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News

Jan 10, 2018

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An expert in policy advocacy and coalition building, Chaer has dedicated her career to helping people meet their basic needs and expanding economic opportunity. She serves on the executive committee of the All Families Deserve a Chance (AFDC) coalition. Staff page ›

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Legislative Preview 2018: Family Economic Security

by | Jan 10, 2018

Family Economic Security, Legislative Updates

In 2018, CCLP’s Family Economic Security team will collaborate with national partners to protect the interests of low-income Coloradans in federal policy discussions. Since Congress may delegate additional authority to states regarding critical programs and services, we are prepared to work with partner organizations to ensure that decision-makers in Colorado make choices that are in the best interests of struggling families throughout the state.

Here is a look ahead at our priorities for the state legislative session:

Family Economic Security Legislation: Housing

Stable, affordable housing is a cornerstone of financial and emotional security. Roughly one out of two Colorado renters pays more than 30 percent of their income in rent, and an alarming 75 percent of extremely low income renters pays more than half their income in rent. For every 100 low-income renters, there are only 27 affordable units available. Some parts of the state that are not growing face deterioration of their housing stock, and loss of more affordable homes. We are working with our organizational partners on a large slate of housing legislation. Among our priorities:

Housing funding from Unclaimed Property Fund
Once again, we will back a proposal to use a small portion of the Unclaimed Property Trust Fund — $30 million a year for three years with two additional years at $20 million per year—for affordable housing. The Division of Housing in the State Department of Local Affairs would administer the funding.

Permitted uses would include:  down-payment assistance, home rehabilitation, new construction of homes for those earning less than 80 percent of Area Median Income (AMI), mobile home repair, leveraging Low Income Housing Tax Credit funding for housing, and rental assistance. Priority populations for rental assistance would include homeless families with school age children, Medicaid clients in nursing homes who could live in the community with in-home services, family unification programs, homeless veterans, those earning less than 60 percent of AMI, and survivors of domestic violence.

Eliminating sales tax for manufactured housing
Approximately 4 percent of homes in Colorado are manufactured homes. They represent an important segment of the affordable-housing stock and remain an unsubsidized, private-sector option for struggling families, seniors and people with disabilities. In today’s market, many of these homes are appreciating in value; allowing owners to build some equity. Too often though, they are segregated into mobile home parks, sited on rented lots and vulnerable to redevelopment pressure. Colorado law is conflicted, treating manufactured homes as both real and personal property.

In 2018 CCLP is proposing eliminating the state sales tax on new manufactured homes. Such homeowners are already subject to annual property tax on their homes. Eliminating the state sales tax would save consumers approximately $1,000 on the average $66,100 purchase price of a new manufactured home. Given that the median income for manufactured home households is $30,000, this legislation would provide significant tax relief to those families pursuing the dream of homeownership.

Preservation of manufactured homes
In 2017, we actively supported House Bill 1354, which removed the statutory requirement that county treasurers sell manufactured homes to the public if their owners were delinquent on their annual property taxes. While the approved bill will keep many low- and moderate-income Coloradans in their homes, CCLP had considerable reservations about the legislation because it failed to address a provision in Colorado law that allows a county to possess and dispose of manufactured homes worth less than $1,000 if their owners are delinquent on their annual property taxes. Thus, we will be working closely with partner organizations to pursue a “clean-up” bill so that vulnerable families can remain in their homes and avoid government-imposed displacement.

Copy of rental documents
We will once again back legislation to guarantee that tenants receive a copy of their lease, plus a receipt for rent paid by cash or money order. Receipts would be provided automatically if  the tenant pays the landlord in-person or upon request if the tenant drops off the payment. This bill would enact into law a basic, common practice in the tenant-landlord relationship. We anticipate this will help stabilize landlord tenant relationships by preventing misunderstandings. Because it is common for low-income renters to pay rent with cash or money order, there is no record of a transaction unless a landlord provides a receipt of payment. As a result, many Colorado renters have been vulnerable to eviction or late charges because they were not able to prove that they had already paid rent – creating greater instability for those who are struggling to make ends meet or to apply for credit.

Family Economic Security Legislation: Employment

Nearly 20 percent of prime working-age Coloradans are not working, even as Colorado’s economic development is constrained in some areas by a lack of workers. Many want to work, but face barriers to employment.  CCLP, in conjunction with the Colorado Skills2Compete Coalition, conducted a needs assessment of community and publicly funded employment service organizations that encompassed 63 of Colorado’s 64 counties. Here are the policy priorities that were identified as part of the needs assessment:

Support services for those seeking training and employment
The assessment revealed the need for emergency supportive service funds for participants’ employment goals.

The availability of support services – such as emergency child care, work equipment, legal assistance, or fees, is critical for those with barriers to employment to successfully pursue an employment or training opportunity.

We developed legislation that would create a supportive services fund that public agencies and community-based organizations can draw from to serve low-income participants. It would appropriate General Fund dollars (approximately $2.5 million per year) to support these needs. It would establish a reimbursement mechanism for eligible organizations to provide employment-related support services upfront. Participant benefits would be capped at $400 per person per annum. While not providing all the comprehensive support services a person might need, the fund would meet the small-dollar needs that can otherwise derail a person’s employment pursuits.

Integrating and enhancing local community employment services
The needs assessment also revealed that current funding streams for local employment services are not enough to adequately serve individuals with barriers to employment. These employment services are required to fully integrate community-based organizations and public agencies so that they can collectively and sufficiently serve job-seeker who have barriers to employment such as recent divorce, homelessness, a criminal record or low levels of literacy. The state’s geographic size and economic diversity require tailored solutions developed locally by public agencies in conjunction with community organizations to address unmet needs and reduce poverty.

We developed legislation that would appropriate $3 million for four years from the general fund to be distributed on a formula basis to local communities. An additional $600,000 per year would be appropriated to rural communities, to be distributed on a formula basis in recognition of the significant challenges facing these communities. The bill would require local community-based organizations and public agencies to collaborate on and implement a plan that would address a community’s unmet need specifically tailored to job-seekers with barriers to employment in their own communities.

Other Family Economic Security Legislation

“Clean slate” legislation
Society expects people to work, pay restitution and support their families after they’ve been incarcerated. Unfortunately, many Coloradans with criminal records experience unemployment, food insecurity and housing instability — fueling poverty and recidivism rates.

To rectify the problem, CCLP developed “clean-slate” legislation that provides for automatically sealing certain criminal records so that they are not available to the public, but can still be accessed by law enforcement, family courts and victims of crime. Our clean-slate proposal will only apply to certain nonviolent offenses that are already eligible for sealing under Colorado law. It will eliminate costly and burdensome steps including court petition and filing fees for individuals who have remained free of misdemeanor and felony convictions for a specified period of time. By removing barriers to housing and employment, this bill will give people a chance to move on with their lives and support their families.

Prize-linked savings
The personal savings rate in the United States has been declining, most recently hitting a low of 2.9 percent of total income saved on a per-person average. As wages have not kept pace with expenses, saving money has become harder. According to the Federal Reserve’s 2016 Survey of Household Economic Decision-making (SHED), 44 percent of people would not be able to come up with money to meet a $400 emergency without resorting to credit cards or having to sell something.

Prize-linked savings are a proven technique to encourage new savers. They give people a chance to win prizes in exchange for making deposits into a savings account without putting their money or interest at risk. Studies show that savers maintain their savings, and tend not to withdraw their money even if they don’t win a prize. Under a proposal advanced by CCLP, with support from members of the Financial Equity Coalition, financial institutions and credit unions would explicitly be allowed to offer prize-linked savings programs in Colorado.

– By Chaer Robert

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HEALTH:
HEALTH FIRST COLORADO (MEDICAID)

Health First Colorado is the name given to Colorado’s Medicaid program. Medicaid provides public, low-cost health insurance to qualifying adults and children. It is an entitlement program funded by the federal, state, and county governments and is administered by counties in Colorado. Those who are required to pay must pay a small co-pay when receiving certain health care services.

State Department: Department of Health Care Policy and Financing

Eligibility: Most adults 18 to 64 are eligible for Medicaid in Colorado if their household income is at or below 133% of the federal poverty limit (FPL). Pregnant women are eligible with incomes of up to 195% FPL, while children under 18 may be eligible if the live in a household with income at or below 142% FPL. Some adults over 65 may also be eligible for Medicaid.

Program Benefits: Through Medicaid, low-income Coloradans are eligible for a range of health care services at little to not cost. Services provided include doctors visits, prescription drugs, mental health services, and dental care. Co-pays for certain individuals may be needed for certain services.

Program Funding and Access: Colorado funds our Medicaid program through state and federal dollars. Medicaid is an entitlement program, which means that all who are eligible for Medicaid can access the program, regardless of the funding level in a given year. This does not mean that it is always easy to access Medicaid, even when eligible. And since the program is administered by counties, funding levels for county staff and other administrative roles can make it easier or harder for Coloradans to access the program. On top of this, not all medical providers accept Medicaid which limits the ability of Coloradans to seek health services even if enrolled, such as if the nearest provider is a 2+ hour drive away.

Note: This data is from before the pandemic and does not reflect changes in enrollment rules during the COVID-19 pandemic and public health emergency.

Statewide Program Access 2015-19: Over the study period of this report, an average of 89.0% of the population at or below 133% of FPL (i.e., the population who is likely to be eligible for Medicaid) were enrolled in Medicaid in Colorado.

FOOD SECURITY:
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)

The Supplemental Nutrition Assistance Program or SNAP helps low-income Coloradans purchase food by providing individuals and families with a monthly cash benefit that can be used to buy certain foods. SNAP is an entitlement program that is funded by the federal and state governments and administered by counties in Colorado.

State Department: Department of Human Services

Eligibility: Currently, Coloradans qualify for SNAP if they have incomes below 200% FPL, are unemployed or work part-time or receive other forms of assistance such as TANF, among other eligibility criteria. Income eligibility for SNAP was different during the study period of this report than today—it was 130% FPL back in 2019 for example. The US Department of Agriculture uses the population at or below 125% FPL when calculating the Program Access Index (or PAI) for SNAP. We follow this practice in our analysis despite Colorado currently having a higher income eligibility threshold.

Program Benefits: SNAP participants receive a monthly SNAP benefit that is determined by the number of people in their household and their income. Benefit amounts decrease as income increases, helping households avoid a sudden loss of SNAP when their incomes increase, even by a minor amount. Benefits are provided to an Electronic Benefit Transfer (EBT) card that can be used to purchase eligible food items, such as fruits and vegetables; meat, poultry, and fish; dairy products; and breads and cereals. Other items, such as foods that are hot at their point of sale, are not allowable purchases under current SNAP rules.

Program Funding and Access: SNAP, like Medicaid, is a federal entitlement program. This means that Colorado must serve any Coloradan who is eligible for the program. As such, funding should not be a limit to how many Coloradans can be served by the program. However, funding for administration of SNAP at the state and county level can limit the ability of county human service departments to enroll those who are eligible. Other program rules and administrative barriers can make it difficult for Coloradans to receive the benefits they are legally entitled to receive.

Statewide Program Access 2015-19: Over the study period of this report, an average of 61.1% of the population at or below 125% of FPL (i.e., the population who is likely to be eligible for SNAP) were enrolled.

FOOD SECURITY:
SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN (WIC)

The Special Supplemental Nutrition Program for Women, Infants, and Children, also know as WIC, provides healthcare and nutritional support to low-income Coloradans who are pregnant, recently pregnant, breastfeeding, and to children under 5 who are nutritionally at risk based on a nutrition assessment.

State Department: Department of Public Health and Environment

Eligibility: To participate in WIC you must be pregnant, pregnant in the last six months, breastfeeding a baby under 1 year of age, or a child under the age of 5. Coloradans do not need to be U.S. citizens to be eligible for WIC. In terms of income, households cannot have incomes that exceed 185% FPL. Families who are enrolled in SNAP, TANF, Food Distribution Program on Indian Reservations (FDPIR), or Medicaid are automatically eligible for WIC. Regardless of gender, any parents, foster parents, or caregivers are able to apply for and use WIC services for eligible children.

Program Benefits: WIC provides a range of services to young children and their parents. These include funds to purchase healthy, fresh foods; breastfeeding support; personalized nutrition education and shopping tips; and referrals to health care and other services participants may be eligible for.

Program Funding and Access: WIC is funded by the US Department of Agriculture. The state uses these federal funds to contract with local providers, known as WIC Clinics. In most cases, these are county public health agencies, but that is not the case in all Colorado counties. Some WIC Clinics cover multiple counties, while others are served by multiple clinics. Private non-profit providers are also eligible to be selected as a WIC Clinic.

Statewide Program Access 2015-17: Between 2015 and 2017, an average of 52.2% of the population eligible for WIC were enrolled in the program in Colorado.

Financial Security:
Colorado Works

Colorado Works is the name given to Colorado’s program for Temporary Assistance to Needy Families or TANF. It is an employment program that supports families with dependent children on their path to self-sufficiency. Participants can receive cash assistance, schooling, workforce development and skills training depending on the services available in their county.

State Department: Department of Human Services

Eligibility: In general, Coloradans are eligible to enroll in TANF if they are a resident of Colorado, have one or more children under the age of 18 or pregnant, and have very low or no income. For example, to be eligible to receive a basic cash assistance grant through TANF, a single-parent of one child could not earn more than $331 per month, with some exclusions—and would only receive $440 per month (as of 2022). That said, there are other services provided by counties through TANF that those with incomes as high as $75,000 may be eligible for. In addition to these, participants in TANF are required to work or be pursuing an eligible “work activity” or work-related activity. Any eligible individual can only receive assistance if they have not previously been enrolled in TANF for a cumulative amount of time of more than 60 months—this is a lifetime limit that does not reset. Counties may have additional requirements and offer benefits that are not available in other counties in Colorado.

Program Benefits:  While the exact benefits that one is eligible for under TANF can vary, all qualified participants are eligible to receive a monthly cash payment, call basic cash assistance. Other than cash assistance, counties are have a lot of choice in how to use their TANF funding; generally a use of TANF funds is appropriate so long as it advances one or more of the four purposes of the program: (1) provide assistance to needy families so that children can be cared for in their own homes or in the homes of their relatives; (2) end the dependence of needy families on government benefits by promoting job preparation, work, and marriage; (3) prevent and reduce the incidence of out-of-wedlock pregnancies; and (4) encourage the formation and maintenance of two-parent families.

It is important to note that those eligible for TANF are also eligible for many of the other programs we’ve included in this report, such as SNAP, Medicaid, and CCCAP.

Program Funding and Access: Colorado funds its TANF program through funds received from the federal government through the Temporary Assistance for Needy Families block grant. Most of the federal funds are allocated by the state to counties, which are required to provide a 20% match of state funding. Federal and state rules allow the state and counties to retain a portion of unspent funds in a TANF reserve.

Statewide Program Access 2015-19: Over the study period of this report, an average of 50.7% of the population at or below 100% of FPL (i.e., the population who is likely to be eligible for TANF) were enrolled in TANF in Colorado.

EARLY LEARNING:
COLORADO CHILD CARE ASSISTANCE PROGRAM (CCCAP)

The Colorado Child Care Assistance Program provides child care assistance to low-income families and caregivers living in Colorado in the form of reduced payments for child care. It is a program funded by the federal, state, and county governments and is administered by counties in Colorado. The share owed by parents/caregivers is determined on a sliding scale based on the family’s income.

State Department: Department of Early Childhood Education

Eligibility: Counties set eligibility for families separately, but must serve families with incomes at or below 185% of the Federal Poverty Limit. Families accepted to the program are no longer eligible once their income exceeds 85% of the state median income. Parents or caregivers must be employed, searching for work, or engaged in another approved activity to be eligible for CCCAP. Parents and caregivers enrolled in Colorado Works (Temporary Assistance to Needy Families or TANF) or in the child welfare system are also eligible to participate in CCCAP. Generally, CCCAP serves families with children under 13, although children as old as 19 may be eligible under certain circumstances.

Program Benefits: If a family is eligible for CCCAP and has income, they may likely have to pay a portion of their child’s or children’s child care costs each month. The amount that families owe is based on their gross income, number of household members, and the number of children in child care in the household. As such, households tend not to experience a benefit cliff with CCCAP when they see their incomes increase

Program Funding and Access: Colorado funds the CCCAP program using federal dollars it receives from the Child Care and Development Block Grant program. The state allocates federal and state funds to counties using a formula that takes into account factors like current caseloads and the number of eligible residents. Assistance is available until the county’s funds are spent, so the number of families that can be served is often a function of how much funding is available and the income and composition of the household that applies. It is not uncommon for counties to overspend or underspend their allocations of funds. The state reallocates unspent funds from counties who underspent to those who overspent. While underspending could indicate a problem with the way a county administers its CCCAP program, it could just as likely be a sign that there are few providers in the county who participate in CCCAP—or a lack of providers generally.

Statewide Program Access 2015-19: Over the study period of this report, an average of 10.8% of the population at or below 165% of FPL and younger than age 13 (i.e., the population who is likely to be eligible for CCCAP) were enrolled in CCCAP.

Housing:
HUD rental assistance programs

The US Department of Housing and Urban Development (HUD) has three housing assistance programs that we look at together: Housing Choice Vouchers (Section 8), Project-based Section 8, and Public Housing. In Colorado, these programs provided assistance to over 90% of the households who received federal housing assistance from all HUD programs. Through federally funded, local or regional public housing agencies (PHAs) are the agencies that administer these programs, through not all are available in all counties. These are not the only programs available in Colorado that assist households afford the cost of housing, such as units funded through federal and state tax credit programs.

State Department: Department of Local Affairs

Eligibility: Generally, households with incomes under 50% of the area median income (AMI) of the county they live in are eligible for these rental assistance programs, although PHAs have discretion to select households with incomes at higher percentages of AMI. That said, HUD requires that 75% of new vouchers issued through the Housing Choice Voucher/Section 8 program in a given year are targeted to households with incomes at or below 30% of AMI. PHAs are also able to create criteria that give priority to certain types of households who are on waiting lists for these programs.

Program Benefits: These rental assistance programs help households afford the cost of housing by reducing their housing costs to around 30% of their household income. In the case of the Housing Choice Voucher program, the PHA pays the voucher holder’s landlord the remaining portion of the rent.

Program Funding and Access: Funding and access are both challenges for these rental assistance programs. In addition to limitations on the number of public housing units or housing vouchers a PHA can manage or issue, lack of funding compared to the need constrains the ability of PHAs to assist low-income households. In 2020, Coloradans were on waitlists for Housing Choice Vouchers for an average of 17 months. Waitlists also exist for the other rental assistance programs.

Statewide Program Access 2015-19: Over the study period of this report, an average of 21.1% of renter households with incomes at or below 50% AMI (i.e., the population who is likely to be eligible for HUD rental assistance programs) were living in subsidized housing.