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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Day: March 16, 2010

For-profit Colleges and Trade Schools

In hard times, lured into trade school and debt, By Peter S. Goodman, March 13, 2010, New York Times: “One fast-growing American industry has become a conspicuous beneficiary of the recession: for-profit colleges and trade schools. At institutions that train students for careers in areas like health care, computers and food service, enrollments are soaring as people anxious about weak job prospects borrow aggressively to pay tuition that can exceed $30,000 a year. But the profits have come at substantial taxpayer expense while often delivering dubious benefits to students, according to academics and advocates for greater oversight of financial aid. Critics say many schools exaggerate the value of their degree programs, selling young people on dreams of middle-class wages while setting them up for default on untenable debts, low-wage work and a struggle to avoid poverty. And the schools are harvesting growing federal student aid dollars, including Pell grants awarded to low-income students…”

State Cuts to Programs for the Poor – New Jersey

Budget cuts could hit low-income NJ residents, By Geoff Mulvihill (AP), March 15, 2010, Philadelphia Inquirer: “New Jersey’s days as a place where the government is unusually generous to the needy may be numbered as a new governor pushes wide-ranging spending cuts to solve a deep budget crisis. Gov. Chris Christie is set to unveil his first spending plan Tuesday after months of preaching shared sacrifice. From what he’s done so far, it’s clear that applies to lower-income people, too, in a state that’s among the most generous in the nation when it comes to unemployment benefits and taxpayer-funded health care for the working poor. Already, he has cut the state’s mass-transit subsidy and stopped enrolling some lower-income adults in a subsidized health insurance program. He’s also proposed reducing weekly unemployment checks and, even before he was sworn in, hinted that food banks could see their state aid cut and told hospitals their reimbursements for treating the indigent will be cut in June…”

State Medicaid Cuts

  • With Medicaid cuts, doctors and patients drop out, By Kevin Sack, March 15, 2010, New York Times: “Carol Y. Vliet’s cancer returned with a fury last summer, the tumors metastasizing to her brain, liver, kidneys and throat. As she began a punishing regimen of chemotherapy and radiation, Mrs. Vliet found a measure of comfort in her monthly appointments with her primary care physician, Dr. Saed J. Sahouri, who had been monitoring her health for nearly two years. She was devastated, therefore, when Dr. Sahouri informed her a few months later that he could no longer see her because, like a growing number of doctors, he had stopped taking patients with Medicaid. Dr. Sahouri said that his reimbursements from Medicaid were so low – often no more than $25 per office visit – that he was losing money every time a patient walked in his exam room. The final insult, he said, came when Michigan cut those payments by 8 percent last year to help close a gaping budget shortfall…”
  • Medicaid puts Missouri governor in a bind, By Virginia Young, March 15, 2010, St. Louis Post-Dispatch: “‘Don’t cut care,’ pleaded the sign held by a group of people whose wheelchairs lined a Capitol hearing room. It looked like 2005, when then-Gov. Matt Blunt and the Republican-controlled Legislature cut 100,000 people from Medicaid, the government’s health care program for the poor. But this protest was held last month. The target: Gov. Jay Nixon. Yes, Nixon, the Democrat who promised to expand Medicaid, is seeking $120 million in health care cuts to buoy the sagging state budget. And in a role reversal that illustrates the political quagmire that Medicaid poses for Nixon, it’s the Republican Legislature that is balking…”
  • Cuts might be avoided with Medicaid bailout funds, Associated Press, March 16, 2010, Augusta Chronicle: “South Carolina lawmakers on Monday approved plans that would avoid all cuts in health and medical programs by using federal Medicaid bailout cash. With a 96-6 vote, the House approved a measure that uses $173.6 million in federal Medicaid money to eliminate planned reductions for the Department of Disabilities and Special Needs, prescription drugs and other programs. But if the federal money — which has yet to win final approval in Washington — doesn’t materialize, the spending reductions would take effect, said House Ways and Means Committee Chairman Dan Cooper, R-Piedmont…”