Poverty

Every December Congress meets to try to pass all the urgent items they didn't manage to get done the rest of the year. Usually the list includes tax policy changes demanded by one well-heeled special interest or another. This year is no different. At the top of the lobbyists' wish list is reportedly "extending soon-to-expire business tax breaks... affecting research and development costs, investment deductions and debt write-offs."

But what about the tax policy issues directly impacting Congress's youngest constituents? It's true that children don't have fancy lawyers and lobbyists and PACs making big campaign contributions. But they do have a few scrappy nonprofits speaking up for their interests and backed by millions of parents. And at the top of the children's wish list this month is improvements to the federal Child Tax Credit

The federal CTC does a world of good every year for families all over Utah and across the nation.  Well over a third of Utahns qualify for the CTC every year when they file their taxes. That's over half a million households! And the amount of the CTC received by these Utah families exceeds $1.6 billion -- that's billion with a b. Wow! 

But there is a problem with the Child Tax Credit. Tens of thousands of Utah families fail to qualify every year for the full credit of $2,000 per child for a simple reason: The parents work low-wage jobs -- often working long hours -- but their low hourly wages still leave their incomes below the minimum level required under current tax law to qualify for the full credit -- over $29,000 of income for a single parent with two kids, for example. In other words, a single mom working full-time at $12/hour makes too little to qualify for the full CTC under its current rules. 

That means over 150,000 Utah kids every year are left out and left behind -- and these are the very kids who would benefit most from the proven positive impacts of refundable tax credits like the CTC -- including better educational outcomes and higher labor force participation rates years later when they become adults.  

And it gets worse: While most of the kids excluded from the CTC are white, disproportionate numbers of them are from Utah's communities of color, including an estimated 50,000 Latino children, comprising 29% of Utah’s Latino child population, as well as 6,000 Native American children, comprising 75% of Utah’s Native American children. This means that a tax credit that has incredible potential to reduce societal disparities is instead making them worse. 

That's a real shame, because the CTC does a lot to reduce child poverty already. National data from the Census Bureau's Supplemental Poverty Measure has found that refundable tax credits, including both the Child Tax Credit and Earned Income Tax Credit, reduced child poverty from where it would have been -- 18% or one-in-six children -- to 12.5% or one-in-eight children in 2019. That's over 4 million children lifted out of poverty. And if we could make the full CTC available to all the lower-income kids now being left out, that would help an additional 19 million children who need the help most. 

Even if Congress lacks the political consensus to restore the temporary 2021 CTC boost that cut child poverty last year by 36%, there are several more incremental ideas that would help a lot of kids: 

  • Implement a more rapid phase-in of the refundable credit, as proposed by Sen. Mitt Romney in his Family Security Act 2.0 proposal from earlier this year.
  • Make the full credit available without a phase-in for families with children under the age of 6. 
  • Exempt from the phase-in grandparents acting as custodial parents and parents whose disabilities impact their ability to work.
  • Institute a look-back policy that counts previous years' earned income in determining whether a work requirement has been met.
  • Restore the pre-2017 status quo where all children in immigrant families could receive the CTC.

The role of Utah's Congressional delegation in any Child Tax Credit improvements passed this month is expected to be one of the keys to success. After all, it was Utah Senator Mike Lee who demanded that Congress include improvements to the CTC in the 2017 TCJA legislation (though that law also cut off an estimated 1 million immigrant children without Social Security numbers from the credit). And it is Senator Romney who has put far-reaching additional improvements on the table with his Family Security Act proposals. 

If you agree that Congress should act this month to improve the Child Tax Credit, let your Representative and our two Senators hear from you!  Lifting more kids out of poverty would truly be a wonderful holiday gift for Utah's children this year. 

Published in News & Blog

Kids Count Utah: A Data Book on the Measures of Child Well-Being in Utah, 2021 is the first glance at the effects of the COVID-19 pandemic on Utah’s children. Please click on the button below for the full report. 

2021 UTAH KIDS COUNT DATA BOOK

Children under the age of 18 make up a third of the state’s population. Not surprisingly, Utah children and their families faced additional challenges as a result of living through a global pandemic.

Unfortunately, over 10 percent of Utah children are experiencing poverty. Additionally, since 2019 Utah saw an increase of over 4,000 additional children considered to be in Intergenerational Poverty (IGP). More children caught in a cycle of IGP is concerning as it could mean that their own children may continue that same cycle if their economic situation does not improve.

Providing a quality education to children during the pandemic continues to be a challenge. The most recent data shows that student proficiency assessment results decreased over the past year. And data also shows that many children are not receiving the mental health treatment they need. A new data indicator shared in the 2021 data book looked at access to mental health. The data collected from the National Survey of Children’s Health shows that approximately 60% of three- to 17-year-olds struggling with mental health are not receiving treatment.

Voices for Utah Children hopes that the yearly KIDS COUNT data book project and the publication of Measuring of Child Well-Being in Utah continues to be a valuable resource that can provide guidance to both policymakers and the general public on how to improve the lives and futures of Utah children.

Published in News & Blog

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Children’s Budget Report Finds Utah Is Spending More On Children Than Ever Before, But Education Funding Effort Is At A Record Low

Salt Lake City, December 9, 2021 - Voices for Utah Children, the state’s leading children’s policy advocacy organization, released its biennial Children's Budget Report.  The report, published every other year, measures how much (before and after inflation) the state invests every year in Utah’s children by dividing all state programs concerning children (which add up to about half of the overall state budget) into seven categories, without regard to their location within the structure of state government. The seven categories are as follows, in descending order by dollar value (adding state and federal funds together):

breakdown p1state pie

breakdown p2fed pie

Public investment in children should be understood as a central component of Utah’s economic development strategy.  Examining how much Utah invests in children can help the state evaluate whether it is maximizing the potential of our future workforce through our investment in human capital. 

This is especially important given the rapid demographic changes taking place in our state. The 2020 Census found that 30% of Utahns under 18 are members of a racial or ethnic minority (almost one-third of our future workforce), compared to just 24% in 2010. The investments we make today in reducing racial and ethnic gaps among Utah’s children will enable the state to thrive and prosper for generations to come

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Report highlights are as follows
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good ok bad

Good News: Utah is investing more in the next generation now than ever before, both overall and on a per-child basis

spending per kid

Not-so-good News: The non-K-12 Education portion of the Children’s Budget peaked on a per-child basis in FY 2016 and has fallen since then by 2%

non educ spend per kid

Bad News: Utah’s education funding effort continues to fall to record low levels

 educ fund hist

Additional Trends: Changes in Funding by Source 

overall graph

Trends in Education Funding: UT beat ID for 49th place, still far behind US overall 

us ut funding

UTIDGap

 MEDIA COVERAGE OF THE CHILDREN'S BUDGET REPORT:

Facebook Live Event presenting the 2021 Children's Budget Report, major findings and summaries of all the categories of funding that impact children in Utah.  https://fb.watch/9O05ECPAHi/

 KSL: https://www.ksl.com/article/50308739/utah-children-drowning-in-unmet-needs-according-to-new-budget-report?utm_source=Salt+Lake+Tribune&utm_campaign=93649b5bb5-rundown_12_10_2021&utm_medium=email&utm_term=0_dc2415ff28-93649b5bb5-45560674

KRCL: https://krcl.org/blog/radioactive-110821/ 

Published in News & Blog
February 24, 2021

The High Price of Lower Taxes

Legislative leaders have said that 2021 should be “the year of the tax cut.” Numerous public opinion surveys show that Utahns disagree. This may come as a surprise to policymakers, who have been in the habit of handing out tax break after tax break for decades.

But there seems to be an increasing public awareness that Utah is now paying a price for decades of tax cutting that have left us with the lowest overall tax level in 50 years relative to Utah personal income.

UTAH'S URGENT UNMET NEEDS

We all like being able to pay less in taxes. But there is a growing understanding that tax cuts are leaving us unable to address the long list of urgent unmet needs in education, infrastructure, social services, air quality, public health, and many other areas that affect our standard of living and quality of life. All of these issues will shape the Utah that our children will one day inherit. 

Outlined below are some examples of the urgent unmet needs in Utah. 

Early Care and Education

Amount

Unmet Need

$500-600 Million/Year

Envision Utah estimates that we need to invest an additional $500-600 million each year just to reduce teacher turnover, where we rank among the worst in the nation. 

Our leaders’ unwillingness to solve our education underinvestment problem is why our high school graduation rate is below the national average (after adjusting for demographics) and our younger generation of adults (age 25-34) have fallen behind their counterparts nationally for educational attainment at the college level (BA/BS+).

$52.5 Million/Year Voices for Utah Children estimates that it will cost $52.5 million to make full-day Kindergarten available to all Utah families who would choose to opt in to it.
$1 Billion Well over $1 billion is one estimate for a much needed comprehensive system of early childhood care and education (pre-k) in Utah.

 

Health

Amount

Unmet Need

$59 Million/Year

It would cost Utah about $59 million each year to cover all of our 82,000 uninsured children.

The longstanding preference for tax cuts over covering all kids is why we rank last in the nation for covering the one-in-six Utah kids who are Latinx and why the state as a whole ranks in the bottom 10 nationally for uninsured children.

 

Human Services

Area 

Unmet Need

Mental Health & Substance Abuse Treatment

Utah ranks last in the nation for mental health treatment access, according to a 2019 report from the Gardner Policy Institute.

A 2020 report from the Legislative Auditor General found that Utah’s Justice Reinvestment Initiative had failed to achieve its goal to reduce recidivism -- and actually saw recidivism rise -- in part because “both the availability and the quality of the drug addiction and mental health treatment are still inadequate.” (pg 51)

Disability Services

The DSPD disability services waiting list has doubled in the last decade from 1,953 people with disabilities in 2010 to 3,911 in 2020.

The FY20 $1 million one-time appropriation made it possible to provide services to 143 people from the waiting list.  

Domestic Violence The Utah Domestic Violence Coalition 2017 Needs Assessment identified insufficient funding for shelters, affordable housing, child care, legal representation, and mental health and substance abuse treatment services as major obstacles to protecting women from domestic violence. 
Seniors

The official poverty measure undercounts senior poverty by about a third because it does not consider the impact of out-of-pocket medical expenses.

2018 study found that seniors spent $5,503 per person on out-of-pocket medical expenses in 2013, making up 41% of their Social Security income. (For most seniors, Social Security is the majority of their income, and it makes up 90% or more of income for 21% of married couples and about 45% of unmarried seniors.)  

 

Infrastructure, Environment, and Housing

 Area

Unmet Need

Infrastructure

The American Society of Civil Engineers gives Utah a C+ grade for infrastructure in its December 2020 report

The Utah Transportation Coalition has identified a funding shortfall of nearly $8 billion over the next two decades.

Air Quality  The Wasatch Front ranks as the 11th worst air quality in the nation for ozone and 7th worst for short-term particle pollution
Housing

Affordable housing units fall 41,266 units short of meeting the need for the 64,797 households earning less than $24,600. Among extremely low-income renter households, 71% pay more than 50% of their income for housing, which is considered a severe housing burden.

The FY21 affordable housing appropriation request for $35 million from Sen. Anderegg, which was already just a small step in the right direction, was reduced to just $5 million.

 

WHY TAX CUTS ARE A BIG DEAL

Some legislators have said to us, "What's the big deal with $100 million of tax cuts out of a $22 billion budget?".

The big deal is that we’ve been cutting, on average, about $100 million every single year for the last 25 years.

Voices for Utah Children’s research has found that tax cuts from the last 25 years has left us short $2.4 billion each year, amounting to an 18% cut to public revenues.

One could even call us a “slow-motion Kansas” because in 2012 they cut taxes overnight by 15%, leading to an economic slump and political backlash that saw the Republican legislature reverse the cuts in 2017 and the public elect a Democratic governor in 2018.

But here in Utah, we’re like the proverbial frog in the pot of water heating on the stove. The devastating impacts of these revenue reductions have been slow and incremental, so we’ve come to accept as normal a state of affairs that Kansans quickly reversed.

Instead of figuring out the fairest way to restore some of those lost revenues so we can address our most urgent challenges, Utah’s political leadership continues to pass new tax cuts every year, generally skewed toward the top of the income scale.

For example, Voices for Utah Children analyzed two of the tax cuts proposed this year and found that they excluded lower-income Utahns completely and mostly went to the highest-income households – even though their supporters said publicly that they are intended to help low- and middle-income Utahns.

Public opinion surveys conducted last year by the Deseret News and Hinckley Institute, by the Utah Foundation, and by Envision Utah all found a strong popular preference for public investment over tax cuts.

Same thing with surveys this month by the Deseret News-Hinckley Institute and by Voices for Utah Children.

Breaking old habits can be hard. As is often the case, the public appears to be ahead of our political leaders. But let's hope that they too will eventually come to appreciate the wisdom of their constituents, who are increasingly aware of the high price Utah is paying for lower taxes.


Utah has been fortunate in weathering the current recession. This gives us a unique opportunity to be able to make smart long-term investments at a time when other states are cutting budgets. As a State we need to take advantage of this situation and invest in Utah kids, not tax cuts.

THIS OP-ED APPEARED IN THE SALT LAKE TRIBUNE ON MARCH 1, 2021

Published in News & Blog

Salt Lake City - Voices for Utah Children released publicly today (January 6, 2021)  "#InvestInUtahKids: An Agenda for Utah's New Governor and Legislature," the first major publication of our new #InvestInUtahKids initiative. 

Utah begins a new era in this first week of January, with the swearing in of a new Governor and Lt. Governor and a new Legislature. The arrival of 2021 marks the first time in over a decade that the state has seen this kind of leadership transition. Last month Voices for Utah Children began sharing with the Governor-elect and his transition teams the new publication, and on Wednesday morning Voices will share it with the public as well.

The new publication raises concerns about the growing gaps among Utah's different racial, ethnic, and economic groups and lays out the most urgent and effective policies to close those gaps and help all Utah children achieve their full potential in the years to come in five policy areas: 

  • Early education 
  • K-12 education 
  • Healthcare
  • Juvenile justice
  • Immigrant family justice

The report, which was initially created in December and distributed to the incoming Governor and his transition teams, closes with a discussion of how to pay for the proposed #InvestInUtahKids policy agenda. The pdf of the report can be downloaded here

Published in News & Blog

Amendment G one pager 10 5 20(view this as a pdf here)

The state's leading child research and advocacy organization Voices for Utah Children announced its opposition to Constitutional Amendment G in an online press conference today (Monday, October 5, 2020).  

Constitutional Amendment G is the proposal to amend the Utah State Constitution to end the Constitutional earmark of all income tax revenues for education.  Since 1946 Utah has dedicated 100% of income tax revenues to education, initially defined only as K-12 education and, since 1996, including also higher education.  The State Legislature voted in March to place on the ballot the question of also allowing these funds to be used for other purposes -- specifically for programs for children and for Utahns with disabilities.  

The arguments made by proponents and opponents are summarized in an online document prepared by the state election administrators in the Lt Governor's office. According to that document, "the state spends about $600 million annually of non-income tax money on programs for children and programs that benefit people with a disability."

Voices for Utah Children CEO Maurice "Moe" Hickey explained the organization's decision to oppose the Amendment: "We believe that the proposed Amendment not only won’t solve Utah’s state budget woes, it is likely to delay the real fiscal policy changes that are needed. Over the past decade we have been continuously ranked last in the country for per pupil spending. This is a caused by our growth in number of students, combined with a lowered tax burden in the past decade. A major question we have to ask is “if the current Constitutional earmark has failed to help Utah invest more in education, how will getting rid of it improve matters?” The unfortunate reality is that getting rid of the Constitutional earmark of income tax for education does nothing to solve the real problem, which is the fact that nearly every area of state responsibility where children are impacted – education, social services, public health, and many others – is dangerously underfunded."

Health Policy Analyst Ciriac Alvarez Valle said, "Utah has one of the highest rates of uninsured children in the country at 8% or 82,000 children, and we have an even higher rate of uninsured Latino children at almost 20%. It is alarming that even during this pandemic, children and families are going without health insurance. There are so many ways to reverse this negative trend that began in 2016. Some of the solutions include investing in our kid’s healthcare. By investing in outreach and enrollment efforts especially those that are culturally and linguistically appropriate for our communities of color, we can ensure they are being reached. We also have to invest in policies that keep kids covered all year round and ensures they have no gaps in coverage. and lastly, we have to invest in covering all children regardless of their immigration status. By doing these things we can ensure that kids have a foundation for their long term health and needs. It's vital that we keep children’s health at the forefront of this issue, knowing that kids can only come to school ready to learn if they are able to get the resources they need to be healthy."

Health Policy Analyst Jessie Mandle added, "All kids need to have care and coverage in order to succeed in school. We are no strangers to the funding challenges and the many competing demands of social services funding. Without greater clarity, more detail, and planning, we are left to ask, are we simply moving the funding of children’s health services into another pool, competing with education funding, instead of prioritizing and investing in both critical areas? Sufficient funding for critical children’s services including school nurse, home visiting and early intervention, and school-based preventive care remains a challenge for our state. We have made important strides in recent years for children’s health, recognizing that kids cannot be optimal learners without optimal health. Let’s keep investing, keep moving forward together so that kids can get the education, health and wraparound services they need."

Education Policy Analyst Anna Thomas: "We often hear that UT is dead last in the nation in per pupil funding. We have also heard from such leaders as Envision Utah that millions of dollars are needed to avert an urgent and growing teacher shortage. What we talk about less is the fact that these typical conservative calculations of our state’s underfunding of education don’t include the amount the state should be paying for the full-day kindergarten programming most Utah families want, nor does it include the tens of millions our state has never bothered to spend on preschool programs to ensure all Utah children can start school with the same opportunities to succeed. Utah currently masks this underfunding with dollars from various federal programs, but this federal funding is not equitably available to meet the needs of all Utah children who deserve these critical early interventions. The state also increasingly relies on local communities to make up the difference through growing local tax burdens - which creates an impossible situation for some of our rural school districts, where local property tax will never be able to properly fund early interventions like preschool and full-day kindergarten along with everything else they are responsible for. Our lack of investment in early education is something we pay for, much less efficiently and much less wisely, later down the road, when children drop out of school, experience mental and physical health issues, and get pulled into bad decisions and misconduct. If kids aren’t able to hit certain learning benchmarks in literacy and math by third grade, their struggles in school - and often by extension outside of school - multiply. We should be investing as much as possible in our children to help ensure they have real access to future success - and can contribute to our state's future success. You don’t have to be a math whiz - third grade math is probably plenty - to see that the general arithmetic of Amendment G, and the attendant promises of somehow more investment in everything that helps kids - just doesn’t add up. We have multiple unmet early education investment obligations right now. Beyond that, we have many more needs, for children and for people with disabilities, that we must be sensitive to as a state especially during a global pandemic. How we will ensure we are investing responsibly in our children and our future, by having MORE expenses come out of the same pot of money - which the legislature tells us every year is too small to help all the Utah families we advocate for - is still very unclear to me. Until that math is made transparent to the public, we have to judge Amendment G to be, at best, half-baked in its current incarnation."

Fiscal Policy Analyst Matthew Weinstein shared information from the Tax Commission (see slide #8) showing that Utah's overall level of taxation is now at its lowest level in 50 years relative to Utahns' incomes, following multiple rounds of tax cutting. He also shared recent survey data from the Utah Foundation showing that three-fourths of Utahns oppose cutting taxes further and are ready and willing to contribute more if necessary to help solve the state's current challenges in areas like education, air quality, and transportation. He also contrasted the public's understanding that there's no "free lunch" with the unrealistic election-year promises made by our political leadership -- more money for both education and social services if the public votes for Amendment G -- even though Amendment G does nothing to reverse any past tax cuts and address the state's chronic revenue shortages.

The organization shared a one-page summary of the arguments (available here in pdf format) for and against the proposed Constitutional Amendment: 

Amendment G one pager 10 5 20

Voices for Utah Children has also published a full five-page position paper that is available in pdf format

This press conference was broadcast live at

Media coverage: 

Published in News & Blog
July 30, 2020

Family Economic Success

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