PathWays PA Policy Blog

While the 112th Congress came to an agreement last night to avert huge spending cuts and tax increases, they left more decisions to be made by the 113th Congress that will be sworn in tomorrow.  Here are some of the highlights: Debt Ceiling: Even though the debt ceiling was the impetus leading to the "fiscal cliff," it remains a problem to be solved. The 2011 deal to raise the debt ceiling was expected to be a short term fix, and, as of December 31, 2012, the United States had once again hit the debt ceiling .  According to Secretary Geithner, the US can get by at the ceiling for two months.    The last time the debt ceiling was negotiated , the United States' credit rating ended up being decreased after Congress failed to come to an agreement.  The negotiation also set up automatic sequestration (funding cuts) to federal programs. Battle lines around the latest debt ceiling talks are already being drawn. Sequestration: After the Super Committee failed to ...

As we look at the deal made by Congress late last night, including what the deal covers and what it does not, it is important to know how we got to the fiscal cliff in the first place. Debt Ceiling:  The debt ceiling originally came about to prevent Congress from having to pass a new bill every time the Treasury Department wanted to float a bond.  In 1917, the first debt ceiling was created so that bonds could be issued up to that ceiling.  The limit has been increased many times over the years, most recently in 2011 . However, in order to pass the higher debt ceiling, Congress also had to agree to spending cuts to be made by the end of 2011 .  When the Congressional Super Committee could not come to an agreement , an automatic sequestration beginning January 1, 2013, came into effect. STATUS: The deal made on January 1, 2013, does not increase the debt ceiling. However, on December 21, 2012, Treasury Secretary Tim Geithner announced that federal bo...

As many of you have heard, the "fiscal cliff" has been averted following House passage of a Senate bill to prevent large cuts in spending and large tax increases. Details of the bill are still emerging, but here is what we have seen so far: Income Tax Rates : Income tax rates will increase for single workers earning more than $400,000 and families earning more than $450,000.   Income tax rates in this bill will be considered "permanent," as opposed to the Bush tax cuts of 2001, which were considered temporary.   Payroll Taxes : Payroll taxes will increase for workers at all incomes, with the Social Security tax returning to 6.2% on a worker's first $113,700 in wages.  This tax was temporarily set at 4.2% two years ago. For a worker earning the national average of $41,000, this increase comes to about $32 more per biweekly paycheck. ( Here is our Facebook post describing payroll taxes .) Tax Credits : There will be a five year extension of the tax credits...

From the Delaware County Daily Times: ...But elected officials in Harrisburg are sitting on an opportunity to put an extra $273 million in the unemployment compensation pot. HB 2400, whose prime sponsor is Marc J. Gergely, D-Allegheny, would give the commonwealth the opportunity to do that. By modernizing unemployment insurance, Pennsylvania can receive millions from the federal government while supporting unemployed workers and families. The amendment to an act formulated in 1936 would not only bring funding to Pennsylvania, it would ensure that more workers and families who paid into the unemployment insurance system earn their fair share of compensation upon being laid off from their jobs.... Please read the whole article, including a quote from Carol Goertzel, President/CEO of PathWays PA.

Today, PathWays PA had the privilege of speaking at a meeting of the Delaware Valley Grantmakers to discuss the " perfect storm " of policy and economic issues that will be coming to a head by the end of this year.  Among those issues are the end of the Way to Work program , the lack of extensions for unemployment compensation , the need for adult literacy and Industry Partnerships , and the impact of domestic violence in Pennsylvania.  To learn more, please download our report !

Did you miss our press conference on unemployment modernization yesterday featuring Carol Goertzel from PathWays PA and Sharon Dietrich from CLS ? If so, you can listen here , and then take action below! Unemployment Compensation Benefits - write to your legislator : Pennsylvania has the opportunity to receive $273 million from the federal government in return for making some small, commonsense changes to unemployment compensation (including making sure that survivors of domestic violence qualify for unemployment if they must leave their jobs). If you agree some changes should be made, write to your legislators now!   Unemployment Compensation Benefits - write a letter to the editor : Unemployment continues to exceed 9.3% throughout our state. How can we help the unemployed? One way to start would be to accept $273 million from the federal government in unemployment compensation (UC) funds. If you support accepting this $273 million, please tell your story!   ima...

(updated 9/8/10- press conference to be rescheduled for later date) Can Pennsylvania Afford to Leave $273 Million on the Table? By modernizing unemployment insurance, Pennsylvania can receive $273 million from the federal government while supporting unemployed workers and families (and especially women) PHILADELPHIA - When Pennsylvania's lawmakers laid out a plan last week to close holes in the state budget, they did not discuss an opportunity to gain much needed revenue for the Commonwealth through changes that could be made with simple alterations to unemployment insurance. Yet one bill, HB 2400, would give the Commonwealth the opportunity to do just that. The changes would not only bring funding to Pennsylvania; they would also ensure that more workers and families who paid into the unemployment insurance system earn their fair share of compensation upon being laid off from their jobs. In 2009, the American Recovery and Reinvestment Act (ARRA) included incentives to ...

According to a new press release from CLASP , 12,000 Pennsylvania workers could lose their jobs at the end of the month without the extension of the Way to Work program.  Way to Work uses money from ARRA to subsidize employment for low-income Pennsylvanians (and others throughout the US).  Most of the job placements are in the private sector. While the House has voted twice to extend the Way to Work program, which only began in spring 2010, the Senate has not yet taken action.  With 37 states currently operating Way to Work programs, the end date of September 30 may create a devastating effect on employment around the country. image courtesy of http://en.wikipedia.org/wiki/File:Recovery_Accountability_and_Transparency_Board_Logo_%28USA%29.jpg

Coffee Hour with Content: Come Network and Learn about the Need for Earned Sick Time Did you know that 46% of workers in Pennsylvania have NO earned sick time? In other words, 2.2 million Pennsylvanians either go to work sick or risk losing their pay when ill-or their jobs! The Coalition for Healthy Families and Workplaces is hosting a coffee hour where individuals can network while learning about the issue of earned sick time and current legislation working its way through the General Assembly and City Council. Come enjoy some free coffee and a light breakfast. WHEN: Thursday, August 12th 8:00 am -9:00 am ( You must RSVP by August 11 !) WHERE: Ballard Spahr, LLP, 1735 Market Street, 42nd Floor, Peter Mattoon Conference Room, Philadelphia, PA To register for the event visit: http://coffeehourwithcontent.eventbrite.com (You must RSVP to attend!) Please join the Coalition for Healthy Families and Workplaces to give workers the ability to earn sick time to care for them...

The American Recovery and Reinvestment Act (ARRA) provided funding for many important programs, including $2 billion for the Child Care and Development Block Grant.  As the National Women's Law Center reports in a recent paper , states have chosen to use this money in a variety of ways.  States have used the money to maintain current assistance, to keep up with caseload growth, and to delay, reduce, or eliminate child care subsidy waiting lists. Some states have also used the funding to provide child care to parents who are searching for a job, to reduce parent copays, and to maintain or increase child care reimbursement rates.  Technology and quality improvement ratings are also recipients of funding across the country. Why is child care funding so important? Quality early education gives children a better opportunity to learn, grow, and succeed in school and later in life, bringing economic benefits to their families and the community .  Access to a child care s...

From our friends at the National Skills Coalition Since unemployment insurance and COBRA extensions did not pass before the deadline of February 28, 2010, leaving as many as 1.2 million families without access to needed programs, the Senate is now working on an “extenders” bill (named for the extensions of programs that have expired or are about to) that would reauthorize both programs, among other items.  If you support this bill, the National Skills Coalition is offering a way to contact your member of Congress.  You can take action now to ensure that key support strategies are included in the extender bill.   National Skills Coalition is highlighting four key points within the “extenders” bill: Extending UI/COBRA benefits through 2010 – Without quick action, 1.2 million people will lose their UI benefits in March. Long-term reauthorization (until the end of 2010) as opposed to shorter extensions will prevent future disruptions.  Additionally, the Econom...

For those of you who like pictorial representations of different statistics, we thought this map of unemployment nationwide might be interesting. (PS - The Keystone Research Center has been creating terrific " heat maps " showing how unemployment numbers have increased statewide throughout this recession as well.) As unemployment continues, a key provision helping families who are unemployed is set to expire on December 31. Without reauthorization, one million people will lose their unemployment benefits in January 2010, and 3.2 million are expected to have lost benefits by March 2010 . Please ask Congress now to extend this important program.

Federal Urge Your Senator to Support Full Reproductive Rights Millions of women are on the verge of losing access to private health insurance coverage for abortion. Members of the Senate are going to vote on an amendment to the health care reform bill modeled after the Stupak amendment that passed in the House. If this amendment becomes law, it will be the most serious restriction of abortion coverage in a generation. A vote on this amendment is expected today. Senate leadership may be calling for a vote to table this amendment. This action will require 50 votes. Please contact your Senators today and ask them table this amendment. Health care reform is meant to allow individuals more access to coverage, not to make more limitations on the care one can received. CHIP and Health Care Reform Right now, there is an important debate happening in the U.S. Senate about health coverage, and we must make sure that all kids are represented. Last week, an amendment to the ...

As long as the budget season was this year in Pennsylvania, and as painful as many of the budget cuts were , the results for Pennsylvanians could have been much worse. The 2009-2010 state budget contained $2.6 billion from the federal stimulus bill, which helped prevent drastic cuts in healthcare and education spending for the state. While the state had access to federal stimulus dollars this year, the funding is due to run out in December 2010. Meanwhile, state revenues continue to fall, and the need for state services continues to rise along - along with the unemployment rate and the number of children relying on CHIP and Medicaid for health insurance . PA Partnerships for Children and PCCY are coordinating a sign-on letter to the Pennsylvania Congressional Delegation asking them to continue providing federal support during these difficult economic times. Please sign on by 12 PM on November 20, and pass it on to your colleagues at other organizations.

According to a recent article from the Philadelphia Inquirer , the number of Philadelphians receiving SNAP benefits, formally known as food stamps, has increased by 3% over the last two years. In addition, experts, including Rachel Meeks from the Greater Philadelphia Coalition Against Hunger , anticipate that this number is likely to continue rising over the upcoming year. Fortunately, on August 3, 2009, the United States Department of Agriculture (USDA) released the eligibility standards and deductions for the new 2010 fiscal year (see the table below for more information). Because of the American Recovery and Reinvestment Act (ARRA) , also known as the Stimulus Package , SNAP benefits this year are significantly greater than they would be otherwise. As a result, the eligibility levels for qualifying families have increased. This means that more families needing assistance will be able to receive SNAP benefits. Even individuals who already have jobs may be able to qualify. PathWays ...

An article published last week on Forbes.com "mythbusts" the idea that woman can't do math and science by pointing out that women executives with science degrees are leading some of the largest companies in the world. The article points out that women who earn Ph. D.s in science are as likely as their male counterparts to find teaching positions, promotions, and tenure at major universities. It also notes that girls now have academic parity with boys when it comes to math. The question to ask, really, is when did we decide that women couldn't excel at math and science, as well as the nontraditional jobs that go with them? Throughout our history, women have excelled in performing heavy labor on a farm, in the fields, and in the home. During WWII, Rosie the Riveter became well known as the symbol of working women, and is held up as an example even today . Math and science skills are important in every job, and men are just as likely as women to need additional...

PA Budget Today is the 48th day of the fiscal year and Pennsylvania is still without a complete state budget. Two weeks ago the House passed legislation approving the $27.3 billion Senate spending plan. The Governor then used his line-item veto to delete many of the budget items, leaving $11 billion to pay state workers and fund services essential to public protection. Unfortunately, since the stop-gap budget was passed negotiations for the remainder of the budget have been stalled. While state workers have begun receiving paychecks and some essential services will receive funds, many institutions and organizations that rely on state funding will have to go without until the remainder of the budget is passed. These include schools, hospitals, and non-profit organizations that may have to make tough decisions that could lead to laying-off workers, cutting services, or having to close their doors because their funding is tied up until the budget is passed. If you work for one of t...

The idea behind the stimulus plan is simple -- people who get extra money will spend it; the increased spending will bolster the economy. As part of the stimulus, the federal government is spending $20 billion to expand the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, an increase of about 13 percent. This funding increases SNAP benefits for all families. For example, a four-person household will receive an $80 increase in SNAP benefits. This comes at a time when enrollment is increasing nationwide. Just in Pennsylvania, the amount of people receiving food stamps has risen 11.6% in one year ( NPR has a map showing food stamp enrollment state by state ). According to the Self-Sufficiency Standard , a Pennsylvania household with one adult and two children should spend just under $500 a month on food. Increased SNAP funding leads to spending beyond the $20 billion expansion. The injection of funds leads to families spending more money o...

Support the Volunteer Income Tax Assistance (VITA) Program! The VITA program provides free tax services for low-income taxpayers nationwide. Congress is currently reviewing the budget for FY 2010 - including funding for VITA programs. The National Community Tax Coalition (NCTC) is asking that Congress increase federal funding for the VITA Grant Program to $14 million. Increased funding is needed to ensure that community tax preparers can meet the constant demand for their services. During the 2009 filing season, 2,500 tax sites that received VITA grants prepared over 700,000 tax returns. However, more funding is needed in order to improve and expand free tax services, particularly for underserved taxpayers in hard-to-reach communities. For more information or if you would like to help please see NCTC's Action Alert . Call Today to Save Housing, Services, and Education in PA! Pennsylvania needs a budget that protects people's homes, social services, and education. T...

For as many years as economists have tracked it, there has been a gap in the earnings of male workers versus female workers (for an early PSA on equal pay, check out this YouTube video : yes, that is Adam West and Burt Ward). In this recession, women are catching up on the gender gap, but not in the way they would like. Instead of women’s wages catching up with men, the past month’s unemployment data shows that women’s unemployment rate is catching up with men’s. Women are losing jobs at a faster rate than men, and women who are heads of household have an unemployment rate increasing even more. ARRA needs to ensure that women have fair access to jobs created under the Act. However, government also needs to look at programs that help women gain and sustain employment, such as the Child Care Works program , which subsidizes the cost of child care. According to the Self-Sufficiency Standard of Pennsylvania , child care is often the largest basic expense faced by a household. It ...