FRAC News Digest - April 29, 2005

The weekly Food Research and Action Center (FRAC) News Digest highlights what's new on hunger, nutrition and poverty issues at FRAC, at the U.S. Department of Agriculture, around the network of national, state and local anti-poverty and anti-hunger organizations, and in the media. The Digest will alert you to trends, reports, news items and resources and, when available, link you directly to them.

Issue 17, April 29, 2005

Budget for Fiscal Year 2006 Includes Cuts to Medicaid, Food Stamps
National Academy of Sciences Panel Recommends More Fruit and Vegetables in WIC Program
CBO Report: Participation in Programs Serving Low-Income People Rise, While TANF Participation Decreases
"7th Heaven" Television Show to Feature Storyline About Hunger, May 2nd
National Food Service Management Institute at the University of Mississippi Assists Workers, Students
Despite Record Numbers of People on Medicaid, Federal Share of Costs is Shrinking
Drop in Federal Medicaid Contribution Causes States Cut Costs, Missouri May End Program Altogether
New York Mayor Bloomberg Refuses Food Stamp Program Waiver for Fourth Straight Year
New Arizona Law Bans Sale of Non-Nutritious Foods at Elementary and Middle Schools
Kansas: A Large Percentage of Kansans Struggle to Provide Basic Necessities
Gap Between Haves and Have-Nots Widens in South Los Angeles Since 1992 Riots
Wisconsin: Green Bay Receives Grant to Fund Aging and Resource Center
New Hampshire: Minimum Wage Increase Would Target Working Families

1. Budget for Fiscal Year 2006 Includes Cuts to Medicaid, Food Stamps

(Food Research and Action Center, April 29, 2005)

Congressional negotiators brokered a conference agreement on the FY 2006 Budget Resolution. Pursuant to the agreement that passed the House by a vote of 214 to 211 and the Senate by a vote of 52 to 47, the Agriculture Committees are directed to cut programs under their jurisdiction (e.g., farm and commodity programs, food stamps, conservation) by $3 billion over five years as part of reconciliation legislation due in September. FRAC is deeply disappointed that the Congress is passing a budget resolution that in all likelihood will cut food stamps for needy families with children and increase hunger in this country, at the same time that it reduces taxes for the very affluent and increases the deficit. "Feeding hungry American children didn't cause the deficit and cutting back on the help they get will not solve it," said FRAC President Jim Weill.

http://www.frac.org/Press_Release/04.29.05.html

For an overview of the budget resolution, see:
http://www.cbpp.org/4-28-05bud.htm

2. National Academy of Sciences Panel Recommends More Fruit and Vegetables in WIC Program

("Less Fat and More Produce Urged for Food Aid Program," New York Times, April 28, 2005)

The National Academy of Sciences issued the results of a study, requested by the Department of Agriculture in September 2003, recommending that the Supplemental Food Program for Women, Infants and Children (WIC) issue vouchers to buy fresh nfruits and vegetables and reduce milk, eggs and juice. The voucher would provide $8 a month for each child and $10 a month for each woman in the program. Geri Henchy of FRAC described the proposals as "some great innovations" in a food package that has not changed significantly since the WIC program began in 1974. The Agriculture Department has 18 months to review it and issue a final rule.

http://www.nytimes.com/2005/04/28/health/28food.html (free registration required)

For FRAC's first analysis of the package, see:
http://www.frac.org/Press_Release/05.02.05.html

3. CBO Report: Participation in Programs Serving Low-Income People Rises, While TANF Participation Decreases

("Changes in Participation in Means-Tested Programs," Congressional Budget Office, April 20, 2005)

This issue brief finds that, while participation in Temporary Assistance for Needy Families (TANF) has dropped since 1996, participation in four other means-tested programs -- the Earned Income Tax Credit (EITC), Food Stamps, Medicaid, and Supplemental Security Income (SSI) --has increased in recent decades. In 2003, each of the four programs served more low-income, non-elderly people than did TANF, and involved more federal spending than TANF. Specifically, participation in the Food Stamp Program has increased rapidly since 2000 with the weakening labor market, more outreach, and restoration of benefits for many legal immigrants. Food stamp increases followed a period of several years of declines, making it the only program of the ones examined to show a significant shift from earlier trends in participation. The average monthly food stamp benefit has remained relatively constant from 1977 to 2003 at $80 per month per person (in 2003 dollars).

http://www.cbo.gov/ftpdocs/63xx/doc6302/04-20-Means-Tested.pdf

4. May 2nd WB "7th Heaven" Television Show to Feature Storyline About Hunger

On Monday, May 2 at 8:00 pm Eastern (check local listings for time), the WB television network will air an episode of the show 7th Heaven featuring a story line about hunger. The episode presents a positive and sensitive message about the nutrition benefits of food stamps for low-income people. At the end of the show, the toll free number for the national Food Stamp Program information line (1-800-221-5689) and the web site for the Food Stamp Program will be displayed.

For more information about the episode, visit the website for the WB:

http://www.thewb.com/Shows/Episode/0,8201,||2329,00.html

5. National Food Service Management Institute at the University of Mississippi Assists Workers, Students

("Ole Miss NFSMI Assists Workers, Students," The Daily Mississippian, April 15, 2005)

Since 1990, the University of Mississippi has been home to the National Food Service Management Institute, which is devoted to providing information and services that promote the continuous improvement of child nutrition programs. Through its 25 full-time and several part-time student employees and an annual budget of nearly $4 million from federal and state funding, the institute provides workshops, training, teleconferences and training packages to promote improvement of school lunch, school breakfast, summer food and child care food.

http://www.thedmonline.com/vnews/display.v/ART/2005/04/25/426ca9bb78449

See the NFSMI web site at:

http://www.nfsmi.org

6. Despite Record Numbers of People on Medicaid, Federal Share of Costs is Shrinking

("Feds shrink Medicaid matching grants," Stateline.org, April 22, 2005)

Even without factoring in new proposed federal budget cuts, the federal government's contribution to Medicaid will shrink by $1.1 billion in fiscal years 2006 and 2007, the biggest two-year drop in the program's history. The drop in the federal government's contribution is due to small changes in the formula used to calculate the federal share of costs under Medicaid and the related State Children's Health Insurance Program (SCHIP). Every year the federal government adjusts the formula, known as the Federal Medical Assistance Percentage (FMAP), affecting each state's share of Medicaid expenses differently. The formula cuts are adding to the budget troubles of states already facing escalating Medicaid costs. For example, New Mexico stands to lose $81 million in FY 2006, Pennsylvania $198 million in FY 2007, and Ohio $100 million in FY 2007.

http://tinyurl.com/bk8st

See the Federal Funds Information for States for more information:

http://www.ffis.org/

7. Drop in Federal Medicaid Contribution Causes States Cut Costs, Missouri May End Program Altogether

("States Rein in Health Costs," Los Angeles Times, April 24, 2005)

Many states are scrambling to rein in Medicaid costs. Looming federal cuts are "frightening a lot of governors," said Diane Rowland, executive director of the Kaiser Commission on Medicaid and the Uninsured. Every state has frozen or is trying to cut the fees to doctors to care for Medicaid patients. More than a dozen states are looking for ways to cut the number of people covered or reduce benefits. Some are restructuring the program. In Missouri, where nearly 20 percent of residents are enrolled in the program, Gov. Matt Blunt will sign a bill eliminating the program in three years. Tennessee is dropping coverage for 320,000 adults. The Florida Gov. and South Carolina governors have proposed privatizing Medicaid. Other governors, on the other hand, including in Kansas and Illinois, are trying to cover more children and working poor adults. Donna Sevic of Missouri has arthritis and can no longer work. If she loses coverage, she can't afford doctor visits or prescription drugs: "I'll just go downhill. I won't be here much longer."

http://tinyurl.com/adqt2

8. New York Mayor Bloomberg Refuses Food Stamp Program Waiver for Fourth Straight Year

("Mike helps keep bread lines long," New York Daily News, April 28, 2005)

Each Saturday at 9 a.m. dozens of people are already lined up in Brooklyn's Park Slope to use a church food pantry. The pantry has cut food for a family from twice a month to once a month, says this column by Albor Ruiz. New York Mayor Bloomberg has refused, however, for the fourth straight year, a federal and state waiver to enable unemployed, able-bodied adults with no dependents to participate in the Food Stamp Program as they actively seek work. The waiver is allowed for areas with high unemployment, nationally by the Bush Administration and across New York State by the Pataki Administration. In addition, the Mayor cut $670,000 for the city's soup kitchens and food pantries from his proposed FY 2006 budget, although the city's data show a 6 percent increase over the last year in meals served by such agencies. "Another blow to hungry New Yorkers," said Joel Berg, executive director of the New York City Coalition Against Hunger.

http://www.nydailynews.com/boroughs/story/304201p-260347c.html

9. New Arizona Law Bans Sale of Non-Nutritious Foods at Elementary and Middle Schools

("Governor OKs School Junk Food Ban," The Arizona Republic, April 26, 2005)

Arizona Gov. Janet Napolitano signed a bill that bans the sale of soft drinks, candy and gum during the school day for elementary and middle school students, starting in July 2006. It's unclear how the law affects doughnuts and chips. The bill was introduced by state Rep. Mark Anderson (R-Mesa), reflecting rising concerns about childhood obesity. The legislation affects foods sold at snack bars and in vending machines. The Arizona Department of Education will develop nutrition standards for school snacks and beverages.

http://www.azcentral.com/news/articles/0426junkbill26-ON.html

10. Kansas: A Large Percentage of Kansans Struggle to Provide Basic Necessities

("Living on the Edge: Study Says Quarter of Kansans are Poor," Salina, KS Journal, April 23, 2005)

According to Tawny Stottlemire, executive director of the Kansas Association of Community Action Agencies, as many as 25 percent of Kansans are struggling to provide food, shelter and housing to their families. A report released by her agency highlights the state of low-income working families. The report notes that while the federal poverty level rates 11 percent of Kansans as poor, by using a Basic Family Needs Budget, factoring in real costs of food, housing and child care, more than 25 percent qualify as poor. Stottlemire, in a speech at the League of Women Voters state convention, said that working hard and following the rules hasn't been working for thousands of Kansans.

http://tinyurl.com/anzfe

See the entire report "Living on the Edge: A report on the state of low-income working Kansas families":

http://tinyurl.com/9no7h

11. Gap Between Haves and Have-Nots Widens in South Los Angeles Since 1992 Riots

("Koreatown Revival Eludes Poor," Los Angeles Times, April 24, 2005)

Although many Korean-owned businesses have rebuilt and thrived since the 1992 riots, workers in the community are living in poverty. The gap between the haves and the have-nots has widened. One study shows 70 percent of families making less than $36,800/year, and families living on 83 percent of the income they had in 1990. About 50 percent of Koreatown's residents are Latino, 25 percent are white, 20 percent are Korean and 5 percent are African-American. The largely immigrant population is mainly employed in unskilled nonunion jobs, with virtually no benefits, in the service sector, retail trade and restaurant industry. Chank Park, a 50-year old immigrant from South Korea, makes $6.75/hour — "not even close to what it needs to be to cover the basic needs of my family," Park says.

http://tinyurl.com/cxl78

12. Wisconsin: Green Bay Receives Grant to Fund One Central Source of Benefits Information

("Kelso Praises Grant for Aging Resource Center," Green Bay Press Gazette, April 27, 2005)

Wisconsin Gov. Jim Doyle announced a $677,872 grant to fund an Aging and Disability Resource Center in Green Bay. The grant will allow Brown County tom provide a unified "front door" for information on services to the elderly -- for people seeking information on benefits counseling, access to Social Security benefits, Medicaid services, food stamps, child and elderly protective services, transitional services for disabled youth and long-term care options counseling. "Receiving this grant will help individuals gain access to services they may need but did not know were available to them," said Brown County Executive Carol Kelso.

http://www.greenbaypressgazette.com/news/archive/local_20792635.shtml

13. New Hampshire: Minimum Wage Increase Would Target Working Families

("Study identifies those working for minimum wage," Foster's Daily Democrat, Dover, NH, April 27, 2005)

In this article, state Rep. Marjorie Smith highlights a study showing who works for minimum wage in New Hampshire. According to the New Hampshire Women's Policy Institute study due out in May, it is not primarily teenagers working for gas money who earn the minimum, as some claim. It is mainly women, working parents and workers over 65. Over 75 percent of full time workers earning at or near minimum wage are 25 years old or older. And, one in five of the workers is married with children. About 5 percent of the state's working residents would see an increase in their wages if the minimum wage were increased from $5.15 per hour to $6.65 per hour.

http://www.fosters.com/apps/pbcs.dll/article?AID=/20050427/NEWS1301/50426025