Bipartisan child tax credit bill could reverse rise in child poverty
The federal child tax credit, launched in 1997, was expanded during the pandemic to cover all children. This reduced child poverty in the United States by 45%. But after the pandemic expansion expired, child poverty doubled, reaching 12% by the end of 2022. The bipartisan Tax Relief for American Families Act (H.R. 7024), negotiated under the leadership of Rep. Jason Smith (R-Missouri) and Senator Ron Wyden (D-Oregon) was introduced this year. The Episcopal Church’s Office of Government Relations posted an action alert with a link to write your Senators and member of Congress.
“Although this legislation does not go as far as the 2021 expansion does, it is still a significant increase in support for low-income families,” the OGR explains. “Around 19 million households currently have an income too low to receive credit. The Center on Budget and Policy Priorities estimates that 16 million of these families will be eligible under the new credit.
“Deuteronomy 15:11 says, ‘…therefore I command you, saying, ‘You shall open your hand wide to your brother, to your poor and your needy, in your land.'” Christ calls us to serve those who need it the most, and we ask you to join us in urging Congress to expand the child tax credit and support low-income families.’”
“Episcopal church resolutions relevant to this bill include:
- 2018-C041: Advocate for Policies Supporting Nutrition, Healthcare, and Housing as Human Rights
- 2015-A092: Affirm Support for Government Funding of Social Safety Net Programs”
State legislature launch bills to eliminate state income tax
Republicans in both the Ohio House and Senate introduced legislation last week to eliminate the state’s income and commercial activity tax by 2030. Three of the sponsors represent districts in Southern Ohio: Rep. Adam Mathews (R-Lebanon), Rep. Brian Lampton (R-Beavercreek), and Senator George Lang (R-West Chester). This is estimated to cost the state $13 billion dollars a year if it passes. State funding for K-12 public schools is $8 billion this year.
Because Ohio is required to maintain a balanced budget, this bill would force the state to cut funding and likely trigger an increase in other taxes that disproportionally burden people of low and middle income: sales and property tax. Some leaders in our legislature, especially in the Ohio Senate, want to cut safety net programs. It takes a huge advocacy battle to preserve funding for food security, public education, and child care each time the state develops its biennial budget.
The Ohio Capitol Journal reports that lawmakers plan a series of town hall meetings on the proposal. I’ll be keeping track and alerting you as soon as I know when and where these are. Please gather stories of people in your community who are likely to be affected by this policy so you can write or testify during hearings.
Sponsors of the cuts promise the lost revenue will be replaced by increased economic activity, but a series of income tax cuts since 2005 have failed to demonstrate that impact and counties have had to increase property tax to make up cuts in state funding. Reporter Morgan Trau asked the bill sponsors how they would prevent the fiscal crisis that Kansas suffered after eliminating the personal income tax: “Kansas lawmakers, with the help of the conservative American Legislative Exchange Council (ALEC), used the exact same theory of extra economic activity making up for the gap in tax revenue,” she writes in the Ohio Capital Journal. “The tax was cut in 2012 but was reinstated in 2017. The state lost hundreds of millions in half a decade.”
School funding: Implications for public schools and working parents
Funding for K-12 public schools was set at $8 billion in Ohio’s FY 2024 state budget. This is a hard-fought improvement after years of struggle to overcome the unconstitutional geographic disparity in school funding. It’s dwarfed by the estimated $13 billion loss in state funding from eliminating individual state income and CAT tax.
After a tremendous grassroots effort by parents, school administrators, and teachers, the Ohio Legislature adopted the Fair School Funding Formula in 2020 and is incrementally increasing funding to fulfill it every two years, but there is no guarantee they will continue, and the Ohio House had to fight hard to preserve it in the current budget as the Ohio Senate pushed through its universal private school vouchers which are expected to cost taxpayers roughly $1 billion a year.
Policy Matters Ohio’s State of Ohio Schools 2023 report gives compelling data on the importance of better funding for schools and teacher salaries. “The combined effects of the COVID pandemic and Ohio’s legacy of inadequate, inequitable funding have weakened the role school plays as a foundational public institution.[1] Ohio ranks 21st in the nation for K-12 education,[2] 46th for equitable distribution of funding,[3] and 40th in starting teacher salaries,” it says.
I’ve reported on state legislators’ quest to curtail teaching on race and other “divisive issues” in public K-12 and universities in Ohio. Policy Matters cites this as a demoralizing factor for educators, and reports additional concerning trends that affect schools’ ability to provide excellent education:
- Public school teachers’ salaries declined from 2018-23 when adjusted for inflation
- Over 16,000 Ohio public school teachers have left their classrooms since 2020
- Recruitment is falling.
Almost 88% of Ohio’s children attend public schools, which are diverse in every way and served over 800,000 economically disadvantaged children, 270,000 children with disabilities, and 21,000 homeless students in 2021-22, according to Ohio Department of Education data cited in the Policy Matters report.
Policy Matters Ohio recommends these resources to stay informed as you advocate:
Child care is unaffordable for 87.8% of Ohio households, reported Policy Matters Ohio analyst Kathryn Poe as part of a forum on child care published in Crain’s Cleveland Business. She cites data that the average child care bill for an infant costs over 17% of the median Ohio household income. The US Department of Health and Human Services deems child care unaffordable if it costs more than 7% of a family’s income.
Governor DeWine asked the state legislature to increase the income limits for child care help, but the current budget caps eligibility for child care vouchers at very low income: 145% of the federal poverty level, just $36,074 for a family of three. The cost and shortage of child care keeps working families in poverty. If parents get a raise lifting their income over 145% of the poverty level, they lose their child care vouchers.
“High-quality child care doesn’t just lay the groundwork for kids to have a better future; it’s part of Ohio’s economic foundation in the present,” Poe writes. “Our labor force is stronger when parents can go to work knowing their kids are cared for. When child care providers can afford to hire and retain skilled staff, they can keep our children safe and give each child the attention they deserve. Everyone benefits when child care workers — who are disproportionately women and disproportionately Black — can afford high-quality care for their own kids.” She recommends that we advocate for expanding eligibility for child care and significantly increase reimbursement for publicly-funded child care workers, who are currently reimbursed at rates lower than 65% of area providers.
“From 2017 to 2022, the number of child care workers in Ohio dropped by 35.89%,” she reports. “That is likely related to the shamefully low wages: The median hourly wage for child care workers is just $13.15, too little to afford child care — or much else — for their own kids.” Kathryn Poe recommends three policy changes to reverse the child care crisis for working Ohio parents:
- Raise eligibility for publicly funded child care to 300% of the federal poverty level.
- Raise reimbursement rates to the 75th percentile and require the lion’s share of the increase go to child care workers.
- Conduct a cost-of-care analysis to guide policy decisions.
Hamilton County offers aid for immigrants and refugees. Bipartisan bill in Congress would allow Mauritanian refugees to apply for work permits
Food and housing providers have been sharing rising concerns about how to help refugees and immigrants who are not allowed to work while waiting for their immigration cases to be heard.
Last week the FreeStore Foodbank announced how to apply for social service referral and limited financial aid funded by Hamilton County. The County’s New Americans Project is for immigrants at risk of homelessness, who can be referred by FreeStore partner agencies. Undocumented families are also eligible. Families can receive up to $1,500 for a first month’s rent and security deposit, and aid with second month (70%) and third month rent (30%) if needed. Agencies can use this link to refer families.
The Cincinnati Enquirer and WKRC TV-12 both reported this week on how Valley Interfaith Community Resource Center in Lockland, which several Episcopal congregations support, is stepping up its services to meet critical needs of Mauritanians fleeing an intensifying crisis of racist violence and oppression in their country. Columbus and Cincinnati have seen a big influx of Mauritanians in the past year because these cities are home to a previous generation of Mauritanian expatriates.
Four members of Ohio’s Congressional delegation have introduced the Temporary Status for Mauritania Act of 2024, which would grant TPS for up to 18 months, “given the extraordinary conditions, including systemic and ongoing slavery and terrorism, that prevent Mauritanians from safely returning to their country,” says a press release from Sen. Brown, which includes links to studies documenting the current human rights abuses in Mauritania.
People with temporary protected status are eligible to work in the United States. Without this status, they can’t, and are suffering a critical housing and food crisis this winter. The bill is sponsored by Senator Sherrod Brown (D), Rep. Greg Landsman (D-OH-1), Rep. Mike Carey (R-Oh-15), and Rep. Joyce Beatty (D-OH-3). Over a year ago Sen. Brown and Rep. Carey urged the Biden Administration to grant TSP to Mauritanian refugees. You can find and write to your member of Congress from this link. Contact Senator Brown here, and Senator JD Vance here.
Ohio Senate votes to override Gov. DeWine’s veto of HB 68
The Ohio Senate voted Jan. 24 to override Gov. DeWine’s veto of HB 68. That means the law banning most gender-affirming care for trans youth, and banning trans athletes from playing on public school sports teams, is scheduled to go into effect. But the ACLU of Ohio will file a lawsuit saying HB 68 is unconstitutional, citing a constitutional amendment passed in 2011 to thwart Obamacare protects patients’ right to choose their health care, including gender-affirming care.
Advocacy briefings are compiled by Ariel Miller, a longtime community advocate and member of Ascension & Holy Trinity, Wyoming. Connect with her at arielmillerwriter@gmail.com.
