News

Jan 10, 2019

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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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2019 Legislative Preview: Economic Security

by | Jan 10, 2019

Family Economic Security, Legislative Updates

This year, CCLP’s Family Economic Security Program will lead a robust legislative agenda, support our partner organizations’ legislative proposals and inform the legislators on unanticipated bills that affect struggling families.

Securing Stable, Safe, Affordable Housing
Stable, affordable housing is a cornerstone of financial and emotional security and good health.

Roughly one in two Colorado renters pay more than 30 percent of their income in rent, and an alarming 75 percent of extremely low-income renters pay more than half their income in rent. For every 100 low-income renters, there are only 27 units available that rent for less than 30 percent of their income. Some parts of the state that are losing population face deterioration of their aging housing stock and a loss of more affordable homes. Throughout the session, CCLP will work with its organizational partners on a slate of housing affordability and tenant-rights legislation.

Eviction Notice Period
Forced moves have a domino effect on tenants, leading to job loss, poverty and even homelessness. Housing instability for tenants with children often destabilizes and disrupts a family’s relationships and a child’s educational experience. Forced moves can be particularly burdensome for older Coloradans and individuals with disabilities. Perhaps worst of all, having an eviction on one’s record can make it nearly impossible to secure housing in the future.

Before filing an eviction action in court, a landlord must give the tenant written notice of the lease violation that has taken place, which may include non-payment of rent, and the landlord’s intent to evict the tenant if the issue is not remedied. This “three-day notice” states that the tenant must cure the lease violation or vacate the property within three days. If the tenant can remedy the lease violation within this period, they can avoid eviction. If the tenant fails to do so, the landlord may file an eviction action. Three days is often not sufficient time to address a lease violation. Tenants may need more time to find a new home for a dog, for example, or to apply for an emergency rental assistance.

In an effort to ensure fewer Coloradans are evicted under circumstances in which they could remedy the situation if they had more time, CCLP is promoting a bill with Colorado Coalition for the Homeless to extend the notification period before a landlord can file for an eviction from three to 14 days. Twenty-nine other states require more notice than Colorado in the case of unpaid rent. If passed, more renters would be able to stay in their homes, and others would be able to avoid having an eviction on their rental record.

Eviction Legal Defense
According to the Legal Services Corp., low-income Americans in 2017 received little or no legal help with 86 percent of their civil legal problems. Low-income tenants who face eviction typically don’t receive legal assistance. For tenants who represent themselves in court, navigating the complex legal system of landlord-tenant laws can prove to be an impossible task.

There were nearly 45,000 evictions filed in Colorado in 2017. At least half of those seeking assistance from Colorado Legal Services were turned away because of limited staff resources. According to a 2017 study by CCLP and Colorado Coalition for the Homeless, fewer than 1 percent of tenants in Denver County were represented by an attorney during an eviction, while nearly 90 percent of landlords were represented. However, the few tenants who got assistance were significantly more likely to remain in their homes.

To rectify the situation, CCLP is working to provide $900,000 in funding for legal resources for low-income Coloradans who are facing an eviction. These funds would support a grant program for nonprofit legal assistance organizations administered by the State Court Administrator’s Office.

Employment, Income and Financial Security
Over 14 percent of prime working-age Coloradans (ages 24-54 years old) are not working, even as Colorado’s economic development is constrained in some areas by a lack of workers. Many of these people want to work, but face barriers to employment such as a lack of recent work history, low literacy and numeracy skills, a criminal record, physical disabilities, mental health issues, care-giving responsibilities, etc.

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 to assess the needs of low-income job-seekers. We developed legislation after receiving extensive input from workforce center staff and community-based organizations that help people with challenges to employment get skills training and obtain and retain employment.

Emergency Support Service Fund for Those Seeking Training and Employment
The availability of support services – such as emergency child care, transportation, or obtaining funds for tools or licensing fees—could make a big difference between starting a new job and another financial setback that keeps prospective workers from earning an income.

Last session, we developed legislation that would create a support services fund that public agencies and community-based employment organizations can draw from to serve participants living below the poverty line. The bill would appropriate General Funds (approximately $1 million per year) to support these needs. It would establish a reimbursement mechanism for eligible organizations to provide employment-related support services immediately without having to go through a lengthy application process.. Participant benefits would be capped at $400 per person per year. While not providing all the support services a person might need, the fund would meet the small-dollar needs that might otherwise derail a person’s employment pursuits. Though the bill did not pass last year, CCLP was encouraged by the support it received and will work with our partners to build support for similar legislation this year.

“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 recidivism and poverty for themselves and their families.

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 could still be accessed by law enforcement agencies, 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. The proposal would eliminate costly and burdensome steps including court petitions 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.

Our previous proposal on criminal records, titled “Chance to Compete,” also has returned this year. The bill prohibits employers from asking about someone’s criminal history on an initial job application. CCLP supports this proposal to “ban the box” that keeps too many Coloradans from securing employment.

Wage Garnishment
Wage garnishment is a severe form of debt collection that can hamper low-income individuals’ ability to meet basic needs and force them into bankruptcy. Colorado ranks in the bottom half nationally in protecting individuals’ paychecks from excessive garnishment, and Colorado’s garnishment law does not provide adequate time and notice for affected individuals to plan for a drastic reduction in their income.

CCLP’s proposed bill would require clearer, and more timely notice of a garnishment so individuals can understand their rights and how garnishment will affect their paycheck. The proposal also would reduce the amount of earnings that can be garnished so people are better able to continue paying their rent and other basic expenses. Premiums paid for individual or family health care coverage would be excluded from garnishment.

Low-Income Child Care Expenses Tax Credit
Without child care, most parents of young children cannot work. Low-wage workers have difficulty affording the child care needed to take a job and stay in the workforce.  Employment is critical to reducing poverty, but child care is critical to employment.

Colorado currently provides a permanent income tax credit for child care expenses to families with an income of $60,000 and less but more than $25,000. Because that tax credit is based on a percentage of their federal tax credit– and working parents with very low incomes earn too little to pay federal income taxes — families earning under $25,000 generally do not qualify for the permanent credit. They do qualify for the low-income child care tax credit, but that credit will expire after tax year 2020. CCLP created a bill to make this tax credit permanent.

CCLP championed the bill that disconnected the state tax credit from federal credit for those earning under $25,000 a year who do not qualify for the permanent credit. The maximum amount of this credit is one-fourth of the child care expenses for working families up to $500 per year for a family with one child and $1,000 per year for a family with two or more children. The average credit paid by the state has been a little over $150 per family.

To qualify for the credit, families must be working and earning less than $25,000 a year, and paying for child care. If this law sunsets, working parents with the lowest income will not receive any tax benefits for the money they pay for child care, while those earning enough to have a federal income tax liability (but below $60,000 a year) would receive partial reimbursement of child care costs through permanent child care tax credits. In fact, in 2018, the legislature increased the Colorado Child Care Tax Credit for those earning up to $60,000 per year without a sunset. Both of these critical tax credits should be permanent.

Working Families Tax Credit
In a multi-year effort focused on a possible 2020 ballot initiative, CCLP, in conjunction with Colorado People’s Alliance and United for a New Economy and others, has been developing a proposal for a Working Families Tax Credit—to expand and modernize our Colorado State Earned Income Tax Credit. TABOR prohibits a progressive income tax. By requiring a single rate or “flat tax,” it leaves those Coloradans with the lowest incomes carrying the heaviest total state tax burden as a percentage of income. The Working Families Tax Credit would rebalance our state income tax code by removing the constitutional requirement for a flat-rate income tax, then establish a broad tax credit covering a majority of tax filers, paid for with a higher rate on high-income tax filers.

Basic Needs
Supplemental Nutrition and Assistance Program (SNAP)
Beyond our work on housing, much of our work on public assistance to meet basic needs comes in the form of rule changes. Rules describe the particulars of how a law is implemented and are subject to approval by an agency board, not by the legislature. CCLP’s staff is deeply involved in the state Department of Human Services’ comprehensive effort to update SNAP rules and assure they align with federal laws and rules. In particular, CCLP is especially focused on reforming policies regarding statutes of limitation on collecting past SNAP overpayments. Once the rule package is drafted, it will be subject to review and approval by the State Board of Human Services.

Supporting our Partners
In addition to the bills CCLP will be leading, we expect to support legislation being developed by organizations in the Tenants’ Right Roundtable including the Senior Lobby’s Property Tax, Rent, Heat Rebate bill, and the Colorado Coalition for the Homeless’ prohibition of housing discrimination based on source of income. We plan to support efforts from Enterprise and 9to5 to strengthen the Warranty of Habitability, and to cap rental application fees. CCLP is an active participant in roundtables on funding affordable housing, including providing technical expertise in the potential of using unclaimed property funds.

We plan to support other child-related tax credit bills, including Colorado Fiscal Institute’s Child Tax Credit and Colorado Children’s Campaign’s Income Tax Credit for Certain Early Childhood Educators. CFI’s proposal to restructure allowed investment in 529 College Savings Account to seed Child Savings Accounts for every Colorado child provides an example of consideration of economic equity in state investments. The development of Bell Policy Center’s Secure Retirement Savings Accounts and 9to5’s Paid FAMLI leave are also critical to overall family economic security.

— 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.