More Maine households struggled to meet their basic needs last year, according to new census data.
More than 80,000 Mainers, or roughly 6% of the population, lived below the federal poverty threshold, compared to more than 60,000 in 2022.
Rebecca Riddell, economic and racial justice senior policy lead for the nonprofit Oxfam America, said while poverty rates have increased, they remain below pre-pandemic levels, revealing the effectiveness of programs like the expanded Child Tax Credit.
"These kinds of supports, which are really part of a well-functioning social safety net, really make a difference for families," Riddell asserted. "Especially low-income families."
Riddell pointed out the tax credit helped cut child poverty in half during the pandemic but when Congress allowed it to expire in 2022, child poverty doubled to more than 12%. It is estimated a return of the Child Tax Credit would benefit nearly 40,000 low-income Maine children.
The loss of stimulus payments and anti-poverty programs outweighed a rise in incomes statewide as inflation continued to affect families' ability to buy groceries or pay their rent. Household income was up 4% last year compared to 2022 but for Black, Asian and Hispanic households, incomes held steady.
Riddell argued it should be a goal of policymakers to reverse any trends in income inequality.
"It's alarming that instead of these inequalities improving, we actually see that there could be more divergences with incomes of groups that have been historically marginalized and discriminated against falling behind the incomes of white families," Riddell observed.
Riddell emphasized raising taxes on America's wealthiest households, reinvesting in anti-poverty tax credits and raising the minimum wage would provide critical support for families in need.
A recent report found the number of Maine children living in poverty has declined but pandemic-related trauma and learning loss continue to impact their overall well-being.
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New legislation in Olympia aims to ease the burden of skyrocketing rental rates by limiting yearly rent increases to 7%. Chris Walker lives in a manufactured home community for seniors just outside of Sequim, Washington and has been organizing for rent stabilization for three years. After her monthly rates started rising sharply, she spoke with other communities and realized she wasn't alone.
"Their lot rents started to increase 30, 40, 50%. It's really disgusting what they've done. We're on fixed incomes," she explained.
Walker said capping rent increases by 7% is helpful, but is only a starting place, since average Social Security benefits increase by less than 3% annually. A new poll shows nearly 70% of Washingtonians support rent stabilization. Two companion bills in the house and senate are working their way quickly through the legislature.
Data show that for every $100 rent increases, homelessness rates go up at least 9%.
Michelle Thomas, director of policy and advocacy with the Washington Low Income Housing Alliance, said renters across the state are forced to choose between paying their rent increase and paying for their medications, childcare, or heat. She also hears from landlords who see the value of rent stabilization for their communities.
"There are many good landlords who support rent stabilization because they know they don't need to gouge their renters in order to have a sustainable rental property," she continued.
Opponents of rent stabilization worry it would deter development. Thomas said the legislation exempts new construction for 10 years, allowing time for long term development planning. Oregon and California implemented similar rent stabilization policies in 2019.
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Community action agencies in Massachusetts called the state's expanded tax credits "powerful antipoverty tools" and they are offering free tax prep services to help families get ahead.
The state's Earned Income Tax Credit grew to 40% of the federal rate last year, while the Child and Family Tax Credit is now $440.
Clare Higgins, executive director of Community Action Pioneer Valley, said it means more money in working peoples' pockets, helping them pay for child care, transportation, diapers and rent.
"It's just amazing when somebody realizes that this refund really can change their circumstances," Higgins observed.
Higgins pointed out the Volunteer Income Tax Assistance Program returned more than $1 million last year to Hampshire and Franklin counties alone. Tax prep volunteers noted up to 20% of families who qualify for refunds do not access them, making their work even more important.
Expanded tax credits helped cut childhood poverty in half during the pandemic. Studies show direct cash payments can improve the health of mothers and infants, as well as educational outcomes for children.
Joe Diamond, executive director of the Massachusetts Association for Community Action, a coalition of community action agencies which helps run half of the 80 tax assistance sites statewide, said benefits are well understood by the loyal volunteer accountants, who make the program work.
"They are folks who are living in the community," Diamond emphasized. "They are accounting students and others, who see how important and how powerful helping people do their taxes can be and how powerful the resources can be."
Diamond said volunteers and agency staff not only help people get their tax refunds but gain financial empowerment and budgeting skills. He added it takes federal and state funding to keep the network stable, from which the local communities benefit.
Disclosure: The Massachusetts Association for Community Action contributes to our fund for reporting on Housing/Homelessness, Hunger/Food/Nutrition, Poverty Issues, and Social Justice. If you would like to help support news in the public interest,
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Thursday marks the one-year anniversary of a Montana Supreme Court decision ensuring equal access to justice, even for people who cannot afford court costs and fees.
The Montana Department of Justice requires a court to waive filing fees in civil cases for people who receive certain government benefits like SNAP, WIC and Medicaid.
Victoria Deschamps, plaintiff in Deschamps v. Montana 21st Judicial District Court, petitioned for a divorce in court and qualified for a waiver of the $200 filing fee, but it was denied by a lower court, which asked for more details on her finances, twice.
Amy Reavis, staff attorney for the Montana Legal Services Association, brought her case to the Montana Supreme Court and won.
"This makes it just a lot more uniform and a lot more fair to folks, especially low-income Montanans - that you don't just get to access the court if you can pay," Reavis explained. "Everybody gets to access court."
Reavis emphasized it matters in civil cases, which cover family law, eviction, people facing creditors in court and more. After the decision, she and others with the association traveled to 18 courts in eastern Montana to familiarize clerks with the waiver. She added they are planning more outreach this year.
Deschamps said navigating a court case was "daunting." She knows a lot of Montanans are struggling in ways she can relate to.
"There's people that are maybe stuck in bad situations, just because they didn't get the help that they deserve," Deschamps observed. "People are willing to help you, so don't be afraid to ask for help."
In a given year between 2016 and 2021, nearly one quarter of Montana households, about 120,000 families, received at least one form of income-based public assistance, according to a Headwaters Foundation report.
Disclosure: The Montana Legal Services Association contributes to our fund for reporting on Civil Rights, Human Rights/Racial Justice, Poverty Issues, and Social Justice. If you would like to help support news in the public interest,
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