Las Vegas, NV - Will the rescue of Wall Street reach Main Street? The eyes of the nation, and the world, will be on the U.S. stock market today as the $700 billion bailout gets its first major test. For Nevada, the big questions are whether the rescue plan will provide a cure for two of the state's biggest problems, unemployment and home foreclosures.
James Parrott, chief economist for the Fiscal Policy Institute, doubts that the bailout will cure those woes. He believes that while Congress took an important first step by injecting billions to stabilize the markets, more action is needed for the rescue to help people in Nevada.
"We also need to stabilize real estate markets and provide a robust stimulus package to get the economy going again. Unfortunately, the second and third steps were not part of this deal."
The Silver State has long ranked among the "foreclosure capitals" of the nation, and unemployment has now become a growing concern. The nation lost 159,000 jobs last month, and state economists have issued their own dire prediction for Nevada. They say unemployment will reach 8.6 percent next year, and unless the economy gets rolling again, the jobless rate could stay at that level for years to come.
Launce Rake, with the Progressive Leadership Alliance of Nevada, worries about the way these job losses will affect the state.
"Unemployment is at its highest rate in more than a quarter-century. Folks are going to lose their jobs, and this bill does nothing to address the fundamental economic problems that are leading to foreclosures and unemployment."
Rake believes Congress needed to act to stabilize the financial markets, but among the results will be the elimination of resources that could have funded important work in areas such as health care, education and human services.
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A new report analyzes Pennsylvania's existing voucher programs, that divert public funds to private schools.
This comes on the heels of Gov. Josh Shapiro's plan to create a new voucher program for K-12 students.
Diana Polson - senior policy analyst with the Keystone Research Center - said last year's Commonwealth Court decision ruled that Pennsylvania's system of funding public education is unconstitutional, therefore the state doesn't have a dollar to waste on expanding existing private-school voucher programs or creating a new one.
"The basic-education funding commission estimated the state must pay $5.1 billion over the next seven years to make sure our public schools are funded equitably and adequately," said Polson. "Meanwhile, our report finds that existing private-school voucher programs are siphoning millions from taxpayers with little to show for it."
Supporters argue that vouchers let children leave under-performing public schools and get a better education at private schools.
Polson said Pennsylvania's voucher programs have no "meaningful educational or financial accountability," so they really have no way of knowing if these programs operate as intended or are beneficial to low-income or moderate-income students.
Polson said the report reveals that the programs have grown, and just this year they will cost the state nearly $500 million.
However, these voucher programs exclude students in rural areas, because there are few if any participating private schools in these regions.
Local public schools remain the primary option for most rural families.
"We also found that private schools receiving these funds are allowed to - and do - routinely discriminate against students for reasons including disabilities, sexual orientation, religious beliefs and more," said Polson. "These programs are also exclusive. They subsidize the state's most elite and expensive private schools as well as affluent families."
Polson said the report reveals that the Independent Fiscal Office estimated that the average EITC program scholarship was $2,314, while the Opportunity Scholarship Tax Credit was slightly less at around $2,000.
The cost of attending one of the top 25 private schools in Pennsylvania is around $41,000 per year. This means these schools are still out of reach for many low- and moderate-income families.
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As Nebraska's 2024 legislative session draws to a close, family caregivers and their supporters are closely watching the progress of Legislative Bill 937, the Caregiver Tax Credit Act.
The bill provides eligible family caregivers up to $2,000 in tax credits for out-of-pocket expenses or up to $3,000 if the family member receiving care has dementia or is a veteran.
Jina Ragland, state director of advocacy and outreach for AARP Nebraska, said family caregivers are filling health care gaps in the state, especially with 15 Nebraska counties currently lacking a nursing home or assisted-living facility. Ragland argued the state's family caregivers need and deserve financial support.
"We really feel they're the backbone of the U.S. care system," Ragland emphasized. "Especially here in Nebraska because they're helping parents, they're helping loved ones live independently in their homes."
Family caregivers in the U.S. spend an average of $7,000 per year in out-of-pocket expenses. Employed caregivers sometimes lose wages when they have to take time off for caregiving responsibilities. Others retire early, losing both wages and retirement income.
The bill includes an income limit of $50,000 for individuals and $100,000 for married couples. Sen. Eliot Bostar, D-Lincoln, introduced the bill on behalf of AARP Nebraska. The legislature is expected to debate the measure for the second time this week.
Joyce Beck of Grand Island knows firsthand the emotional and financial strain of being a caregiver and losing a loved one. She retired early to care for her husband, who suffered from multiple sclerosis and cancer. In addition to significant out-of-pocket expenses, her Social Security and pension payments are both lower because she retired early.
Beck said she knows some Nebraskans face bigger financial struggles as a result of their caregiving.
"If there's any financial support that we can give, that would be so beneficial," Beck contended. "Some people don't have the option of a retirement account or a pension plan, so $2,000 would be huge for them. "
Ragland stressed family caregivers are helping Nebraska taxpayers as well. When their caregiving delays or prevents expensive-nursing home placement, it contributes to lowering the state's Medicaid costs.
"An important concept for people to understand is the value of those people who are just doing what they think is right," Ragland asserted. "The time and the money and the energy that they're providing as family caregivers to offset, again, the gaps in the care services that we have in our communities."
Six states currently offer a caregiver tax credit, and there is a bipartisan bill in the U.S. Congress to enact one at the federal level.
Disclosure: AARP Nebraska contributes to our fund for reporting on Budget Policy and Priorities, Consumer Issues, Health Issues, and Senior Issues. If you would like to help support news in the public interest,
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As California faces a $38 billion budget deficit, state lawmakers have identified $17 billion in potential cuts before the Legislature begins crunching the numbers later this week.
Initial plans include shifting some funds away from job training programs but the idea is getting some pushback. Advocates of the programs said at a time when skilled worker shortages plague essential sectors, investments in job training are needed.
Lisa Countryman-Quiroz, CEO of San Francisco-based Jewish Vocational Service, a nonprofit job training agency helping to match jobseekers with employers, said current economic conditions call for investment in programs like theirs.
"This is absolutely critical given the cost of living, given rising economic inequality in the state of California, the people who really want to be able to provide for their families, people who want to be able to advance in their careers," Countryman-Quiroz outlined. "We are helping people get there."
Democrats, who hold a supermajority, agreed last week to reduce the state's projected shortfall through spending cuts, delays, deferrals and cost-shifting. The budget debate could start as soon as Thursday.
Countryman-Quiroz said while job training can have high costs, workforce investments often pay for themselves by closing opportunity gaps in employment and creating economic revenue. She cited one program, known as the High Road Training Partnership.
"We see a really positive return on investment," Countryman-Quiroz pointed out. "Every dollar that JVS specifically has received in HRTP funds has resulted in $2 in wages for the jobseekers that we work with."
Jordan Hernandez, a graduate of the High Road Training Partnership, said he has successfully accessed both education and job opportunities.
"This program has given me a lot of confidence, especially with school things," Hernandez noted. "I never thought I'd be in school, so once I got into this program, I was very nervous, but they were very welcoming. They treated me with respect, and they understood where I was coming from."
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