There are 3 million children in America, including 130,000 in Ohio, who depend on the reformed welfare system to meet their basic needs. The families of these children comply with all of the time limits, work requirements, extensive verifications and numerous rules of the Temporary Assistance for Needy Families block grant. An average family of two on TANF in Ohio receives $336 a month in cash assistance and would also be eligible for a maximum of $298 a month in Food Stamps. When combined, this only provides an income of roughly half of the Federal Poverty Level. Ohio’s benefit amount is close to the national average.
These families cannot meet their basic needs. The economic depression is here for them now. They must frequently depend on food pantries, soup kitchens, and homeless shelters. They are doubled and tripled up in their housing.
The annual TANF appropriation for the nation is about $16 billion. The Food Stamp program appropriation is about $35 billion. Both have been reauthorized by Congress in the past few years. There were no emergency meetings of Congress, no pleas from the White House, no media attention to address the 3 million American children who are hungry by design. Yet, Congress is willing to spend $700 billion to bail out Wall Street.
Jack Frech
Director
Oct 6, 2008
Sep 2, 2008
New child support rules hit low income parents in the wallet
The Ohio Department of Job and Family Services’ Office of Child Support is proceeding to implement new provisions related to cash medical support. Cash medical support is an additional cash obligation imposed on the non-custodial parent that was intended by the federal government to help offset the cost of health insurance premiums paid by the custodial parent and/or help cover the cost of uninsured medical costs, things that Ohio was already dealing with in its child support orders. But instead of using the cash medical provisions to help custodial parents, Ohio has instead chosen to use the provisions primarily as a way to recover Medicaid costs. As a result, low income working custodial parents with a child on Medicaid will now receive less child support.
Were it not for other examples of how the Strickland administration is expanding social services to cover people at higher income levels by taking away support from people at lower income levels, this would be just another sad example of one hand of government not knowing what the other hand is doing. On the one hand, the Office of Child support is implementing new rules that will allow the state to recover part of the cost of providing Medicaid coverage by allowing the state to take part of a low income working custodial parent’s child support. Yet on the other hand, Governor Strickland established his Anti-Poverty Task Force which has a mandate to recommend ways to reduce the number of Ohioans (3.4 million) living below 200 percent of the federal poverty level. It is impossible to believe that any low income working custodial parents will be elevated out of poverty by having the state take part of their child support payments. It is also impossible to believe that any low income working non-custodial parent making between 150% and 200% of poverty will be elevated out of poverty by having more money withheld from their wages to pay cash medical support to the state.
The amount of child support lost to the custodial parent is a regressive tax on low income working custodial parents. By taxing these custodial parents the governor continues his practice of taking funds away from people with lower incomes to pay for expansion of services to people with higher incomes. Governor Strickland intends to pay for his promise to expand Medicaid coverage to children at higher income levels by taking child support funds that would have previously gone to low income working custodial parents. The cash medical provisions also operate as a regressive tax on the non-custodial parents. The cash medical amount for one child for a non-custodial parent making $16,640 per year is the same for a non-custodial parent making $44,000 annually, $775.00 per year. The cash medical amounts to 4.7% versus 1.8% of the total annual income for each non-custodial parent respectively.
Another example of where the governor has taken money from people with lower incomes and given it to people with higher incomes is the governor’s expansion of day care and his increases in day care reimbursement rates using federal Temporary Assistance for Needy Families (TANF) funds. Instead of using the TANF surplus to help address the immediate needs of the 130,000 poorest children in Ohio receiving Ohio Works First (OWF) benefits who live at about 50% of the poverty level, Governor Strickland choose instead to increase day care eligibility to families earning up to 200% of the poverty level and to increase the rates paid to day care providers regardless of their income.
This regressive taxing policy being implemented by the Strickland administration reverses a national philosophical trend to see the child support program as a family support program and not as a government cost recovery program. While considered a way of recovering money for the state when it was initially implemented, the child support program is now generally seen as an important and effective means of providing valuable financial support to a family, i.e., a “family friendly” program.
This trend was continued at the federal level with various provisions within the Deficit Reduction Act of 2005 (DRA). In the DRA, Congress provided several opportunities for Ohio to help enhance the financial support available to low income families that receive child support. But Ohio has failed to implement any of the options. Instead, Ohio has chosen to reverse course with its child support program and make Medicaid cost recovery a primary program goal. In moving toward that goal, the money that the custodial parent loses is taken by the state. That is certainly not family friendly.
Therefore, one obvious recommendation for Governor Strickland’s Anti-Poverty Task Force should be to stop the Office of Child Support’s implementation of new child support rules surrounding the collection of cash medical support. Adopting the “family friendly” provisions allowed by the DRA should also be one of the recommendations of the governor’s Anti-Poverty Task Force.
In these times of shrinking budgets and hard choices, those with the least should not be asked to pay for the benefits provided to those with more. Yet, the Strickland administration continues to tax and take away from the families with the lowest incomes in order to expand benefits to those higher incomes. Our priorities must be to use scarce resources to help those with the least first.
By implementing the provisions surrounding cash medical support, Ohio is implementing changes to its child support program that will make the calculation and payment of child support more complex, confusing, and costly for parents, more difficult and costly for employers and which provides no additional benefits to the children served by the program. A low income working custodial parent with a child on Medicaid will receive the same Medicaid coverage. The difference will be that the non-custodial parent will pay more and the custodial parent will receive less child support under these new rules.
~ Gregg Oakley, Athens County Child Support Enforcement Agency
Were it not for other examples of how the Strickland administration is expanding social services to cover people at higher income levels by taking away support from people at lower income levels, this would be just another sad example of one hand of government not knowing what the other hand is doing. On the one hand, the Office of Child support is implementing new rules that will allow the state to recover part of the cost of providing Medicaid coverage by allowing the state to take part of a low income working custodial parent’s child support. Yet on the other hand, Governor Strickland established his Anti-Poverty Task Force which has a mandate to recommend ways to reduce the number of Ohioans (3.4 million) living below 200 percent of the federal poverty level. It is impossible to believe that any low income working custodial parents will be elevated out of poverty by having the state take part of their child support payments. It is also impossible to believe that any low income working non-custodial parent making between 150% and 200% of poverty will be elevated out of poverty by having more money withheld from their wages to pay cash medical support to the state.
The amount of child support lost to the custodial parent is a regressive tax on low income working custodial parents. By taxing these custodial parents the governor continues his practice of taking funds away from people with lower incomes to pay for expansion of services to people with higher incomes. Governor Strickland intends to pay for his promise to expand Medicaid coverage to children at higher income levels by taking child support funds that would have previously gone to low income working custodial parents. The cash medical provisions also operate as a regressive tax on the non-custodial parents. The cash medical amount for one child for a non-custodial parent making $16,640 per year is the same for a non-custodial parent making $44,000 annually, $775.00 per year. The cash medical amounts to 4.7% versus 1.8% of the total annual income for each non-custodial parent respectively.
Another example of where the governor has taken money from people with lower incomes and given it to people with higher incomes is the governor’s expansion of day care and his increases in day care reimbursement rates using federal Temporary Assistance for Needy Families (TANF) funds. Instead of using the TANF surplus to help address the immediate needs of the 130,000 poorest children in Ohio receiving Ohio Works First (OWF) benefits who live at about 50% of the poverty level, Governor Strickland choose instead to increase day care eligibility to families earning up to 200% of the poverty level and to increase the rates paid to day care providers regardless of their income.
This regressive taxing policy being implemented by the Strickland administration reverses a national philosophical trend to see the child support program as a family support program and not as a government cost recovery program. While considered a way of recovering money for the state when it was initially implemented, the child support program is now generally seen as an important and effective means of providing valuable financial support to a family, i.e., a “family friendly” program.
This trend was continued at the federal level with various provisions within the Deficit Reduction Act of 2005 (DRA). In the DRA, Congress provided several opportunities for Ohio to help enhance the financial support available to low income families that receive child support. But Ohio has failed to implement any of the options. Instead, Ohio has chosen to reverse course with its child support program and make Medicaid cost recovery a primary program goal. In moving toward that goal, the money that the custodial parent loses is taken by the state. That is certainly not family friendly.
Therefore, one obvious recommendation for Governor Strickland’s Anti-Poverty Task Force should be to stop the Office of Child Support’s implementation of new child support rules surrounding the collection of cash medical support. Adopting the “family friendly” provisions allowed by the DRA should also be one of the recommendations of the governor’s Anti-Poverty Task Force.
In these times of shrinking budgets and hard choices, those with the least should not be asked to pay for the benefits provided to those with more. Yet, the Strickland administration continues to tax and take away from the families with the lowest incomes in order to expand benefits to those higher incomes. Our priorities must be to use scarce resources to help those with the least first.
By implementing the provisions surrounding cash medical support, Ohio is implementing changes to its child support program that will make the calculation and payment of child support more complex, confusing, and costly for parents, more difficult and costly for employers and which provides no additional benefits to the children served by the program. A low income working custodial parent with a child on Medicaid will receive the same Medicaid coverage. The difference will be that the non-custodial parent will pay more and the custodial parent will receive less child support under these new rules.
~ Gregg Oakley, Athens County Child Support Enforcement Agency
Aug 26, 2008
Back to school, but not for free
This is a re-post from last year that we feel is still relevant, if not more relevant, today...
There is a long held myth in this county about the availability of a “free” public education. While it is true that many states have constitutions that require the availability of a free education, that is not true in all states. Ohio is one of the states that do not include specific constitutional language guaranteeing a free education.
In fact, Ohio goes a bit farther by actually having laws that permit schools to charge fees. Ohio simply regulates the type of fees schools can charge. It is therefore common for schools throughout the state to charge a “fee” of anywhere from $25 to $50 simply to attend school. Many schools also require that students bring in supplies ranging in cost from $10 to $50. These requests go far beyond simple paper, pencils, and crayons to include such items as tissue, plastic bags, and toilet paper. A family with two young children may have to pay as much as $200 to get their kids in the school door. This does not include the expense of school clothes, shoes or other personal items that a child may need.
While this expense is a hardship for many families, for some, it is a catastrophe. The truth is there are hundreds of thousands of families in Ohio whose income falls below $12,000 a year. For those families, $200 represents twenty percent of their income for the month. I wonder if folks with a household income of $60,000 per year would be so willing to accept such fees if they were being asked to pay $1,000 to send their children to public school?
Fees charged by schools have become a perfectly legal and acceptable form of taxation initiated at the hands of the local school boards with few limitations or restrictions. These fees are also an extremely regressive type of tax, one that hurts those children in families who are already having the greatest challenges succeeding in school. Poor families are dealing with the day to day crisis of meeting their basic needs at home. Items like food, clothing, shelter and transportation cannot be taken for granted in families living in the very lowest income levels.
It is these same children that already miss out on educational opportunities outside of school like vacations, educational toys and books. These same children are frequently precluded from participating in extra curricular activities in school. There are many people who are poor and are struggling every day just to get by. The last thing they need is another financial hurdle to overcome, just to have their children participate in the local public school.
All children should be able to attend school and participate in school activities without money in their pocket. The concept of universally available education is one of the absolute cornerstones of our democracy. Education is intended to level the playing field for underprivileged children.
Unfortunately, we are slowly but surely allowing one of our mainstream institutions, our public schools, to go the way of the “have versus have not.” To be sure, there are many schools that have chosen not to charge fees and have solved their financial problems without turning to this form of “taxation” on parents. Additionally, there are thousands of teachers who simply dig into their own pockets to help provide those supplies needed for children to participate in activities. All of this is unnecessary.
The average cost of education in Ohio’s K-12 schools is about $9,500 per child per year. The $100 collected in fees and supplies is roughly 1% of this amount. Perhaps the next increase in school funding could be targeted to eliminate school fees and pay for supplies. A “free” education would not be difficult to attain. The educational benefits to children in our society would be far greater than the minimal increase in funding that may be necessary to offset this loss of revenue.
Ohio needs to adopt the principle and practice of a free public education.
--Jack Frech, Director
There is a long held myth in this county about the availability of a “free” public education. While it is true that many states have constitutions that require the availability of a free education, that is not true in all states. Ohio is one of the states that do not include specific constitutional language guaranteeing a free education.
In fact, Ohio goes a bit farther by actually having laws that permit schools to charge fees. Ohio simply regulates the type of fees schools can charge. It is therefore common for schools throughout the state to charge a “fee” of anywhere from $25 to $50 simply to attend school. Many schools also require that students bring in supplies ranging in cost from $10 to $50. These requests go far beyond simple paper, pencils, and crayons to include such items as tissue, plastic bags, and toilet paper. A family with two young children may have to pay as much as $200 to get their kids in the school door. This does not include the expense of school clothes, shoes or other personal items that a child may need.
While this expense is a hardship for many families, for some, it is a catastrophe. The truth is there are hundreds of thousands of families in Ohio whose income falls below $12,000 a year. For those families, $200 represents twenty percent of their income for the month. I wonder if folks with a household income of $60,000 per year would be so willing to accept such fees if they were being asked to pay $1,000 to send their children to public school?
Fees charged by schools have become a perfectly legal and acceptable form of taxation initiated at the hands of the local school boards with few limitations or restrictions. These fees are also an extremely regressive type of tax, one that hurts those children in families who are already having the greatest challenges succeeding in school. Poor families are dealing with the day to day crisis of meeting their basic needs at home. Items like food, clothing, shelter and transportation cannot be taken for granted in families living in the very lowest income levels.
It is these same children that already miss out on educational opportunities outside of school like vacations, educational toys and books. These same children are frequently precluded from participating in extra curricular activities in school. There are many people who are poor and are struggling every day just to get by. The last thing they need is another financial hurdle to overcome, just to have their children participate in the local public school.
All children should be able to attend school and participate in school activities without money in their pocket. The concept of universally available education is one of the absolute cornerstones of our democracy. Education is intended to level the playing field for underprivileged children.
Unfortunately, we are slowly but surely allowing one of our mainstream institutions, our public schools, to go the way of the “have versus have not.” To be sure, there are many schools that have chosen not to charge fees and have solved their financial problems without turning to this form of “taxation” on parents. Additionally, there are thousands of teachers who simply dig into their own pockets to help provide those supplies needed for children to participate in activities. All of this is unnecessary.
The average cost of education in Ohio’s K-12 schools is about $9,500 per child per year. The $100 collected in fees and supplies is roughly 1% of this amount. Perhaps the next increase in school funding could be targeted to eliminate school fees and pay for supplies. A “free” education would not be difficult to attain. The educational benefits to children in our society would be far greater than the minimal increase in funding that may be necessary to offset this loss of revenue.
Ohio needs to adopt the principle and practice of a free public education.
--Jack Frech, Director
Aug 21, 2008
Nothing is worse than doing nothing
According to national data, the foreclosure rate on mortgage loans has increased by more than 50% since 2000. How did this happen? Easier access to home loans, an increasingly fragile economy, and trigger events, such as loss of a job, reduction in income, or a health emergency cause mortgages to suddenly be beyond the financial abilities of many homeowners.
If facing mortgage issues, nothing is worse than doing nothing. According to recent industry studies, more than half of homeowners facing foreclosure do not call for help when they begin to fall behind on their payments. The early stages of foreclosure are the most crucial and require fast action by the borrow – studies show that homeowners who are one or two payments behind are more likely to keep their homes than those further behind on their payment schedule.
Homeowners at risk of foreclosure are urged to take the first steps to avoid losing their biggest investment and to keep their home equity: ask for help and respond to the lender’s letters and calls. The earlier financially distressed homeowners reach out for assistance, the more options they have to address their mortgage issues and potentially avoid foreclosure. Lenders are often willing to work with a borrower, if the borrower makes an effort early on.
Ignoring the situation will not make it go away. Seek help as soon as you think there may be a problem.
Tips to Save Your Home:
1. Call Ohio's Save the Dream Hotline today: 1-888-404-4674.
2. Contact your lender. Even if you have not missed a payment yet, talk to your lender if you see a problem arising. Many lenders are willing to work with homeowners. You may be able to create a repayment plan, add the missed payment to the remaining balance, or modify the loan.
3. Open and respond to all letters from your lender. The sooner you deal with missing mortgage payments, the easier it is to find a solution.
4. Seek help from state and local resources that can help you negotiate with your mortgage company. Find a list of local resources at http://www.savethedream.ohio.gov/ or call 1-888-404-4674.
5. Document all contact with your lender.
6. Respond to summons in 28 days. If your loan servicer has filed a foreclosure complaint, you will receive a summons. You must respond, in writing, within 28 days! For assistance with a response or a referral, contact Southeastern Ohio Legal Services.
7. When faced with foreclosure, be sure you understand Ohio’s foreclosure process. Foreclosure may take anywhere from six months to more than a year.
8. Do not abandon your home. You do not have to leave your house until it it sold at a Sheriff’s sale. Continue to live in your house while you are trying to get help. If you abandon your property, you may not qualify for assistance.
9. Be aware of forclosure scams. Solutions sounding too good to be ture, usually are. Scam artists often target defendants named in foreclosure proceedings. They often assert that they are “foreclosure specialists” or “mortgage specialists,” claiming they will save your home from foreclosure in exchange for a sum of money.
10. Do not sign any document that you do not understand. Southeastern Ohio Legal Services can review documents that your lender may want you to sign to ensure that your best interests are protected.
Athens County Resources:
Athens County Job & Family Services
http://jfs.athenscountygovernment.com/
740-797-2523 or 1-800-762-3775
Provides basic foreclosure information and referrals. Prevention Retention and Contingency (PRC) program supplies short-term emergency assistance for income-eligible families.
Corporation for Ohio Appalachian Development
http://www.coadinc.org/
740-594-8499
Housing counselors are availabe to help with the foreclosure process. Rescue loans are available to help bring homeowners current on their mortgages.
Empowering and Strenthening Ohio’s People
http://www.esop-cleveland.org/
1-877-731-3767
Provides assistance in working out resolutions with mortgage service providers.
Southeastern Ohio Legal Services
http://www.seols.org/
740-594-3558
Provides a range of free legal services to homeowners who meet the basic income eligibility.
State of Ohio Resources:
Save the Dream
http://www.savethedream.ohio.gov/
1-888-404-4674
Richard Cordray, Ohio Treasurer of State
http://www.yourmoneynowonline.org/
1-800-228-1102
If facing mortgage issues, nothing is worse than doing nothing. According to recent industry studies, more than half of homeowners facing foreclosure do not call for help when they begin to fall behind on their payments. The early stages of foreclosure are the most crucial and require fast action by the borrow – studies show that homeowners who are one or two payments behind are more likely to keep their homes than those further behind on their payment schedule.
Homeowners at risk of foreclosure are urged to take the first steps to avoid losing their biggest investment and to keep their home equity: ask for help and respond to the lender’s letters and calls. The earlier financially distressed homeowners reach out for assistance, the more options they have to address their mortgage issues and potentially avoid foreclosure. Lenders are often willing to work with a borrower, if the borrower makes an effort early on.
Ignoring the situation will not make it go away. Seek help as soon as you think there may be a problem.
Tips to Save Your Home:
1. Call Ohio's Save the Dream Hotline today: 1-888-404-4674.
2. Contact your lender. Even if you have not missed a payment yet, talk to your lender if you see a problem arising. Many lenders are willing to work with homeowners. You may be able to create a repayment plan, add the missed payment to the remaining balance, or modify the loan.
3. Open and respond to all letters from your lender. The sooner you deal with missing mortgage payments, the easier it is to find a solution.
4. Seek help from state and local resources that can help you negotiate with your mortgage company. Find a list of local resources at http://www.savethedream.ohio.gov/ or call 1-888-404-4674.
5. Document all contact with your lender.
6. Respond to summons in 28 days. If your loan servicer has filed a foreclosure complaint, you will receive a summons. You must respond, in writing, within 28 days! For assistance with a response or a referral, contact Southeastern Ohio Legal Services.
7. When faced with foreclosure, be sure you understand Ohio’s foreclosure process. Foreclosure may take anywhere from six months to more than a year.
8. Do not abandon your home. You do not have to leave your house until it it sold at a Sheriff’s sale. Continue to live in your house while you are trying to get help. If you abandon your property, you may not qualify for assistance.
9. Be aware of forclosure scams. Solutions sounding too good to be ture, usually are. Scam artists often target defendants named in foreclosure proceedings. They often assert that they are “foreclosure specialists” or “mortgage specialists,” claiming they will save your home from foreclosure in exchange for a sum of money.
10. Do not sign any document that you do not understand. Southeastern Ohio Legal Services can review documents that your lender may want you to sign to ensure that your best interests are protected.
Athens County Resources:
Athens County Job & Family Services
http://jfs.athenscountygovernment.com/
740-797-2523 or 1-800-762-3775
Provides basic foreclosure information and referrals. Prevention Retention and Contingency (PRC) program supplies short-term emergency assistance for income-eligible families.
Corporation for Ohio Appalachian Development
http://www.coadinc.org/
740-594-8499
Housing counselors are availabe to help with the foreclosure process. Rescue loans are available to help bring homeowners current on their mortgages.
Empowering and Strenthening Ohio’s People
http://www.esop-cleveland.org/
1-877-731-3767
Provides assistance in working out resolutions with mortgage service providers.
Southeastern Ohio Legal Services
http://www.seols.org/
740-594-3558
Provides a range of free legal services to homeowners who meet the basic income eligibility.
State of Ohio Resources:
Save the Dream
http://www.savethedream.ohio.gov/
1-888-404-4674
Richard Cordray, Ohio Treasurer of State
http://www.yourmoneynowonline.org/
1-800-228-1102
Aug 7, 2008
Register to Vote
Monday, Oct 6, 2008 is the deadline to register to vote in the November General Election.
Register at any of our offices during normal business hours.
Download the voter registration form here.
Download the voter registration form here.
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