Federal Deficit Reduction Deal. What’s at stake for Ohioans in Need?

Featuring:

Lisa Hamler-Fugitt, Executive Director of the Ohio Association of Second Harvest FoodbanksLuke Russell, Associate State Director for Advocacy, AARP OhioCathy Levine, Executive Director, UHCAN Ohio, Co-Chair of Ohio Consumers for Health CoverageDeborah Nebel, Director of Public Policy, Linking Employment, Ability, and Potential Wendy Patton, Senior Associate, Policy Matters Ohio (PMO)

OHIO ASSOCIATION OF SECOND HARVEST FOODBANKSTHE SUPER COMMITTEE: WHAT'S AT STAKE FOR OHIOANS IN NEED? September 27, 2011

Lisa Hamler-FugittExecutive Director lisa@oashf.org 614.221.4336, ext. 222

www.oashf.org

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Ohio’s 12 Feeding America foodbanks and their network of more than 3,300 local agencies fed 1.97 million Ohioans, 35% of which were children and 14% of which were seniors.

This represents an increase of 58.9% in the number of clients served from 2006 to 2011.

American Community Survey results released 9/22/11 found that statewide 15.8% of Ohioans (1,779,032) had incomes below the federal poverty level in 2010 an increase of 21.5% since 2007.

Ohio is 6th in the nation for high hunger rates (16.4%). (USDA Food Security in US, 2010 released September 2011) Still hungry:

52% of households that receive SNAP 48% of households that receive free and reduced price school

meals 46% of households that receive WIC

Hunger rates among Ohio adults over the age of 50 is 10th in the nation. (AARP Foundation, Food Insecurity Among Older Adults. August 2011)

Ohio Association of Second Harvest Foodbanks

Federal budget & debt ceiling impact4

Elimination of National Service Programs, Senior Corps, Emergency Food & Shelter Program (already cut by 80%) and/or The Supplemental Nutrition Program for Women, Infants and Children.

Other threats: Possible fundamental changes to programs should as those proposed in Senator Coburn’s “Back in Black” that would:

Terminate “categorical eligibility,” which allows individuals to automatically qualify for food stamps if they are enrolled in the Temporary Assistance for Needy Families (TANF) program or certain other assistance programs.

Reduce funding for USDA’s domestic nutrition assistance ($17 billion FY 2010 enacted by 10 percent to save $18.7 billion over ten years. GAO recently studied 18 of the 70 identified federal hunger programs. Of these 18, only 7 were found to have sufficient reported data to assess their overall effectiveness. However, little is known about the effectiveness of the remaining 11 programs, because they have never been well studied. Only two of the 11 programs had been studied at all.

Get engaged – we need to be proactive!1. Post your recommendations on Senator Portman’s website http://

portman.senate.gov/public/index.cfm/reduce-the-deficit2. Read reports submitted to the Joint Select Committee, including Senator Ron Johnsons, $1.4 Trillion

in Savings http://ronjohnson.senate.gov/public/index.cfm/files/serve?File_id=b61bc3d5-a0e9-4d48-ba25-17d4b1f238b6

3. U.S. Senator Tom Coburn, M.D. (R-OK) report “Back in Black” that outlines how the federal government can reduce the deficit by $9 trillion over the next ten years and balance the federal budget. The 614-page plan was the result of a thorough and exhaustive review of thousands of federal programs.

http://coburn.senate.gov/public//index.cfm?a=Files.Serve&File_id=c6590d01-017a-47b0-a15c-1336220ea7bf

Debt Ceiling Debate: 5

If the Joint Committee on Deficit Reduction fails to report out a bill that achieves at least $1.2 trillion in deficit reduction OR if Congress fails to enact its plan, then automatic, across-the-board spending cuts will be triggered for 2013-2021. The automatic, across-the-board cuts  (known as sequestration) will

equal the difference between what is enacted and $1.2 trillion. These cuts would take effect in January 2013 assuming no cuts or

revenue increases were enacted by the Joint Select Committee on Deficit Reduction, approximately 9% annual cut in affected non-security programs, along with roughly a 9% cut in defense programs.

Fortunately, low income entitlement programs, such as the Commodity Supplemental Food Program, Supplemental Nutrition Assistance Program, Child Nutrition Programs (with the exception of special milk programs), and Temporary Assistance for Needy Families.

Medicaid and SSI programs, are exempted from the automatic, across the board cuts (although 2% Medicare provider cuts are allowed).

Federal Budget: Where does the money go?

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Source: Center on Budget and Policy Priorities

Ohio has a powerful congressional delegation

House Agriculture Committee

Marcia Fudge (D-11)Jean Schmidt (R-02): CHAIR, Nutrition &

Horticulture Subcommittee

House Oversight & Government Reform Committee

Michael Turner (R-03) Dennis Kucinich (D-10)

Jim Jordan (D-04): CHAIR, Regulatory Affairs, Stimulus

Oversight & Government Reform Subcommittee

House Energy & Commerce CommitteeBob Latta (R-05): Health

Subcommittee

House Education & Workforce CommitteeDennis Kucinich (D-10):

Health, Education, Labor & Pensions Subcommittee

House Appropriations Committee

Marcy Kaptur (D-09): Agriculture Subcommittee,

Transportation & HUD Subcommittee

House Budget Committee

Tim Ryan (D-17)Marcy Kaptur (D-09): CHAIR, Nutrition &

Horticulture

House Ways & Means Committee

Pat Tiberi (R-12) CHAIR, Subcommittee on Select

Revenue

Senate Agriculture Committee

Sherrod Brown (D): Nutrition Subcommittee

CHAIR, Jobs, Rural Economic Growth & Energy Innovation

SubcommitteeSenate Appropriations

CommitteeSherrod Brown (D):

Health, Education, Labor & Pensions Subcommittee

Senate Banking, Housing & Urban Affairs CommitteeSherrod Brown (D):

Housing, Transportation, and Community

Development Subcommittee

Senate Budget Committee

Rob Portman (R)

Joint Select Committee on Deficit Reduction

Rob Portman (R)

Republican Study Commission

CHAIR: Jim Jordan (R-04)Speaker of the

HouseJohn Boehner (R-08)

Protect Medicare &Social Security

from Harmful Benefit Cuts

Luke Russell, Associate State Director of

AdvocacyAARP Ohio

Today’s seniors and future generations have earned their benefits through a lifetime of hard work. We should be strengthening Medicare and Social Security, not slashing their budgets and putting future generations’ retirement security in jeopardy.

AARP’s Position:

AARP is fighting to stop Congress from making a political deal that cuts Medicare and Social Security benefits. Instead of cutting the benefits 50+ members worked for, Congress should reduce the deficit by cutting waste and close tax loopholes.

AARP’s Position:

• Cuts Hurt Real People: In these tough economic times, Washington shouldn’t cut the benefits seniors and middle class Americans have worked for and depend on. Cuts to Social Security and Medicare benefits could dramatically increase seniors’ health costs, threaten their access to doctors and hospitals and reduce the benefits checks they rely on to pay the bills.

• Target Waste Not Seniors: Congress needs to make tough choices to reduce the deficit, but they shouldn’t harm seniors or the middle class by cutting the retirement benefits they’ve paid into their entire lives.

AARP’s Position:

• Worked Hard: Seniors have worked hard their entire lives, paying into the system to earn their Social Security and Medicare - benefits that protect America’s middle class.

• Voice in the Discussion: Seniors and middle class Americans have earned a voice in any discussion about the future of Medicare and Social Security.

AARP’s Position:

Actions:• Teletown Hall• Calls to Members of Congress (including robo-

calls)• Sign our Petition• Share Your Story - Cuts to Social Security and

Medicare (Call in Testimonies)• Meetings with Key Members of Congress• Facebook and Twitter• Web Banner Ads

Threats to Health Care from the Super Committee

Cathy LevineUHCAN Ohio and Ohio Consumers for Health

Coverage

• Recommend between $1.2 and $1.5 TRILLION in deficit reductions

• Congress must pass the recommendations and the President must sign or else…

• Automatic cuts are triggered--50% from defense.

• If Congress gets part way there, the trigger will raise the remaining revenues to get to $1.5 T.

Super Committee Charge

Second Stage – What’s at Stake?

• Medicaid is protected if the automatic cuts go into effect

• Medicare: Across-the-board cuts limited to 2% (about $10 billion) of program’s costs and can only come from cuts to providers and insurers.

Second Stage – What’s Really At Stake

Congress is under tremendous pressure on Congress to come up with a deal.Possible Medicare Cuts:• Raise Medicare eligibility age (in the

original “grand bargain” proposal)• Raise Medicare cost-sharing (in the

original “grand bargain”)• Means-test Medicare premiums• Eliminate or scale back Part D? unlikely

Undermine ACA Medicaid Expansion in 2014, through:• Repealing ACA Maintenance of Effort requirement –

allow states to cut current eligibility before 2014• “Blended Medicaid Match Rate - reduce 100%

federal match for newly eligible Medicaid recipients to a weighted rate for all Medicaid beneficiaries• Amounts to de facto block grant – would require

cuts• Shifts costs to states• Could erode support for Medicaid expansion in

the Affordable Care Act.

What Congress May Do

to Medicaid

• Children and adults with disabilities Home and community based services that allow people to live independently, work and contribute to society

• Frail seniors and their family caregiversHome and community based services to live safely and with dignity in setting of choice

• Low-income children and families• Jobs

Who’s at Risk from Medicaid Cuts2 million Ohioans and their

families

We need real reforms• Reward providers for good care and

outcomes, not volume of servicese.g. don’t pay for hospital-acquired harm

• Promote services in high value, lower cost outpatient settings, instead of institutional care

• But, these savings will not raise $1.5 – we must balance cuts and savings with revenues.

• Resources: The Insider (Community Catalyst); Say Ahhh! (Georgetown University Center for Children and Families); Center on Budget and Policy Priorities.

Deborah Nebel, Director of Public Policy

Linking Employment, Abilities and Potential (LEAP)

Persons with disabilities in the Federal Deficit Reduction Deal

People with disabilities remain unemployed at higher rate than other Americans• 16.8% unemployment rate (July,

2011, Bureau of Labor Statistics) • Up from 16.4% in July 2010

Includes Discretionary/Non-Security Funding, such as:• Most Education and Training

Programs (IDEA, Voc. Rehab., WIA)• Subsidized Housing (rental vouchers)• Older Americans Act Services

(persons with disabilities 60+) & Independent Living Services (persons with disabilities all ages)

• WIC (nutritional supplement for moms and young children)

The Safety Net for Persons with Disabilities

Also Includes Mandatory Funding, such as:

• Social Security (SSA, SSDI, SSI)

• Medicare• Medicaid

The Safety Net for Persons with Disabilities

• 11% Cut in FY 10-FY11Populations Served• AdultsIn some areas, “limited funds” status, however persons with disabilities receive “priority of service”) • Dislocated Workers• Youth (14-21 with barriers such as disability, used by LEAP to fund our school to work transition programs)

Workforce Investment Act (WIA)

Ohio’s Endorsing Sponsors included the following AOF endorsers: The Arc of Great Cleveland, The Arc of Ohio, Center for Independent Living Options, Easter Seals, Linking Employment, Abilities & Potential, Ohio Association of Area Agencies on Aging, Ohio Consumers for Health Coverage, Ohio Provider Resource Association, Ohio Olmstead Task Force, Public Children Services Association of Ohio, Tri-County Independent Living Center, Inc., and the Universal Health Care Action Network of Ohio.

“My Medicaid Matters” Message To Senator

Portman

We are calling for “real reform” of Medicaid, instead of arbitrary cuts or shifting costs onto the states.

“My Medicaid Matters” Message To Senator

Portman

In Long Term Care, Services and Supports “Real Reform” Means:• Expanding the Use of

Community-Based Services• De-medicalizing Services• Expanding Consumer Directed

Service Options• Reorganizing Medicaid Services

to eliminate wasteful bureaucracy

“My Medicaid Matters” Message To Senator

Portman

The investment in Long Term Care Medicaid funding is further complicated by what is considered “mandatory” and what is considered “optional”. Many of the advances we have made are voluntary or optional on the part of the states.

“My Medicaid Matters” Message To Senator

Portman

www.policymattersohio.org 

Policy Matters Ohio 

Instructions for the Super Committee:

a balanced approach to debt reductionThat does not increase poverty or inequality

Wendy Patton(614)221-4505

wpatton@policymattersohio.org

Federal revenue & spending as % of GDP, 1940 - present

Source: Policy Matters Ohio, based on Office of the Budget Historical Tables, Table 1.3— Summary of Receipts, Outlays, and Surpluses or Deficits (-) in Current Dollars, Constant (FY 2005) Dollars, and as Percentages of GDP: 1940–2016

cbpp.org05/01/2023 32

cbpp.org05/01/2023 33

Options to raise revenues over time

1.    Enact a financial speculation tax                                   Up to $1.3trillion [1]

2.    Repeal the (upper income) Bush tax cuts                      $629 billion [2]

3.    Tax capital gains and dividends like income                  Up to $950 billion[3]

4.    Enact a wealth surtax                                                     Up to $748 billion [4]

5.    Return the estate tax to 2001 levels                               $280 billion [5]

6.    Limit Home Mortgage Interest Deduction                 to primary residence   $12 billion[6]

[1] Citizens’ Commission on Jobs, Deficits, and America’s Economic Future, Institute for America’s Future, pg. 26[2] Investing in America’s Economy, Our Fiscal Future, pg. 35[3] The Responsible Path Towards Investing in America, Congressional Black Caucus, pg. 2[4] The First Step, Center for American Progress, pg. 16[5] The People’s Budget,  Congressional Progressive Caucus, pg. 9[6] Investing in America’s Economy, Our Fiscal Future, pg. 33

Source: OMB Watch

Options to raise revenues (continued)7.    Enact a financial crisis responsibility fee (.15% of financial institution’s liabilities

for entities over $50 billion) $90 billion[7]

8.    Eliminate the deferral of income from US controlled foreign subsidiary corporations (tax US corporate foreign income as it is earned) $114 billion[8] 

9.    Eliminate itemized deductions for those making over $200,000 a year  $410 billion[9]

10.    Enact a carbon tax/ cap & trade tax                            Up to $846 billion[10]

11. Raise the gas tax Up to $600 billion[11] 

[7] Investing in America’s Economy, Our Fiscal Future, pg. 40[8] Reducing the Deficit: Spending and Revenue Options, March 2011, Congressional Budget Office, pg. 186[9] Living Within Our Means and Investing in the Future: The President’s Plan for Economic Growth and Deficit Reduction, Office of

Management and Budget, pg. 47[10] Investing in America’s Economy, Our Fiscal Future, pg. 38[11] Investing in America’s Economy, Our Fiscal Future, pg. 42

           Source: OMB Watch

Percentage change in after-tax income by income grouping, 1979-2007

Share of income growth captured by top 1% compared to bottom 90%

Federal receipts as % of GDP

05/01/2023 40cbpp.org

Critical principles for the Super Committee

1) Take a balanced approach to debt reduction:Balance the $900 billion already cut with revenues.

2) Do no harm: Do not make poverty worse or inequality deeper

Learn More and Stay Connected

• If you are not on our list, you’ll be added to our e-news list.

• Review and use our resources: http://www.advocatesforohio.org/resources

• HHS news and Information:• Like us on facebook: http://

www.facebook.com/advocatesforohio• Follow us on Twitter @Advocates4OH

Statewide Call-in Day!

Ask Senator Portman to:• Support a deficit-reduction plan that

does not increase poverty or income inequality. It should protect programs that help children, families, seniors, and people with disabilities in need.

• Support fair, diverse, and stable revenues sufficient to fund these programs and to invest in Ohio and America's future.

Take Action You should also talk about specific areas of concern you might have or the work you do.Tomorrow, will you take 5 minutes to make 2 calls to Senator Portman? • One to his Washington, D.C., office at 202-

224-3353 • Another to his Ohio district office closest to

you Columbus Office, 614-469-6774 Cincinnati Office, 513-684-3265 Cleveland Office, 216-522-7095

Toledo Office, 419-259-3895

Other Ways to HelpBuild the Buzz

You will receive an email with all the details about the statewide call-in day tomorrow morning.

• Please forward the email—• If you’re an Executive Director, forward it to your staff• If you’re a community activist, forward it to your 10 closest

colleagues• If you’re a student, forward it to 5 of your classmates

• Use Social Media! • We will have templates for Facebook and Twitter on the email. Help

us reach your friends and followers!

Questions?Contact Us

Advocates for Ohio’s Futurewww.advocatesforohio.org510 East Mound Street, Suite 200

Columbus, OH 43215Fax: (614) 228-5150

Will PetrikOutreach Director

wpetrik@advocatesforohio.org

614-602-2464

Scott BrittonCoordinator

sbritton@advocatesforohio.org

614-602-2463