Jun 17, 2020

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2020 Legislative Wrap-Up: A difficult, short and productive session

by | Jun 17, 2020

Back in January, Colorado Center on Law and Policy teed up the 2020 legislative session with a Capitol Preview luncheon that featured panel discussions and about 120 participants mingling optimistically about the year ahead. We also rolled out an ambitious agenda for what we hoped to accomplish for Coloradans facing poverty over the next four months. The previous year was perhaps CCLP’s most successful legislative session yet — with all 13 bills we led or co-led passing with bipartisan support, so there was no reason to believe that the momentum wouldn’t continue.

Then, in mid-March, the COVID-19 pandemic effectively shut down businesses and business as usual in the Capitol as quarantines and social-distancing practices put the session on hold for about two months. When lawmakers returned in late May, they were faced with a severe economic downturn, soaring unemployment, the threat of rising evictions and a $3.3 billion budget shortfall – not to mention the most serious public health crisis in 100 years. To further complicate matters, legislators had significantly less time to tie up their work.

Despite those daunting challenges, legislators made significant progress on advancing legislation that will make a positive difference in Coloradans’ lives. Yet, CCLP is concerned that the General Assembly failed to extend a badly needed eviction moratorium. We also worry that deep cuts in the state budget will have a disproportionate negative effect on Coloradans hurt most in the ongoing economic and public health crisis.

When legislators prepared to return to the capitol in late May, CCLP stood with 135 diverse partners to encourage lawmakers to adopt an aggressive three-pronged approach that would declare a health care emergency, optimize the use of federal relief funds and pass an emergency tax measure with the approval of 2/3rds of the House and Senate. Though legislators did not adopt the plan the effort put the need for more revenue in the public spotlight and the coalition and built momentum for House Bill 1420 (aka, the Fair Tax Act).

Earlier this week, the Colorado Senate approved a scaled-back HB 1420, which closed and modified tax breaks that favored the wealthiest Coloradans to backfill the education budget for the next two years and expand the Earned Income Tax Credit (EITC – more on that later). This is a positive step forward and we gratefully thank our many partners for raising their voices through direct appeals to legislators to make this positive change possible. Colorado Fiscal Institute in particular deserves accolades for their leadership on the bill.

All things considered, it was a difficult, short but productive session for CCLP and its partners. Here are the highlights in our focus areas of food, health, housing and income:

Food
Senate Bill 206 passed through the legislature and is heading to the governor’s desk. The legislation clarifies that Coloradans who are disqualified from a public assistance program due to an intentional violation of the program’s rules are allowed to re-enroll or stay enrolled in other programs, provided they are not found to have intentionally violated those programs’ rules. Thanks to the legislators and partners who supported the bill, which applies to food-oriented assistance programs such as SNAP and WIC and other state benefits programs.

Before the session started, CCLP joined its partners in the Colorado Blueprint to End Hunger to increase outreach funding for the Supplemental Nutrition Assistance Program (SNAP) so more eligible Coloradans can get the food they need. Unfortunately, while legislators agreed to fund outreach in the long bill, they cut $87,000 from the $400,000 program. Advocates wanted to double the funding to $400,000.

Health
Last week, House Bill 1236 passed through the Senate and is heading to the governor’s desk. The bill would use the regular state tax-filing process to inform Coloradans of their eligibility for Medicaid, CHP+ and tax credits. Thanks to our partners for supporting this commonsense measure to ensure that more Coloradans get the health coverage they need more than ever. Special thanks to Rep. Susan Lontine, Rep. Perry Will, Sen. Jack Tate and Sen. Jeff Bridges for acting as prime sponsors for this legislation.

The COVID-19 pandemic has shown how our health depends upon our neighbor’s ability to access the health care they need. SB 215 would capture fees already being paid by insurance carriers to: Continue Colorado’s successful reinsurance program for an additional five years without any cost to the state general fund; improve the buying power of federal tax subsidies for individual-market consumers; and create more affordable health insurance options for people left out of the Affordable Care Act — including individuals in the “family glitch” and people without documentation. The bill passed with bipartisan support and is heading to the governor’s desk.

Housing
Earlier in the legislative session, lawmakers introduced HB 1196 and HB 1201 to amend the Mobile Home Park Act and provide more stability for Coloradans living in these neighborhoods. Both now head to the governor’s desk. Thanks to all the legislators who sponsored supported these important bills that will make a difference for homeowners residing on rented lots. Also, thanks to our partners, notably 9to5 Colorado, for being such great champions of this legislation.

In 2019, CCLP led a bill that established the first-ever legal defense fund for Coloradans facing eviction. Although the eviction defense fund was cut from $750,000 to $600,000 in the long bill, an additional $350,000 in funding was added as part of HB 1410, giving eviction defense a short-term boost when it is most needed. An attempt to increase funding for Eviction Legal Defense by raising the fee to file evictions, HB 1405, failed this year.

Also regarding evictions, HB 1009 was approved by both chambers and signed into law on March 20 and will become effective on Dec. 1 of this year. The bill will keep eviction records from public view so that tenants will not have to face a barrier to housing because of a filing that’s been dismissed or still pending. Thanks to all partners and legislators (particularly Rep. Dominique Jackson and Sen. Faith Winter) who supported this important tenants’ rights legislation.

Income
Last week, SB 29 passed through the House and is on its way to the governor’s desk. Thanks to Colorado Children’s Campaign for a great partnership on this bill. As amended, the legislation would provide a one-time $500 basic needs payment to every family enrolled in Colorado Works- Colorado’s Temporary Assistance to Needy Families (TANF) program.

As mentioned earlier in this posting, HB 1420 will expand Colorado’s EITC from 10 to 15 percent of the federal EITC. Also, starting in 2022 immigrant tax filers will be eligible for the state EITC for the first time. Near the beginning of the session, lawmakers introduced HB 1203, which would have expanded the state Earned Income Tax Credit (EITC) and commenced the payment of the Child Tax Credit by changing tax deductions for corporations. However, bill sponsors Rep. Emily Sirota and Rep. Matt Gray pulled HB 1203 in favor of HB 1420, without the Child Tax Credit, but with a different funding mechanism to pay for the expansion. Though the scope of HB 1420 has been narrowed, the expansion of the EITC will make a meaningful difference for hard-working Colorado families. Thanks to Colorado Fiscal Institute and all who supported this important bill.

Despite the progress mentioned above, there’s still much work to be done. Governor Polis’s new Executive Order on Evictions requires landlords to give 30 day notice for eviction for non-payment of rent, rather than the existing 10 days, encourages landlords to work out repayment plans with tenants, we question whether this is enough to address the critical housing-security issue–  given the severity of the economic downturn triggered by the pandemic We encourage the governor to seek longer-term policy solutions to what could degenerate into a grave problem of rising homelessness

Although the scaled-back HB 1420 will prevent some cuts in the state’s budget, it’s apparent that Colorado will need more revenue to successfully recover from the economic downturn. Voters may get a chance to address this issue in the November election if Initiative 271 (the Fair Tax Colorado proposal) gets on the ballot. Unfortunately, even if the measure is approved by voters, it will only provide fiscal relief for the state after 2021.

Finally, we commend legislators for passing SB 217, the Enhance Law Enforcement Integrity Act. If signed into law by the governor, the bill makes Colorado among the first states in the country to tackle wholesale, statewide police accountability reform. Equity is central to CCLP’s vision, mission and values and while there’s much work to be done in this area, the broad bipartisan support this bill garnered is an encouraging sign that change is afoot

All in all, we’re pleased that legislators made poverty and equity issues a major priority in 2020, despite severely diminished financial resources and a lack of time. Rest assured, the advocates at CCLP are already rolling up their sleeves for the 2021 session in defense of Coloradans facing poverty.

List of fact sheets from this legislative session:

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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.