Notes
Slide Show
Outline
1
Two Simple Programs for Ending Child Poverty
  • Chapter 11
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Children and Elderly in Poverty, 1959-2000
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California
  % in Poverty  # in Poverty  
  Children   19%        2,223,674
  Seniors      8%           302,016
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Social Security


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Increasing Social Security Coverage of Seniors
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Reduction of Poverty from Government Programs for Children and Elderly (1998)
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The Impact of Social Security on Poverty among Seniors (2000)
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Relative Importance of Social Security Income for the Aged, 2000
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Social Security Programs
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Income Support Programs for Young Children and Seniors
(in Millions)
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Income Support Programs for Young Children and Seniors (Amounts in Billions)
  • Seniors (N = 41 million)
  •  Universal
  •    Social Security 352.7
  •    Medicare  Part A 128.5
  •    Medicare  Part B   89.0
  •  Means-tested
  •    SSI   11.0
  • Children 0 -  6   (N = 25 million)
  •  Universal
  •    None
  •  Means-tested
  •    TANF 22.8
  •    Head Start   3.5
  •    Child Welfare      .2
  • Adoption Subsidy     .9
  • Medicaid/SCHIP ___


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Should Welfare be Reinstated?
  • Unlikely to happen


  • Improve programs for children
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Three Major Programs for Children
  • Children’s Allowance


  • Child Support


  • Child Care
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Children’s Allowance
  • What is it?


  • Why?


  • What do other countries do?


  • Does the U.S. have a children’s allowance?
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Children’s Allowance Programs
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Children’s Allowance in the U.S.
  • Tax exemption


  • Problem with this approach


  • Value to poor children


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Bundling
  • The core problem of welfare
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Brookings bottom 20%
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Brookings 2nd bottom 20%
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Welfare Tax Rate
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Guaranteed Child Exemption
  • Like a tax credit


  • Double the exemption, if no mortgage deduction
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Child Support
  • Do we effectively collect child support in the United States, or in California?


  • How is child support treated in other industrialized countries?


  • Can we effectively collect child support?
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Collecting Child Support
  • 14 million parents had custody
  • 7.2 million had child support awards


  • Of those with awards, 29.1 billion due for the half with awards.
  • 17.1 billion collected.
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Collecting Child Support
  • Estimated 60 billion in child support due.


  • 17.1 billion collected.


  • In the latest data from Office of Child Support Enforcement, 84 billion in arrears, of which about 4 billion a year is collected.
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Child Support for the Poor
  • More than ¾ of children in poverty that should receive child support fail to do so.


  • The average child support for the child in poverty is $1.54 a day.
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Collecting Child Support
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Countries that Provide an Advance Maintenance Payment of Child Support
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Child Care
  • Situation for parents needing child care in California


  • What do other countries do?


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Percent of Children Age 3 to School Age Enrolled in
Publicly Financed Child Care Facilities
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Child Support Collections
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Advance Maintenance Payment
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Average TANF Payment
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Stakeholder
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Bold Challenge
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Stakeholder 2
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Stakeholder 3
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Child Future Savings Account
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529
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529 Rules
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future