Removing Barriers to Work: Budget Solutions that Strengthen Ohio's Workforce

Removing Barriers to Work
Budget Solutions that Strengthen Ohio’s Workforce

a statewide coalition of almost 500 organizations and thousands
of individual advocates.
Advocates for Ohio’s Future is…

Overall Policy Objectives:
• Ohio should be a great place for all Ohioans to live and work
• All Ohioans should have the opportunity to participate in the economy, afford the
basics, and pursue a higher quality of life
• A job should mean a living, allowing workers to lift themselves and their families out
of poverty
• Health and human services can play a vital role in supporting Ohioans

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Webinar Presenters
Wendy Patton
Senior Project Director
Policy Matters Ohio
Hannah Halbert
Workforce Researcher
Policy Matters Ohio
Kalitha Williams
Policy Liaison
Policy Matters Ohio

www.policymattersohio.org
Hannah Halbert
Researcher
hhalbert@policymattersohio.org
614-221-4505
Snap to Skills:
Expanding education and training resources in Ohio
without limiting food assistance

Working poor: Too many jobs pay too little.
Largest occupations in Ohio, by employment, wage and wage as share of poverty.
Occupation Employment
Median annual
wage
As share of
poverty level
Food Preparation and Serving Workers, Including Fast Food* 163,790 $18,920 94%
Retail Salespersons* 157,460 $21,590 107%
Registered Nurses 128,030 $62,310 309%
Cashiers* 117,390 $19,360 96%
Laborers and Freight, Stock, and Material Movers, hand* 111,230 $25,500 127%
Waiters and Waitresses* 98,150 $19,040 94%
Office Clerks, General 92,350 $29,230 145%
Customer Service Representatives 88,310 $31,070 154%
Janitors and Cleaners, Except Maids and Housekeeping Cleaners* 85,470 $23,340 116%
Stock Clerks and Order Fillers* 84,580 $23,610 117%
Source: Bureau of Labor Statistics, Occupation and Employment Statistics, May 2016, at https://www.bls.gov/oes/tables.htm, accessed April 12, 2017. Detailed
occupation by largest number employed. Calculation of median annual income as a share of the poverty rate by author. Median annual income based on 2080 hours
(full-time, year-round). Poverty rate based on 2016 HHS guideline for family of three, $20,160. *Seven of the largest occupations pay a median wage less than 130
percent of poverty, the gross monthly income threshold for food assistance. Nursing assistants (66,800 workers, median annual wage=$24,880, 123% pov.). Home
Health Aides (65,710 workers, median annual wage=$65,710, 104% pov.).

Employment and Training -- 16,400 participants
Literacy skills, vocational training, post-secondary credentials.
Challenges
Time limits on Able Bodied Adults without Dependents (ABAWDs), slow-
growth/low-wage economy, employment barriers.
Work Experience Program – 35,059 participants
Typical placements include janitorial work, grounds maintenance, office
work, or warehouse packing.

Nonrefundable
SNAP to SKILLS
• Technical assistance to
states and partners on
developing E+T programs.
• Encourage expansion of
federal 50%
reimbursement grants.
Washington Model (BFET)
• Voluntary,
• 28,000 served annually,
• 30+ community colleges, $30
million budget.
Supports students in career and
tech ed., basic adult ed, GED, and
ESL.

SNAP to Skills Goals
Ensure the hungry are fed and for those who can benefit provide
education and training that can help reduce need.
-- Voluntary,
-- State planning to identify resources, establish guidance,
-- State funding to support training initiatives—($1 million).
Amendment HC 1476

State Earned Income Tax Credit
Kalitha Williams, Policy Liaison
Policy Matters Ohio
kwilliams@policymattersohio.org
614.221.4505

• Nation’s most powerful anti-poverty program
• Lifts millions out of poverty
• Rewards work
• Reduces tax inequality
• Boosts local economies
Federal Earned Income Tax Credit

•Over 939,000 families in Ohio claim the federal EITC
•Brought in $2.3 billion dollars of refunds into the
state.
•Average refund is $2,449, or 2-3 months of income
for a low wage working family
Federal Earned Income Tax Credit

Nonrefundable
Unlike most state EITCs Ohio’s can only reduce income tax liability
Capped for incomes over $20,000
Federal EITC designed to smooth benefit cliffs, the cap cuts Ohio’s short
Amount too low
Ohio’s credit is just 10 percent of the federal EITC

Nonrefundable
Non-refundable
Ohio EITC amount: $142
Taxpayer owes $100
EITC eliminates $100 in tax
liability.
Remaining $42 in EITC is just
lost.
Refundable
Ohio EITC amount: $142
Taxpayer owes $100
EITC eliminates $100 in tax
liability.
Remaining $42 in EITC is sent
to taxpayer in a refund check.

A well-targeted EITC could lift up Ohio workers:
Effect of a 20 percent, non-capped, refundable EITC by income class
Poorest Ohioans Low-income Ohioans Middle-income Ohioans
Income range
Less than
$21,000
$21,000-
$39,000
$39,000-
$60,000
Average income $13,000 $29,000 $49,000
Share receiving tax cut
after reforms
38% 30% 14%
Change from share of those
getting existing credit
+30 percentage
points
+8 percentage points +3 percentage points
Average EITC tax savings
after reforms
$451 $620 $312
Change from existing credit +$381 +$478 +$199
Source: Institute on Taxation and Economic Policy, December 2016. Covers Ohio residents only and is based on 2016 income. Percentages rounded.

•Contact your state legislator (1-800-282-0253 )
•Contact State Senator John Eklund (614-644-7718)
•Write op-eds/letters to the editor
What Can You Do

Wendy Patton
Senior Project Director
wpatton@policymattersohio.org
614-221-4505
Public Childcare:
Improving eligibility, continuity and quality to help
working families and young children

Challenge: Initial program eligibility for Ohio’s
public childcare program is too low.
Annual
Family size
Initial eligibility
(130% FPL)
Eligibility at
145% FPL
Eligibility at
200% FPL
Self Sufficiency, Akron
OH
Parent with 1 child $20,826 $23,229 $32,040 $43,569
Parent with 2 children $26,208 $29,232 $40,320 $53,429
Hourly
Parent with 1 child $10.01 $11.17 $15.40 $20.95
Parent with 2 children $12.60 $14.05 $19.38 $25.69

A positive feature: Those with stable jobs get
extended eligibility
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$20,000 $24,120 $29,136 $34,164 $39,180 $44,208 $49,224 $54,252 $59,268
Monthlycostofchildcareforaninfantandatoddler,
CuyahogaCounty,Ohio,2015
Annual family income levels
Childcare Aid Family Co-Pay
Average market cost of childcare for infant and toddler: $1,742 per month

Challenge: Too few have stable jobs.
Need continuous eligibility
• At present, families get
up to 13 weeks once a
year if they lose a job
and have to find another.
• Churning in the low-
wage labor market
makes staying at one job
difficult: Temp jobs start
and stop; seasonal jobs
end with the season
• Need 12 months
of eligibility
regardless of the
parent’s job
situation
12-month continuous
eligibility promotes
• Family stability;
• Stability for the child
so learning is
maximized
• Stability in the
classroom, where
churning of students
disrupts everyone

CHALLENGE:
Quality in the classroom matters more to young
minds than at any other time of life
But quality in the pubic childcare program comes at a cost the
State of Ohio has been unwilling to pay

Nonrefundable
Reimbursement for Infants
(center)
Recommended:$1,254
State of Ohio payment:$713
Reimbursement for
Pre-schooler (center)
Recommended: $910
State of Ohio payment: $570
Recommended reimbursement for public childcare programs:
75th percentile of current market
State of Ohio reimbursement: 26th percentile of 2014 market
Source: National Women’s Law Center, State Childcare Assistance Policies in 2016, Table 4C: Table 4C: State
Reimbursement Rate Amount in 2016 Compared to Market Rate Amount for Child Care Centers

Key Public Childcare Issues
1) Initial Eligibility: It’s too low, at 130% of poverty. Raise to
200% FPL – maybe phase in, over time.
2) Continuity in the classroom: Kids bounce in and out of the
classroom with parent’s job changes. We need continuous
eligibility: a child is admitted to a classroom for a full year
regardless of changes in mom’s job.
3) Poor Quality: Payment to childcare providers is too low. Raise
reimbursement rates so providers can afford to participate in the
“Step Up to Quality” program and high quality childcare programs
accept more public childcare kids.

• Subscribe to Groundwork Ohio newsletters and read their reports.
https://www.groundworkohio.org/
• Read more at Policy Matters Ohio website (search for “public childcare”);
sign up for e-newsletter https://www.policymattersohio.org/
• Talk to your elected officials at the state. Tell them what you want for the
state’s public childcare program.
• Check out what Cleveland, Cincinnati and Dayton are doing locally to
provide more funding for public preschool and childcare
There’s a lot going on, and your legislators want to hear from you
YOU MATTER
Lend your interest and your voice to this issue!

• You’ll receive a follow-up email with links to video, slides and resources
• Join the conversation on social media:
• @Advocates4OH
• Facebook.com/advocatesforohio
Next Steps
• @PolicyMattersOH
• Facebook.com/policymattersohio
• Use the hashtag #PoorWhileWorking when posting about poverty in Ohio

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Removing Barriers to Work: Budget Solutions that Strengthen Ohio's Workforce

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Removing Barriers to Work: Budget Solutions that Strengthen Ohio's Workforce