Report: Welfare a barrier to economic mobility for low-income workers

by David Bass | Sep 18, 2024

Georgia news, in the news, current events, Georgia happenings, GA happenings

Report: Welfare a barrier to economic mobility for low-income workers

At a campaign stop in North Carolina last month, Vice President Kamala Harris suggested that efforts to combat price gouging are needed to help poor and middle-class households. But a new research report shows that government transfer benefits are contributing to the financial burdens and limitations of low-income households.

The report from the Georgia Center for Opportunity highlights how social safety-net programs, while providing a baseline of support, may inadvertently deter low-income workers from seeking higher-paying jobs due to the “benefits cliff.”

The report, titled “Workforce Engagement: A Missing Link in Understanding Income Inequality,” examines how programs like food stamps, Medicaid, and housing subsidies create barriers to long-term financial independence.

The benefits cliff occurs when a small increase in wages results in a significant reduction or loss of government benefits, leaving workers with a net loss in income. This phenomenon discourages individuals from pursuing career advancements and higher-paying jobs.

The report emphasizes that these safety-net benefits can create disincentives for the lowest-paid workers to move up the economic ladder. After adjusting for taxes and transfer payments, the bottom quintile has nearly the same net income as the second quintile, despite earning almost four times less. This is primarily due to the higher level of government support received by the former group.

Read the full article here

Removing work disincentives in the social safety net will strengthen upward mobility and the economy

by Kimberly Sawatka | Jul 9, 2024

Removing work disincentives in the social safety net will strengthen upward mobility and the economy

Policymakers at the national level looking for ways to strengthen economic opportunity too often fixate solely on expanding government programs. Instead, they should embrace a simple goal: eliminating barriers faced by people striving to improve their situation. Removing work disincentives in the social safety net is the best place to start.

A clear example of this kind of disincentive is the benefits cliff: a circumstance in which a raise or a new job can trigger a disproportionately large reduction in safety net benefits, making the household worse off.

Aside from the shock to household stability, such experiences can create the impression that accepting work opportunities — such as a job offer, a raise, or working more hours — is not actually worthwhile for a family.

According to the Georgia Center for Opportunity’s benefits cliffs calculator tool, a Utah single mother of two could typically start to see these “cliffs” between $25,000 and $35,000 in annual earnings, or about $12 to $16 per hour.

To read the full article in the Washington Examiner click here.

There’s a crime divide between Americans and politicians, and voters are watching

by Josh Crawford | Jun 18, 2024

Media statement, in the news, Georgia news, ga news

There’s a crime divide between Americans and politicians, and voters are watching

BY JOSHUA CRAWFORD, OPINION CONTRIBUTOR

With the announcement that President Biden and former President Trump will debate in Atlanta in June, the 2024 election cycle is in full swing. Many Americans are not enthused.

Earlier this year, 67 percent of respondents told a pollster that they were “tired of seeing the same candidates in presidential elections and want someone new.” In fact, 30 percent of voters think that neither Biden nor Trump “did more to help people like them,” 29 percent think that neither will be a good president and 26 percent of Americans have a negative view of both candidates.

Read the full opinion in The Hill.

Georgia’s 2024 Legislative Session: An Agenda to Lift Up Vulnerable Communities

by David Bass | Jan 26, 2024

Georgia’s 2024 Legislative Session: An Agenda to Lift Up Vulnerable Communities

Key Points

As Georgia lawmakers convene for the 2024 legislative session, multiple bills are on the table that could break down barriers in poor and disadvantaged communities.
A key issue to track: education opportunity. Lawmakers have a chance to enact several options, including Georgia Promise Scholarships (SB 233), expansion of the Tax Credit Scholarship Program, and public school transfers.
Other bills to know include job licensing reforms to expand work opportunities for people with criminal records (SB 157) and a reform to better connect welfare and work support in Georgia (HB 738)

Georgia lawmakers are back in Atlanta for what could prove to be the most impactful legislative session in years. Georgia’s legislature is considering multiple bills that could break down barriers facing poor and disadvantaged communities.

The timetable is short. The session will end by March 28, so time is of the essence if our elected officials are going to improve the quality of life for the people they serve. Below is a list of a few bills our team is watching and working on to lift up vulnerable and low-income communities across Georgia.

Our hope for the 2024 session: Give more Georgians better pathways out of poverty and into opportunity

“During the 2024 session, we hope to see tremendous progress on expanding school choice through passage of Senate Bill 233, the Promise Scholarship bill,” said GCO’s vice president of public policy, Buzz Brockway. “In addition, we hope to see an increase in the cap on Georgia’s Tax Credit Scholarship program, which would also expand private school options parents have.”

“We also will be working on seeing SB 157 passed into law,” Brockway added. “This bill will create a pathway for people with a criminal record many years in the past to obtain an occupational license, opening up opportunities for many people to earn a living and support their family. Finally, we hope to make progress on reforming how Georgia delivers workforce and safety-net programs, placing people on a pathway toward self-sufficiency.”

Education: Expanding schooling options to help families find the best fit for their kids

SB 233, Promise Scholarships: Would make $6,500 per student available for parents to direct toward the best educational opportunities for their children. The funds would be available for use for private school tuition and public school alternatives, such as homeschooling. The scholarships would only be available to students enrolled in the lower 25% of schools in Georgia, amounting to around 400,000 students. Status: The Georgia Senate passed the bill in 2023 but it fell short in the House by a 85-89 margin. However, it is eligible for reconsideration this session. In his recent State of the State address, Gov. Brian Kemp gave full-throated support to getting Promise Scholarships passed this year. To learn more, view our primer on Promise Scholarships.
SB 147, public school district transfers: Would allow students to transfer to a different public school within their district or a different district. This would provide much needed support for the majority of families who chose to continue sending their students to public schools in Georgia. Status: The Senate tabled this bill in 2023 but it is eligible for consideration this year.
HB 54 and HB 101, Tax Credit Scholarship cap increase: Would raise the cap on the Tax Credit Scholarship from $120 million to $130 million. Through this program, businesses and individuals can donate toward private school scholarships for K-12 students enrolled in public schools. In return, they receive a dollar-for-dollar state income tax credit. In 2022, lawmakers raised the cap from $100 million to $120 million, but demand continues to increase, making another jump necessary. Status: The measures weren’t considered in 2023 but they are eligible for reconsideration this year.
HB 318, improve charter school laws: This measure would reestablish the Office of Charter School Compliance under the State Charter Schools Commission. Currently, two entities oversee charter schools in Georgia: The State Charter School Commission oversees state authorized charter schools, while the Georgia Department of Education oversees charters authorized by local boards of education. This creates confusion and differences in application of laws and rules governing charter school laws. HB 318 would bring oversight of all charters under one roof, providing more resources and uniformed application of laws and rules regarding charters. Status: Both chambers passed this bill in 2023 but the Senate amended it and the House did not reconsider the changes. The bill is eligible to be considered this year.

Safety-net reform: Connecting our welfare system to work support

One Door task force bill in Georgia, HB 738: Our nation’s welfare system is a fragmented hodgepodge of programs. The dozens of programs that make up the system have different and, at times, competing goals, inconsistent rules, and overlapping groups of recipients. At the same time, there is often a disconnect between safety-net programs and welfare-to-work initiatives. The end result is that people stay mired in generational poverty rather than receiving a helping hand to live a better life. In this environment, the GCO team is on the vanguard of educating about safety-net reform. A key way we are doing so in Georgia is by pushing forward this legislation to create a One Door task force in the state. The task force would study how to integrate the safety net with workforce development, in line with the successful One Door approach in Utah. Other states, including West Virginia and Louisiana, are weighing similar proposals. So why not here in Georgia? Status: The bill was introduced in the House in 2023 and is now moving through committee this year.

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Occupational licensing and public safety: Increasing personal safety and job opportunities in local communities

Senate Bill 157, appeals process for justice involved individuals: Would create a preclearance process in licensing of individuals with criminal records who make an application to or are investigated by certain licensing boards and commissions. Often, returning citizens from the criminal justice system face huge barriers in finding work, and we know that attachment to work is a significant determinant of an individual not ending up back behind prison walls. Status: This measure was added to the House Rules calendar last year but didn’t receive any attention.
House Bill 212, Niche-Beauty Services Opportunity Act: Would offer barbers and cosmetologists the opportunity to provide services like blow-dry styling, braiding, threading, and the application of cosmetics without requiring licensure by the State Board of Cosmetology and Barbers. Occupational licensing is needed in some industries and job categories due to public health and safety concerns, but the laws on the books today in many cases are an unnecessary roadblock to employment for workers. Status: The House tabled the bill last session but it is eligible for consideration this year.
House Bill 334: Expungement: Would revise Georgia’s requirement that criminal history records be disclosed in certain situations. Known as expungement, this is an important step for individuals who have served their time and need to reintegrate into the workforce. Status: The bill was amended onto Senate Bill 157 but never came to a vote.

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2024: A Year of Unique Opportunities to Change Lives and Help Our Neighbors

by David Bass | Jan 11, 2024

Safety-net reform discussion in progress Georgia Promise Scholarship advocates Raising Highly Capable Kids program session Collaborative community safety planning Economic empowerment through BETTER WORK Educational opportunity supporters in action Community leaders addressing employment barriers Policy reform meeting on public safety Family stability and well-being empowerment Networking for local job opportunities

2024: A Year of Unique Opportunities to Change Lives and Help Our Neighbors

Key Points

Building off our success in 2023, the new year presents unique opportunities to build better lives for our neighbors through the power of work, education, family, and safer communities.
Our goal is for 2024 to be the year that safety-net reform takes hold in states across the country, while educational freedom becomes a reality at home here in Georgia as Promise Scholarships finally become a reality.
We hope this year will also bring safer communities in big and small cities alike through key public safety reforms.

One word that often comes to mind at the beginning of a new year is “hope.” As 2024 dawns, the Georgia Center for Opportunity (GCO) is working hard to help everyone — especially the poor and disadvantaged — experience the wonder of hope by envisioning a better future for themselves and their loved ones. They can live better. They can become better.

Time and time again, government has proven that it can’t help people escape systemic, generational poverty. While the safety net is important, viewing it as a way of life saps people of their humanity and unfairly limits their potential. The poor deserve to know that poverty is escapable, not just survivable. And they deserve a helping hand to escape.

These solutions come from homes, neighborhoods, and local communities. This is where aspirations and dreams are born. No handout can substitute for this.

With this vision in mind, we will be dedicating 2024 to making positive changes in a few key areas that greatly affect the quality and trajectory of life for those who are most vulnerable. We built significant momentum last year on a range of issues, and that’s setting the stage for even bigger impact this year.

Here’s some of what’s on tap for us in the new year.

Safety-net reform will yield new opportunities

We’re taking on the safety-net system by advancing reforms in Congress, Georgia, and states across the country to create a more humane system that rewards work and creates a bridge to self-sufficiency.

We should look to Utah as an example of a state in the nation that is leading the way on safety-net reforms. The Beehive State’s One Door policy has integrated human services with workforce services and provides citizens with a single program to work through. Welfare becomes work support, and people have a clear path to get the help they need while receiving education, training, and other support to find employment.

This year, working with our Alliance for Opportunity partnership as a platform, we are advancing federal legislation to allow all states to adopt the One Door model—something that federal law currently prohibits. In Georgia, we are working with state policymakers to create a One Door task force so that our state is prepared to implement more holistic safety-net policies, especially when federal law is no longer a barrier.

On a similar front, we are working to educate lawmakers and the public on the problem of benefits cliffs. Put simply, benefits cliffs are when an individual, family, or household loses more in net income and benefits from governmental assistance programs than it gains from additional earnings. This net loss is a perverse incentive that undermines the natural desire to earn more income. Thanks to GCO’s original research, we are crafting program-specific solutions to reduce benefits cliffs in food stamps/SNAP and childcare assistance.

These solutions will build off the momentum created in states like Missouri, which became the first last year to address public assistance provisions, breaking ground in reforming safety-net benefits.

Safety-net programs have a role in helping the most vulnerable in our society. Ultimately, reforms are not about making government more efficient. They are about ensuring safety-net progams serve as a bridge, not a barrier, to better opportunities and futures.

Expanding educational opportunity will benefit all students

Could 2024 be the year that—finally—education opportunity is extended to all of Georgia’s students, not just a privileged few?

Our hope is the answer is yes. We’re fighting to give every child in Georgia access to a quality education as the Georgia Promise Scholarship bill comes back for a final vote in the recently convened 2024 legislative session. Promise Scholarships would give parents $6,500 per student per year to find the right education option for their kids. The bill cleared the state Senate in 2023 but stalled in the House.

Promise Scholarships are the cornerstone of our education agenda in 2024, but they are not the only priority. We are also encouraging lawmakers to expand the ceiling on the tax-credit scholarship, to free up families to transfer students between public schools within districts and in separate districts entirely, and make key improvements to charter school laws.

It’s well past time Georgia caught up with the rapidly growing list of other forward-thinking states that are expanding educational opportunity to all.

Support for parents will strengthen families

This year is an exciting phase for our Raising Highly Capable Kids (RHCK) program, which we launched in 2023 to give communities a better resource for nurturing family stability and well-being.

RHCK is a 13-week evidence-based parenting program designed to build stronger families by empowering parents with the confidence, tools, and skills they need to raise healthy, caring, and responsible children.

A driving factor of long-term poverty is a lack of connection and supportive relationships, especially at home. That’s why we are prioritizing RHCK. At its heart is a curriculum that teaches the building blocks of healthy child development. In 2024, we’re working with partners and schools to expand RHCK. We believe the program will be a powerful way to give parents, caregivers, and educators tools and support to improve kids’ academic achievement, relationships, and overall success in life.

In 2024, the Georgia Center for Opportunity spearheads transformative initiatives, ranging from safety-net reforms and educational advancements to family support and community safety, all geared towards breaking the cycle of poverty and fostering a brighter, more empowered future for individuals and families.

Key reforms will lead to safer communities

Community violence is another barrier to economic opportunity and healthy communities. Individuals and families can only truly thrive when neighborhoods and streets are safe.

Through community collaborations with law enforcement, policymakers, and community leaders, we’ll help Georgia cities like Atlanta and Columbus reverse the tide of rising violence that has been damaging the family bonds, work opportunities, and educational pathways needed to break the cycle of poverty.

In Columbus, the Columbus Empowerment Network is leading to crime reductions, and we expect more local policy reforms to be adopted in 2024. While much of the focus on increasing crime rates centers on large metro areas, smaller cities like Columbus are still important and have seen concerning upticks in crime.

Our team is also active in moving forward policy in other states, including California, Massachusetts, Tennessee, Washington State, and Kentucky. In Louisville, for example, our work has helped shape an omnibus crime solution bill, which is expected to pass their state House this year. Louisville is important as a national example because it’s one of the most challenging public safety environments in the country, and solutions that work in this city have a good probability of working elsewhere—including Georgia.

Breaking down employment barriers will transform generations

For those who struggle in poverty, an upwardly mobile job is often the first and best step toward self-sufficiency. That’s why we will continue to work through our BETTER WORK initiative in Gwinnett County and Columbus to build our local support systems to empower men and women to find work. We’ll also cultivate an environment of community safety where business and job opportunities abound.

In Columbus, a new focus for 2024 will be on partnering with local leaders and law enforcement to keep crime from driving away businesses and job opportunities. Meanwhile in Gwinnett, we’re laser focused on building out our network of employer partners, nonprofits, schools, and other community organizations to provide a bridge to a better life for the disadvantaged. And overall, we will continue our partnership with Jobs for Life as well as our mentor program.

The cost of Christmas is up, especially for the poor

by David Bass | Dec 18, 2023

The cost of gifts, meals, and trips to see family and friends have gone up, inflation, debt, low-income

The cost of Christmas is up, especially for the poor

Key Points

The blog underscores the significant impact of inflation on Christmas expenses, encompassing gifts, meals, and travel, affecting Americans, particularly those from lower economic classes, hindering their enjoyment of the holiday’s relational aspects.
Emphasizing a recent inflation surge due to pandemic-related factors, the post characterizes it as an “inflation tax” disproportionately affecting the poorest Americans, creating challenges in accessing opportunities crucial for a meaningful life.
Supported by statistical evidence, the blog reveals the financial hardships caused by inflation, with the average American household spending $11,434 more annually since January 2021, particularly impacting the poor who face significant debt obstacles.

This year, inflation is threatening to put a dent in Christmas festivities. The cost of gifts, meals, and trips to see family and friends have gone up, to name a few common items. And Americans are noticing.

The pinch is particularly painful for those from the lower classes. Putting aside the greater cost of material items, a more expensive holiday means that those who are struggling will have a more challenging time enjoying the relational aspects of the holiday, including being with family while celebrating treasured traditions and connecting around meals.

What’s clear from these data points is that America’s recent burst of high inflation—which soared to a 40-year high in the aftermath of pandemic-related shutdowns, supply chain disruptions, and government stimulus overspending—has driven up the cost of goods and services and inflicted an “inflation tax” that disproportionately hits the poorest Americans the hardest.

At the Georgia Center for Opportunity, our mission is built around promoting human flourishing—especially for those on the margins. The high cost of Christmas this year matters because it reflects the reality that high inflation reduces people’s ability to access the opportunities that shape a meaningful life.

By the numbers: Inflation’s effect on household budgets

Just how bad is it this year? Nationally, a recent report found that the average American household now spends $11,434 more annually to maintain the same standard of living they enjoyed in January 2021. Worse, they’re using credit cards to finance everyday purchases—running up debt and leaving very little extra for the holidays.

For the poor, debt can become an insurmountable obstacle to moving up the economic ladder. Low-income households spend around 26% of their income each month on debt, compared to around 4% for wealthy households (even though wealthy households carry far more debt on average).

On a personal level, this decreased purchasing power means that more families teetering on the economic edge are struggling to put food on the table during the normal year—let alone for special meals around the holidays. A recent survey found that 50% of Americans say Santa will be less generous this Christmas due to inflation—and that one in three won’t be getting presents this year.

Even for those who plan to spend money this holiday season, 28% say it will be less than last year. And nearly 20% will apply for new credit cards to finance their purchases—despite the fact that nearly 25% still carry holiday debt from last year.

So how expensive are traditional items that Americans associate with the holidays in 2023? PNC Bank’s Christmas Price Index (CPI) shows the overall cost for Christmas festivities has gone up nearly 20% since 2021. For example, Christmas breakfast classics like bacon and eggs are up 24% and 41%, respectively, since 2021, while Christmas dinner pork chops are up 20%.

Gas prices are up 55% over the same time period, making transportation to and from work even more difficult for the poor. Meanwhile, the price to buy a used car has jumped by 22%.

Even home energy costs have risen so much that some families must decide between heating their homes and buying presents. Since September 2021, the cost to heat homes and keep lights on has risen 20% for electricity and 18% for gas.

It is a complex problem caused by a myriad of systems and choices but the implications are substantial. Inflation is having a catastrophic impact on those living in poverty. We discuss what is causing it and what we must do to address it.

Finding joy in the season

A recent Financial Times–Michigan Ross poll found that 82% of Americans say that price increases are their biggest source of financial stress. So even as the jobless rate improves and inflation cools, many consumers simply aren’t feeling it. And this translates into pessimism about the economy as we move into the 2023 holiday shopping season.

It doesn’t have to be that way. During the holiday season, the GCO message of giving hope and opportunity to those who most need it couldn’t be more needed. It’s painful to realize how much many of our neighbors are struggling with the high cost of inflation. But it’s a great invitation for communities to come together and offer support in ways the government can’t.

We can make the biggest difference by starting small and close to home.