City Report Exposes Serious Flaws in Welfare Reform

A powerful new report released last week by the Comptroller's office provided further evidence of serious flaws in welfare reform and job training in NYC. The report details many inadequacies in the more than $44 million spent each year on contracts for employment services and placement efforts for New Yorkers leaving welfare.

1) As explained on page 19 of the report, City contracts provide bonuses to contractors for placing people in "high wage" jobs, defined as jobs that pay a weekly wage of $344.25. Equaling only $17,091 per year, such "high wage" jobs would relegate most New Yorkers to an insecure financial existence, and actually place families of four or more below the federal poverty line.

2) To make matters even worse, the City gives these "high wage" bonuses to contractors even when wages are far below this level. Out of three such bonus payments found from of a random sample, one job paid a weekly wage of $150 (equaling $7,000 for a year) and one paid a weekly wage of $193 (equaling $10,036 for a year). Imagine that - New York tax dollars being used to reward contractors for providing jobs that pay less than half the poverty line for a family of three!

Note that even in times of high unemployment following the 2001 recession and 9/11, the City's welfare rolls were not allowed to grow to meet the extra, urgent need. And in recent years, the City's job placement rates fell sharply even as welfare rolls continued to decline. Even though the official unemployment rate is lower today, the City has again lowered its job placement targets to only 80,000 people for 2007 in an effort to "move the goalposts" based on prior failures. As of May 20, 2007, the City had only placed 24,216 people in jobs - 30% of its target for the year.

The City has explained that these reduced job placement rates are a function of the fact that the people remaining on the welfare rolls tend to have more barriers to employment. That is certainly true. But it doesn't explain why the welfare rolls are continuing to decrease at a time when job placements are also decreasing.

It is more than fair to ask whether such continued reductions in the public assistance rolls are responsible, at least in part, for the growing poverty, hunger, homelessness, and inequality of wealth in New York City.

Details of Poverty Payments Announced

Yesterday, City officials announced details of a new program aimed at paying low-income families for performance on metrics like school exams, keeping a full-time job and having health insurance.

The Mexican model for the program, called Oportunidades, is intended to ease the economic difficulties associated with meeting such goals, which often require low-income earners to take time off work in order to apply for benefits or assist their children. The long-term goal of the program is to enhance the next generation of workers.

When it was initially announced, the Coalition Against Hunger expressed its support for such innovative thinking, but warned that a program focused only on bettering personal behavior would not be enough to help the 20% of New Yorkers living under the poverty line.

(Covered by CNN, the New York Times, New York Post and Daily News)

The Rich Get Richer While...

Newly revealed federal data shows how $9.8 billion in farm and land subsidies was handed out to billionaires and investors - some of whom don't live anywhere near a farm. Farm and land subsidies are designated by the USDA, as is the federal Food Stamp Program, through the Farm Bill. While philanthropist David Rockefeller, Microsoft billionaire Paul Allen, and former NBA star Scottie Pippen each received thousands of tax dollars in the form of farm subsidies, participants in the federal Food Stamp Program now receive an average of $1 per meal per person. While people applying for Food Stamps have to go through a complicated, often drawn-out process to prove they deserve at least $1 for a meal, billionaires and investors receive farm and land subsidies - few questions asked.

Nutritional Labeling Rule Challenged

Today the New York State Restaurant Association (NYSRA) filed suit against the NYC Board of Health in an attempt to stop the implementation of a new citywide rule designed to give fast food consumers more nutritional information with which to make buying decisions.

While the NYSRA raised the spectre of Big Brother and government bureaucracy in their heavy-handed press release, the Center for Science in the Public Interest dismissed the suit, calling it "desperate" and "malevolent."

The Coalition Against Hunger has previously marked its support for the rule provided that it is fairly administered, citing the over-abundance of fast food restaurants in low-income neighborhoods and the positive effect that better information could have on unhealthy consumption habits.

(Update: The NYSRA's suit has succeeded in delaying implementation of the rule, which has also been formally snubbed by McDonald's, from July 1 to October 1 of this year )

NY Post to Hungry People: You're Mentally Ill

Following the Spitzer Administration's announcement last week of enhancements to the Food Stamps Program in New York State to help more working families, the New York Post published an ill-informed editorial that slammed the move as welfare "trolling" and went so far as to claim that "nobody of sound mind goes hungry in New York."

The Coalition Against Hunger's Joel Berg fired back in a letter to the editor that (surprise!) went unpublished, pointing out that the Post is trying to have its welfare policy two ways: "On the one hand, you want more people to move from welfare to work, but, on the other hand, you ignore the reality that food stamps benefits are one of the most important tools to help families successfully make that transition," stated Berg. "Governor Spitzer should be hailed for rewarding work."

Colbert Highlights Food Stamp Challenge

Last week, faux conservative comedian Stephen Colbert highlighted the efforts of Illinois Congress Member Jan[e] Schakowsky as she took part in the national Food Stamp Challenge.

The segment focused on the pervasive myth that rising rates of obesity and diet-related disease among low-income families are somehow proof of overnutrition - a notion Colbert proceeded to mock through a mouthful of cheap pork rinds and marshmallow fluff.

What Does Hunger Cost?

On Tuesday, the New York City Coalition Against Hunger released its local analysis of a national report calculating the economic costs of hunger. In a WBAI radio interview with Hugh Hamilton, NYCCAH's Director of Programs and National Service JC Dwyer explained the significance of these findings for New Yorkers.

Spitzer Eases Food Stamps Access for Working Families

Anti-hunger advocates today hailed the National Hunger Awareness Day announcement by the Spitzer Administration that the State would take a number of significant steps to make it easier for all eligible New Yorkers, and particularly low-income working families, to access federal food stamp benefits.

For all food stamps applicants, the State will eliminate the assets cap (currently $2,000 for most families). For working families, the State will enable people to apply for and maintain eligibility for benefits on-line and over the phone rather than be forced to physically visit a government office. The State will also waive finger-printing requirements and reduce reporting requirements for such families.

Said Joel Berg, executive director of the New York City Coalition Against Hunger: "We are particularly excited that, by eliminating the limit on resources that families can own and still receive food stamp benefits, the State is making it easier for parents to feed their families and at the same time be able to save money to send their kids to college, buy a first home, start a small business, and/or open a retirement account."

(Note: This story was covered by the Albany Times-Union, Associated Press (1, 2), New York Press and WNYC, and in advance by the New York Daily News)

Study: Hunger Costs New York City $2.65 Billion Yearly

New York City pays an estimated $2.65 billion per year due to health care spending, reduced productivity, and other spending caused by the fact that 1.3 million city residents are forced to live in households that cannot afford enough food, according to new data released today by advocates to mark National Hunger Awareness Day. The cost to each city resident is $335 per year.

According to a national study released today by Dr. Larry Brown of the Harvard University School of Public Health, it costs the nation $90 billion a year to let 35 million people live in households that are unable to afford enough to eat. This is the first-ever study to calculate the cost of hunger and food insecurity not only for the victims but for the entire nation. The New York State portion of this bill comes to $5.37 billion a year, equaling a yearly cost of $278 per state resident. Senator Hillary Rodham Clinton noted the study on her website, stating, "These are staggering statistics that must not be ignored."

"We’ve known for quite some time the heart-breaking reality that, when families can’t afford enough food, their quality of life suffers in many ways." said Joel Berg, executive director of the New York City Coalition Against Hunger. "As a result of this groundbreaking study, we also know much more about how much the persistence of hunger costs all of us."

Upstate Advocates Applaud State Assembly for Passing Healthy Schools Act

Yesterday, upstate advocates applauded the passing of the Healthy Schools Act (A8698), a bill that if it were to become law would increase the quality of free school meals statewide, including New York City.

"We especially applaud the effort to expand the school breakfast program, increase state funding for school meals, and eliminate junk food from our schools," said Mark Dunlea, Associate Director of the Hunger Action Network of New York State.

The bill now faces passage in the State Senate. If you want to let your State Senator know how you feel about this bill, you can find his or her contact information using NYPIRG's Who Represents Me? database.

Gioia Pressures Costco to Accept Food Stamps

City Councilman Eric Gioia recently wrote a letter to the president of Costco, the large discount warehouse retailer, asking the company to start accepting food stamps. After taking the Food Stamp Challenge and living on the average weekly allotment of $28, Gioia is even more sensitive to the fact that poor New Yorkers are unable to eat nutritious, balanced meals on such a meager budget. By getting discount retailers, such as Costco, to accept food stamps, poor New Yorkers will have access to healthy food at more affordable prices. Costco president James Sinegal contacted Gioia's office to say he is considering it.

Advocates Hail Bloomberg, Quinn Food Announcements

Anti-hunger advocates praised New York City Mayor Michael Bloomberg and Council Speaker Christine Quinn for announcing three hunger and nutrition-related initiatives today.

Included among these announcements was the unveiling of a new Paperless Office System (POS) Food Stamps Project, in which five pilot sites at soup kitchens and food pantries are now accepting applications for Food Stamps directly (see a map). The program, a collaboration between community partners, the City, FoodChange and the Coalition Against Hunger, has already enrolled 92% of the clients who have availed themselves of the service in the Food Stamps program.

Said Coalition executive director Joel Berg, "We are grateful to HRA, FoodChange, and our neighborhood-based partners for achieving significant success on this project in its very initial stage. So far, this joint project is truly a ‘win-win’ solution.”

(Update: this story was covered by the New York Post, WNYC, the Staten Island Advance, the Queens Gazette and the Brooklyn Downtown Star.)

Upstate Press Praises Schumer's Farm Bill Proposal

Yesterday, the Rochester-based Democrat & Chronicle published an editorial praising Senator Charles Schumer's recent legislation aimed at influencing the Farm Bill. The editorial called on upstate legislator Rep. Randy Kuhl to join Schumer in his call for indexing the benefits of the Food Stamps program to inflation.

Also notable in the public comments of this story is a variation on the old "food stamps buy steak and shrimp" myth. This myth has pervaded the public comment sections of many stories associated with last week's Food Stamps Challenge, often using similar language and style.

Peer-reviewed research on the Food Stamps program has concluded that participation does not affect diet negatively. Neither has any evidence been found that food stamps increase obesity and diet-related diseases, despite a multi-year panel convened by the USDA to examine just this question.

Gioia Reflects on Food Stamp Challenge

Yesterday, Queens-based NYC Council Member Eric Gioia submitted an op-ed to the New York Daily News reflecting on his week living on a food stamps diet and calling for progressive change at both local and federal levels.

Gioia rightly opined: "Government can't promise that everyone will be rich, but it should guarantee that no child goes hungry."

Spitzer's Council Could Reduce Hunger, Aid Farmers

Governor Spitzer has signed an executive order creating a New York State Council on Food Policy. Anti-hunger advocates, farmers, nutritionists, and other food related organizations see this announcement as a huge victory as they have been calling on the State to create such a council for many years. Executive director of the Coalition Against Hunger, Joel Berg, called Spitzer's order a "bold advance that will allow us all to better work together with State agencies to achieve our mutual goals of decreasing hunger, helping family farmers stay on their land, improving nutrition, bolstering our economy, and reducing obesity.” Read NYCCAH's press release here.

Harlem Short on Healthy, Fresh Foods

A new study by the New York City Department of Health concludes that neighborhoods like East Harlem have a much higher percentage of fast food restaurants and small retailers that have difficulty selling nutritious food than ritzier neighborhoods like the Upper East Side. Gothamist, NY Metro (p.4), the New York Post and Newsday covered this story, which sounds awfully familiar to us...

Food Stamps Challenge Raises Awareness in Congress

The week-long Food Stamp Challenge was concluded yesterday by NYC Councilmember Eric Gioia and NYCCAH Executive Director Joel Berg in the halls of Washington, where the two met with New York Representatives Crowley, Meeks, McGovern and Rangel to push for enhancements to the Food Stamps Program in this year's Farm Bill.

Rangel, the head of the House Ways & Means committee that is crucial to funding the enhancements, was quoted by the NY Daily News as supportive: "On questions of nutrition, health, education ... how do we explain to people that we are being fiscally responsible as their bodies and their minds fall apart?"

The Challenge was recently covered nationally by ABC News and The New Yorker as well as locally by WNYC, Gothamist and the Queens Tribune, Times-Ledger and Chronicle.

NYCCAH Celebrates 1st National AmeriCorps Week

This week the Coalition Against Hunger helped organize New York City's participation in the first National AmeriCorps Week. This inaugural event consisted of a full week of events and volunteer activities throughout the city performed by current AmeriCorps and VISTA members, as well as alumni, grantees, and friends of AmeriCorps.

The purpose of National AmeriCorps Week is to bring more people into national service, as well as highlight the broad impact AmeriCorps has throughout the United States and in individual communities. There are thousands of AmeriCorps and VISTA members participating in national service at hundreds of non-profit agencies in New York City alone! If you or someone you know may be interested in joining the Coalition's AmeriCorps teams, learn more here.

Gioia and Berg Respond

Last week New York Magazine published a somewhat satiric article on New York City Councilman Gioia's participation in the Food Stamp Challenge that implied that all New Yorkers are already well aware of the limited and poor diet people on food stamps are forced to endure. This week the Magazine published letters from Councilman Gioia and Joel Berg Executive Director of the New York City Coalition Against Hunger countering the article's erroneous and misleading message. Read their responses here.

Life On Food Stamps Weighs On Councilman Gioia

Only one day into the Food Stamp Challenge New York City Councilman Eric Gioia started to feel the pangs of hunger that come with living on the meager food stamp allotment of $28 per week, according to an article in the Daily News. Gioia admitted to serious food cravings, especially when he sat down to dinner with his family who were enjoying a meal of lasagna, baked ziti and stuffed mushrooms, while he was limited to a ration of pasta with tomato sauce from a jar and a few slices of cucumber. His family is not participating in the Food Stamp challenge with him, as he has a baby daughter whom Gioia said, "just couldn't survive" on food stamps.

Now halfway into his week on the Food Stamp Challenge, Gioia has gained 2 pounds due to having to buy the cheapest food, which also tends to be the least nutritious. On his limited food stamp budget, he is forced to buy carbohydrates and items such as "sandwich slices" that are full of excessive amounts of salt, fat, and calories. Dr. Lara Kross of Brooklyn's Long Island College Hospital looked at Gioia's shopping list for the week, and said that living on such a diet for a week would not be too harmful, "But if he was eating like this long-term, I would worry about an increase in cholesterol and high blood pressure. Heart disease could also be a problem."

Four U.S. Representatives, James McGovern (D-MA), Jo Ann Emerson (R-MO), Jan Shakowsky (D-IL), and Tim Ryan (D-OH), have joined the Food Stamp Challenge and pledged to live on an average food stamp budget of just $3 a day from May 15-21, 2007. They have invited other Members of Congress to join them in the challenge.