Despite state aid, ends don't meet for Michigan's poor

mlive.com ^ | 3/8/2004 | Sharon Emery

[Peter J. Huss]

LANSING - Michigan families on cash assistance and food stamps come up about $900 short each month when trying to cover basic expenses like rent, utilities, food and transportation, a new report shows.

While the state pays the average Family Independence Program family of three about $825 monthly in cash and food assistance, that's less than half of what's needed to pay $1,733 in basic expenses, the 2004 Market Basket Survey found.

The report, designed to measure the buying power of people on public aid, was conducted by the Michigan County Social Services Association and will be released Tuesday.

"These are the minimal items that a family would need to exist," said Ellen Speckman-Randall, executive director of the association, which represents local Family Independence Agency directors. "So they're going to have to cut back somewhere - they live in substandard housing or with relatives, they don't have the car that could get them to work, clothes are very low on the list."

The minimal monthly expenses for a family of three outlined in the report included $515 for rent, $360 for transportation, $343 for food, $235 for clothing and $28 for basic phone service. The association priced items and used federal rent and food estimates for Michigan to gauge expenses.

The average monthly FIP payment is $459, and was last raised in 1993, Speckman-Randall said. The average food stamp allotment is $366 and the back-to-school clothing allowance for two children totals $80.

That puts the average annual income for a family on cash and food assistance in Michigan at $9,980, which is 67 percent of the 2003 federal poverty level of $14,695 for a family of three, according to the report.

Noting that cash assistance levels do not allow the purchase of school clothes, shoes and winter coats, the association supports Gov. Jennifer Granholm's 2005 budget request for a $10 increase in the back-to-school allowance, to $50 per child. The plan would also make the allowance available to all children in families receiving cash assistance; currently only children aged 4-18 receive it.

"Clothes are important, especially in high school," Speckman-Randall said. "... it says something to kids that there is someone who cares enough to provide clothing for them."

Fewer retailers are working with the state this year to maximize the back-to-school allowance by offering discounts to families receiving the money. With fewer state workers available to contact retailers, just Sears and Payless ShoeSource are participating, Speckman-Randall said.

Acknowledging that the state faces a $1 billion budget deficit, she said the group supports "revenue enhancements" to pay for the increase.

"Michigan must have an adequate tax structure to provide for the needs of its citizens," Speckman-Randall said.

The group supports: maintaining the state estate tax when the federal estate tax is phased out; taxing high-end discretionary services such as sporting events, tanning parlors and dating services; and halting the scheduled July 1 income tax rollback until the budget crisis passes.

The Mackinac Center for Public Policy, a Midland-based free-market policy group, said in a March 1 policy paper by Robert P. Murphy that the poverty rate would decline if government "would stop spending billions of dollars subsidizing it."

"Cynical as it sounds, there are many able-bodied people who prefer to remain officially 'poor' and live off of the taxpayers indefinitely," Murphy argued.

Speckman-Randall bristled at that suggestion and said there are work requirements for all but a few people receiving cash assistance.

In any case, she said, "People wouldn't choose to live with this level of income if they had any alternatives."

[Peter J. Huss]

I don't put "puke alert" on my subject lines, but I am feeling a bit 'off' at the moment. Namely because of the breakdown of the numbers presented.

$515 for rent, $360 for transportation, $343 for food, $235 for clothing and $28 for basic phone service.

Starting with the $515 Rent: If you rented in the town where I live, you could get an appartment for $300 a month. It's going to be tight and the view will likely be an alley, but that's one reason it sucks to be down and out.

"$360 for transportation". Again, live in town and walk to work and school. I've been there and done that. Couldn't afford my own transportation. Cars are something you have to save for, not make payment on... especially if you are living off the state.

"$343 for food". I have my wife, 4 kids, 2 dogs and a horse and it costs us around $230 a month.

"$235 for clothing". ???? We shop at Goodwill and don't spend $30 a month on clothes.

"$28 for basic phone service". Actually, that sounds like a good deal. I knew my phone company was a rip.

So... I am at less than $600 a month for the basics.

[FITZ]

I don't shop at Goodwill but I don't spend nearly that much for myself and family on clothes.

Besides if they aren't working they don't need new clothes, nor transportation, nor phone service.

[KantianBurke]

what if the job they apply for is out of the city limits? don't they need a phone in case of an emergency? what about calling for a cab to take them to a job interview?

[Puppage]

Besides if they aren't working they don't need new clothes, nor transportation, nor phone service

I agree with you. I see these people renting movies all the time, so they have a VCR, a tv & money to rent movies with. WHY? I suppose these are just the basics, hmm?

[FITZ]

If they need assistance, then they aren't working --- they can live in town until they get situated if they're looking for a job --- besides --- what does it cost to take a bus to a job interview if they should decide to go that route? I think about $1.

[dead]

Ends don't meet for Michigan's poor

If they had enough money for everything, we couldn’t call them “poor,” could we?

[FITZ]

Also these statistics are for a family of three --- since that should include a mom, a dad, and a kid --- that's at least 2 people who could go out and get a job.

[Peter J. Huss]

what if the job they apply for is out of the city limits? don't they need a phone in case of an emergency? what about calling for a cab to take them to a job interview? You can't start at the top. I have gone from wet blanket to small tent to large tent to living out of a garage to an apartment to rented house to first mortgaged home to my own home. You start by washing dishes for meals or low pay. From there, you might clean up a bit and get a construction job. You get my drift. You may see phones as one of the necessities of life, but they are a luxury that the poor cannot afford and don't really need. You don't get entry level jobs over the phone. You show up, see a need and immediately ask the supervisor or owner if they need that 10 inches of show moved from their walk. You may only, at first, get a free meal out of it. From there, if you prove yourself, you will eventually get a regular job.

[facedown]

Also these statistics are for a family of three --- since that should include a mom, a dad, and a kid --- that's at least 2 people who could go out and get a job.

Reality is, it's a Mom and two kids. That's the problem.

[Uncle Sausage]

Family Independence Program

That's Newspeak for Welfare Dependence Program.

[freebacon]

"LANSING - Michigan families on cash assistance and food stamps come up about $900 short each month when trying to cover basic expenses like rent, utilities, food and transportation, a new report shows. "

How about you get a job and stop looking for handouts. How about you have some pride and do something for yourself. Theres always work to be done for someone willing to do it. Is cash assistance the new politically correct way of saying welfare? First of all there shouldn't be a welfare system. Secondly if there is it shouldn't cover everything you need.

Welfare is the most destructive system ever devised. It keeps entire communities in a permanent state of poverty. By erasing their motivation to seek gainful employment. They begin nursing the idea that they're entitled to it. Because it stops being charity, and becomes a responsibility of the government. But I guess it helps get socialists in office, and leaves them and their constituency feeling merciful and humanitarian; so its ok.

[FITZ]

Or a mom, two kids and a boyfriend shacked up with them who doesn't feel like working.

[js1138]

I spend more than you do on food, but $235 a month sounds outrageous for clothing, unless you are buying all new stuff every six months. My kids wore nothing but used and homemade clothes until they were eight or nine. My wife made all my daughter's clothes until she was 12. Time consuming, but we are talking about unemployed people here.

I am reminded of the recent story by a press chicklet about how hard it is to live on minimum wage. She was surprised to discover that meat that sold for $2.99 a quarter-pound really cost almost $12 a pound.

[Peter J. Huss]

Agreed. Still, the numbers are stilted. Most moms with 2 kids get WIC and food stamps. This, really, is her biggest help. No one will starve and there is still a great motivation to better her life for herself and children.

[Iron Matron]

"These are the minimal items that a family would need to exist,"

I know, the minimal for todays (LAZY) poor people includes Cable TV with VCR and CD Player, and game-boys too.

a new astro-van (I've seen food stamp recipients driving these)or Cadillac,

Top of the line, brand-name clothing for their 12 illegitimate children,

Alcohol or beer for the dad (They have to use money for this, not food stamps

Cell Phones so all the addicts in the family can keep in touch with their dealer.

Give me a break! I've BEEN poor! I know what it takes to get by on nothing - it takes WILL-POWER and the ability to deny yourself INSTANT GRATIFICATION!

I've got no bleeding heart for those who wont help themselves!

[vanmorrison]

I'm confused. If there are work requirements for all, and these people still qualify for cash assistance, like rent subsidies and food stamps, then why do they find it difficult to make ends meet?

[TheBigB]

"These are the minimal items that a family would need to exist," said Ellen Speckman-Randall, executive director of the association, which represents local Family Independence Agency directors.

One of Lewis Grizzard's immutable laws comes into play here...

NEVER trust a woman with a hyphenated last name.

[Iron Matron]

Reality is, it's a Mom and two kids. That's the problem.


My father died when I was three. Mom raised my brother and me on her own, WAITRESSING! We never took a government hand-out - and we never will!

We did not have a lot, but we had pride and morals

[johniegrad]

Don't worry. They can always move here to Minnesota and get a "raise".