Showing posts with label right-to-work. Show all posts
Showing posts with label right-to-work. Show all posts

Saturday, May 9, 2015

Indiana FSSA and the shredded Hoosier safety net

Originally published March 2013 on Examiner.com.  Since then, while there has been some improvement in some areas, overall the situation in Indiana has gotten worse.  This particular article was much praised for the thoroughness of its research.  Some editorial changes--GF


Indiana’s Family and Social Services Administration (FSSA) was established in 1991 as an umbrella agency to coordinate and provide all human services in Indiana, from welfare through mental health, child care and rehabilitation services.  The brainchild of Democratic Governor Evan Bayh (1988-1996), it was supposed to make the delivery of these services more efficient, and also cut costs.  It has five major divisions: the Division of Family Resources (DFR), which handles eligibility for Medicaid, SNAP benefits or food stamps, and Temporary Aid for Needy Families (TANF) cash assistance, i.e., what is generally known as welfare; Office of Medicaid Policy and Planning (OMPP), which administers Medicaid; the Division of Disability and Rehabilitative Services; Division of Mental Health and Addiction (DMHA); and Division of Aging, which handles long-term care under Medicaid. (State of Indiana, http://www.in.gov/fssa/2406.htm)

 

Also in need of mention under human services, though not part of FSSA, is the beleaguered Indiana Department of Child Services (DCS), which handles issues of child neglect, abuse and foster care in the state.  Indiana’s child abuse and neglect rates are among the highest in the country, where child deaths due to neglect and abuse are noticeably high, standing at a rate of 12.2 instances per 1,000 children under 18 in 2011, according to the Indiana Youth Institute.  (http://datacenter.kidscount.org/data/bystate/stateprofile.aspx?state=IN&loc=16; Indiana Daily Student, “Indiana child abuse rates 1.5 percent times the national average,” September 13, 2007, http://www.idsnews.com/news/story.aspx?id=56055&section=search; Niki Kelly, “Indiana’s fatal child abuse rate increases,” Ft. Wayne Journal-Gazette, April 2, 2010, http://www.journalgazette.net/article/20100402/NEWS07/304029971/1002/LOCAL; “More Indiana Children Die from Abuse, Neglect, Report Says,” November 1, 2011, http://www.sjccasa.org/images/images/Indy%20Channel%20News.pdf)

 

The DCS’ Annual Child Fatality Report, July 1, 2009 through June 30, 2010,” issued February 2012, http://www.in.gov/dcs/files/fatalitiesreportSFY2010.pdf, has a revealing chart on p. 3, which I’ve copied below:

 

SFY Total   Abuse   Neglect   Previous Involvement

2003   51      34           7                               11
 
2004   57      22         35                               19 
 
2005   54      24         30                               20

2006   53      30         23                               11

2007   36      17         19                                 9

2008   46      24         22                               15

2009   38      24         14                                 9

2010   25      19           6                                 4

 

As shown, there were 360 children’s deaths from abuse or neglect in Indiana in the eight years from 2003 through 2010; further there were over 50 deaths annually from 2003 through 2006.  Also, and quite disturbing, these deaths occurred despite DCS prior involvement in 98 instances, and DCS intervention was quite prevalent during the years 2003-2006, when the most death occurred.  While both the number of deaths and the pattern of previous DCS prior involvement both tapered off from 2007 on, the DCS had already established itself as a troubled and troubling government agency which had undermined itself and its mission; and even the DCS itself admitted in 2002 that there had been ongoing underreporting of abuse and neglect deaths since at least 1999. (Indiana Youth Institute, http://datacenter.kidscount.org/data/bystate/Map.aspx?state=IN&ind=1131&dtm=2469&tf=18)

 

These are but some indication of malfunction in the delivery of human services in Indiana.  As for the FSSA itself, its performance generally pleases no one.  The various Divisions often do not communicate with one another, as I directly experienced from the 1990s through the present—when disability had not only made me eligible for food stamps and Medicaid, I was also receiving mental health services through Community Mental Health Centers operated under the aegis of the DMHA.  I found out directly both through my experiences and the anecdotes provided by my psychotherapists that persons receiving both welfare and mental health services are stymied by lack of coordination among programs and services.  My long-term pharmacist regularly complains of the arbitrariness and sudden rule changes under Medicaid, as well as the opaqueness of the language FSSA uses, often decipherable only by a lawyer.  Further, three times I’ve been ruled ineligible for benefits I was entitled to, which I won back on appeal—a process usually taking six months, and in one instance, over a year.

 

In 2006, under Republican Governor Mitch Daniels (2000-2012), the FSSA contracted out its welfare eligibility determination to IBM, an ill-fated move that lasted until 2010, and was marked by repeated malfunction by IBM, resulting in delays for benefits and the turning down of applicants who were, in fact, eligible for benefits.  Ironically, Daniels privatized welfare services in the same year that Texas, which had earlier privatized such services, abandoned privatization because it hadn’t worked.  Now Indiana has a hybrid system of local offices and centralized call centers and document centers which Indiana residents can use to apply for benefits, handle appeals, and provide documentation for their cases.  However, as I’ve directly experienced, at least in 2012 these centralized services worked none too well; in particular, I remember a call on December 18, 2012 to the central call-in center on a denial of eligibility issue, and found that the center only had data through the middle of November.  Also, as I no longer had a specific case worker, each time I called I talked to a new case worker who was unfamiliar with my case, and had to waste time reviewing the documents which were each time presented anew.  However, I must say that services from the FSSA had considerably improved in 2013, when I received prompt phone calls in both January and February from an FSSA representative on my pending cases, and where the service provided was competent.

 

Indiana has been hard hit by the recession that started in 2007, with both massive increases in poverty and unemployment, making more Hoosiers eligible for both welfare benefits through the FSSA and unemployment benefits through the Department of Workforce Development under the Department of Labor.  However, the response of the Governor’s office and the Indiana General Assembly has been to cut benefits and blame the poor and unemployed for their plight.  In 2011, the General Assembly passed a law which governor Daniels signed that reduced unemployment compensation by 25% and capped the maximum weekly benefits allowed at $360/week, or the equivalent of a full-time job paying only $9/hour.  In 2012 the General Assembly passed legislation, which Gov. Daniels signed, making Indiana a Right-to-Work state, the first such state to enact such legislation since Oklahoma did in 2001.  Touted as a job-creation measure, to date it has not paid off in increased employment, but has, instead, undercut worker protection on the job and undermined unions.  However, Indiana’s unemployment rate stood at 8.3% in December 2012, above the national average of 7.9%; (Bureau of Labor Statistics, http://data.bls.gov/timeseries/LASST8000003) and if the Bureau of Labor Statistics U-6 measure of unemployment is used, which includes not only those officially unemployed (i.e., actively looking for work), but also discouraged workers and those only marginally attached to the workforce, as well as those employed only part-time when they’d rather be employed full-time, the rate jumps to 14.2%.  In people terms, this represents 262,000 officially unemployed Hoosiers statewide, and if the U-6 measure is used, 448,500 persons. (Bureau of Labor Statistics, http://data.bls.gov/timeseries/LASST8000003; http://www.bls.gov/lau/stalt/htm)

 

Similarly with poverty.  Indiana had a 2007-2011 average poverty rate of 14.1%, which compares to 14.3% nationally.  However, Indiana’s poverty rate for 2007, before the recession, was only 11.8%, and climbed steadily thereafter:  in 2008 it was 14.3%, 1n 2009 16.1%, in 2010 16.3%, and in 2011 15.6%.  Poverty among children under 18 stood at 22.6% in 2011. (Indiana Youth Institute, http://datacenter.kidscount.org/data/bystate/stateprofile.aspx?state=IN&loc=16 )  So, from 2007 to 2011, Indiana’s overall poverty level increased by 32%, rendering 989,000 Hoosiers living in poverty in 2011, out of a total Indiana population of 6,500,000. (US Census Bureau, “Table 21.  Number of Poor and Poverty Rate, by State: 1980 to 2011,” http://www.census.gov/hhes/www/poverty/data/historical/people.html)

 

However, this actually underestimates the number of Hoosiers, as well as US residents in poverty, as the Census Bureau’s poverty threshold stands at only $11,945 per year for single persons under 65 and $11,011 for those 65 an older; while that for a family of four stands at only $23,681. (US Census Bureau, “Poverty Thresholds for 2012 by Size of Family and Number of Related Children Under 18 Years,” http://www.census.gov/hhes/www/poverty/data/threshld/index.html)  But based on calculations of the increase in the Consumer Price Index since 2001, when Indiana’s Economic Development Commission stated a “livable wage” standard of $10/hour for full-time work, that “livable wage” (also called a Living Wage) would equal $12.99/hour as of December 2012 and $13.03/hour as of January 2013.  Since the Living Wage is economically defined as at least 130% of the poverty wage, that would make the upper threshold of poverty $9.99/hour for a single person in December 2012, and $10.02/hour in January 2013.  Indeed, statisticians at the Bureau of Labor Statistics have argued in research papers prepared for the Bureau that the actual poverty thresholds should be 1½ times what they are now to accurately reflect costs of living, which would make the poverty threshold for a single person nearly $18,000 a year, and that of a family of four over $35,500 a year.  As it stands now, the federal income limit for food stamp eligibility for a single person is only $1,211 a month, (communication from DFR, FSSA) or $14,532 per year, the equivalent of a full-time hourly wage of $6.99/hour—less than the minimum wage.  But few who are really informed would call a year-round minimum wage adequate to lift one out of poverty!

 

However sobering these measures of actual Living Wage and poverty incomes are, and which themselves call for extending benefits to combat poverty, both the federal government and, above all, the State of Indiana, are going in the opposite direction, which can only worsen an already bad situation.  Newly-elected Indiana Governor Mike Pence, a Republican Tea Party stalwart (first among the Republican House leadership to join Michele Bachmann’s Tea Party caucus) (This, and more, was elaborated on in George Fish, “The Tea Party and the 2012 Indiana elections,” Examiner.com, October 22, 2012, which is also posted on "Politically Incorrect Leftist.") has proposed a biennial budget for Fiscal Years 2014-15 of $29 billion that, while increasing Medicaid spending by $200 million each year, also eliminates dental care, financing for hearing aids, and podiatry services; it also does not provide funds for increasing Medicaid coverage to 133% of the federal poverty level for entitlements, as called for by the Affordable Care Act, or Obamacare.  Instead, Governor Pence is calling for a cut in the state’s personal income tax of $790 million, reducing the tax rate from a 3.4% flat rate to 3.06% rate, a measure that has garnered even Republican opposition.  (Sunshine Review, http://sunshinereview.org/index.php/Indiana_state_budget) But Pence’s tax plan is in line with general Republican strategy to cut social entitlements, and thus shred the already-fragile social safety net.  And despite a stated commitment to job creation, this Republican budget under Daniels allotted less than 1% of its funds to economic development, even less than it allotted to conservation and environmental protection.  (Pie graph provided by the office of State Sen. Jean Breaux)

 

As it was, the Fiscal Year 2012-13 budget signed into law by Governor Daniels spent 23% of its revenues on welfare and Medicaid, (Breaux, op.cit.) with some of the lowest levels of benefits in the country.  TANF cash assistance benefits, for example, were only a maximum of $288 a month for a family of three in 2005, (National Center for Children in Poverty, Mailman School of Public Health, Columbia University, http://www.nccp.org/tools/table.php?states=IN&submit=Create+Table&ids%5B%5D=12-288&db=pol&data=text) and are not available to many unemployed families—the breadwinner(s) receive too much in unemployment compensation to qualify!  Income limit for full Medicaid coverage is a paltry $710 per month, (communication from DFR, FSSA) and receiving more than that means paying a spend-down before Medicaid will pay for any medical expenses.  In my particular case, with a Social Security income of $822/month (the national average is $1,400/month) and occasional work through temp services, my “total countable income” of $990.24/month means I have a spend-down of $280/year.  Further, as I am now working full-time in a warehouse job that pays $9/hour, I will be losing my eligibility for food stamps and Medicaid entirely, although my work income for the nine-and-a-half months of work expected for 2013 will only amount to $14,800 for the year.  However, not only can I expect my medical expenses to substantially increase, I can also expect to pay an additional $300/month for groceries.  All on a job with only a $360/week gross income and net of approximately $298!

 

But I’m now one of the “lucky ones” among my fellow “overqualified” older Hoosier college grads in that I have a full-time steady job, my first in 12 years.  Several of my friends have only seasonal work, and then often don’t even work a full-time week.  One such friend only qualifies for $64/week in unemployment compensation when she’s not working.

 

Indiana is about average for the nation economically.  Its cost of living is near the national average, and while wages are low, so are also housing and other costs.  Its unemployment rate is generally just a little above the national average.  But loss of manufacturing jobs has cost the Hoosier state immensely, so that Indiana had only a 2007-2011 per capita income of $24,497 and a 2007-2011 median household income of $48,393, compared to the national per capita income of $27,915 and median household income of $52,762. US Census, http://quickfacts.census.gov/qfd/states/18000.html) Indeed, Indiana’s per capita and median household incomes have been falling steadily compared to their national counterparts for the past ten years.  (Indiana Business Research Center, Kelly School of Business, Indiana University, STATS, http://www.stats.indiana.edu/dms4/new_dpage.asap?profile_id=339&output_mode=1; Indiana Institute for Working Families, “Status of Working Families in Indiana, 2011,” p. 24, http://www.incap.org/statusworkingfamilies.html)

 

 Educationally, Indiana is far worse off:  only 22.7% of its residents aged 25 or over had a bachelor’s degree or higher, compared to the national rate of 28.2%.  (US Census, http://quickfacts.census.gov/qfd/states/18000.html) In 2010, Indiana had only an 84.5% high school graduation rate.  (Indiana Youth Institute, http://datacenter.kidscount.org/data/bystate/stateprofile.aspx?state=IN&loc=16)

And even though the Fiscal Year 2012-2013 budget allotted 53% of its spending to K-12 education and 12% to higher education (a significant drop in higher education spending from previous years), its primary and secondary schools are still mediocre and  among college graduates, 60%  leave the state each year due to lack of job opportunities.  In 2011, 43.1% of Indiana’s residents with a bachelor’s degree or higher suffered long-term unemployment, while 7.4% were underemployed, and16.2% only worked part-time. (Indiana Institute for Working Families, op.cit., p. 20, p. 14) “We're stuck,” said Philip Powell, Associate Professor of Business at Indiana University-Bloomington, to the Indianapolis Star in 2009.  We're stuck because we don't have the knowledge base we need in the labor force. A lot of that is because of our really mediocre primary and secondary educational system." (Quoted in George Fish and Dave Fey, “Mediocrity—a Hoosier affliction,” Bloomington Alternative, July 12, 2009, http://bloomingtonalternative.com/articles/2009/07/12/10039)

 

Such is the State of Indiana, March 2013—inadequate social services, shredded social safety net, too-high unemployment, an inept FSSA administering human services, poor education, a Brain Drain, and politics dominated by Tea Party Republicans.  Only thing “good” to report is that it’s about the national average. But that was in 2013; since then, Indiana has sunk below the national average in crucial socio-economic indices, poverty has increased, and though employment has improved, the employment growth has been in the low-wage sector.  Indiana is now ranked 9th among the states in which the middle class is disappearing, http://247wallst.com/special-report/2015/01/22/states-where-the-middle-class-is-dying/3/.

              

Thursday, February 9, 2012

Right-to-Work is not the only issue in Indiana

Despite its monopolizing politics in Indiana for the last few months, so-called Right-to Work is not the only issue in Indiana. Yes, believe it or not, there are other pressing issues for working people in the Hoosier state, and it’s only the organized sector of the workforce that has that much to lose from Right-to-Work—at least in the short run. Providing an economy to put the unemployed back to work is still an issue, for, despite some recent job growth, there still aren’t enough jobs available. And if my friends and I are any indication, among those unemployed left-outs are still going to be a large number of college graduates, “overqualified” denizens of the work force who, for a number of reasons, are still going to be excluded—allegedly underexperienced or lacking any proper experience, persons with the “wrong” degree, and older workers. I knew a lot of them when I was test-scoring, a job that, while requiring a college degree, provided only around four months’ work, and paid only $10 an hour. In fact, for many of us long-term test scorers (I was one for ten years, before being unceremoniously denied further employment), we had to take pay cuts just to keep the jobs! When, for example, I started the job in 2001, I was paid $10.50 an hour, with regular raises that, by the end of 2005, put me up to $11.50 an hour. (In those years we also had six-eight months of work per year.) Then the company that hired us through temp agencies for these jobs started demanding various pay cuts, with the temp agencies then providing these reduced-pay jobs to us on a take-it-or-leave it basis. But having nowhere else to go, we had to take it. Workers who had been making $15-16 an hour were now reduced to $10; all of us, veterans and novices alike, the same $10 an hour.

As for Indiana’s WorkOne state employment agency, we’re often classified there as “unskilled labor” despite our college educations. (Or is it because of our college educations in a state with abysmally low educational attainment, with most jobs at a low-skill level, which just makes us college graduates too “unmanageable” for such jobs as are available!) Needless to say, given the general unimaginativeness of Indiana’s state agencies, WorkOne simply considers many of us college graduates not as potential high-skilled workers, but simply lacking in the “relevant” skills supposedly needed now, and so comes to the conclusion that we’re just “unskilled labor.” As good examples of just what prevails here in this regard, see my article on Indiana’s Brain Drain for the online Examiner newspaper, www.examiner.com/x-19063-Indianapolis-Economic-Policy-Examiner, and my article on WorkOne in New Politics online, http://newpol.org/node/564. And Indiana wonders why the state faces a chronic Brain Drain!

And to top it off, unemployed workers in Indiana will face a cut in unemployment benefits starting July 1, 2012. During 2011’s fight against Right-to-Work, despite the Democrats’ absence that denied the Indiana General Assembly a quorum, the Republicans still managed to legally pass a bill authorizing such cuts without a quorum, and Republican Governor Mitch Daniels gleefully signed the bill into law in front of 250 protesting workers! Little good it does us unemployed to hear the refrain from those who’ve been constantly preoccupied with Right-to Work, “I lobbied against the cut in unemployment benefits.” Despite their lobbying, the bill passed, became law, and we, the unemployed, will pay the price, not the employed. And of course, despite all the lobbying, the importuning of state legislators, despite the massive show of bodies at the Statehouse both years, Right-to-Work still became law; the next step will now be to get enough legislators elected in 2012 to repeal the law in 2013. Hopefully, they will also repeal the cut in unemployment benefits, but maybe not. But for us unemployed with few prospects for employment—which, again, I emphasize, includes a lot of college graduates—that’s an issue far more important, with far more immediate effects, than Right-to-Work.

Indeed, considering that Indiana’s unionization rate is only 11.3% of the workforce (Bureau of Labor Statistics; that’s lower than the national rate of 11.8%), and only 8.2% in the private sector (Steven Greenhouse, “A Gathering Storm Over `Right to Work' in Indiana,” New York Times, January 2, 2012), many Indiana workers were victims of the “race to the bottom” that’s taking place across the country even before Right-to-Work. They’re already facing those wage cuts, cuts or elimination of benefits (when they exist in the first place, which is increasingly rare), uncertainty of employment, either too little work of massive forced overtime, that Right-to-Work opponents predict will come about. The dire effects boding ahead because of Right-to-Work are already there for many employed workers, and were there even before the passage of Right-to-Work. So, even if things could get theoretically worse in the future, they’re already bad enough now, and if they do get worse, couldn’t get much worse than they are now.

Then there’s Indiana’s disgrace of a social safety net, symbolized and enhanced in its horridness by the FSSA, the state’s Family and Social Service Administration umbrella “social service agency.” Consider that an unemployed worker with a family makes too much money even on unemployment benefits to qualify for needed financial assistance! Consider that TANF benefits in Indiana are only $290 a month! And consider the wretchedness of Medicaid coverage to begin with, compounded by the fact that I don’t know of a single health provider or pharmacist I’ve encountered who has a good word to say about FSSA. Or consider the horridness of Vocational Rehabilitation or the Department of Mental Health, which, in terms of my experience trying to find employment through both, are but conduits to the fast-food and other low-paying service industries. And both will regard a college degree as either a barrier to employment or an irrelevancy, because, if you need Vocational Rehabilitation or mental health services in the first place, you must be congenitally stupid! And of course, Indiana’s mental health system, never very good in the first place, has gotten even worse under the brunt of cutbacks in funding. Not to mention inept case workers who will deny one’s eligibility for welfare benefits for specious reasons and truly stupid mistakes, as happened to me twice in less than two years, first in October 2009 and again in June 2011. And even though I won my benefits back upon appeal, it took six months both times, and required additional intervention from my State Senator’s office, before the FSSA restored what was rightfully mine in the first place. Then there’s the denial I faced in 2004, finally winning back my benefits a year later, which wasn’t even, formally, for specious reasons—the rationale for denial being unfathomable even to the FSSA representatives, as my lawyer and I had presented an airtight case demonstrating that all relevant documents had been properly submitted to my then-case worker, who evidently ignored them, with this even approved of by her supervisor.

The upshot of all this being that it we are really concerned about the working class we must be concerned about the working class as a whole, and the whole comprises not only those who are organized and employed, but those unorganized and employed, underemployed, and unemployed, as well as those on welfare—all workers, or potential workers; for the unemployed and those on welfare are not a motley group of lumpens fit only to discard—they themselves are able people without the ability to demonstrate their worth and productive value. Given that, the overriding focus on Right-to-Work is to tacitly elevate above the rest of the working class those who are employed members of labor unions, for this is the sector most directly affected by Right-to-Work—indeed, in the short run, the sector within Indiana’s workforce that’s solely affected. Thus, the overriding focus on Right-to-Work is far too narrow. Which means it is a niche issue (nothing wrong with that!) belonging to one sector of the working class, which must then be combined with the niche issues of the other sectors of the working class to make a cluster of issues that encompass the needs of the working class as a whole.

Nor was passing Right-to-Work the only stupidity committed by the Indiana General Assembly. On the day after the Indiana Senate passed Right-to-Work, January 31, 2012, it passed the “education” bill requiring so-called “creation science” to be taught in all Indiana schools, although not necessarily in the science classes. Given past court decisions, that bill is likely to be ruled unconstitutional; although given the decisions made by the Roberts Supreme Court, it’s all too possible that the Supremes will ignore precedent and embrace “creationism” as also a valid subject to be taught in Indiana schools—and thus, in schools across the country. The only saving grace to the “creationism” bill mandating the teaching of the creation fables of the various religions—Judaism, Christianity, Islam, Buddhism and Hinduism specifically mentioned—thanks to the pluck of Senate Minority Leader Vi Simpson (D-Bloomington), the creation story of Scientology must also be taught! And it passed, there being no way to keep teaching Scientology out of a bill specifically mandating the teaching of the various religious creation stories. As Tony Ortega put it in the February 1, 2012 Village Voice, “Indiana Senate Votes to Teach Scientology in Schools,” “That's right -- kids in Indiana may be learning about Xenu the galactic overlord, spaceships shaped like DC-8s, hydrogen bombs in volcanoes, and the disembodied souls of space aliens that attach themselves to us until one uses the exorcism techniques of Dianetics!” [Emphasis in original] Well, if you can’t do anything else, leave ‘em laughing when you go!

Of course, Indiana schools are bad enough already, a major contributor to the general low-skill level of the Indiana workforce overall, and a prime contributor to Indiana’s per capita income falling six years in a row, 2005-2010; and with the third slowest personal income growth in the nation from 2000 to 2010, just over 3%, and well below the national average of 3.95% (U.S. Department of Commerce, Bureau of Economic Analysis). According to STATS Indiana, prepared by the Indiana business Research Center at the Kelly School of Business, Indiana University, the Hoosier state ranked 42nd in per capita income in 2010, down from 33rd in 2000. Philip Powell, Associate Professor of Business at Indiana University-Bloomington stated to the Indianapolis Star in 2009: "We're stuck. We're stuck because we don't have the knowledge base we need in the labor force. A lot of that is because of our really mediocre primary and secondary educational system." A big reason so much of the Indiana economy is dependent on manufacturing is that Indiana's workforce is largely unskilled and uneducated. Only one-third of its workers have high school diplomas or GEDs, and only 28 percent have college degrees, compared to 39 percent nationally. (George Fish and Dave Fey, “Mediocrity—a Hoosier affliction,” Bloomington (IN) Alternative, July 11, 2009, http://bloomingtonalternative.com/articles/2009/07/12/10039)

So, while Right-to-Work is important, it’s not the only important issue for working people in Indiana. Yes, it’s a bad law; yes, it should be repealed; and repealing it should be a priority, but not the sole priority—there are still many issues besides Right-to-Work needing to be addressed for the benefit of all Indiana working people, employed and unemployed, union and non-union alike.