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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.
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Issue 3, January 16, 2003

  1. Articles on The Bush Administration's 2004 Tax Cut and Budget Proposal
  2. Bush Administration's TANF Reauthorization Proposal Includes Stricter Work Requirements
  3. National Campaign Aims to Help More Low-Income People Receive the EITC
  4. Get Ready for Food Stamp Reauthorization Changes in Your State - Revised
  5. Nutrition Monitoring: Summary of a Statement from an American Society for Nutritional Sciences Working Group
  6. President Bush to Propose $43 Million Increase for WIC in FY 2004
  7. Newly Sworn-In Governors Find State Deficits Have Grown
  8. Two-Thirds of States Cutting Back on Medicaid
  9. Secretary of Agriculture Ann Veneman Defends School Lunch Program
  10. Healthful School Meals Undermined by Non-Nutritious Foods Used to Raise Money
  11. Surgeon General Richard Carmona Calls Obesity a Threat to National Security
  12. Grants Available to Fight Hunger Among Elderly (Deadline: January 20, 2003)
  13. More People Are Using Food Stamps and Medicaid in Fayetteville, North Carolina
  14. Homelessness is Growing in Small-Town Winchester, Virginia



1. ARTICLES ON THE BUSH ADMINISTRATION'S 2004 TAX CUT AND BUDGET PROPOSAL

FOUR FAMILIES' REACTION TO THE PRESIDENT'S TAX CUT PROPOSAL

(New York Times, January 13, 2003)

Four families that the New York Times interviewed two years ago after the last tax cut were reached again for comment on how President Bush's latest tax cut proposal would affect their lives. A carpenter, a sales clerk, a surgeon, and a software engineer, all of whom own little taxable stock, commented that they were working longer and harder today than two years ago and they do not expect the new tax break to make much difference.

http://www.nytimes.com/2003/01/13/national/13FAMI.html
(free registration required)



COLUMNIST DAVID S. BRODER: IT REEKS OF POLITICS

(Washington Post, January 12, 2003)

Columnist David S. Broder quotes a Republican economics guide as saying "It may be the least defensible policy ever...the wrong reform at the wrong time," when asked what he thought of the President's tax proposal. Broder also cites an analysis by the Urban Institute and the Brookings Institution that found 64 percent of the $364 billion in benefits from the dividend tax elimination would go to the top 5 percent of taxpayers, the same people who were the main beneficiaries of the President's tax cuts of 2001.

http://www.washingtonpost.com/wp-dyn/articles/A40820-2003Jan10.html



PRESIDENT BUSH'S WARTIME TAX CUT BREAKS WITH 140 YEARS OF HISTORY

(Los Angeles Times, January 13, 2003)

President Bush's tax cut and budget proposal commits President Bush to a goal unprecedented in United States history: cutting taxes in wartime. In every major conflict the United States has fought since the Civil War, presidents of both parties have raised taxes to pay for the war.

http://www.latimes.com/news/nationworld/nation/la-na-outlook13jan13.story?null
(free registration required)



FORMER TREASURY SECRETARY PAUL O'NEILL COMMENTS ON THE PRESIDENTS TAX CUT

(Pittsburgh Post-Gazette, Pittsburgh, PA, January 12, 2003)

Former Treasury Secretary Paul O'Neill said money from the president's $674 billion tax-cut plan would be better spent on shoring up the nation's ailing Social Security system. O'Neill saw minor value in eliminating taxes on corporate dividends, commenting "I would not have done it."

http://www.post-gazette.com/nation/20030112oneillnp1.asp



2. BUSH ADMINISTRATION'S TANF REAUTHORIZATION PROPOSAL INCLUDES STRICTER WORK REQUIREMENTS

(New York Times, January 15, 2003)

President Bush announced his position on TANF reauthorization, putting his support behind legislation similar to the House-passed bill that would require TANF recipients to work 40 hours a week. Up to 16 hours could be met by attending school, job-training programs or substance-abuse treatment. The President's proposal would maintain the current level of funding for the program at $17 billion a year plus $4.8 billion a year for child care (also the same as the current law). Recipients are currently required to work 30 hours a week and ten of those hours can be replaced with other supervised activities. Critics worry that the President's approach would require more from the states at a time when budgets are tight. Also, the 1996 law was successful in a climate of economic growth with low unemployment but may not be suited for the current economic conditions.

http://www.nytimes.com/2003/01/15/politics/15BUSH.html
(free registration required)

Statement by Center on Budget and Policy Priorities on President Bush's TANF reauthorization proposal:
http://www.cbpp.org/1-14-03tanf.htm

Statement by Center for Law and Social Policy on President Bush's welfare reauthorization plan:
http://www.clasp.org/Press/DMS/Documents/1042575984.51/Response_to_Pres_011403.htm



3. NATIONAL CAMPAIGN AIMS TO HELP MORE LOW-INCOME PEOPLE RECEIVE THE EITC

(Brookings Institution, January 2003)

The Earned-Income Tax Credit (EITC) has become one of the nation's largest anti-poverty programs. In 2000, the credit returned $31 billion to low-wage workers. An estimated 15 percent of workers who qualify for the credit may not receive it because they don't know about it or are not filing tax returns. Also, many tax filers who receive the credit are paying 5 percent or more of their total credit for loans to get their refunds immediately. The National Tax Assistance for Working Families Campaign, launched by the Annie E. Casey Foundation, aims to help more people receive the credit, find out about free tax preparation services, and use the credit to get out of poverty.

http://www.brook.edu/dybdocroot/es/urban/publications/berubetaxcode.htm

Coverage of the EITC Campaign in the Baltimore Sun quotes Douglas W. Nelson, president of the Casey Foundation: the EITC campaign "is a critical tool for the larger set of questions about how do you help a set of working families to become more financially stable." (January 14, 2003):

http://www.sunspot.net/news/local/bal-md.tax14jan14,0,5944186.story?coll=bal-local-headlines

The Center on Budget and Policy Priorities' 2003 Earned Income Tax Credit Outreach Kit:
http://www.cbpp.org/eic2003/



4. GET READY FOR FOOD STAMP REAUTHORIZATION CHANGES IN YOUR STATE - REVISED

(FRAC Publication, revised January 2003)

This FRAC report has just been revised to reflect recent USDA comprehensive guidance on legal immigrant eligibility. The report summarizes the important Food Stamp Program changes in the Food Stamp Reauthorization Act title of the Farm Security and Rural Investment Act of 2002, and describes opportunities those changes create for state-level advocacy. The law requires states to take certain positive steps and also gives states a range of new options to improve the program for low-income residents.

http://www.frac.org/pdf/implementation081402.PDF
(Adobe PDF)



5. NUTRITION MONITORING: SUMMARY OF A STATEMENT FROM AN AMERICAN SOCIETY FOR NUTRITIONAL SCIENCES WORKING GROUP

(American Society for Nutritional Sciences, December 2002)

This review of the history and uses of federally funded nutrition surveys describes the current and growing inadequacy of funding for these surveys, and the negative consequences of funding shortfalls. Policymakers increasingly base decisions about nutrition, food safety, labeling, environmental, and health policies on what national surveys tell us about dietary intake and nutritional health status. The report includes a detailed set of recommendations to improve the US nutrition monitoring and surveillance system.

http://www.nutrition.org/cgi/content/full/132/12/3782



6. PRESIDENT BUSH TO PROPOSE $43 MILLION INCREASE FOR WIC IN FY 2004

(Associated Press, January 15, 2003)

The Bush Administration will request a $43 million (or 1 percent) increase in funding for the WIC Program for FY 2004, which begins on October 1, 2003. The USDA press release indicates that the increase would allow the program to serve nearly 8 million women and children. The overall budget requested for the program is $4.72 billion.

http://www.newsday.com/news/politics/wire/sns-ap-bush-nutrition0115jan15,0,7074713.story

USDA Press Release (January 15, 2003):
http://www.usda.gov/news/releases/2003/01/0009.htm



7. NEWLY SWORN-IN GOVERNORS FIND STATE DEFICITS HAVE GROWN

(New York Times, January 14, 2003)

The country's 24 new governors face the worst state financial situation since at least World War II. The collective shortfall for the current year is estimated at $45 billion and the gap is projected to be $60 to $85 billion next year. A number of new governors found that the state's deficit had grown considerably between the election and the time they were sworn in. In Illinois, the estimate doubled since the election. Many governors are considering options like layoffs, tax increases and program cuts.

http://www.nytimes.com/2003/01/14/politics/14GOVS.html
(free registration required)



8. TWO-THIRDS OF STATES CUTTING BACK ON MEDICAID

(New York Times, January 14, 2003)

Two-thirds of states are planning to cut back on Medicaid by limiting benefits, increasing co-payments, restricting eligibility or removing low-income people from the roles-- moves that may result in as many as one million to two million low-income people losing health insurance. The cuts are seen as necessary by states because of soaring costs and plunging revenues. A survey by the Kaiser Family Foundation found that 16 states are cutting benefits, 15 are restricting or reducing eligibility, four are increasing the co-payments charged to beneficiaries, and 21 states are freezing or reducing payments to doctors, hospitals, and nursing homes. California Governor Gray Davis has proposed plans to cut nearly 500,000 low-income parents from Medicaid.

http://www.nytimes.com/2003/01/14/politics/14MEDI.html
(free registration required)

Kaiser Family Foundation's State Health Facts Online (50 state survey):
http://www.statehealthfacts.kff.org/

Center on Budget and Policy Priorities: Why Are States' Medicaid Expenditures Rising?:
http://www.cbpp.org/1-13-03health.htm

Center on Budget and Policy Priorities: Proposed State Medicaid Cuts Would Jeopardize Health Insurance Coverage for One Million People:
http://www.cbpp.org/12-23-02health.htm



9. SECRETARY OF AGRICULTURE ANN VENEMAN DEFENDS SCHOOL LUNCH PROGRAM

(Associated Press, January 10, 2003)

Secretary of Agriculture Ann Veneman said "We cannot blame obesity on child nutrition programs in this country," in response to critics of the nutritional value of the School Lunch Program. With child nutrition programs up for Congressional reauthorization this year, there has been debate on the nutritional value of food offered in school cafeterias. According to Lynn Parker, director of FRAC's child nutrition programs, school lunches are designed to meet USDA dietary guidelines for meat, grains, dairy, fruits and vegetables. "School lunches meet about a third of kids' nutrient needs, and they have definite portion sizes" that are not excessive.

http://www.washingtonpost.com/wp-dyn/articles/A40133-2003Jan10.html



10. HEALTHFUL SCHOOL MEALS UNDERMINED BY NON-NUTRITIOUS FOODS USED TO RAISE MONEY

(New York Times, January 13, 2003)

In most schools across the country, healthful school lunches that meet all USDA dietary guidelines are competing with vending machines that are loaded up with high-fat, high-calorie foods. Many schools rely on sales from vending machines to raise needed funds. With Congress set to consider reauthorization of Child Nutrition Programs, advocates for children and the poor are pushing for an additional $1 billion to be added to the school meals budget, which could help schools afford to provide healthier food (e.g., fresh fruits and vegetables) and wean schools from vending machines. According to Eric Bost, USDA Under Secretary for Food and Nutrition, "the solution is threefold: increase the overall consumption of fruits and vegetables, increase physical activity and reduce consumption of other foods."

http://www.nytimes.com/2003/01/13/national/13LUNC.html
(free registration required)



11. SURGEON GENERAL RICHARD CARMONA CALLS OBESITY A THREAT TO NATIONAL SECURITY

(San Francisco Chronicle, San Francisco, CA, January 7, 2003)

At a California conference on childhood obesity, Surgeon General Richard Carmona called obesity the fastest growing cause of illness and death in the United States. He also noted that the health implications of childhood obesity are severe enough to threaten national security. Dr. Carmona and Health and Human Services Secretary Tommy Thompson have met with leaders of major food manufacturing companies to persuade them to deliver healthy messages about food and provide healthier menu options. Kenneth Hecht, head of California Food Policy Advocates in San Francisco, feels that the Surgeon General's actions fall short and that government nutrition programs need reforms: e.g, improving the quality of USDA commodities used in school meals, establishing grocery stores in inner cities, and providing additional funding for neighborhood recreation facilities.

http://sfgate.com/cgi-bin/article.cgi?file=/c/a/2003/01/07/MN166871.DTL



12. GRANTS AVAILABLE TO FIGHT HUNGER AMONG ELDERLY (DEADLINE: JANUARY 20, 2003)

(Philip Morris Management Corp. and National Meals on Wheels Foundation, 2003)

The 2002/2003 Senior Helpings grant program will award 12 to 15 programs nationwide with grants for as much as $150,000 for one year. The program is funded by Philip Morris Management Corp. in a collaboration with the National Meals on Wheels Foundation. It supports programs that help alleviate hunger among the homebound elderly. The program aims to respond to service gaps occurring in communities across the country and to create long-term solutions to alleviating hunger among elderly people through community partnerships. The deadline for applications is January 20, 2003.

http://www.philipmorris.com/philanthropy/hunger/igam/community.asp



13. MORE PEOPLE ARE USING FOOD STAMPS AND MEDICAID IN FAYETTEVILLE, NORTH CAROLINA

(Fayetteville Observer, Fayetteville, NC, January , 2003)

Cumberland County has seen the number of households receiving food stamps jump by 20 percent from January 2000 to December 2002. Department of Social Services officials cite several reasons for the increase, including layoffs, loss of unemployment benefits, a reduction in hours at work and low-paying jobs.

http://www.fayettevillenc.com/story.php?Template=news&Story=5396015



14. HOMELESSNESS IS GROWING IN SMALL-TOWN WINCHESTER, VIRGINIA

(Winchester Star, January 11, 2003)

The number of homeless people is growing in the town of Winchester in the heart of western Virginia's countryside. Electronic Benefit Transfer (EBT) cards, now used by the Food Stamp Program, are a positive development for Winchester's homeless people, helping ease stigma for program participants in using their benefits at the grocery store. New rules in the wake of September 11th requiring a birth certificate and street address for getting photo identification, however, have made things more difficult. Previously, social workers used to help pay for a post office box that would enable them to get identification.

http://www.winchesterstar.com/TheWinchesterStar/030111/Front_condition.asp



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Ben Winter
Food Research and Action Center
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Email: bwinter@frac.org


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