Tag Archives: budget

An Advocacy Agenda for the End of the Recession

Recession Lane by ZenTraveler, via Flickr Creative Commons

I’m no investment guru. OK, that’s a major understatement. I’m not even responsible for balancing my own checkbook.

But, I read. And, so, I know that the smartest investors and business leaders are planning NOW for the end of the recession, positioning themselves now to take advantage of the opportunities that will arise when the economic conditions improve. The advice, essentially, is that waiting until things get better to make your move will be too late, that we have to step out of our retrenchment, reactive mode and start thinking about what it is that we want and need to get out of the immediate post-recession period, and, much more importantly, how we’re going to get there.

So that has me thinking: what would a post-recession policy agenda look like for the social services? And what should we be doing today to position ourselves to make it a reality?

Becuase we get it. The economy is really bad now. State budgets are horrible. We have a terrible federal deficit and stimulus funds that will run out soon, and our local governments are absolutely in dire need of funds. Not-for-profit organizations are, in many cases, even worse off, because private donations have dropped as well. It’s all bad.

Until it’s not, anymore.

And, then, what are we going to do about it?

Unfortunately, history suggests that the answer may be, “not that much.” Too often, we have failed to demand what it is we know we deserve during the good times, and then we almost completely go away, or at least just fade to defense, during the bad times. I mean, think about it, when was the last time that a state legislature or U.S. Congress ever approached the social work profession and asked, “You know, we have some extra funds right now. What can we do for you?”

They don’t. Which is why we’ve got to be ready. Here, in no particular order, are my 5 things we should demand when this recession ends, and the 5 things we should be doing now to position ourselves to win them. No, 5 is not a magic number here; it was going to be 10, but, you know, I have 3 kids to raise!

Our advocacy agenda for the end of the recession:</strong>

  • Full restoration of cuts in social service and community development programs, and an index for inflation: In the past few months, several people have asked me what I view as the chances that programs will be restored to their full, pre-slash levels. My answer? Almost none, unless we demand it. Yet we cannot let ourselves forget that, even before this most recent round of assaults, services were woefully, and sometimes even dangerously, inadequate. We can’t allow that to happen again. Means-tested benefit levels should be automatically indexed for inflation, both at the individual level and for overall program growth, which will require:
  • Progressive tax policy: We will make a huge mistake if we head into a post-recession period ONLY talking about spending. The truth is that this recession would not have been nearly so painful if not for the widespread and often deep tax cuts at the state and federal levels in the late 1990s and early part of this decade. We need to restore vigor and progressivity to the tax structure, close tax loopholes, and build a strong foundation for the future, in times of feast and famine. And, yes, this means that nonprofits need to get on board with the Obama Administration’s proposed changes to deductible contributions for very high earners.
  • Full restoration of outreach and optional items within entitlement programs: States and localities, in particular, have been quite creative in how they have cut costs in this recession, and we must be vigilant in our post-crisis advocacy. One of the main ways that programs have been cut without being “cut” has been through reductions in outreach and some optional items, because, after all, if no one is applying for a given program, then we don’t have to spend any money on it, right? Only close connection to those most affected by these programs and their reductions can inform our advocacy priorities along these lines.
  • Increases in state institutional aid and federal financial aid for higher education: Of course we social workers are primarily concerned with social services funding–it’s what we do, what pays our bills, and what our clients need, every day. But we also need to be concerned about the future of our profession, and that requires attention to the dramatic rise in college tuition around the country. We can’t build the kind of social work profession we and our clients need if we don’t increase access to higher education.
  • A shift towards instititutional social welfare, starting with universal preschool programs: Enough of the safety net. Why are so many people falling in the first place? We need a transformation in favor of universal supports, and a good place to start is with universal preschool, especially given the increasing recognition of the importance of early childhood education. It’s only a small start–we need universal health care (STILL WAITING, folks), greater investments in housing, maternity and paternity policies, etc…but preschool kids are a good place to start.

    And the 5 things we need to be doing today to get there:

  • Relationships, relationships, relationships: I’m sure that my students are tired of hearing me say this, but it’s really true: relationships are pretty much everything when it comes to lobbying. We can’t afford to sit out this legislative session, or 2011, just because there may not be money to accomplish our ‘wish lists’. We need to be there, making our case, presenting data, organizing constituents, demonstrating that we will never, ever, ever go away.
  • Messaging of economic investment arguments: I firmly believe that we shouldn’t go overboard on the money-saving arguments–some of the things that we need to do are important despite their costs, quite honestly, and we also potentially weaken the moral strength of our arguments–but where we can make the claim, as I believe we often can, that investing in our nation’s human capital will make us better positioned for the next economic downturn, we need to be ready to make that claim, effectively.
  • Voter registration, naturalization, youth voter engagement: Numbers don’t equal power. Anyway you calculate them. BUT, organized numbers are the best way to guarantee a seat at the table and, many times, the substantive policy changes we want and deserve. Check out this map and tell me how happy you are. And now let’s go out and do something to shape the nature of the electorate not only in 2010, but in 2012 and 2014 and 2016, too.
  • Coalition building–we need a ‘big tent’: We need coordinated campaigns that make the case for broad investments in our social infrastructure, not ad hoc and sometimes oppositional appeals for special dispensation here and there. This will take a lot of organizing and may result in some uncomfortable alliances, but we know that it works. I mean, the Joint Chiefs of Staff go in with one united voice, right, and they get what they want. Well maybe we need a Joint Chiefs of the Social Economy, or something, and we need to speak with a big, powerful voice.
  • Organizational capacity for social change, even if that means nonprofit consolidation: I don’t believe that the growth in the number of nonprofits is necessarily a cause for any concern–where there are unmet needs and people with great capacity to meet them, we absolutely need an organizational response to facilitate that. But a post I read recently about the idea of requiring nonprofit peer review before charter got me thinking about the role that mergers and acquisitions play in the corporate world during economic hardship, and the generally-held belief that such processes play a role in the emergence of stronger, healthier corporations post-recession. And that got me thinking about the fact that, while we may not have too many nonprofits in the abstract, we all know of some that just aren’t really doing much, or not doing all that they should, or not doing things as well as they should, or not doing what they could if they were complemented by another organization, or…you get the idea. And, so, I’ll be so bold as to suggest that, in our pursuit of organizational strength and capacity for advocacy, which absolutely has to be a priority as we gear up for the end, we need to be willing to consider consolidation of organizations as a tool in that process.

    All of this said, I recognize that the recession is far from over. The human cost is real and huge. And social workers will absolutely play a key role in stopping the bleeding during the months to come.

    But, to really do justice for those whose lives have been ripped apart by the economic turmoil of the past few years, we have to be ready to act decisively and victoriously when the tide turns. There must be some honor from their suffering.

  • Devolution as Demolition: Social welfare budgets and the states

    Picture1
    Credit: Center on Budget and Policy Priorities

    I had to pretty much completely revise my lectures on state and federal budgetary/fiscal policies for this fall’s Advanced Policies course. I wanted to include content on the federal stimulus, some information on how tax and budgetary policies likely will (and, perhaps even more importantly) will not change under an Obama Administration, and also discuss the extreme fiscal strain on states.

    It was in researching that latter point that the cruelty and profound injustice of our journey towards devolution became so much clearer. It has been at times a slow slide and at other times a dramatic drop, but the end result is clear: states are responsible for more and more of the social welfare functions that the federal government used to provide.

    In much of the professional/academic literature on the topic of new federalism, including that which comes from social workers, this lament is always accompanied by the disclaimer: “but now decision-making is so much closer to the people.” As though we’re comparing equal entities’ provision of service so that, of course, we would prefer that which is more nimble and responsive and “democratic”. Setting aside the not-trivial question of whether state governments really are more accountable and representative, this recession is bringing into focus the fundamental ways in which comparisons between state and federal social welfare systems would be laughable, if the impact wasn’t so tragic.

    To put it in perspective: the combined fiscal capacity ($$$$) of all of the state budgets in the country is only a little more than half of the size of the federal budget. Yes, I know that the federal government is responsible for many things that the states are not (chiefly, national defense) but, in today’s euphemistically titled ‘new federalism’, the reverse is also true. Slice it however you want, wrap it up in pretty ‘responsive, accountable, nimble’ paper, but it’s still means that there’s just not enough to go around when we push things off on state governments that are smaller, more restricted in their revenue generation (especially as states’ tax bases are linked to the federal one, which keeps being eroded), and unable to borrow money (except Connecticut!) when times get really tough.

    I’ve tried all week to come up with an analogy that I think really illustrates this, but here’s the best I could come up with. Hopefully someone has something better that they can post in the comments (hint, hint!)?

    Say you’re really hungry. Really, really hungry. You go to a restaurant, and your choice is between one table, served by the nicest waiter who will let you choose the color of napkin that you want and what music to listen to, will come running anytime you call, and asks for your opinions before making a move. But, at this table, you can only have a small slice of bread or half an apple (you can choose, but that’s all they have). At the other table, there’s no tablecloth, the food is brought out by an unsmiling robot, and you can’t choose what you get, but you’ll get a decent plate of food: say, spaghetti and meatballs (it’s still not 4 star, folks, let’s not kid ourselves). Which would you choose?

    This current recession is not done devastating states. Budget shortfalls are projected to be even worse in Fiscal Year 2011 than they are this year. And this year they’re horrible. As in more than $350 billion dollars, between them, for both years combined. Stimulus dollars cover less than 40% of this gap, so states are slashing budgets for higher education, public assistance, state workforce, K-12 schools, and services for seniors. More than 39 states have already cut programs for their most vulnerable residents. And it’s going to get worse.

    Social work advocates can and should (and MUST) fight these battles in our state legislatures, arguing persuasively for the programs that people need to survive and to thrive. We have to win more of those fights every year. But we also need to point out what governors all over the country are quickly learning: there’s only so much that a state can do. Some of the core services that states are currently cutting should not, really, be their responsibility at all. We have a federal government to provide for our common welfare, not just our collective defense. The era of devolution as demolition needs to come to an end. We need to stop using squishy language about taking government close to the people and start ensuring that people get what they need.

    Should be required reading for all Kansans

    Check out this great article that a terrific statehouse reporter, Tim Carpenter, wrote in today’s Topeka Capital Journal. Tax breaks eroding budget | CJOnline.com

    This should become a major public policy issue. Social work advocates and others concerned about where our state will get the money we need for essential services can’t continue to just fight over how that pie is divided up. We’re obviously not using enough ingredients, to extend the metaphor, so then we can’t be surprised when there’s not enough to go around.

    The continuation of these tax breaks is a reflection both of a broken process–relatively little debate on the tax side of budgetary policy–and an inadequately strong lobby for the strong public expenditures our social contract requires.

    I will raise this issue with my state senator and representative in advance of the 2010 legislative session, asking them specifically if they are willing to support a full review of sales tax exemptions and other tax ‘loopholes’, and which tax exemptions they are willing to repeal. If we can win on this issue, our debates over appropriations will be much less painful.

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    Social Workers and the Politics of Budget Cuts

    The economy is bad. It is. And that means that some pain, including not only that which is visited upon the people we serve directly but also that endured by our nonprofit organizations, is inevitable.

    But inevitability is vastly overstated.

    Social workers run the risk, I believe, of depoliticizing the current battle over investment in our nation’s future and commitment to the most vulnerable by brushing away important questions and needed outrage with a white-washed, ‘the economy is really bad’ explanation that, really, doesn’t explain anything.

    There is nothing inevitable about budget cuts when state revenues are declining. There are, obviously, other alternatives–raising taxes chief among them–and the fact that those alternatives are not chosen says a lot more about the political decisions being made (and the people making them) than it does about the state of the economy. We could be choosing to invest more heavily in programs for people living in poverty (which would make sense because more people are poor), in education (because it’s the most direct link to future economic development), in infrastructure (because it puts people to work while meeting our needs).

    And the fact that we’re not, that we’re slashing spending in ways that mean longer waiting lists for Medicaid waivers, more kids in every classroom, less outreach for children’s health care, fewer supports for vulnerable seniors–that is a fact that is much more political than economic.

    So the next time that you find yourself (or a colleague) bemoaning cuts and their impact and then blaming that vague nemesis–the economy–ask instead about the choices that determined, when presented with a couple of different forks in the road, which one to take. Find out who is responsible for choosing that path, and hold them accountable. Use it as an example that our clients can understand: tough times come into everyone’s (and every state’s) lives, and when they do, we have choices. We can’t control the situations in which we find ourselves, but we can control how we respond. And, when we respond in ways that are harmful to others, there will be consequences.