Federal Safety Net “Big Dollars”

1. Federal Safety Net“Big Dollars” FederalSafetyNet.com

2. Federal Expenditures – FY 2012In Billions FederalSafetyNet.com

3. Federal Welfare ProgramsFY 2012 Expenditures - Billions FederalSafetyNet.com

4. Census Bureau Poverty ThresholdsAnnual Income FederalSafetyNet.com

5. Census Bureau 2012 Poverty Reports • Number of people in poverty • 12.6 Million Individuals • 9.8 Million Families • Income gap to get out of poverty • Individuals averaged $6,542 • Families averaged $9,785 FederalSafetyNet.com

6. Safety Net Review • Cost to move all Americans out of Poverty - $178 Billion • Spent $357 Billion on support for low-income Americans • Where did all the extra go? Who got it? FederalSafetyNet.com

7. “Extra” – People above poverty line Examples • SNAP – 130% of poverty threshold • WIC - 185% of poverty threshold • Rental Assistance – 50% of median income in a local area (50% of median income totaled $24,723 for the U.S. as a whole). Conclusion – We are inconsistent in the definition of who is in need. FederalSafetyNet.com

8. “Extra” – People Moved Above Threshold • Benefits from programs rarely used in income tests for qualification • No maximum number of programs a person can participate in • No maximum benefit or cap Very little information on cumulative use of programs Conclusion – We are inconsistent with the support we give to the poor. FederalSafetyNet.com

9. “Extra” – Administrative Costs USDA – SNAP, Child Nutrition, WIC Social Security Administration – SSI IRS – Negative Income Tax HUD - Housing Assistance U.S. Department of Health and Human Services - TANF, Head Start, Child Care and LIHEAP Department of Education - Pell Grants Department of Labor – Job Training Federal Communications Commission - Lifeline FederalSafetyNet.com

10. First Goal – Educate the Public Federal Safety Net must be viewed in whole (All programs combined) • Ineffective • Expensive • Unfair FederalSafetyNet.com

11. Ineffective System traps the poor – doesn’t empower them • Doesn’t “Make Work Pay” • Penalizes Marriage • Doesn’t encourage increased responsibility • Doesn’t have time limits or goals “Hand Out” Vs “Hand Up” FederalSafetyNet.com

12. FederalSafetyNet.com

13. Expensive Combined program costs are high • Combined benefits are not calibrated to poverty levels • No cap on combined benefits • 13 programs run in 8 agencies FederalSafetyNet.com

14. Unfair • Programs have no consistency in qualification • System is very bureaucratic and hard to use FederalSafetyNet.com

15. Second Goal – Support Welfare Reform Step 1 – Admit we have a problem Step 2 – Address the whole system Step 3 – Define Reform which would include simplification, focus and cost savings (Suggested plan is on the Website) Step 4 – Adopt meaningful change with an act of Congress signed by the President FederalSafetyNet.com

16. Conclusion • We know the Federal Safety Net needs fixing • We can save billions and help the poor. • We need a citizen led effort to affect change • Help us spread the word and participate in our grassroots effort! FederalSafetyNet.com