FRAC News Digest - September 24, 2004

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 35, September 24, 2004

Bid to Save Tax Refunds for the Poor Is Blocked
Jason DeParle Book: Still Hungry After Leaving Welfare for Work
U.S. Passes on World Hunger Declaration
Food Stamp Participation on the Rise
Assistance Down While Poverty Up
As Income Gap Widens, Uncertainty Spreads
U.S. Ranks 22nd in Life Expectancy; Poverty, Inequality and Diet May Be Causes
Europe Looks for Anti-obesity Policies
Corporate Tax Rate Falls as Profits Rise to $1.1 Trillion
California: Markets Host Food Stamp Outreach
California: Minimum Wage Hike Vetoed
Colorado: Many Welfare Applications Go Unprocessed
Arkansas: Childhood Obesity Epidemic Strikes All Parts of State
Nebraska: School's Healthier Vending Machines Join National Trend
West Virginia: Former Welfare Recipients Struggling, Study Finds
California: Snack Pilot Resources Go Online
Michigan: School Breakfast Gets a Helping Hand from Masons
New York: A Better Life in Buffalo after Minimum Wage Hike
Nutrition Programs' Response to Hurricane Damage in Florida, Mississippi, Alabama, and Pennsylvania

1. Bid to Save Tax Refunds for the Poor Is Blocked

("Bid to Save Tax Refunds for the Poor Is Blocked," Washington Post, September 23, 2004)

Efforts to expand and preserve tax refunds for poor families was defeated in Congressional negotiations between the Senate and House. The tax credit in question, made law in 2001, allows a poor family to claim a child credit worth as much as 10 percent of their earnings over $10,000. The law stipulates the threshold rise with inflation and now stands at $10,750. For families whose income does not keep up with inflation, the higher threshold effectively lowers or eliminates their refunds. Because incomes at the bottom end of the pay scale have largely stagnated, the rising threshold has had a significant impact, said Leonard E. Burman, a senior fellow at the Urban Institute. Of the 11 million families claiming the child tax refund, more than 4 million -- with 9.2 million children -- will see their credit shrink or disappear in 2005, Burman estimated. An amendment by Sen. Blanche Lincoln (D-Ark.) would have severed the tax credit's link to inflation and set the threshold back to $10,000. "I am continually astounded that some members of Congress don't understand how challenging it is to raise a family in today's economy," Lincoln said. "While the cost of everything from milk to laundry detergent continues to rise, tax relief for low-income working families decreases."

http://www.washingtonpost.com/wp-dyn/articles/A43278-2004Sep22.html

2. Jason DeParle Book: Still Hungry After Leaving Welfare for Work

("Welfare to What?," Mother Jones, September 13, 2004)

"In my own travels through postwelfare life, I was struck by how many working families complained about facing depleted cupboards-or about just plain going hungry," writes New York Times reporter Jason DeParle in his new book, American Dream. In a visit to Pulaski High School, "four out of five raised their hands" when he asked how many had recently gone to bed hungry.

http://www.jasondeparle.com

In American Dream, DeParle follows the stories of three women struggling to get off welfare. In an interview about the book, DeParle noted that people who leave welfare are not free from "the need for ongoing support, both in the forms of tax credits and food stamp support." He supports raising the minimum wage, which is lower than 50 years ago in real terms. He faults privatized welfare as lacking proper government oversight over service delivery and cost. He says welfare reform was "a big success as an employment program, but it was less of a success as a program for social mobility."

http://www.motherjones.com/news/qa/2004/09/09_402.html

3. U.S. Passes on World Hunger Declaration

("US refuses to back world hunger battle," The Scotsman, September 21, 2004)

"The greatest scandal is not that hunger exists but that it persists even when we have the means to eliminate it. It is time to take action," said a declaration signed by 110 nations and adopted at the close of a World Leaders Summit on Hunger held at United Nations headquarters. The United States was criticized for failing to join these countries and a new campaign to raise an extra $50 billion annually in aid to combat global hunger. U.S. Agriculture Secretary Ann Veneman said "economic growth" is the "long-term solution to hunger and poverty." On the eve of the annual gathering of the United Nations General Assembly, more than 50 heads of state and government joined the debate on ways to finance the war against poverty. Brazil's president Luiz Inacio Lula da Silva and French president Jacques Chirac both criticized the US: "You cannot in the long run emerge victorious by opposing an idea that is backed by 100 countries, creating a new political situation," said Chirac.

http://news.scotsman.com/international.cfm?id=1107822004

Press conference on world summit for action against hunger:
http://www.un.org/News/briefings/docs/2004/lula040920.doc.htm

4. Food Stamp Participation on the Rise

("Food stamps on the rise," Marketplace, September 22, 2004)

In June 2004, 24 million Americans received food stamps, an increase of 2.4 million persons from a year ago. The increase is due to growing need as well as greater efforts to enroll eligible individuals. In the absence of public supports, low wages too often leave people choosing between medicine, housing, and food, said Ellen Vollinger of the Food Research and Action Center (FRAC). However, more than half the people who are eligible for food stamps are not enrolled in the program. Either they do not know about it, or believe incorrectly they are not eligible. Other low-income people have the misconception that they are not eligible just because they have a job.

http://marketplace.publicradio.org/shows/2004/09/22_mpp.html

5. Assistance Down While Poverty Up

("Welfare Series: Time for Congress to Act," WomensENews, September 15, 2004)

The Department of Health and Human Services recently announced a 1.8 percent decline in welfare caseloads. At the same time, poverty increased in 2003. Children accounted for most of the increase and represent more than a third of all people in poverty. The Bookings' Institution Margy Waller writes in this piece that the decline in welfare rolls and the increase in poverty mean more poor parents who qualify for assistance are not getting it. The percentage of eligible families getting temporary welfare assistance fell from nearly 80 percent in 1996 to less than 50 percent in 2001. Moreover, the numbers underestimate the poverty rate because they do not incorporate the impact of child care expenses, increases in housing expenditures, or regional differences in cost.

http://womensenews.org/article.cfm/dyn/aid/1990

6. As Income Gap Widens, Uncertainty Spreads

("As Income Gap Widens, Uncertainty Spreads," Washington Post, September 20, 2004)

This Washington Post article describes how the U.S. workforce is transforming, as many jobs in the middle salary range with good benefits are replaced by machines, overseas workers or temporary employees without benefits. This transformation is not just about factory workers (whose jobs have declined by 5 million in 25 years), and is "a historic shift." The result is that higher rungs of the income ladder are experiencing bankruptcy, long-term unemployment, and uninsuredness. In 2001, the top 20 percent of households for the first time held more than half of all income. The portion earned by those in the middle was the lowest in nearly 50 years. Federal Reserve Chairman Alan Greenspan warned in June that wages at the lower half of the income scale have remained stagnant, while salaries for the top quarter of earners have spiked. The imbalance must be addressed, said Greenspan, because "an increasing concentration of incomes," in a democratic society "is not a very desirable thing."

http://tinyurl.com/6dkod

7. U.S. Ranks 22nd in Life Expectancy; Poverty, Inequality and Diet May Be Causes

("When long life hangs in the balance," Christian Science Monitor, September 9, 2004)

The U.S. ranks 22nd internationally for life expectancy --- down from 12th for women and 18th for men in 1980. Wealthier nations are usually healthier. But the U.S. is the third wealthiest and the highest spender on health care among the 30 developed nations belonging to the Organization for Economic Cooperation and Development (OECD). Contributing causes of the U.S.' low ranking on longevity could be diet, poverty, wealth inequality, and inequality in health care, all of which are generally worse in the U.S. A better predictor of life expectancy than Gross Domestic Product (GDP) may be the average GDP for the bottom 40 percent of the population, according to a new study on longevity by Alicia Munnell, director of the Center for Retirement Research at Boston College.

http://www.csmonitor.com/2004/0909/p17s01-cogn.html

For the study "Why Is Life Expectancy So Low in the United States?":
http://www.bc.edu/centers/crr/ib_21.shtml

8. Europe Looks for Anti-obesity Policies

("Food policies to fight obesity rise," Food Production, Europe, September 17, 2004)

A project exploring how food labeling and advertising policies could be used to stem the rapid rise of obesity is being funded by the European Commission. Almost one third of people living in the European Union are overweight, and more than one in ten is now obese, according to the European Association for the Study of Obesity. The new project is being led by Dr. Erik Millstone from the University of Sussex. "What we’re doing is trying to capture perspectives from divergent approaches to see which mixes of policies might be effective in which countries," explained Dr. Millstone. "I hope this study will help to halt this juggernaut of obesity that’s rolling over Europe.”

http://www.foodproductiondaily.com/news/news-NG.asp?n=54787-food-policies-to

9. Corporate Tax Rate Falls as Profits Rise to $1.1 Trillion

("Corporate Income Taxes in the Bush Years," Institute on Taxation and Economic Policy, September 2004)

Corporate income taxes in fiscal 2002 and 2003 fell to their lowest sustained share of the economy since World War II. A new study by Citizens for Tax Justice and the Institute on Taxation and Economic Policy looks at the federal income taxes paid by 275 of America's largest corporations in 2001, 2002, and 2003. Over the three years, profit increased 26 percent and companies reported pretax U.S. profits of $1.1 trillion. Over the same period, corporate income tax payments to the federal government fell by 21 percent. The study looks at which corporations benefited the most.

http://www.ctj.org/corpfed04an.pdf

10. California: Markets Host Food Stamp Outreach

("Food stamps easier to get," Los Angeles Daily News, September 21, 2004)

Information booths set up at local markets are part of the Department of Public Social Services' new Food Stamp Outreach Project in Los Angeles County. The department has also sent staffers to food pantries, senior centers, and offices serving participants in the Women, Infants and Children (WIC) nutrition program. The outreach project's goal is to increase participation by eligible families in the Antelope Valley by 35 percent, or 1,200 households, by the end of February 2005. The effort responds to a report by the Center for Health Policy Research at the University of California Los Angeles that estimated 5,000 low-income Antelope Valley adults sometimes go hungry and an additional 20,000 frequently cannot afford to put sufficient food on the table. Fewer than 40 percent of those eligible for food stamps actually apply, department officials said. The department will also try to provide families that receive Medi-Cal benefits with information on food stamps if they are not enrolled and to streamline the application process.

http://www.dailynews.com/Stories/0,1413,200~20943~2417217,00.html

11. California: Minimum Wage Hike Vetoed

("Minimum wage boost vetoed," Sacramento Bee, September 19, 2004)

Legislation that would have raised California's minimum wage to $7.75 an hour was vetoed by Gov. Arnold Schwarzenegger, saying it would hurt efforts to expand jobs in the state. Raising the state minimum wage from its current $6.75 an hour, to be phased in over two years, might directly have affected 1.5 million low-wage earners, or nearly 10 percent of the state's work force. Washington state currently has the nation's highest minimum wage at $7.16 an hour. Alaska, Connecticut and Oregon also have higher minimum wages than California. The federal minimum wage is $5.15. Advocates said California's cost of living is so high that the wage increase would have brought low-income families barely above the poverty level.

http://www.sacbee.com/content/politics/story/10800743p-11718806c.html

12. Colorado: Many Welfare Applications Go Unprocessed

("Many welfare applications go unprocessed," Canyon Courier, September 22, 2004)

A new statewide computer system used to determine eligibility for welfare benefits is barely working, causing a backlog in processing applications. Low-income residents may be forced to go without food stamps and medical care. State officials ordered the state's 64 counties to begin using the Colorado Benefits Management System on September 1, despite concerns from county officials that the system was unreliable and plagued with glitches. In Jefferson County, only 30 out of 224 people who applied for welfare benefits in the first four days had their applications processed. Other counties experienced similar problems. "How many children are now out there waiting for something to eat?" County Commissioner Pat Holloway asked.

http://www.canyoncourier.com/articles/2004/09/16/news/news05.txt

13. Arkansas: Childhood Obesity Epidemic Strikes All Parts of State

("Body mass index study reveals 'epidemic'," Arkansas News Bureau, September 8, 2004)

A childhood obesity epidemic is present in all areas of Arkansas, according to a school-by-school survey of body mass index. The study found 38 percent of students are either overweight (21 percent) or at risk of being overweight (17 percent), according to the study. Nearly one out of three kindergartners are overweight or at risk. The percentage peaks by sixth grade. Each school district will have an advisory committee that will recommend nutritional and physical activity changes.

http://www.arkansasnews.com/archive/2004/09/08/News/284649.html

14. Nebraska: School's Healthier Vending Machines Join National Trend

("Schools dismiss pop, junk food," Omaha World-Herald, September 14, 2004)

Milk, water, sports drinks, fruit juice and lemonade began filling vending machines in Andersen Middle School last fall after the school started cutting back on soda in vending machines. The school joins others around the country that are either banning vending machines or replacing junk food and soda with more healthful snacks. A federal law passed in June requires schools to devise nutrition guidelines for all foods sold on campuses, including those in vending machines, by June 30, 2006. "It doesn't do a whole lot of good to have all of these regulations in place for the school lunch and school breakfast programs, and then we turn around and sell all of these foods to the kids that contribute to the obesity issue," said Virginia Bechtold, president of the Iowa School Food Service Association.

http://www.omaha.com/index.php?u_pg=1640&u_sid=1202993

15. West Virginia: Former Welfare Recipients Struggling, Study Finds

("Former welfare recipients struggling, study says," Charleston Gazette, September 20, 2004)

A new study paints a "bleak picture" for West Virginians whose welfare benefits have ended due to a five-year limit. They are twice as likely to have been evicted from their homes, run out of food, or had their utilities cut off when they left the program, according to a study by West Virginia University researchers. They also pawned possessions and moved in with others. Only one out of every four have found work, and more than half of those jobs are part-time. The average ex-welfare family earned $6,120 last year, one-third the poverty level for a family of four. More than nine of every 10 recipients still receive food stamps.

http://wvgazette.com/section/News/200409202

16. California: Snack Pilot Resources Go Online

("One-Stop Snack Shop," California Food Policy Advocates)

Pursuant to the reauthorization of the federal child nutrition programs, California sponsors of the Summer Food Service Program are now able to receive funding to serve snacks all year round. The link below contains information on the new Snack Pilot, including a brief history of the pilot, useful fact sheets and charts, a question and answer guide, sample menus, nutrition education resources, and contact information for an application.

http://www.cfpa.net/Snacks/snackattack.html

17. Michigan: School Breakfast Gets a Helping Hand from Masons

("Masons offer breakfast help at school," Lansing State Journal, September 14, 2004)

Adult volunteers from Masonic Lodge No. 70 recently helped serve up school breakfast at Cedar Street Elementary. The adults help give the children extra attention and are like "an extra set of grandparents to the children," said Principal Lisa Francisco. The rewards for the volunteers are new young friends and lots of student thank-you notes. "We all know the importance of children having a good breakfast before they start classes," said Francisco.

http://tinyurl.com/3leoe

18. New York: A Better Life in Buffalo after Minimum Wage Hike

("A better life for workers, but at what cost to the city?," Buffalo News, September 19, 2004)

Buffalo's Living Wage Law, first passed in 1999, is starting to boost the paychecks of low-income workers. The law mandates that contractors with more than $50,000 in sales to the city pay their workers at least $9.03 plus health benefits, or $10.15 without benefits. The law lacked an enforcement mechanism until a court battle created the Living Wage Commission to work with contractors to comply. "It's not just more money - it's a different life," said Donna Riley, who got a $3 hourly raise last month. Raises from living wages should help the city's economy, as well as some of its working poor, by putting money back into neighborhoods, advocates say. Buffalo is one of 58 localities nationwide that have adopted some form of living wage requirement, according to the group ACORN. The laws have wage thresholds ranging from $6.25 to $12 an hour.

http://www.buffalonews.com/editorial/20040919/1035948.asp

19. Nutrition Programs' Response to Hurricane Damage in Florida, Mississippi, Alabama, and Pennsylvania

Florida:
("Disaster food stamp program launched," Florida Today, September 20, 2004)

A Disaster Food Stamp Program for the 15 counties directly impacted by Hurricanes Charley and Francis has been introduced by the State of Florida. The program will begin September 28 and run until October 2. To qualify, applicants must have experienced damage to their home or self-employment property or must have had a loss of income as a result of the storms. Individuals and families who are currently receiving benefits in the regular Food Stamp Program are not eligible for these Disaster Food Stamp benefits, since their benefits were already increased during the months of August and September, immediately following Hurricane Charley.

http://www.floridatoday.com/topstories/092104foodstamps.htm

Mississippi:
("Response strong to Ivan aid," Sun Herald, September 22, 2004)

Disaster recovery centers are helping people complete paperwork for extra food stamps and giving information on unemployment assistance to residents who have been displaced from their jobs by the storm. The centers are expected to remain open at least 30 days.

http://www.sunherald.com/mld/thesunherald/news/local/9726187.htm

Florida:
("Students eat up free meals following Charley," News-Press, September 18, 2004)

Students enjoyed free breakfasts and lunches in Lee County public schools during a 15-day free meal program in the wake of Hurricane Charley. Participation rose 39 percent. The school district wanted to offer every student — no strings attached — free meals after Charley devastated so many Lee County families financially and emotionally.

http://tinyurl.com/5ooj4

Alabama:
"Ten More Counties Approved For Replacement Food Stamps," NBC13, September 23, 2004

Federal Agriculture officials have approved 10 more Alabama counties, for a total of 22, that will receive replacement food stamp benefits to replace food lost because of power outages from Hurricane Ivan. Department of Human Resources commissioner Page Walley said the benefits will be automatically posted to recipients' Electronic Benefits Transfer accounts, with no need to go to the food stamp office.

http://www.nbc13.com/news/3755598/detail.html

Pennsylvania:
("State relief effort will be massive," Post-Gazette, September 19, 2004)

Government officials and relief agencies are working to help those whose lives and livelihoods were affected by Hurricane Ivan. Governor Ed Rendell has asked President Bush for special assistance from a variety of federal aid programs, including grants, loans, legal help, food stamps, crisis counseling and other assistance.

http://www.post-gazette.com/pg/04263/381703.stm