bridging the gaps deanna schexnayder university of texas at austin heather boushey center for...
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Bridging the Gaps
Deanna SchexnayderUniversity of Texas at Austin
Heather BousheyCenter for Economic and Policy Research
February 2006
2
Purpose of Research Project
• To assess the hardships gap between resources and living costs for families over many income ranges
• To examine the eligibility gap by measuring the actual use of benefits among eligible families
• To engage potential partners to discuss outreach strategies and possible uses of this information
3
Scope of Project - Phase 1
•Analyze state and local program policies, resources and living expenses (using Family Resource Simulator* data) to assess differences across states and communities
•Analyze Census SIPP data to determine utilization of benefit programs in state and local areas
* The Family Resource Simulator (FRS) was developed by the National Center for Children in Poverty (www.nccp.org).
4
Scope of Project - Phase 1
•Engage local and state program practitioners and advocates to determine usefulness of analysis in their work
•Develop plans and partnerships for future phases of this work
5
RMC Role in BTG Project
• Analyze Texas benefit program policies (2004) for use in Texas FRS simulations and SIPP program utilization calculations
• Analyze FRS simulations for a hypothetical family in four Texas communities -- Dallas, Houston, Laredo and San Antonio
• Organize brown bags to discuss presentation and possible uses of findings (with CPPP)
• Write Texas report on Phase 1 work
6
Texas Children - Demographics
• 50% of Texas children live in low-income families (200% of poverty level or ~ $40K for a family of 4)
• 24% live in poor families (~$20K for family of 4)
Characteristics
• Source: NCCP analysis of U.S.Current Population Survey Data (2003-05) with additional RMC calculations
Low-Income Poor
Employed parent 86% 76%
Single parent 43% 52%
Immigrant parents 33% 38%
Percent Latino 58% 70%
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Simulation Details
• Single parent with 2 children ages 3 & 8• Parent works 40 hours per week• Receives all tax benefits (e.g., EITC, Child Tax Credit)• Uses family homes for child care, regardless of subsidy• Assumes use of Medicaid and CHIP when eligible,
otherwise employer-based insurance • Assumes no child support• No savings, own car worth $2,000, no car debt
Notes:$11,000 = minimum wage of $5.15$26,000 = Texas median wage (per BLS)
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Simulation: Houston, TX
$16
$4,424$5,360
$5,858
$2,583
-$7,291-$6,242
-$3,742
-$2,532-$1,657
-8000
-6000
-4000
-2000
0
2000
4000
6000
8000
$11,000 $14,000 $18,000 $22,000 $26,000Annual Wage
An
nu
al R
eso
urc
e D
efic
it
Tax credits, Medicaid, FS, TANF, CCDF, & Housing Tax credits, Medicaid, & FS
All benefits
Most likely benefits
Data Source: National Center for Children in Poverty, Family Resource Simulator: Texas 2004, (www.nccp.org/modeler/modeler.cgi).
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Simulation: Laredo, TX
-$156
$2,670
$3,778
$4,878
$6,045
-$3,589-$2,869
-$849
$311
$2,039
-6000
-4000
-2000
0
2000
4000
6000
8000
$11,000 $14,000 $18,000 $22,000 $26,000Annual Wage
An
nu
al
Re
so
urc
e D
efi
cit
Tax credits, Medicaid, FS, TANF, CCDF, & Housing Tax credits, Medicaid, & FS
All benefits
Most likely benefits
Data Source: National Center for Children in Poverty, Family Resource Simulator: Texas 2004, (www.nccp.org/modeler/modeler.cgi).
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Simulation: San Antonio, TX
$3,342
$4,622$5,186
$5,662 $5,544
-$4,924
-$3,774
-$1,673
-$514
$811
-6000
-4000
-2000
0
2000
4000
6000
8000
$11,000 $14,000 $18,000 $22,000 $26,000Annual Wage
An
nu
al
Re
so
urc
e D
efi
cit
Tax credits, Medicaid, FS, TANF, CCDF, & Housing Tax credits, Medicaid, & FS
All benefits
Most likely benefits
Data Source: National Center for Children in Poverty, Family Resource Simulator: Texas 2004, (www.nccp.org/modeler/modeler.cgi).
11
First break-even point for different combinations of earnings/benefits
Data Source: National Center for Children in Poverty, Family Resource Simulator: Texas 2004, (www.nccp.org/modeler/modeler.cgi).
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Tax credits, Medicaid, FS,TANF, CCDF, & Housing
Tax credits, Medicaid, & FS Tax credits only
Resources
Fir
st b
reak
eve
n p
oin
t
Dallas Houston Laredo San Antonio
State median wage
State minimum wage
12
First break-even point for different combinations of earnings/benefits
Data Source: National Center for Children in Poverty, Family Resource Simulator: Texas 2004 (www.nccp.org/modeler/modeler.cgi).
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Tax credits, Medicaid, FS,TANF, & Housing
Tax credits, Medicaid, FS,TANF, & CCDF
Tax credits, Medicaid, & FS
Resources
Fir
st b
reak
eve
n p
oin
t
Dallas Houston Laredo San Antonio
State median wage
State minimum wage
13
Multiple Break-even Points: Houston, TX
Data Source: National Center for Children in Poverty, Family Resource Simulator: Texas 2004, (www.nccp.org/modeler/modeler.cgi).
-$10,000
-$8,000
-$6,000
-$4,000
-$2,000
$0
$2,000
$4,000
$11,
000
$12,
000
$13,
000
$14,
000
$15,
000
$16,
000
$17,
000
$18,
000
$19,
000
$20,
000
$21,
000
$22,
000
$23,
000
$24,
000
$25,
000
$26,
000
$27,
000
$28,
000
$29,
000
$30,
000
$31,
000
An
nu
al N
et R
eso
urc
es
For the following benefits: Tax Credits, Medicaid, FS, TANF, and CCDF
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Possible Discussion Topics
• Usefulness of graph formats
• Inclusion of child support in future simulations
• Simulations for two-parent families
• Implications for children in immigrant families
• How to frame when reaching out to policymakers, the media, and other advocates
15
Next Steps
• Refine project based on what we learn today
• Discuss the usefulness of doing focus groups in Texas with low income families and providers
• Develop strategies to outreach to policymakers and media, in both Texas and nationally
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For More Information
Deanna Schexnayder
Ray Marshall Center for the Study of Human Resources
LBJ School of Public Affairs
The University of Texas at Austin
512/471-2193