THE U.S. FINANCIAL CRISIS
AND ITS EFFECTS ON CHILDREN, YOUTH, FAMILIES,
SCHOOLS AND SERVICES

A COLLECTION OF REPORTS AND WEBSITES ON VARIOUS TOPICS

Updated on August 12, 2009

Titles are presented in alphabetical order

When a series of reports are summarized under a topic,
all links to full texts are shown after the chronology.

Collected Reports on the Fiscal Situation in General: Arranged by Date
Compiled from several sources named in the text and in the links below.

*** Trade-Off Time: How Four States Continue to Deliver, Pew Center on the States, Washington DC, February 11, 2009:   “Helping States improve budget practices is a national imperative.  This report (Trade-Off Time) shows how tough economic times can be a crucible forging better decision making and a heightened vigilance to ensure every precious tax dollar delivers maximum value for the public. The report features four States — Indiana, Maryland, Utah and Virginia — that are leaders in measuring the performance of government programs.  And by using those measurements to drive smart budget cuts and new spending they are creating the foundation for a better economic and fiscal future.”
*** Looking Back, Looking Forward: How the Economic Downturn Continues to Impact School Districts, American Association of School Administrators, March 25, 2009:   AASA released a survey of school administrators conducted in February and March which shows that “schools across the nation are planning significant cuts in their 2009-10 school year budgets, in spite of some $100 billion in education funding included in the American Recovery and Reinvestment Act. . . . The impact of the economic downturn on schools is widespread and has worsened over the past six months (since AASA’s earlier report). . . . The percentage of districts increasing class size more than tripled from 13 percent in 2008-09 to 44 percent in 2009-10.  The percentage of districts laying off personnel quadrupled from 11 percent in 2008-09 to 44 percent in 2009-10.  The percentage of districts cutting academic programs (such as academic intervention and Saturday classes) more than tripled from 7 percent in 2008-09 to 22 percent in 2009-10.  The percentage of districts cutting extracurricular activities almost tripled from 10 percent in 2008-09 to 28 percent in 2009-10.  The percentage of districts deferring maintenance increased from 21 percent in 2008-09 to 33 percent in 2009-10.”
*** Child Well-Being Index and a Special Focus Report on Anticipating the Impacts of a 2008-2010 Recession, Foundation for Child Development (FCD), New York City, May 2009:  “The FCD Child Well-Being Index (CWI) is an annual comprehensive measure of how children are faring in the United States.   It is based on a composite of 28 Key Indicators of well-being that are grouped into seven Quality-of-Life/Well-Being Domains. . . . This Special Focus Report is the first-ever report on the impact of the current recession on the overall health, well-being, and quality of life of America's children.  It finds that the downturn will virtually undo all progress made in children's economic well-being since 1975.  The significant decrease in this domain will also drag down the other domains of the Child Well-Being Index.  The impact will be especially severe for low-income children of color.”
*** Federal Fiscal Relief Is Working as Intended: The Cases of New York and Virginia,  Center on Budget and Policy Priorities, Washington DC, May 26, 2009:  The examples of New York and Virginia — two major (but very different) States, both facing significant budgetary challenges — suggest that the state fiscal assistance in the economic recovery legislation is having its intended effect. It is enabling states to balance their budgets with fewer cuts in public services that would harm residents and further slow the economy.  The actions by these two states, as well as evidence from other states, show positive results."
Special Focus Report: Anticipating the Impacts of a 2008-2010 Recession, Foundation for Child Development, New York City, May 2009. “This is the first-ever report on the impact of the current recession on the overall health, well-being and quality of life of America's children. It finds that the downturn will virtually undo all progress made in children's economic well-being since 1975. The significant decrease in this domain will also drag down the other domains of the Child Welfare Index.. The impact will be especially severe for low-income children of color.”
*** A Hard Lesson for Teachers, Wall Street Journal, August 11, 2009: “When school begins this month, as many as 100,000 of last year’s teachers won’t have jobs, resulting in an overall drop in education jobs in the U.S., estimates Carmen Quesada, director of field operations for the National Education Association, the nation’s largest teachers’ union. That’s a jolt to people drawn to teaching in part for its recession-proof reputation. The number of people working in local education has increased every year since 1983, according to the Bureau of Labor Statistics. . . . Aside from losing current teachers, some school officials worry the mounting layoffs could deter students from entering the field.”
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Trade-Off Time: How Four States Continue to Deliver,  Pew Center on the States, Washington DC, February 11, 2009:
http://www.pewcenteronthestates.org/report_detail.aspx?id=48868

Looking Back, Looking Forward: How the Economic Downturn Continues to Impact School Districts, American Association of School Administrators, March 25, 2009 -- News release and click for the full text:
http://www.aasa.org/PressReleases.aspx?id=1586

Child Well-Being Index and a Special Focus Report on Anticipating the Impacts of a 2008-2010 Recession, Foundation for Child Development, New York City, May 2009:
http://www.fcd-us.org/resources/resources_show.htm?doc_id=906348

Federal Fiscal Relief Is Working as Intended: The Cases of New York and Virginia,  Center on Budget and Policy Priorities, Washington DC, May 26, 2009:
http://www.cbpp.org/cms/index.cfm?fa=view&id=2831&emailView=1

Special Focus Report: Anticipating the Impacts of a 2008-2010 Recession, Foundation for Child Development, New York City, May 2009 -- Click the second hot link:
http://www.fcd-us.org/resources/resources_show.htm?doc_id=906348
*** Also click at the right of this page for “Declining Investments in Education Put Children at Risk.”

A Hard Lesson for Teachers, Wall Street Journal, August 11, 2009:
http://online.wsj.com/article/SB10001424052970203612504574342530405184284.html


Dropouts from School and the Achievement Gap: Their Impact on the Economy
Compiled from several sources named in the text and in the links below.

*** How California’s Dropout Crisis Affects Communities, California Dropout Research Project, April 9, 2009:  “Compared to high school graduates, research documents that dropouts have: higher rates of unemployment; lower earnings; poorer health and higher rates of mortality; higher rates of criminal behavior and incarceration; and increased dependence on public assistance.  These generate substantial economic losses to the nation, to the State, and to local communities.  These profiles document the magnitude of the dropout problem in local communities throughout California and the economic losses that they generate. They also estimate the economic benefits to reducing dropouts and the reductions in violent crimes that will likely result.”  Full texts of reports for California and 17 cities are available.
*** Report Cites Toll Taken by Dropouts, Philadelphia Daily News, April 20, 2009:  “A city student who graduates from high school, but not college, over a lifetime will pay an estimated $261,000 in federal, State and local taxes, while the government assistance received by a dropout will result in a lifetime negative net fiscal impact of minus-$319,000, according to a report released by the Philadelphia Workforce Investment Board, in partnership with the city and the Philadelphia Youth Network.  Dropouts also are picking their own pockets, says the report, which Mayor Nutter is expected to discuss at Sayre High School during a 1 p.m. news conference (on April 20), at which AT&T Pennsylvania will announce nearly $800,000 in support for anti-dropout and work-force-readiness programs.”
*** The Economic Impact of the Achievement Gap in America’s Schools, McKinsey & Company, Social Sector Office. (2009):  This report “examines 
the dimensions and economic 
impact of the education 
achievement gap. . . . (It) examines the dimensions of four distinct gaps in education: (a) between the United States and other nations, (b) between black and Latino students and white students, (d) between students of different income levels, and (d) between similar students schooled in different systems or regions of the U.S.  The report finds that the underutilization of human potential as reflected in the achievement gap is extremely costly.  Existing gaps impose the economic equivalent of a permanent national recession — one substantially larger than the deep recession the country is currently experiencing. For individuals, avoidable shortfalls in academic achievement impose heavy and often tragic consequences via lower earnings, poor health, and higher rates of incarceration. . . . (For example), if the United States had in recent years closed had the gap between its educational achievement levels and those of better-p;erforming nations such as Finland and Korea, Gross Domestic Product (GDP) could have been $1.3 trillion to $2.3 trillion higher.  This represents 9 to 16 percent of GDP.”
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How California’s Dropout Crisis Affects Communities, California Dropout Research Project, University of California Linguistic Minority Research Institute, Santa Barbara, April 9, 2009:
http://www.lmri.ucsb.edu/dropouts/pubs_cityprofiles.htm

Report Cites Toll Taken by Dropouts: Nutter to Discuss Study Today at Sayre, Philadelphia Daily News, April 20, 2009:
http://www.philly.com/dailynews/local/20090420_Report_cites_toll_taken_by_dropouts__
Nutter_to_discuss_study_today_at_Sayre.html
*** To access the report by the Philadelphia Workforce Investment Board -- Click on “What’s the difference between a Philadelphia high school graduate and a high school dropout?”
http://pwib.org/news_events/

The Economic Impact of the Achievement Gap in America’s Schools, McKinsey & Company, Social Sector Office. (2009):
Full text and summary:
http://www.mckinsey.com/clientservice/socialsector/achievementgap.asp
*** Also see a review in the New York Times (“Swimming Without a Suit”), April 21, 2009:
http://www.nytimes.com/2009/04/22/opinion/22friedman.html


Early Education and Child Care:  Downturns Strain Parents and States
Compiled from several sources named in the text and in the links below.

*** The Pre-K Pinch: Early Education and the Middle Class, Pre-K Now, Washington DC, November 23, 2008:  “For far too many middle-class families, the very program proven to help all young children enter school ready to learn and succeed is beyond their reach. . . . (This report reveals) that eligibility requirements and prohibitively high costs lead such families to sacrifice basic household needs to pay for early education and care for their children, or to settle for low-quality options with unproven benefits. . . . Through quantitative analysis and personal stories, the report demonstrates middle class families’ need for and struggle to afford quality early education programs when they do not qualify for State pre-kindergarten programs.  Unlike K-12, State pre-k programs for 3- and 4- year-olds primarily target low-income children.  Of the 38 States that fund pre-k programs, 20 use family income as an important or the sole criterion for eligibility.  In most of these states, families earning more than 200 percent of the federal poverty threshold ($42,400 for a family of four) are not eligible. . . . Meanwhile, the cost of early education programs has risen faster than inflation for more than a decade.”
*** Squeezed on All Sides, Parents Forego Day Care, Washington Post, December 21, 2008:   This article describes “an increasing economic strain in child care across the Washington region (Northern VA-DC-Suburban MD). In an area known for day-care waiting lists, many operators report a rise in vacancies as parents withdraw their children or cut back on hours because they can no longer afford the cost.  The phenomenon is not universal, but it has struck in many middle- and working-class areas as lost jobs, reduced work schedules and foreclosed homes affect families with few reserves. Many have confronted tough choices about the care of their children.”
*** Recession Stalls State-Financed Pre-Kindergarten, New York Times, April 8, 2009:  “The recession appears to have stalled the  expansion of state-financed pre-kindergarten programs, according to a new report documenting trends in early childhood education. . . . Given the economic decline, nine states — Alabama, California, Connecticut, Florida, Iowa, Minnesota, New York, North Carolina and South Carolina — have already announced cuts to state-run pre-kindergarten programs. . . . And legislatures are debating cutbacks in some others, including Tennessee and Washington State. . . . Meanwhile, however, at President Obama’s request, Congress has significantly raised federal financing for preschool education. . . . Congress appropriated more than $4 billion for Head Start and Early Head Start programs and for grants to States to support child care for low-income families.”
_________________________________
Middle Class Families in Difficult Pre-K Pinch, Pre-K Now, Washington DC, November 12, 2008 – Press release; click at the bottom for the full report and Q&A:
http://www.preknow.org/media/pressreleases/prekpinch08.cfm

Squeezed on All Sides, Parents Forego Day Care, Washington Post, December 21, 2008:
http://www.washingtonpost.com/wp-dyn/content/article/2008/12/20/AR2008122002113.html?hpid=topnews

Recession Stalls State-Financed Pre-Kindergarten, but Federal Money May Help, New York Times, April 8, 2009:
http://www.nytimes.com/2009/04/08/education/08school.html?th&emc=th
*** The report mentioned in this article. “The State of Preschool 2008,“ Natlonal  Institute for Early Intervention Research, is available at:
http://nieer.org/yearbook/


Employment Situation Reports and Regional and State Summaries
Bureau of Labor Statistics, U.S. Department of Labor.
Commissioner’s Statement on the Employment Situation, Updates at this link monthly -- including the current statement:
http://www.bls.gov/news.release/jec.nr0.htm
*** To see full texts of earlier Employment Situation Reports:
http://www.bls.gov/schedule/archives/empsit_nr.htm#2009

Regional and State Employment Summary, Bureau of Labor Statistics, July 17, 2009:
http://www.bls.gov/schedule/archives/empsit_nr.htm#2009

Also -- In February 2009, the Bureau of Labor Statistics issued its first official unemployment rates for people with disabilities:
http://www.bls.gov/cps/cpsdisability.htm


Federal Government Information: American Recovery & Reinvestment Act, Education and Health Initiatives, and Other Resources

A New Foundation, The White House
Shows progress and guiding principles of the Administration’s agenda in sixteen categories, including disabilities, education, family, health care, poverty, rural, and others. Details on the President’s budget are also available here.
http://www.whitehouse.gov/issues/

Complete and Competitive American Education, President Obama’s Address
Before the U.S. Hispanic Chamber of Commerce, March 10, 2009.
Overview, transcript and complete video
http://www.whitehouse.gov/blog/09/03/10/taking-on-education/

Early Learning Challenge Fund
Will challenge Governors to develop new approaches to raising the bar across State early learning settings.
http://www.ed.gov/about/inits/ed/earlylearning/elcf-factsheet.html

HHS Recovery
Department of Health and Human Services website on the American Recovery and Reinvestment Act.
http://www.hhs.gov/recovery/

New Educational Opportunities for Unemployed Workers: Opportunity.gov
The President recently announced that unemployed workers receiving unemployment benefits may qualify for a special hand in paying for education and training.  This website explains how the program works.
http://federalstudentaid.ed.gov/opportunity/index.html

Overview of the Recovery and Reinvestment Act, U.S. Department of Education.
Implementation, State application guidelines, agency reports, news, and other resources (includes Title I, IDEA, and other topics).
http://www.ed.gov/policy/gen/leg/recovery/index.html
Also see:
The applications that States have submitted for initial ARRA State Fiscal Stabilization Fund Program (to save education jobs, send young people to college, modernize America's classrooms, and advance education reforms)
http://www.ed.gov/programs/statestabilization/resources.html
Also see:
Press releases on each State’s ARRA funds as they are distributed:
http://www.ed.gov/policy/gen/leg/recovery/news.html
Also see:
IDEA Recovery funds for services to children and youth with disabilities: Overview and links to more
http://www.ed.gov/policy/gen/leg/recovery/factsheet/idea.html

Race to the Top Fund
Provides competitive grants to encourage and reward States that are creating the conditions for education innovation and reform; implementing ambitious plans in four education reform areas; and achieving significant improvement in student outcomes.
http://www.ed.gov/programs/racetothetop/index.html

Recovery Act Funding Opportunities Available from the Office of Juvenile Justice and Delinquency Prevention, U.S. Department of Justice.
Funding under the ARRA includes more than $2.76 billion for State and local law enforcement and for other criminal justice activities that prevent and control crime and improve the criminal justice system.
http://ojjdp.ncjrs.gov/recoveryact.html
Also see -- Office of Justice Programs website on implementing the ARRA:
http://www.ojp.usdoj.gov/recovery/

Recovery.gov, Recovery Accountability and Transparency Board
Check to see how dollars from the American Recovery and Investment Act are being spent.
http://www.recovery.gov/


Food Stamps,  Food Costs, and School Meals
Compiled from various sources named in the text and in the links below.

*** Americans’ Food Stamp Use Nears All-Time High, Washington Post, November 26, 2008:  The number of Americans on food stamps is poised to exceed 30 million for this first time this month. . . . Breaking the symbolically important 30 million mark comes on the heels of government data showing that 11.9 million people went hungry in the United States at some point last year.  That included nearly 700,000 children, up more than 50 percent from the year before. . . . Food pantries and other charitable organizations are also reporting an increase in demand from those in need.  Visits to local (DC Metro area) pantries are up by 20 to 100 percent over the past six months, and calls to the Capital Area Food Bank’s  hunger hotline have jumped 248 percent. Most are from people who have never used food stamps or a pantry before. . . . Analysts attribute the jump primarily to rising unemployment . . . but rising food costs are also a factor. Although prices have fallen from the levels of this past spring, they remain high. In October, the consumer price index for food and beverages had jumped 6.1 percent over last year.  Staples such as eggs and bread rose even faster.” (Note:  In October 2008, the name of the food stamp program was changed to the Simplified Nutrition Assistance Program.)
*** Food Prices Expected to Keep Going Up, New York Times, November 26, 2008:   “Government and industry economists project that the overall cost of food will continue to climb in 2009, led by increases for meat and poultry.   A big reason, they say, is that food companies still have not caught up with the prolonged run-up in commodity prices, which remain above historical averages despite coming down from their highs early this year. . . . The Agriculture Department is forecasting that food prices will increase 3.5 to 4.5 percent in 2009, compared with an estimated 5 to 6 percent increase by the end of this year.”
*** Saved by the Lunch Bell, School Nutrition Association (SNA), December 2008:  “SNA analyzed information from 137 school districts across the United States that participate in the federal school nutrition programs to determine if participation in these programs is increasing or decreasing as a result of the faltering economy. . . . (Among the findings are that) a strong majority of school districts have seen an increase in the percent of students qualifying for free and reduced price school meals during the 2008-2009 school year compared to the 2007-2008 school year. . . . When applied to the total number of free and reduced meals served last year the increase represents an additional 425,000 meals served. . . . In contrast, many school districts have witnessed a decrease in the number of students purchasing paid school meals during the 2008-2009 school year. . . . The slumping economy is having additional affects on school nutrition programs around the country. School districts saw a slight increase in the number of students that owe money to the school nutrition programs as a result of unpaid or overdue accounts.”
*** USDA Study shows States Failing to Connect Many Needy Children to Free School Meals, Center on Budget and Policy Priorities, Washington DC, March 3, 2009:  “Over the past three years, school districts and the State agencies that run the Supplemental Nutrition Assistance Program (SNAP, formerly the Food Stamp Program) have been implementing a federal requirement designed to provide food assistance to needy children who are eligible for it and eliminate unnecessary paperwork for families and schools,  Under the requirement, known as ‘direct certification,’  States and school districts now work together to ensure that the 9 million school-age children in households receiving SNAP benefits are automatically enrolled for free school meals.  School districts rely on detailed information on households’ income collected by the SNAP agency so families can bypass the standard school meals application process.   Children in households receiving SNAP benefits were already eligible for free meals; the new requirement ensures that they are enrolled for free meals.  The U.S. Department of Agriculture (USDA) recently released a study of States’ direct certification performance. Although USDA’s figures are estimates and States may wish to develop their own more refined measures, USDA’s analysis provides a useful baseline against which States can measure progress and offers information about choices states can make to improve the reach of direct certification.  This paper explains three key findings that emerge from the study:”
*** More Students Get Subsidized Lunches:  Financial Plights in Massachusets Families, Boston Globe, March 23, 2009:   Statewide in Massachusetts, “about 306,641 students were in the free and reduced-cost lunch program as of October 2008, an increase of about 4.5 percent from October 2007 when 293,347 students qualified, according to the Department of Education. . . . A review of schools in the region found increases in suburban districts -- including some communities that are financially well off - and in urban districts, such as Boston, where participation in the program was already high.”
*** More Students on Free Lunch Program, USA Today, June 11, 2009:  “Nearly 20 million children now receive free or reduced-price lunches in the nation's schools, an all-time high, federal data show, and many school districts are struggling to cover their share of the meals' rising costs.  Through February, nationwide enrollment in free school lunch programs was up 6.3% over the same time last year, to 16.5 million students, based on data from the U.S. Food and Nutrition Service (FNS), which subsidizes the programs.  Participation in reduced-price lunch programs rose to 3.2 million students, the data show.”
*** School’s Out but Many Will Get Free Meals, New York Times, July 3, 2009: “Despite budget cuts, many schools and community groups are expanding their efforts to feed children from poor and struggling families this summer as the lingering recession deepens longstanding concerns that those who qualify for free meals go hungry once classes end. The number of students qualifying for free and reduced-price lunches was up about 5 percent nationwide this spring, to nearly 19.4 million from 18.4 million the previous year, according to federal officials. These new programs extend beyond school hours to feed children on weekends and in the summer, and they have spread from impoverished urban areas to suburban communities once believed to be insulated from financial ups and downs. . . . Even urban districts with long-established summer lunch programs are expanding to more neighborhoods this year as the free and reduced-price lunch rolls have swelled. In Syracuse, a record 80 percent of the district’s 21,000 students qualified this year, up from 78 percent in 2008, district officials said.
_________________________________
Americans’ Food Stamp Use Nears All-Time High, Washington Post, November 26, 2008:
http://www.washingtonpost.com/wp-dyn/content/article/2008/11/25/AR2008112502553.html?hpid=topnews

Food Prices Expected to Keep Going Up, New York Times, November 26, 2008 (the opening ad will vanish quickly):
http://www.nytimes.com/2008/11/27/business/27food.html?pagewanted=1&th&emc=th

Saved by the Lunch Bell: As Economy Sinks, School Nutrition Program Participation Rises, School Nutrition Association, December 2008 -- Click in the third paragraph:
http://www.schoolnutrition.org/Blog.aspx?blogmonth=12&blogyear=2008&blogid=622

USDA Study Shows States Failing To Connect Many Needy Children To Free School Meals, Center on Budget and Policy Priorities, Washington DC, March 3, 2009 -- Extensive summary:
http://www.cbpp.org/cms/index.cfm?fa=view&id=2701
*** Full text of the USDA study:
http://www.fns.usda.gov/ora/MENU/Published/CNP/FILES/DirectCert08.pdf

More Students Get Subsidized Lunches, Boston Globe, March 23, 2009:
http://www.boston.com/news/education/k_12/articles/2009/03/23/more_students_get_subsidized_lunches/

More Students on Free Lunch Program, USA Today, June 11, 2009 -- Includes a map of  percentages by State:
http://www.usatoday.com/news/education/2009-06-10-student-lunches_N.htm

School's Out but Many will Get Free Meals, New York Times, July 3, 2009:
http://www.nytimes.com/009/07/04/nyregion/05food.html?ref=nyregion


Foreclosures of Mortgages and Homelessness: The Impact on Children and Families
Compiled from several sources named in the text and in the links below.

*** The Impact of the Mortgage Crisis on Children, First Focus, Washington DC, April 2008:  This short report “reveals that an estimated 2 million children will be directly impacted by the subprime mortgage crisis as their families lose their homes due to foreclosures.  As the first comprehensive analysis of how the crisis will impact kids, the report explains that this number will rise even higher when accounting for other populations, such as children being evicted from rental units that are going into default and those children whose parents default on conventional loans.  These foreclosures will happen primarily during 2008 and 2009.  In addition, the report finds that (a) due to the increasing number of foreclosures, school districts across the country are experiencing increases in the number of homeless children entering their classrooms;
(b) children impacted by the mortgage crisis are likely to experience excessive mobility and as a result are only half as likely to be proficient in reading as their peers; moreover, they are much more likely to be held back and eventually drop out of school;
(c) children forced from their homes experience behavioral problems, such as increases in violence;
 and (d) the physical and mental health of displaced children can be severely compromised, as families losing their homes are less likely to have money available for items such as health care and health insurance.”  Data used for this report are based on projections by the Center for Responsible Lending, a nonpartisan research and policy organization.  State-by-state figures are included.
*** Amid Foreclosures, A Rise in Homeless Students, All Things Considered, National Public Radio, September 30, 2008:  “The pain caused by housing foreclosures and a weak economy is spilling over into the nation's schools.  School districts nationwide say they're seeing a big increase in the number of students who are homeless. . . . The McKinney-Vento Homeless Assistance Act guarantees students from homeless families the right to stay in the school they were attending.  But not all districts accept their obligations under the law.”  In this program, various speakers describe the dimensions and ramifications of children of families who have recently lost their homes.”
*** The Economic Crisis Hits Home, First Focus, Washington DC, December 18, 2008:    “A new report released today has found that school districts across the country have experienced a significant spike in the number of homeless students. The report centers around a voluntary survey conducted during the fall of 2008 by the
 National Association for the Education of Homeless Children and Youth and First Focus. . . . A total of 1,716 school districts completed a voluntary online survey distributed either through State Coordinators for the Education of Homeless Children and Youth, or directly to school district homeless liaisons  The survey found the following information in just the first two to three months of the school year:

(a) 330 school districts identified the same number or more homeless students in the first few months of this school year than they identified the entire previous year;
(b) 847 school districts identified one half or more of last year’s caseload of homeless students in the first few months of this school year; (c) 459 school districts had an increase of at least 25 percent in the number of homeless students identified between the 2006-2007 and 2007-2008 school years.”
*** As Number of Homeless Students Rises, Schools Struggle to Keep Up, Commercial Appeal, Memphis TN, January 25, 2009:  “Last year (2008), at least 1,500 students in Memphis City Schools were homeless, living in shelters and cars or moving from house to house as the hospitality of friends and relatives wore thin. . . . Homelessness in schools is typically highest in the fall when families are settling in for the year. This year, the numbers have continued to grow as companies pare the workforce and foreclosure rates rise. . . . With city foreclosures up more than 53 percent over 2007, homelessness is creeping into higher-income brackets, hitting families that last year were stable and dumping their children into a netherworld of chaos.  For parents, the day-to-day stress of being homeless and trying to help children maintain stability in school is an unfathomably heavy load, said a mother who earned $46,000 in 2007 and lost her job and home in 2008.”
*** Schools Face Sharp Rise in Homeless Students, Washington Post, February 8, 2009:  “The economic plunge has generated a growing wave of children nationwide who are sleeping in shelters, motels, spare bedrooms or even the family van as their parents seek to keep them in school.  Educators are scrambling to help, with extra tutoring, clothes, food and cab fare.  D.C. school officials have registered about 462 homeless students this school year, twice as many as the same time last year.  Schools in Fairfax County VA, one of the country's most affluent areas, counted 1,314 homeless students early last month, up 20 percent from the same period last year.”
*** America’s Youngest Outcasts: State Report Card on Child Homelessness,  National Center on Family Homelessness, March 10, 2009:  “A new report released today finds that more than 1.5 million children are homeless annually in the United States -- one in every 50 American children. (This report) offers the first comprehensive state-by-state data on the status of homeless children and ranks the 50 States from top to bottom. . . . According to the report, children experiencing homelessness have twice the rate of moderate to severe health conditions compared to middle-class children, and twice the emotional problems.  They struggle in school, with an average 16% lower proficiency in math and reading, and an estimated graduation rate below 25%. . . . .  ‘Children without homes are on the frontline of the nation’s economic crisis.  These numbers will grow as home foreclosures continue to rise,’ said Ellen L. Bassuk, M.D., President of the National Center on Family Homelessness.”
*** 2008 Annual Homeless Assessment Report to Congress, U.S. Department or Housing and Urban Development, July 8, 2009: This national study “explores changes in homelessness nationwide. . . . According to the report, between 2007 and 2008, the number of sheltered homeless individuals remained virtually the same while the number of homeless families seeking shelter increased by nine percent overall, and by nearly 56 percent in suburban and rural areas. . . . Many more sheltered homeless persons are coming from housed living arrangements just prior to entering the shelter system and most of these persons appear to be wearing out their welcome with family and friends. The report also demonstrates that many more people are coming from stable living arrangements, or places where they lived for one year or more. . . . HUD's year-long sample of Homeless Management Information Systems data found the following characteristics of all sheltered homeless persons: (a) Geographic -- 68 percent are in principal cities; 32 percent are in suburban and rural areas; (b) Household Type -- 68 percent are individuals; 32 percent are persons in families with children: (c) Race -- 62 percent are members of minorities; (d) Gender -- 64 percent of all sheltered homeless adults are men and 36 percent are women; (e) Age -- 40 percent of all homeless individuals are 31-to-50 years old; (f) Veteran Status -- 12 percent of all sheltered homeless adults are veterans.”
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The impact of the Mortgage Crisis on Children, First Focus, Washington DC, April 2008:
http://www.firstfocus.net/pages/3401/

Amid Foreclosures, A Rise in Homeless Students, National Public Radio, September 30, 2008 -- Listen to the audio:
http://www.npr.org/templates/story/story.php?storyId=95222948&ft=1&f=1013
Also see:  Predictors of Homelessness and Doubling Up Among At-Risk Families, The Fragile Families and Child Wellbeing Study, Princeton University, August 2008 – Click on No. 43:
http://www.fragilefamilies.princeton.edu/briefs.asp

The Economic Crisis Hits Home: The Unfolding Increase in Child and Youth Homelessness, First Focus, Washington DC, December 18, 2008:
http://www.firstfocus.net/pages/3531

As Number of Homeless Students Rises, Schools Struggle to Keep Up, Commercial Appeal, Memphis TN, January 25, 2009:
http://www.commercialappeal.com/news/2009/jan/25/all-too-familiar-issue/

Schools Face Sharp Rise in Homeless Students, Washington Post, February 8, 2009:
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/07/AR2009020702015.html

America’s Youngest Outcasts: State Report Card on Child Homelessness, National Center on Family Homelessness, March 10, 2009:  Full text and executive summary -- Click at the right:
http://www.homelesschildrenamerica.org/newsroom.php

2008 Annual Homeless Assessment Report to Congress, U.S. Department or Housing and Urban Development, July 8, 2009 -- Overview and click for the full text:
http://www.hud.gov/news/release.cfm?content=pr09-108.cfm


Health Care:  It’s Getting Harder to Afford It:  Access to Health Insurance Is Declining
Compiled from several sources named in the text and in the links below.

*** An Unequal Burden: The True Cost of High-Deductible Health Care Plans for Communities of Color, Families USA, September 2008:  During 2006 and 2007, one out of every three Americans was uninsured (for health care) for some period of time. . .. The heavy burden of uninsurance was especially harmful for communities of color.  Although racial and ethnic minorities represent a third of the U.S. population, people of color made up more than half of the uninsured in 2006 and 2007.  . . . This issue brief discusses three serious concerns that make high-deductible health plans less helpful — or even potentially harmful — for racial and ethnic minorities: (a) out-of-pocket costs in high-deductible plans are simply unaffordable for many racial and ethnic minorities; (b) the heavy costs of high-deductible plans will force many minorities to delay or avoid necessary care; and (c) the barriers created by high-deductible plans will aggravate the health disparities that already plague many minority communities.”
*** Premiums Versus Paychecks, Families USA, September-October 2008:  “Just as labor markets, health systems, and economic circumstances vary from one State to another, the impact caused by rising health care costs and stagnant earnings differs considerably among the 50 States.  In 2006, Families USA undertook the first state-by-state analysis of growing health care premiums versus stagnant earnings in the new millennium.  Since then, State economies have weakened, while health insurance premiums have continued their upward trend.  Health care costs are now an even greater burden on American families. These reports, which are based on data from the U.S. Census Bureau, the Department of Labor, and the Department of Health and Human Services, examine what these trends mean for working families.  These State-specific reports were released from September through October, 2008.”
*** Hospitals See Drop in Paying Patients, New York Times, November 6, 2008:  In another sign of the economy’s toll on the nation’s health care system, some hospitals say they are seeing fewer paying patients — even as greater numbers of people are showing up at emergency rooms unable to pay their bills.  While the full effects of the downturn are likely to become more evident in coming months as more people lose their jobs and their insurance coverage, some hospitals say they are already experiencing a fall-off in patient admissions. . . . The loss of money-making procedures comes at a difficult time for hospitals because these treatments tend to subsidize the charity care and unpaid medical bills that are increasing as a result of the slow economy.”
*** When a Job Disappears, So Does Health Care, New York Times, December 6, 2008:   According to the Bureau of Labor Statistics, the number of unemployed has increased by 2.8 million, or 36 percent, since January of this year, and by 4.3 million, or 71 percent, since January 2001.  Most people are covered (by health insurance) through the workplace, so when they lose their jobs, they lose their health benefits. On average, for each jobless worker who has lost insurance, at least one child or spouse covered under the same policy has also lost protection, public health experts said.”
***  Squeezed: Caught Between Unemployment Benefits and Health Care Costs, Families USA, January 9, 2009:    A new report released by Families USA “focuses on the unaffordability of COBRA coverage, which allows laid-off workers to retain their employer-based insurance if those laid-off workers pay the full cost of that coverage. , , , This report shows that, to maintain their employer-based health coverage under COBRA, most unemployed people would have to devote an unrealistically high proportion of their incomes to health insurance. For many, it would take their entire unemployment check and more to continue coverage for themselves and their families. However, if laid-off workers do not continue their employer-based coverage by electing COBRA and instead seek coverage in the individual health insurance market, those with health problems are likely to find that no insurer will sell them a policy that will cover their pre-existing conditions at any price.”
*** Kaiser Health Tracking Poll -- April 2009, Kaiser Family Foundation: “The April Kaiser Health Tracking Poll finds that six in ten Americans continues to say that they or a member of their household have delayed or skipped health care in the past year. . . . The most common actions taken due to costs were substituting home remedies or over-the-counter drugs for doctors visits (42%) and skipping dental care or check ups (36%).  Additionally, three in ten (29%) did not fill a prescription for medicine and two in ten (18%) cut pills in half or skipped doses.”  New reports are added at this site monthly.
*** No Recovery in Sight: Health Coverage for Working-Age Adults in the U.S. and California, University of California at Berkeley, April 2009:  “Recent reports have estimated that increases in unemployment during this recession have increased the number of uninsured people by 3.7 million working-age adults nationally. . (This report) by University of California at Berkeley researchers finds that if no policy reform is implemented, even if the economy fully recovers, the number of uninsured working age adults will grow by 4.2 million over pre-recession levels by the end of 2012. . . . The report uses data from the March Supplement for the Current Population Survey, a survey of about 50,000 households conducted monthly for more than 50 years by the Bureau of the Census for the U.S. Bureau of Labor Statistics.”
*** In North Carolina, Recession Breeds a Health Care Crisis, Washington Post, April 20, 2009: “In the past two years, North Carolina's number of uninsured has climbed 22.5 percent, the biggest jump in the nation, according to an analysis by the North Carolina Institute of Medicine, a quasi-state agency.  Nationwide, about 22 percent of adults do not have health insurance.  In North Carolina, 25 percent of adults -- or 1.8 million people -- have no coverage.  An additional 9 percent are underinsured.  For most Americans, health insurance and employment are linked. . . . North Carolina's unemployment rate has doubled in the past year to 10.7 percent, making it the fourth-highest in the country.”
*** Controlling Health Care Costs, District Administration: The Magazine of School District Management, May 2009:  “With public school districts under more pressure than usual in today’s recessed economy to boost revenue and reduce operational expenses, health benefits have become a prime target in union contracts.  As in most companies in America, health plan designs in public districts are being changed to reflect higher out-of-pocket costs, such as higher deductibles on visits to providers, hospital stays, and prescription drugs. District managers are asking teachers and other employees to bear more of the monthly premium costs. Others are opening their own clinics to treat employees. In at least one state—Ohio—several dozen districts have banded together in a health care consortium that cuts administrative costs for all of them.”  This article describes how various districts are handling health benefits.
*** More Americans Losing Health Insurance, Center for American Progress, May 4, 2009:  This report estimates “that 2.4 million workers have lost the health coverage their jobs provided since the start of the recession, based on data from the U.S. Census Bureau and the Bureau of Labor Statistics. Approximately, 1.3 million of these losses have occurred in the last four months. More than 320,000 Americans lost their employer-provided health insurance in March alone, which amounts to approximately 10,680 workers a day.”
*** Defying Slump, 13 States Insure More Children, New York Times, July 18, 2009: “Despite budgets ravaged by the recession, at least 13 States have invested millions of dollars this year to cover 250,000 more children with subsidized government health insurance. The expansions have come in the five months since Congress and President Obama used the reauthorization of the Children’s Health Insurance Program to vastly increase its funding and encourage states to increase enrollment. Although the federal government covers the vast majority of the cost, States set their own eligibility levels and must decide whether to spend State money in order to draw even more from Washington.” This article discusses the States that have increased children’s coverage and several that have not.
_________________________________
An Unequal Burden: The True Cost of High-Deductible Health Care Plans for Communities of Color, Families USA, Washington DC, September 2008 - Scroll down:
http://www.familiesusa.org/resources/publications/by-topic/minority-health.html

Premiums Versus Paychecks: A Growing Burden on Workers, New State Reports from Families USA, Washington DC, September-October 2008.
http://www.familiesusa.org/resources/publications/reports/premiums-vs-paychecks-2008.html

Hospitals See Drop in Paying Patients, New York Times, November 6, 2008:
http://www.nytimes.com/2008/11/07/business/07hospital.html

When a Job Disappears, So Does Health Care, New York Times, December 6, 2008:
http://www.nytimes.com/2008/12/07/us/07uninsured.html?pagewanted=1

Squeezed: Caught Between Unemployment Benefits and Health Care Costs, Families USA, Washington DC, January 2009:
http://www.familiesusa.org/resources/publications/reports/cobra.html

Kaiser Health Tracking Poll -- April 2009, Kaiser Family Foundation: To review this and tracking polls for more recent and earlier months:
http://www.kff.org/kaiserpolls/trackingpoll.cfm

No Recovery in Sight -- Health Coverage for Working-Age Adults in the U.S. and California, University of California, Berkeley, April 2009 -- Click at the bottom of the page for the full text:
http://laborcenter.berkeley.edu/press/release_april09.shtml
*** Also see coverage in the San Francisco Chronicle:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/04/01/BUFL16QRAO.DTL

In North Carolina, Recession Breeds a Health-Care Crisis, Washington Post, April 20, 2009:
http://www.washingtonpost.com/wp-dyn/content/article/2009/04/19/AR2009041902239.html?sid=ST2009041902481

Controlling Health Care Costs, District Administration: The Magazine of School District Management, May 2009:
http://www.districtadministration.com/viewarticle.aspx?articleid=2003&p=2#0

More Americans Losing Health Insurance, Center for American Progress, May 4, 2009 -- Also click for interactive maps:
http://www.americanprogress.org/issues/2009/05/insurance_loss.html

Defying Slump, 13 States Insure More Children, New York Times, July 18, 2009:
http://www.nytimes.com/2009/07/19/us/19chip.html?_r=1&th&emc=th


Law Enforcement Reductions but Stimulus Funds Will Help
Compiled from several sources named in the text and in the links below.

*** Brown County, Ohio:  News Democrat, April 7, 2009:  “The Brown County Jail has been a source of debate over the past several months, as Brown County Sheriff Dwayne Wenninger announced at that time the Sheriff’s Office would have to reduce the number of inmates from 65 to 35, with 30 male inmates and five female. Wenninger said overcrowding is not an issue in the jail, and that the Sheriff Office had to cut their corrections officers in order to stay within budget while keeping deputies on the road. . . . The Ohio Revised Code mandates that each jail has to have a certain number of correction officers per inmates. The jail currently has three corrections officers on duty per shift, and Wenninger said that in order for the jail to run at full capacity they would need to have four officers on duty per shift. . . . ‘This is not a space issue, everyone keeps saying it’s a space issue with the jail, it’s a funding issue,’ Wenninger said.’”
*** Connecticut: Office of the Governor, March 18, 2009:  “Budget problems have resulted in police department layoffs in Bridgeport. Other towns, such as East Hartford, Milford and Manchester have either postponed hiring new officers or eliminated positions. . . . But Governor M. Jodi Rell today announced that she has written to local police chiefs, mayors and first selectmen to inform them that federal stimulus money is now available to hire new police officers or bring back laid-off officers.”
*** Mansfield, Ohio:  NewsNet 5, Cleveland/Akron, April 17, 2009:  “Budget problems . . . are leading to safety concerns for residents. . . . Eighteen police officers got pink slips on Friday (April 17) and the chief fears he could lose up to 30 percent of his force.”
*** Massachusetts, Boston Globe, July 1, 2009: “The State’s $40 million cut this week in a bonus program for local police officers has put many cities and towns across Massachusetts in legal and financial limbo, as they wrestle with unexpected salary costs, sudden retirements, and potentially thorny negotiations with labor unions. . . . The Quinn Bill encourages police officers to pursue higher education by rewarding them with a 10 percent bonus for an associate’s degree, 20 percent for a bachelor’s degree, and 25 percent for a master. . . . The program’s costs are typically split 50-50 between the State and the 254 participating communities. . . . Lawmakers reduced its funding by 80 percent from last year, from more than $50 million to $10 million. In addition to gutting funding, lawmakers and the governor also barred any officers hired starting today from participating in the incentive program.”
*** Scioto County, Ohio, Columbus Dispatch,  February 18, 2009: “ Scioto County Sheriff Marty Donini said today that all his employees will have their schedules cut by 10 percent this year because of a budget shortfall.  The cutbacks will begin March 1, Donini said.  Every employee will work one fewer day during each two-week pay period. . . . . The sheriff said the action is the result of a projected $663,000 deficit in his budget for the year.”
_________________________________
Sheriff Talks Jail Space: Overcrowding Is Not the Issue, News Democrat, Brown County, Ohio, April 7, 2009:
http://newsdemocrat.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=127905&TM=54568.73

Governor Rell:  Stimulus Funds Available to Hire and Retain Police Officers, Office of the Governor, March 18, 2009:
http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=436358

18 Police Officers Get Pink Slips in Mansfield, NewsNet 5, Cleveland/Akron, April 17, 2009:
http://www.newsnet5.com/news/19210862/detail.html

Quinn Bill Funds Gutted in Budget: Cities, Towns Left to Cover Most of the Police Bonus (Massachusetts) , Boston Globe, July 2, 2009:
http://www.boston.com/news/local/massachusetts/articles/2009/07/01/mass_budget_guts_funds_for_quinn_bill_bonuses/

Scioto County Sheriff Trimming Schedules to Match Lean Budget, Columbus Dispatch, February 18, 2009:
http://www.columbusdispatch.com/live/content/local_news/stories/2009/02/18/sciotocut.html?sid=101

NOTE:  The U.S. Department of Justice has made available $1 billion in ARRA funds for the COPS program (Community Oriented Policing Services).  Approximately 5,500 law enforcement officer jobs will be created or saved in law enforcement agencies throughout the U.S.  See the press release.  The Department began to distribute these funds in July 2009.
http://www.usdoj.gov/opa/pr/2009/March/09-ag-239.html


Medicaid:  Rising Enrollment -- And a “Midnight Regulation”
Compiled from several sources named in the text and in the links below.

*** Headed for a Crunch, Kaiser Commission on Medicaid and the Uninsured, September 2008:  “This annual 50-state survey of State officials on Medicaid and State budget actions . . . finds enrollment in Medicaid began to rise in fiscal year 2008 with States expecting even larger increases for fiscal year 2009 as they confront a weakening economy. With the increased enrollment, Medicaid spending is also rising more rapidly than in the recent past, raising the potential for program cutbacks as States confront the combined impact of more enrollees and fewer available resources. . . . Medicaid directors attributed the growth in enrollment and spending to the weakened economic outlook facing their States.  During economic downturn, as unemployment rises people may lose employer-based coverage and incomes decline, making them potentially eligible for a State’s Medicaid program. Ongoing State efforts to address the uninsured, such as expanding Medicaid eligibility, improving outreach and simplifying enrollment procedures also played a role in the growth.”
*** Medicaid Growth May Bust Florida Budget, Palm Beach Post, November 19, 2008:      Florida’s “slumping economy is causing a surge in demand for government health insurance programs for the poor, most notably the Medicaid program that insures 2.3 million Floridians. Nearly 100,000 more people have enrolled in Medicaid than health officials expected this year, as more residents lost jobs -- and private health insurance -- and started applying for government aid. . . . Growth in Medicaid clients has pushed the joint state-federal program's expense to an estimated $144 million above what lawmakers approved in May for the current State budget. “
*** New Medicaid Rules, New York Times, November 26, 2008:   “A new federal rule gives States sweeping authority to charge premiums and higher co-payments for doctors’ services, hospital care and prescription drugs provided to low-income people under Medicaid.  The rule, published Tuesday (November 25) in the Federal Register, is expected to save money for the federal government and the States. . . . Under the rule, the administration estimated, Medicaid recipients will pay more than $1.3 billion in co-payments over five years, and the federal government will save $1.4 billion, while States will save $1.1 billion. The savings would result not only from the collection of co-payments, but also from reduced use of services. . . . But public health experts and even some federal officials predicted that many low-income people would delay or forgo care because of the higher charges. . . . When the rule was proposed this year, it drew criticism from the American Academy of Pediatrics, the National Association for Home Care and AARP, among other groups.  They said that higher co-payments would make it more difficult for low-income children, homebound people and older Americans to get care.”  (This is one of the “midnight regulations” issued late in the Bush administration.)
_________________________________
Headed for a Crunch: An Update on Medicaid Spending, Coverage, and Policy Heading Into an Economic Downturn, Kaiser Commission on Medicaid and the Uninsured, September 2008:
http://www.kff.org/medicaid/7815.cfm
     Also see: State Fiscal Conditions and Medicaid -- Fact Sheets:
     http://www.kff.org/medicaid/7580.cfm

Medicaid Growth May Bust Florida Budget, Palm Beach Post, November 19, 2008:
http://www.palmbeachpost.com/search/content/business/epaper/2008/11/19/

a1a_medicaid_1120.html

New Medicaid Rules Allow States to Set Premiums and Higher Co-Payments, New York Times, November 26, 2008:
http://www.nytimes.com/2008/11/27/us/27medicaid.html?_r=1&th&emc=th


Minority Populations and the U.S. Economy
Compiled from several sources named in the text and in the links below.

*** Subprime Mortgages Are Nearly Double for Hispanics and African Americans, Economic Policy Institute, Washington DC, June 11, 2008:   “In 2006, the rate of subprime mortgages for home purchase for Hispanics and Africans Americans was approximately double the white rate according to the Joint Center for Political and Economic Studies. Twenty-six percent of mortgages for home purchase by whites were subprime (see Chart).  For Hispanics, it was 47% and for African Americans, 53%. . . . An analysis by the Center for Responsible Lending found that even after taking into account individual credit scores and other characteristics, Hispanic and African American borrowers were more than 30% more likely to receive higher-rate subprime loans.   These and other studies . . . raise the prospect that discrimination may be a factor in the high rates of subprime loans among Hispanics and African Americans. . . . For many years, people of color have been calling for more attention to and better regulation of lending institutions.  Had policy makers been more attentive to these calls, there might never have been a subprime mortgage crisis.”
*** Borrowing Trouble: Predatory Lending in Native American Communities, First Nations Development Institute, Longmont, Colorado, March 2008:  With the collapse of the subprime mortgage lending market, predatory lending has become a significant national concern. In Native communities; however, predatory lending has been a major concern for years, since abusive lending practices have tended to proliferate more in minority and low-income communities than elsewhere. . . . In 2003, First Nations Development Institute (FNDI) issued its first report on predatory lending in Native communities.  This second report expands upon its analysis, updating information on the prevalence of predatory practices and adding new information from more recent quantitative data sources.  It provides an analysis of survey data collected from attendees at the National American Indian Housing Council meeting in May 2007; survey data collected from Native users of selected Voluntary Income Tax Assistance sites; geo-coded data of payday lenders, bank branches, and Native community development finance institutions; and a national data set of home mortgage loans.   This paper also presents five case studies of promising practices and concludes by offering concrete suggestions about the steps Native nations can take to curb the impact of predatory lending on their citizens.”
*** Wealth Stripping Payday Loans Trouble Communities of Color, Center for Responsible Lending, Durham, North Carolina, October 2, 2008:  Las personas de color tienen menos recursos económicos que las personas anglosajonas, lo cual los hace más vulnerables a préstamos predatorios, y en retorno, los amenaza con una brecha de riqueza aún más ancha.  Las investigaciones hechas en diferentes estados sugieren que las personas de color son impactadas proporcionalmente más por el 400 por ciento de los préstamos del día de pago.”
“People of color have less wealth than their white counterparts, making them more vulnerable to predatory lending. This, in turn, threatens to further widen the wealth gap, Research from several States suggests that people of color are disproportionately impacted by 400-percent APR payday lending.”
*** The State of Minorities: The Recession Issue, Center for American Progress, January 16, 2009:  “The United States entered its most severe recession in decades in 2008. Even before the recession hit, minorities were in a more precarious economic situation than whites, largely because of fewer good employment opportunities. As the economy and the labor market declined, so did the fortunes of American families, hitting minorities especially hard. . . . The data tell a clear and dire tale.” This paper highlights the economic trends for minorities on a range of key indicators during the last business cycle and compares those with what has happened in the recession of 2008.  The indicators are (a) unemployment; (b) employment growth; (c) employment-to-population ratio; (d) earnings; (e) family income; (f) poverty; (g) health care; (h) retirement plan participation; (i) home ownership rate; (j) high-cost mortgages.
*** Weathering the Storm: Black Men in the Recession, Center for American Progress, Washington DC, April 2009:  “In good times and in bad, the African-American unemployment rate tends to be about double that of whites, and in tough economic times, it rises higher and faster. . . . What’s more, the recession overall has hit men much harder than women—so far, four out of every five jobs lost has been held by a male worker.  Black men lead the unemployment surge, with an unemployment rate of 15.4 percent (in March 2009). This comes as a result of a range of barriers to employment, including disproportionate employment in vulnerable industries and labor market discrimination. Over a third of young black men ages 16 to 19 in the labor market are unemployed. In fact, a recent report found that 8 percent 8 percent of black men have lost their jobs since November 2007. . . . One recent study called African Americans’ economic situation ‘a silent economic depression, in which soaring levels of unemployment impose significant social costs on black families and entire communities.”  The report continues with further details, links to other reports, and recommendations.
*** Through Boom and Bust, Pew Hispanic Center, Washington DC, May 12, 2009:  This analysis of housing, economic, and demographic data shows, among other things, that “overall, the ups and downs in the housing market since 1995 have reduced the homeownership gap between whites and all racial and ethnic minority groups. However, a substantial gap persists. As of 2008, 74.9% of whites owned homes, compared with 59.1% of Asians, 48.9% of Hispanics and 47.5% of blacks. . . . At the same time, blacks and Latinos remain far more likely than whites to borrow in the subprime market where loans are usually higher priced.  In 2007, 27.6% of home purchase loans to Hispanics and 33.5% to blacks were higher-priced loans, compared with just 10.5% of home purchase loans to whites that year.”
_________________________________
Subprime Mortgages Are Nearly Double for Hispanics and African Americans, Economic Policy Institute, Washington DC. (June 11, 2008):
http://www.epi.org/content.cfm/webfeatures_snapshots_20080611

Borrowing Trouble: Predatory Lending in Native American Communities, First Nations Development Institute, Longmont, Colorado, March 2008 -- See the 2008 study, 2003 study, and related information:
http://www.firstnations.org/default2.asp?active_page_id=205

Los préstamos del día de pago empobrecen a las comunidades de color
(Wealth-Stripping Payday Loans Trouble Communities of Color), Center for Responsible Lending, Durham, North Carolina. (October 2, 2008):
*** Full text in English
http://www.responsiblelending.org/payday-lending/research-analysis/wealth-stripping-payday-loans-trouble-communities-of-color.html
*** En Espanol
http://www.responsiblelending.org/es/prestamos-de-payday/analisis-e-informes/

The State of Minorities: The Recession Issue, Center for American Progress, Washington DC, January 16, 2009:
http://www.americanprogress.org/issues/2009/01/state_of_minorities.html

Weathering the Storm: Black Men in the Recession, Center for American Progress, Washington DC, April 2009:
http://www.americanprogress.org/issues/2009/04/black_men_recession.html

Through Boom and Bust: Minorities, Immigrants and Homeownership, Pew Hispanic Center, Washington DC, May 12, 2009:
http://pewhispanic.org/reports/report.php?ReportID=109


Public Defenders and Legal Aid Societies:  Budget Shortfalls, Cutbacks, and Unmanageable Caseloads
Compiled from various sources named in the text and in the links below.

*** Facing Budget Crisis, Public Defenders May Refuse Cases, ABC News, June 13, 2008:  “Faced with what they call severe budget shortfalls, several public defender offices across the country say they may soon begin turning away thousands of poor criminal defendants.  Statewide public defenders in Kentucky and Minnesota and local offices in cities such as Atlanta and Miami say budget cuts are forcing them to fire or furlough trial lawyers, leaving the offices unable to handle misdemeanor and, in some cases, serious felony cases.  The cuts leave States scrambling to find a solution to a constitutional dilemma – the Sixth Amendment requires the government to either provide poor defendants with lawyers or release them.”
*** Hard Times and the Right to Counsel, New York Times, November 21, 2008:   “Forty-five years after the Supreme Court’s landmark ruling established a defendant’s constitutional right to counsel in State criminal proceedings, that crucial right is hanging by a tattered thread. . . . Public defenders’ offices always have been underfinanced and overburdened. With State revenues in free fall, the problem is reaching crisis proportions and creating a legal and moral challenge for the criminal justice system, State legislatures and the legal profession. . . . In at least seven States, public defenders’ offices are refusing to take on new cases or have sued to limit them. They argue that budget cuts and rising case loads undermine their ability to provide adequate representation. . . . Public defenders’ offices all over the country are reporting similar problems. The immediate result is that innocent defendants may feel pressure to plead guilty. There also is an increased risk of wrongful conviction, which means that the real offenders would go free.”
*** New York Times, January 18, 2009: “Scores of legal aid societies that help poor people with noncriminal cases — like disputes over foreclosures, evictions and eligibility for unemployment benefits — are being forced to cut their staffs and services, even as requests for help have soared. . . . The societies have been hit hard by the Federal Reserve’s steep reduction of its benchmark interest rate, which finally plunged last month to near zero. . . . (Legal Aid Societies) depend heavily on revenues that are tied to the federal funds rate. . . . For many legal aid groups across the country, cutbacks in staffing are expected to reach 20 percent or more over the coming months, even as requests for their services have risen by 30 percent or more.”
*** State Law to Cap Public Defenders’ Caseloads but Only in the City, New York Times, April 5, 2009:  “The number of criminal cases that court-appointed lawyers in New York City handle will be capped for the first time under a new law tucked in the $131 billion State budget bill passed last week. The measure addresses longstanding pleas from low-paid public defenders, who sometimes juggle more than 100 cases at a time. . . . Under the law, New York State’s chief administrative judge would be required to establish new caseload standards for public defenders by April 1, 2010.  The judiciary would then have four years to phase in the limits and ensure proper funding.  Despite the State’s grim economic condition, the judiciary’s budget for the current fiscal year remained stable at $2.57 billion.”
_________________________________
Facing Budget Crisis, Public Defenders May Refuse Cases, ABC News, June 13, 2008 (transcript):
http://abcnews.go.com/TheLaw/Story?id=5049461&page=1

Hard Times and the Right to Counsel, New York Times, November 21, 2008:
http://www.nytimes.com/2008/11/21/opinion/21fri2.html?_r=1&th&emc=th&oref=slogin

Interest Rate Drop Has Dire Results for Legal Aim New York Times, January 18, 2009:
http://www.nytimes.com/2009/01/19/us/19legal.html?_r=2&th&emc=th

State Law to Cap Public Defenders’ Caseloads but Only in the City, New York Times, April 5, 2009:
http://www.nytimes.com/2009/04/06/nyregion/06defenders.html?em


State Budget Troubles Worsen:  July 29, 2009 Update
Center on Budget and Policy Priorities, Washington DC.

“The unprecedented State fiscal problems brought on by the worst decline in tax receipts in decades show no signs of letting up. On July 1 — the start of the fiscal year in most States — an unusually high number of States were still struggling to adopt budgets for fiscal year 2010. By late July most States had adopted budgets that closed the shortfalls they faced with a combination of federal stimulus dollars, service reductions, revenue increases, and funds from reserves. But these budgets are already falling out of balance as the economy has caused state revenues to decline even more than projected. States will continue to struggle to find the revenue needed to support critical public services for a number of years. . . . At least 33 States already anticipate deficits for 2011. These shortfalls total $51 billion — 13 percent of budgets — for the 25 States that have estimated the size of these gaps by comparing expected spending with estimated revenues, and are likely to grow as more states prepare projections and revenues continue to deteriorate. . . . As the full extent of 2011 deficits become known, shortfalls are likely to equal $160 to $180 billion. Combined budget gaps for the next two years — State fiscal years 2010 and 2011 — are estimated to total at least $350 billion.”
NOTE: On December 18, 2007, this source reported shortfalls in 13 States. On August 5, 2008, this source reported shortfalls in 29 States.
Full text with state-by-state data:
http://www.cbpp.org/cms/?fa-view&id=711


State Retirement System Losses
Compiled from several sources named in the text and in the links below.

*** Missouri, Southeast Missourian, Cape Girardeau, March 29, 2009:  “Districts and employees make equal contributions to the Missouri Public School and Education Employee Retirement System.  For classroom teachers and other educators, the contribution will increase to 13.5 percent from 13 percent of their paychecks beginning July 1. That higher rate was set last year before the market began its decline.  Since those rates were set, the retirement fund has lost heavily on its investments. The fund was down almost 26 percent last year. Since Jan. 1, it has lost another 5 percent of its value, said Steve Yoakum, executive director. . . . (The various retirement systems) benefit from conservative Missouri attitudes that require plans to keep ample reserves. Actuarial studies completed before the big declines began pegged most plan assets at 60 to 90 percent of the amount needed to pay all current and future benefits.”
*** New Jersey.  New York Times, February 6, 2009:  “With Wall Street sputtering over the last few months, the $4.2 billion the State poured into hedge funds since 2006 declined in value to $3.5 billion by the end of the year, according to a detailed analysis of 28 funds in the State’s (New Jersey’s) portfolio.  Millions of those losses are gone forever. . . . The State’s seven pension funds are designed to cover retirement benefits for about 700,000 working and retired teachers, government workers, police officers, and firefighters. Actuaries have projected those benefits will cost $118 billion over time, while the pension funds are now worth $63.9 billion. . . . Hedge funds contributed to that decline. . . . The mounting concerns over hedge fund performance add a new wrinkle to the politically charged debate over Gov. Jon S. Corzine’s plan to let local governments skip $584 million in contributions they are scheduled to make into the pension system in April (to head off steep increases in local property taxes).”
*** New Mexico.  KRQE News 13, Santa Fe, January 16, 2009:  “Several retirement funds for New Mexico public employees are in trouble, and that could mean changes for past, current and future workers. . . .The New Mexico retiree health care authority is in such bad shape that without changes, it will go belly up in 2019.  60,000 New Mexico educators contribute part of their salaries to their retirement. 30,000 retirees depend on the money they gave while working to live now. . . . Wall Street dinged the pension fund managed by the educational retirement board by 33 percent last year, dropping it from about $10 billion to $6.7 billion.  . . . Executive Director of the Educational Retirement Board, Jan Goodwin, pushed for the Legislative Finance Committee to make new hires work longer, 30 years instead of 25, before receiving full pensions. . . . The market also took a chunk out of the pension fund for New Mexico state, county and city retirees. A 25 percent hit from $12 billion to $9 billion.”
*** New York State.  Crain’s New York Business.com, October 28. 2008:  “New York's public worker pension fund has lost about 20% of its value — almost $31 billion — since April 1, State Comptroller Thomas DiNapoli reported Tuesday (October 28).  Despite the sharp decline in New York State Common Retirement Fund assets, Mr. DiNapoli said benefit and employer contribution rates are set through March 2010 and won't be affected. . . . The New York State Teachers Retirement Fund saw assets decline to $88.5 billion as of Sept. 30 from $95.8 billion three months earlier, a spokeswoman said.”
*** Northern Virginia, Suburban Maryland, and Washington DC (DC Metro Area), Washington Post, March 16, 2009: “Pension plans for State and local workers in Maryland, Virginia and the District have lost more than $28 billion since last summer and have seen about a quarter of their total value vanish at a time when governments are losing billions in tax revenue to the recession. . . . Some local pensions lost between 24 and 31 percent of their value from July to the end of January, according to a Washington Post survey of a half-dozen systems covering State and local workers. Virginia's investments shrank by $14.5 billion; Maryland's, by $10.3 billion; and the District's, by $1 billion. . . . Even as pension investments have plummeted, the plans must still cover the same number of retired teachers, police officers, custodians and tax collectors. . . As a result, jurisdictions will have to squeeze already-strained budgets to replenish the pension funds for future retirees.”
*** Pennsylvania. Philadelphia Inquirer, February 18, 2009:  “The Pennsylvania State Employees' Retirement System . . . lost at least $10 billion from its hedge-fund, private-equity, stock, bond and real estate portfolios, leaving $24 billion to fund future pensions. . . . . The Public School Employees' Retirement System . . . lost at least $18 billion, leaving $45 billion.  This means they'll be needing more public money -- way more than the $2.4 billion in taxpayer-funded employee and worker payroll contributions that helped fund pension checks last year -- to pay pensions totaling more than $7 billion a year to 280,000-plus State and school pensioners. . . . And that's not counting losses from private equity and real estate after Sept. 30.  They haven't reported those yet.”
*** Multi-State -- Arrests of Traders.  Stateline.org, The Pew Center on the States, Washington DC:  Owners of WG Trading “were arrested February 25 on securities and wire fraud charges, accused of stealing tens of millions of dollars from Iowa, North Dakota and other investors. . . The $553 million theft is the latest blow in a turbulent period for State retiree pension funds.  The median loss for State funds last year was 25 percent. . . . The steep  decline has caused many pension fund managers and State lawmakers to rebalance investments, reduce monthly payments to retirees, increase contributions, and enact reforms. . . . Wisconsin has reduced monthly payments to retirees for the first time.  New York Gov. David Paterson (D) recently proposed a pension reform plan calling for reduced benefits for newly hired public employees.  Nevada Gov. Jim Gibbons (R), facing a $2.3 billion budget gap, has also called for trimming retiree benefits.  Kentucky is considering cutting the amount of money that the State and local governments contribute to their public pension funds to help cover budget shortfalls. Indiana lawmakers are weighing a proposal to merge the State employee and teacher pension funds and raise contributions. New Mexico lawmakers recently learned they may have to boost contribution rates if the economy does not rebound soon.”  Also see a chart on this page that shows pensions as a percentage of total State economies.
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Economy Hits Missouri’s Public Pension Funds, Southeast Missourian, Cape Girardeau, March 29, 2009
http://www.semissourian.com/article/20090329/NEWS01/703299873

State’s Hedge Fund Losses Stoke Debate, New York Times, February 6, 2009 (New Jersey):
http://www.nytimes.com/2009/02/08/nyregion/new-jersey/08pensionnj.html
*** See an update in The Philadelphia Inquirer, April 3, 2009:
http://www.philly.com/inquirer/front_page/20090403_N_J__teachers_pension_fund_closer_to_insolvency.html

Market Losses Batter State Retirement, KRQE News 13, Santa Fe, January 16, 2009 (New Mexico):
http://www.krqe.com/dpp/news/politics/