May 14, 2018

Monday, May 14, 2018

Work Requirements Could Reduce Access to SNAP and Medicaid

We’re taking a look at the latest on legislation at the federal level and in Lansing that could add work requirements for recipients of the Supplemental Nutrition Assistance Program (SNAP) and recipients of Medicaid.

Fast facts about employment for Medicaid and SNAP in Michigan:

  • Crain’s Detroit Business reports, “About 60 percent of Michigan's nondisabled adult Medicaid enrollees are working, and 75 percent live in a working family, according to the nonpartisan Kaiser Family Foundation.”

  • According to the latest data shared by MLive, nearly 75 percent of Michigan SNAP households are working and earning income. The breakdown shows 49 percent of Michigan SNAP households had one worker in the home and 26 percent had two or more workers in the household.

The Michigan League for Public Policy (MLPP) shared in recent briefs some of the barriers that new work requirements could create for recipients of both SNAP and Medicaid in Michigan, causing them to lose their benefits.

This includes:

  • For those who are working their work hours may fluctuate and could fall below the required threshold.

  • They’re between jobs but actively looking for work.

  • New paperwork requirements could create a barrier for some to navigate and complete.

  • They’re actually exempt but don’t understand they qualify for an exemption or have difficulty providing the required documentation.

The Farm Bill and SNAP

The Farm Bill currently under consideration in D.C. would create new stricter work requirements for SNAP recipients which the Congressional Budget Office (CBO) estimates could lead to 1.2 million adults losing their benefits.

The urgency to protect SNAP has organizations around Michigan, including the United Way for Southeastern Michigan, asking the public to protect SNAP by calling on their lawmakers to reject the House version of the Farm Bill.

A new Center on Budget and Policy Priorities (CBPP) brief highlights the CBO’s recent analysis of the House Agriculture Committee’s Farm Bill.

Highlights of CBPP’s brief:

  • About 1.2 million adults would lose SNAP benefits due to the proposed stricter work requirements. About 62 percent of those adults have children living in their home.

  •  The CBO estimates that only 2 percent of those newly subject to stricter work requirements would meet the requirement by participating in a training program. That amounts to only about 110,000 people. By contrast, CBO assumes that roughly 2 million people, or 24 percent of the group would lose SNAP.

  • The work requirements would go into effect as soon as 2021 but it’s likely states would need more than two years to create new employment training and opportunities.

  • The CBO estimates implementing this change and tracking the work status of recipients would lead to increased costs for the state and $7.7 billion in federal administrative costs.

Nearly one in seven Michigan residents receive SNAP benefits.

Here’s a breakdown of SNAP/food assistance recipients:

  • Statewide: 14.7 percent of Michigan residents receive food stamps or SNAP assistance

  • Northern Michigan: 15.6 percent receive food assistance

  • Mid-Michigan: 14.9 percent receive food assistance

  • West Michigan: 13.9 percent receive food assistance

  • Southeast Michigan: 11.6 percent receive food assistance

Medicaid Work Requirements Update

Meanwhile in Lansing, legislation that would add work requirements for Medicaid recipients in Michigan is now before the House and could go for a vote before lawmakers break for recess in June. It passed in the Senate a couple of weeks ago.

As CMF reported, the legislation in its current form would require Medicaid recipients to work about 29 hours per week and include audits to see if recipients are meeting work requirements.

Last month we provided a deep dive into the data of Medicaid recipients in Michigan who are working and the potential effects of the work requirements on the Healthy Michigan Plan (HMP). Check out the data.

HMP provides about 672,000 low-income residents access to health care. View the number of recipients in your county. If this legislation is enacted, the House Fiscal Agency estimates that up to 105,000 Michigan residents could lose their health care coverage.

MLPP shares that the administrative costs to the state to implement this work requirement program range from $20 to $30 million.

The Michigan Health and Hospital Association (MHA) submitted written testimony to the House Appropriations Committee opposing the legislation. 

The governor is in talks with lawmakers to see if changes can be made to the bill.

Want more?

Take a deeper dive into our previous coverage: USDA Wants to Hear from You About SNAP and Medicaid Work Requirements Under Consideration.







MI Collaborative Fund Leads to $188M in MI Investments

We’re getting a first look at an impact report from the Michigan Collaborative - a fund that’s available to CMF members to provide opportunities for investment in Michigan in affordable housing, targeted small business lending and civic infrastructure as mission-related investments in their endowment portfolios. 

The Michigan Collaborative, managed by Community Capital Management (CCM), launched last year to provide foundations with the opportunity to invest in targeted fixed income investments in specific geographical areas in Michigan through CCM’s publicly traded mutual fund, the CRA Fund. 

CMF members such as the Battle Creek Community Foundation have already invested in the fund. CMF is also an investor.

CCM is sharing its new report on the investments made through the Michigan Collaborative during the first quarter of 2018.   

According to the report, as of the end of March, the Michigan Collaborative has led to $188 million in impact investments throughout Michigan’s urban and rural regions, generating the following:

  • More than 850 home mortgages for low- and moderate-income borrowers.

  • The development of 7,700 affordable rental units.

  • $36 million in statewide home ownership and down payment assistance programs.

  • $2 million invested in enterprise development and job creation.

  • $11 million in economic development, environmental sustainability, neighborhood revitalization and healthy communities.

Areas of impact by investment:

  • The impact theme with the largest investment allocation was affordable housing, garnering 45 percent of targeted investments. 

  • About 25 percent of investments were targeted to accessible housing for senior citizens and people who are differently abled.

  • Other areas include minority neighborhoods (20 percent), environmental sustainability and rural community development (each, 5 percent). 

We’re also learning about what these investments look like on the ground in communities. For example, one Michigan investment was a loan to Lutheran Social Services used to develop Allen Manor, an affordable rental property for seniors.

Allen Manor features 24 one-bedroom apartments for senior citizens meeting HUD income guidelines. Residents’ rent is set at 30 percent of their adjusted monthly income and includes heat, water and trash. Two of the apartments are barrier-free, with an elevator, community room and laundry facilities.

Another investment went to the Michigan State Housing and Development Authority (MSHDA) and is expected to be used to develop Silver Stone Townhome and Riverview Terrace. 

Silver Stone Townhome is a low-income housing tax credit property; the investment will lead to the development of 105 affordable homes for families, including accessible units for those who are differently abled.

Riverview Terrace is a newly updated affordable rental property for seniors and those who are differently abled. The complex is located near shopping, restaurants and local medical facilities in a non-metropolitan area that faces transportation challenges.  

“These examples illustrate the power of impact investing,” Jennifer Oertel, CMF’s impact investing expert in residence said. “In one three-month time period, through just this one fixed income investment vehicle, funds were deployed to create affordable, and in some cases barrier-free, housing for up to 466 people.”

Want more?

Read the full report from CCM.

Learn more about The Michigan Collaborative. 

Check out CMF members’ impact investing work in action. 







The State of the Nonprofit Sector

The Nonprofit Finance Fund (NFF) recently released the results of its State of the Nonprofit Sector survey. NFF, a social sector lender and consultant, has surveyed nonprofit leaders across the country on the financial, programmatic and organizational health of their organizations for the last eight years.

This year’s results reflect responses from 3,369 individuals in nonprofits with total operating expenses ranging from $50,000 to over $20 million.

Three key trends were identified in NFF's findings:

  • The demand for services is still rising faster than nonprofits’ ability to meet it.

    • 86 percent of respondents say the demand for services keeps rising.

    • 57 percent say they can’t meet demand; that figure rises to 65 percent among nonprofits that serve low-income communities.

  • Despite the challenges, nonprofits continue to invest in programs, staff and strategies.

    • 54 percent increased staff and 55 percent increased compensation in 2017.

    • 52 percent expanded services in 2017 and 63 percent plan to do so in 2018.

    • 68 percent plan to partner or collaborate with other nonprofits in 2018.

    • 37 percent plan to formally engage in advocacy or policy in 2018.

  • Nonprofit leaders worry on behalf of the people they serve.

    • Affordable housing is the most-cited critical client need (40 percent). Many CMF members are working in affordable housing statewide. As CMF reported, Michigan ranks 6th in the country for the population of homeless students.

    • Other top needs include youth programs (24 percent), mental and behavioral health services (22 percent) and financial capability (21 percent).

This year’s survey was unique in that questions were added to capture information on nonprofits’ leadership diversity and their focus on racial inequity. Highlights:

  • 44 percent increased leadership and staff diversity in 2017; 60 percent say they plan to increase leadership and staff diversity in the next 12 months.

  • 63 percent report that their work includes addressing racial inequity. That number jumps to 79 percent when looking at Michigan alone.

When looking at whether nonprofit organization leaders include individuals who identify as people of color, Michigan again seems to be well above national numbers.

  • Of the 77 Michigan respondents, 36 percent share that more than half of their board members identify as a person of color compared to 17 percent of respondents in all other states.

  • Of the 76 respondents from our state, 30 percent report that the executive director or CEO identifies as a person of color compared to again only 17 percent of other nonprofit organizations.

  • Of the 76 respondents from Michigan, 37 percent say more than half of their senior leaders identify as people of color; that number drops to 20 percent in all other states.

Work focus areas are more closely aligned. Both in Michigan and across the nation, human services, housing/shelter, education and arts/culture all rank in the top focus areas with slight differences in their rank order. Work connected to youth and civil rights/advocacy are slightly more common focus areas in Michigan.

Focusing on those they serve; 71 percent of the responding 82 Michigan nonprofit leaders report that they primarily or exclusively serve low-income populations compared to 64 percent nationally.

NFF suggests the survey data be used to open conversation on issues that can be challenging discussion topics.

“Constructive dialogue on how nonprofits are facing challenges and planning for sustainable futures is essential to move the dial on community issues,” Kerry Sullivan, president, Bank of America Charitable Foundation, said in an NFF press release. “The survey findings can help further inform funder-nonprofit conversations on strategic support.”

Want more?

Take a deeper dive and customize the data and download ready-to-use charts.








5 Healthy Towns Foundation recognized by Michigan lawmakers for work to create healthier communities

The Michigan Senate recently recognized the 5 Healthy Towns Foundation (5HF) for its significant contributions to create healthier communities.

The Senate adopted a resolution commending 5HF for its work engaging “communities to support healthy living through grassroots coalitions to encourage healthy choices like eating better, moving more, avoiding tobacco and other unhealthy substances and making healthy connections in their community.”

5HF serves a five-town area which includes residents who live in the school districts of Chelsea, Dexter, Grass Lake, Manchester and Stockbridge.

“We have tremendous support from the senators in and around our service area,” Amy Heydlauff, CEO of 5HF said. “We are particularly grateful to Senators Joe Hune (who introduced the resolution), Rebekah Warren and Mike Shirkey.”

A few of the recent projects supported by 5HF include substance abuse prevention programming for junior and senior high youth, a wellness challenge for all adults in Stockbridge, intergenerational gardening in Chelsea and a Farm to School program for Dexter students.

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