

These two policies will make a huge difference in lifting working families out of poverty. However, improvements to both the CTC and the EITC are set to expire at the end of 2010 without immediate Congressional action to preserve and build upon these vital programs.

To learn more about what is at stake in the months to come and find out what you can do to help build the campaign to preserve these critical tax credits, listen to an English- or Spanish-language podcast with Reverend David Beckmann, president of Bread for the World.

Contact your representative today to demand that they don’t let improvements to these credits expire.

Refundable tax credits like the EITC and CTC help ensure that work pays more than welfare, but they are at risk of losing much of their effectiveness. If Congress does not extend the improvements to the programs, a parent who works full time in a minimum wage position will have his or her annual credit reduced from $1,800 to $320 at the end of 2010. This would have a devastating effect on children in low-income families.

Research conducted by the Tax Policy Center reveals that 8 million children would lose the tax credit entirely if Congress allows the current Child Tax Credit improvements to expire, and an additional 10 million children would lose some of the credit. This change would lead as many as 600,000 more children to become poor and 4 million already poor children to fall deeper into poverty, according to the Center on Budget and Policy Priorities.

We must stand up to preserve the 2009 reforms to the Earned Income Tax Credit and Child Tax Credit. But there is room for additional federal leadership, as well. If the current improvement expires, a family’s first $13,000 in wages will not count toward calculating the Child Tax Credit. Congress should change the law so that all earnings count in calculating the credit. A family with two children will receive $2,000 if full-time, year-round minimum wage earnings are all counted; but the same family will receive only $312 if the improvements expire.

Contact your representative today to preserve and improve these essential programs.

What is the Earned Income Tax Credit and why does it matter?

The Earned Income Tax Credit is one of the single most important ways to make work pay. The EITC is a refundable federal income tax credit for low-wage working individuals and families. Refundable means that if a worker’s credit exceeds the amount of taxes owed, they can receive the difference in the form of a tax refund. Congress originally approved this program in 1975 in part to offset the burden of payroll taxes and to provide an incentive to work. Today, the EITC remains essential to promote economic security and allow low-income workers maintain a decent standard of living.

The EITC is a public policy that reflects basic values—at its core is the belief that individuals who work full time at minimum wage simply should not be forced to raise families below the poverty line. The EITC helps these Americans earn a sufficient amount so that work pays more than welfare. Parents who earn $10,000 to $20,000 each year are eligible under EITC for the highest credit, and the credit amount decreases as annual earnings increase.

Download this fact sheet (pdf)

How was the EITC improved in 2009?

Congress improved the EITC last year so that it would work better for low-income families with three or more children. Before the change, EITC provided the same amount to families with three or more children as it did to families with fewer children, putting larger low-income families at a greater risk of falling into poverty.

Congress’s critical 2009 EITC improvements changed EITC eligibility so that families with three or more children can receive up to $600 more annually. This important public policy reform better accounts for the increased costs of raising a larger family and helps to make sure that work pays more than welfare for hard-working, low-wage families of all sizes. These reforms also lessened the so-called “marriage penalty,” which had previously unfairly penalized low-income workers because it meant that two low-income workers who married could lose some or all of their EITC benefits. According to the Center on Budget and Policy Priorities, together, these two improvements helped over 7 million people, and kept 3 million people out of poverty.

The 2009 EITC changes helped to bring this important public policy more in line with basic values by making work pay and allowing hard-working individuals and families to stay out of poverty.

Congressional action needed

The 2009 changes to the Earned Income Tax Credit are set to expire at the end of 2010. Eligibility for this program will revert to the pre-2009 status quo if Congress does not act to make these improvements permanent. This would mean an increase in the “marriage penalty” and a decrease in eligibility for a number of low-income working parents. Low income working families with three or more children would be among the hardest hit.

Ensuring that hard work pays off is a vital step toward strengthening our families, our economy, and our country. Congress needs to make the current provisions of the EITC permanent to make work pay for low- and moderate-income workers and families.

Download this fact sheet (pdf)

What is the Child Tax Credit and why does it matter?

The Child Tax Credit is one of the most important ways to protect families’ economic security. The CTC gives working parents additional funds to help them cope with the rising costs of maintaining a household and raising their children. Depending on the family’s earnings, the CTC allows families to claim up to $1,000 for each child. It represents an essential way to help families achieve and maintain their basic quality of life.

Yet the CTC’s effectiveness depends a great deal on how the credit is structured. The credit was not able to meet its full potential in the past because program rules often denied low-income families the full benefits of the credit. In fact, annual earnings below $13,000 were not considered in calculating tax credit, denying the credit to those who needed it most. Congress made sensible reforms to the CTC last year that allow families to count their yearly earnings below $13,000, but these changes are temporary and are scheduled to expire at the end of 2010.

An end of these improvements would be devastating for low-wage families across America. A parent who works full time in a minimum wage position will have his or her credit reduced from $1,800 to $320 at the end of 2010 if Congress does not make the change permanent. This reduction would seriously threaten the ability of low-income, hard-working families to maintain their economic security and self-sufficiency. And it would push 600,000 children of working families into poverty.

Download this fact sheet (pdf).

The Child Tax Credit in action: Meet the Smiths

The Smith family has two parents, two children, and combined yearly earnings of $14,050. The Smiths would not be able to count any of their earned income below $13,000 in calculating their additional child tax credit if not for last year’s improvements. Their pre-2010 credit would have equaled 15 percent of their income above $13,000, or $157.50. The 2010 improvement makes the credit 15 percent of their income above $3,000 up to $1,000 per child, or $1,657.50. If Congress allows the income level to rise back up to $13,000, the Smiths’ credit will drop back down from $1,657.50 to $157.50 next year.

Congressional action needed

Congress must improve and preserve the Child Tax Credit. Congress should at minimum act to permanently extend the improvements to the CTC made last year in the Recovery Act. There is considerable room for additional federal leadership through extensions of the Child Tax Credit to help low-income working families even more by counting all of a family’s earnings toward the 15 percent credit. There is no justification for failing to count a minimum wage earner’s first $3,000 in pay. What is essential above all is that we continue to progress rather than regress by allowing the current provisions of the CTC to expire at the end of the year.

A strong economy depends on having strong families who can achieve economic security through their hard work. Continuation of the CTC improvements is a vital step toward helping families support themselves. We need to take action to extend and expand smart public policies that reflect and respond to modern economic realities.

Download this fact sheet (pdf).

We asked Melissa Boteach, who is Manager of Half in Ten at the Center for American Progress Action Fund, to explain the tax extender provisions—what they are, why we need them, and what they will or won’t mean for the deficit.

Listen to the podcast (mp3)

What is the problem created by long-term unemployment?

In addition to the havoc that long-term unemployment places on individual families, long-term joblessness really tears at the fabric of entire neighborhoods and communities. For example, children who experience hunger during a recession are less likely to be productive adults. The lost tax revenues from high unemployment cause states and localities to cut back on critical services, which deteriorates the quality of life in local communities. Teachers are being laid off at a massive rate, so that’s going to impact an entire generation of students. And youth who are not able to find work now and are just entering their careers, the gaps on their resume over the long term will create wage gaps with people who enter the labor force in better times.

There’s also consequences for the broader economy, because in deep recessions businesses tend to make fewer investments and that affects our country’s competitiveness. Basically, there are lots of really detrimental effects of allowing long-term unemployment to fester. And right now nearly 46 percent of unemployed workers have been jobless for at least six months.

Can anything be done about this?

Absolutely. Congress can act to spur job creation, and there are a couple of steps they can take. The first is that what makes moral sense makes economic sense. By helping out people who are jobless right now by extending unemployment benefits and COBRA health benefits, Congress is actually saving jobs because it’s keeping demand in the economy. Those people can then go out and buy things in the private sector, which saves the jobs in other companies. So spurring this demand in the economy is a critical part of creating and saving jobs. It’s one of our most important countercyclical programs.

Secondly, it’s really important to provide fiscal relief to states and localities because this is saving the jobs of teachers, firefighters, and police officers. These are critical backbones in our communities, providing critical public services. And they’re also consumers. For every 10,000 teachers that are laid off, the Economic Policy Institute estimates that another 30,000 jobs are lost in other sectors because of the lack of consumerism from the people who have lost their jobs. It’s a ripple effect across the economy. And by providing support to states and localities, you’re saving critical services like Medicaid and other health services.

There are other really important steps Congress can take, as well. One important one is to extend what’s known as the TANF Emergency Fund, or Temporary Assistance for Needy Families. Congress in the Recovery Act created a pot of money that states have been using to create subsidized employment. By the time the fund is projected to expire in September 2011, it is estimated it will have created 180,00 new jobs through this program. And it’s really bipartisan. Of the states that have drawn it down, about equal Republican governors and Democratic governors have recognized that this program really works and is one of the cheapest ways to create jobs.

And finally, I would add that targeting some of the jobs toward youth through programs such as summer jobs—keeping that funding as well as national service opportunities are critical to create jobs for those being hit hardest by the recession.

Critics would argue that it’s not appropriate for the federal government to get into the job creation business, leaving that to the private sector. What do you say to that? Is it appropriate for the federal government to spend money to create jobs?

Some people say that we can’t afford large-scale job creation efforts, but really we can’t afford not to have large-scale job creation efforts. Number one because when people lose their jobs they’re not able to pay taxes into the system, so long-term and prolonged unemployment is actually adding to the deficit by us losing revenue from taxes. It’s not that job creation pays for itself, but if we invest now in trying to have a strong economic recovery, the real problem is long-term structural deficits down the road. So that’s what we really need to be worried about.

The other thing is that the poverty and economic insecurity caused by unemployment creates costs, as well. CAP did a study back in 2007 showing that child poverty alone costs $500 billion a year in lost productivity, associated health care costs, and criminal justice expenditures. And so there’s a cost in not acting and allowing this problem to grow. And it’s very appropriate in the short term for the government to be investing money to create jobs and not to say that the deficit doesn’t matter but to recognize that it’s a longer-term problem that we should be dealing with.

Listen to the podcast (mp3)

For more information, see:

• Tax Extenders 101: A Primer on Job Creation and Relief for American Families

What is the American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act?

The title may sound a bit unwieldy, but this bill is a bundle of provisions in H.R. 4213 that the House is expected to vote on this Thursday.

Among other provisions, the bill includes the extension of unemployment and COBRA health insurance benefits for those Americans hardest hit by the Great Recession, and fiscal relief to states to preserve critical health services and indirectly help prevent job losses of teachers, social service providers, firefighters, and police officers. It also includes an extension of the current rate of Medicare payments to doctors through the end of the year.

The bill is furthermore expected to postpone for one year the expiration of the Temporary Assistance for Needy Families emergency fund, which has allowed states to expand work focused programs and create subsidized jobs for families struggling during this recession. And it should include funding for a youth summer jobs program.

You may have heard the bill referred to as “tax extenders” because it includes a number of tax cuts Congress regularly extends. But, in this case, the bill also includes items that save and create jobs and protect the unemployed.

Download this memo (pdf)

Why do we need to extend unemployment insurance and TANF emergency funds?

The economic recovery that has been under way since the middle of 2009 is gaining momentum and the labor market is finally starting to add jobs, but this growth is far from stable. The unemployment rate was 9.9 percent in April 2010, and much higher among particularly vulnerable groups such as African Americans (16.5 percent), Hispanics (12.5 percent), youth (25.4 percent), and those without a high school diploma (14.7 percent).

Long-term unemployment has been a particular problem in this recession. Last month, 6.7 million Americans reported that they had been looking for a job for 27 weeks or more, and the average length of unemployment was 33 weeks. This is the longest length of average unemployment since 1967. We cannot cut these families off from needed unemployment insurance benefits while they are still struggling.

Channeling funds to the unemployed through unemployment insurance and the TANF emergency fund directly aids communities as unemployed workers immediately spend this money on necessities. In fact, every dollar spent on unemployment insurance puts at least $1.63 back into the economy, according to Mark Zandi, chief economist for Moody’s Economy.com. And TANF emergency funds are expected to save or create 185,000 temporary jobs by the end of September. This helps the unemployed and their families, and it also helps the overall economy since without aid, unemployed workers who are rendered destitute without an income or assistance from the government are not active consumers contributing to economic recovery.

Why should the bill include fiscal relief for states?

Temporary state fiscal relief in the form of Medicaid assistance—known as FMAP—is, along with unemployment insurance, one of the most effective measures to save jobs and spur economic growth.

States are facing severe fiscal crises due to the perfect storm of lower tax revenues and rising need from chronic unemployment. In fact, states are facing budget gaps totaling $140 billion as they prepare their fiscal year 2011 budgets. If left unaddressed, these budget gaps could cost the economy up to 900,000 jobs next year.

Provisions in the extenders bill that would provide aid to states not only preserve critical health services; they also help states avoid cutting jobs in other needed state services and sustain continued local aid we all rely on in our communities: the teachers who instruct our children, the police officers and firefighters who protect our communities, and the social service workers who help children and families.

Why should the bill include a youth summer jobs program?

Youth are experiencing the greatest challenges finding work in the current job market. Rates of unemployment are directly related to age—the younger you are, the less likely you are to have a job. This may seem less important than adult unemployment, but the long-term consequences can be dire.

Young people who initially cannot find a job often suffer consequences that follow them long after a recession ends. The reason: Time spent not developing work experience makes young workers less competitive for future job opportunities. Indeed, lifetime earnings are diminished with each missed year of work equating to 2 percent to 3 percent less earnings each year thereafter. A study of college students who graduated during the 1982 recession found that they were still earning less 8 to 10 years later than students who had graduated into a strong economy.

A summer jobs program is as much about unlocking potential as it is about meeting needs. It is a strategy for creating short-term jobs, but it is also a proven pathway to creating long-term employment opportunities for youth who might otherwise remain jobless or employed in dead-end, low-skill jobs.

Should we be worried about these measures increasing the deficit?

The tax extenders bill is estimated to cost about $140 billion, and $80 billion of that will go toward extending unemployment benefits. This is emergency funding, which means that it is not offset by new revenues and will increase the deficit in the short term. But if the tax extenders are effective, then the economic growth they generate will make it affordable to deal with the budget problem in the future. And doing nothing will be even more costly.

State budget shortfalls and high unemployment are not going to go away on their own. It’s true that the economy is starting to grow, but the economy is still in a deep hole and employment gains are so far barely making a dent in a jobs deficit. There are indications that even if the economy continues to grow it will not do so at a pace fast enough to quickly absorb the millions of people searching for jobs. In fact, there are currently more than five job seekers for every available opening. And slow job creation in and of itself could stall the nascent recovery.

The deficit is a serious problem in need of real thought and solutions. But now, when many families are still struggling under the effects of the recession, is not the time to cut off families’ lifelines or to fail to act to prevent a wave of job losses.

Economists across the ideological spectrum agree that it is long-term deficits that are the real problem, not targeted measures that add to short-term deficits but are critical to spur economic growth and help those hit hardest in the recession.

The measures in the extenders bill are temporary, targeted, and necessary. They will create economic growth and help families, and they will do so without adding significantly to the long-term budget deficit. In fact, the bill is expected to increase the projected long-term budget gap (through 2050) by less than 1 percent.

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• Extends unemployment insurance and COBRA health benefits
• Provides relief to states in the form of Medicaid funding
• Extends the Temporary Assistance for Needy Families Emergency Fund, which is slated to expire on September 30
• Includes funding for youth summer jobs

You can read a quick explanation of what’s in the bill and why each piece is important or listen to a podcast with more information.

Unemployment across the country is hovering around 10 percent, with low-income communities, youth, single mother households, and communities of color facing disproportionate rates of joblessness. Congress has the opportunity this week to vote on a package of policies that will simultaneously create and save jobs while offering relief to the families hit the hardest in this recession.

But they may not take these essential steps if they don’t hear from you.

Most members of Congress agree that we need these policies to help struggling families and spur economic growth, but they are receiving pushback from people who are concerned about the deficit. Many of these opponents don’t understand that these measures will increase the short-term deficit by less than 1 percent and actually put us on stronger economic footing in the long term.

They need to hear from Half in Ten activists that we want them to invest in job creation. They need to hear from you that helping low-income families is the morally right thing to do and the economically smart thing to do. In fact, every dollar invested in unemployment benefits yields $1.63 in increased economic activity, and every dollar of state relief in the form of Medicaid brings back $1.41 in investment.

Please call your representative at 1-877-442-6801 today and urge them to support this critical bill.

The economy has lost more than 8 million jobs since the recession began in December 2007, including many positions that provide critical services in communities across the country. Unemployment remains distressingly high even amid economic recovery. March’s unemployment report revealed an overall jobless rate of 9.7 percent; the rate was a staggering 16.5 percent among African Americans, 12.6 percent among Latinos, 11.3 percent among women who head families, and 26.1 percent among youth. Creating decent jobs and ensuring that low-income workers can access them will be at the heart of a national strategy to cut poverty in half in the next decade.

With such shocking levels of unemployment, now is the time for bold action. The Local Jobs for America Act (H.R. 4812), sponsored by Rep. George Miller (D-CA) and 150 other members of Congress, will create or save more than 1 million public and private sector jobs in local communities while restoring services our communities need badly.

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The provisions included within the Miller Jobs Bill can fight the destructive effects of high unemployment and make a real and lasting difference for workers, families, and communities across America.

You can take action on this important issue now by urging your representative to co-sponsor the Local Jobs for America Act or thanking them if they are already a co-sponsor. Your representative needs to hear that quick passage of the Local Jobs for America Act is imperative in putting Americans back to work, meeting pressing needs in our communities, and promoting economic recovery throughout the nation as a whole.

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