Indiana Coalition on Housing and Homeless Issues
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Indiana Institute for Working Families

PRESS RELEASE: Indiana Fails to Secure Its Fair Share of Federal Dollars for Working Families
 
Tuesday, July 15, 2008
 
by Rochelle Finzel,

INDIANAPOLIS (July 15, 2008) - Rising numbers of Indiana working families are taking advantage of federal programs designed to help them in times of economic hardship. Food stamp participation nearly doubled since 2000 according to a study released by the Indiana Institute for Working Families, Is Indiana Getting Its Fair Share? Federal Programs Available to Help Working Hoosier Families. Yet thousands of families are missing out on millions of dollars and valuable benefits to help them through economic difficulties.

"The economy has hit low-wage working families especially hard with higher food and gas prices," stated Director and co-author of the study, Rochelle Finzel. "While participation has increased, more eligible families could be accessing federal programs that could help stretch their limited resources. These federal programs are not hand-outs; they support work, increase wages, and improve the nutrition and health of low-income families and have positive effects on the state economy."

The federal programs examined in the report included the Earned Income Tax Credit (EITC) program, the Food Stamp Program, the National School Lunch and Breakfast Program, the Supplemental Nutrition Program for Women, Infants and Children (WIC), the State Children's Health Insurance Program, known as Hoosier Healthwise, and the Child Care Development Fund. All are designed to support working families by providing assistance to cover basic needs such as food, health care and day care costs.

In examining federal tax expenditures in Indiana, the Institute's study revealed:

Indiana eligible families failed to collect $126 million in the Earned Income Tax Credit in 2005, a refundable federal tax credit for working families and individuals who earn less than 200 percent of the Federal Poverty Guidelines;
Over 215,000 Hoosiers who earned poverty-level wages and were eligible to receive Food Stamps in 2006 failed to take advantage of this nutrition assistance safety net, amounting in a loss of $247 million in federal funds to the state of Indiana;
Indiana's schools lagged the national average in providing school breakfast to low-income children during school year 2006-2007. If Indiana schools were to increase the participation rate to match top performing states, Indiana would receive an additional $14.1 million in federal funding and 65,900 additional Hoosier children would be served.
The federal programs also have a positive impact on Indiana's economy, creating new jobs and wages in the state. The Earned Income Tax Credit alone added nearly $800 million to the economy. Recipients of the credit spend these funds locally for everything from utility bills to new appliances and opening savings accounts.

The report includes specific recommendations and strategies that state public officials and policy makers can pursue to increase program participation, thereby increasing the amount of federal domestic funds coming into the state so that more Hoosiers become economically self-sufficient. "It is our hope that this study will lead to increased outreach efforts across the state, increased public knowledge and more families accessing benefits to help them meet their daily needs," stated Finzel.

Click here to read the full report.

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ICHHI

The Indiana Coalition on Housing and Homeless Issues (ICHHI) was formed in 1988 by service providers and advocates who recognized a need for a unified and concerted effort to streamline programs and services for Indiana residents working towards self-sufficiency.

The Indiana Institute for Working Families is a program of the Indiana Coalition on Housing and Homeless Issues (ICHHI). ICHHI is a statewide, non-partisan, non-profit organization that believes everyone in Indiana deserves a safe place to call home, a safety net of social services and a path to self-sufficiency. The Institute conducts research and analysis of public policy issues important to working families, engages in advocacy and education campaigns on policy issues, and works through national, statewide, and community partnerships in Indiana to promote progressive policies in Indiana. For twenty years, ICHHI has been working to build stronger individuals, families and communities through planning, research, education and advocacy.