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

Day: January 3, 2012

Welfare Reform – California

Nation’s largest welfare state makes deep cuts, By Sheila V Kumar (AP), December 28, 2011, Sacramento Bee: “Advocates of welfare reform in California often cite one, eye-popping statistic as they have pressed for cuts and changes to the program in recent years: The state has one-eighth of the nation’s population but one-third of all welfare recipients.Yet steps taken in recent years to cut costs and get more recipients back in the workforce have run head-on into the worst economic conditions since the Great Depression. Recipients have been left with fewer training programs, shrinking welfare checks and a shorter period during which they are eligible to receive assistance at a time when employment prospects for even highly qualified job-seekers are dim.That has led to fear and uncertainty among welfare recipients, many of whom have spent a year or more in job-preparation programs without success…”

State Medicaid Programs

  • State scales back Medicaid shortfall by $300 million, By Jason Stein, January 3, 2012, Milwaukee Journal Sentinel: “In a bit of good news for the state’s strained budget, Gov. Scott Walker’s administration is scaling back by more than $300 million the two-year shortfall projected for state health programs for the poor. But a state health department spokeswoman said that to ensure the state health programs remain affordable, the Walker administration will still seek to proceed with a half-billion dollars in proposed cuts affecting tens of thousands of recipients. In a letter to lawmakers Tuesday, the head of the Department of Health Services said that the shortfall through June 2013 is now expected to be $232 million in state and federal money, down from the $554 million that was projected in September. The change in the projections amounts to about 2% of the funding in the program, Health Services Secretary Dennis Smith wrote in a letter to members of the Joint Finance Committee…”
  • Medicaid payment backlog cripples supportive living centers, By Dean Olsen, January 3, 2012, State Journal-Register: “Medicaid payment delays of up to six months are causing fits for supportive living centers throughout Illinois, and some owners are worried they may have to close if the situation doesn’t improve soon. ‘It’s a crisis for us because reserves and lines of credit are being exhausted,’ Wayne Smallwood, executive director of the Springfield-based Affordable Assisted Living Coalition, said last week. ‘This is the worst we’ve seen, and there’s no relief in sight.’ Illinois’ festering budget problems, the sagging economy and the end of the federal economic stimulus program in June have contributed to growing payment delays that also hamstring nursing homes, hospitals, doctors and other medical providers…”
  • Nowhere to go, patients linger in hospitals, at a high cost, By Sam Roberts, January 2, 2012, New York Times: “Hundreds of patients have been languishing for months or even years in New York City hospitals, despite being well enough to be sent home or to nursing centers for less-expensive care, because they are illegal immigrants or lack sufficient insurance or appropriate housing. As a result, hospitals are absorbing the bill for millions of dollars in unreimbursed expenses annually while the patients, trapped in bureaucratic limbo, are sometimes deprived of services that could be provided elsewhere at a small fraction of the cost…”

State Minimum Wages

  • Minimum wage milestone: Why Washington State surpassed $9 an hour, By Aaron Lester, January 2, 2012, Christian Science Monitor: “Low-wage earners have a little more to celebrate this new year, at least in eight states. In those states, 2012 means a higher minimum wage, under laws that peg the wage floor to inflation. The increase makes Washington the first state to set its minimum wage higher than $9 an hour. Why Washington? Why now? Simple. Washington pegs its minimum wage to the consumer price index, says Paul Sonn of the National Employment Law Project. That means whenever the cost of living increases, so does the minimum wage there  Nine other states do the same. (One of them, Missouri, opted for no change this year, and Nevada’s increase won’t kick in until midyear, leaving eight states where the minimum wage rose as of Jan. 1.) But Washington has been using that CPI-based formula since 2001, longer than any other state, and that’s why its hourly wage is highest…”
  • Raising the minimum wage: Whom does it help?, By Martin Kaste, January 3, 2012, National Public Radio: “For some of America’s lowest-paid workers, the new year means a pay raise. Some states set their own minimum wages, above the federal rate of $7.25 an hour, and that rekindles an old debate over whether minimum wages make sense – especially at a time of high unemployment. Like several other states, Washington state’s minimum wage is indexed to the cost of living. This year, the formula has raised the statewide minimum from $8.67 to $9.04 an hour, making it the nation’s highest statewide rate…”