Our Roles in State Budget Debates March 15, 2016 March 15, 2016 - PowerPoint PPT Presentation

Our Roles in State Budget Debates March 15, 2016 March 15, 2016

Agenda Agenda 1) Welcome – David Thompson, Council of Nonprofits & Erin Skene ‐ Pratt, Forum a) Housekeeping b) Overview of the Council of Nonprofits/Forum partnership Purpose of today ’ s webinar and introduction of speakers c) 2) 2) Trends in state budget debates Nick Johnson State Priorities Trends in state budget debates– Nick Johnson , State Priorities Partnership 3) Q & A 4) ) Lessons from the states – Maari Porter , Philanthropy Network Greater f h h l h k Philadelphia and Alison Leipsiger , Forefront 5) Q & A 6) Closing –Erin and David

Housekeeping Housekeeping • All of the lines are muted All of the lines are muted • Press *7 to unmute your phone • You can ask questions three ways: raise your virtual You can ask questions three ways: raise your virtual hand, type your question in the comments box or unmute your phone and ask y p • The webinar is being recorded and will be posted on the Forum website www.givingforum.org and the Council of Nonprofits website www.councilofnonprofits.org.

Partnership Partnership • Initiative to enhance nonprofit ‐ philanthropy collaboration on p p py state and local policy • Response to increasing public policy attacks at the state and local levels l l l l • Mark Your Calendars – Nonpartisan Election ‐ Related Activities: Roles for Nonpartisan Election Related Activities: Roles for Nonprofits and Foundations April 26 (2p.m. – 3:15p.m. EST) – Threats to Tax Exemption May 24 (2p.m. – 3:15p.m. EST) – Joint Policy Institute – August 29 ‐ 31 ‐ Chicago

Purpose of Today ’ s Call Purpose of Today s Call Why ? h

Poll Poll • How concerned are you about the budget How concerned are you about the budget conversation in your state? – Very concerned – Very concerned – Somewhat concerned – Not concerned Not concerned

Trends in State Budget Debates Trends in State Budget Debates • Nick Johnson, Director, Nick Johnson, Director, State Priorities Partnership

\ \ ANALYSIS IMPACT: ANALYSIS IMPACT: ANALYSIS + IMPACT: ANALYSIS + IMPACT: State Fiscal Policy Trends State Fiscal Policy Trends Nick Johnson Nick Johnson c Jo c Jo so so Center on Budget & Policy Priorities Center on Budget & Policy Priorities March 15, 2016 March 15, 2016

RECESSION IMP RECESSION IMPACT RECESSION IMPACT RECESSION IMP CT CT F F Fam Fam amili amili ili ili ili ilies ili ilies es an es an and C and C d d Commun d C d C d d Commun ommunities ommunities i i i i es es

Philanthrop Philanthrop Philanthropy & Go Philanthropy & Go y & Government y & Government rnment rnment A Budge A Budge A Budge A Budgetar A Budgetar A Budgetar A Budgetar A Budge ary ary ary ary y Per y Per y Per y Per Perspectiv Perspectiv Perspectiv Perspectiv pective pective pective pective Total giving by foundations in 2010 versus total state budget shortfall in fiscal year 2010 11

WHY BUDGET WORK MATTERS WHY BUDGET WORK MATTERS A budget is a moral document. A budget is a moral document. It It It can disempow er communities. It can disempow er communities. di di iti iti Or it can empow er them. Or it can empow er them. Or it can empow er them. Or it can empow er them.

DEEP RECESSION, DEEP RECESSION, slow recovery slow recovery Percent change in state revenue since start of recession, adjusted for inflation 13

HOW STATES CLOSED THEIR GAPS

STATE & LOCAL PUBLIC JOBS Deep cuts and insignificant recovery Deep cuts and insignificant recovery State and local government employment in millions Source: Bureau of Labor statistics, seasonally adjusted data

SCHOOL FUNDING Still below 2008 levels in 26 states Still below 2008 levels in 26 states Percent change in state formula funding per student, inflation adjusted, fiscal years 2008 -2016

NEARLY ALL STATES HAVE CUT HIGHER HIGHER EDUCATION DEEPLY DEEPLY

HISTORIC POWER SHIFT HISTORIC POWER SHIFT State Legislative Control in 2000 18

HISTORIC POWER SHIFT HISTORIC POWER SHIFT State Legislative Control in 2016 19

PARTISAN CONTROL in the STATES LEGISLATURES 31 Republican 11 Democrat 11 Democrat 8 split GOVERNORS GOVERNORS 31 Republican 18 D 18 Democrat t 1 Independent Unified party control: 23R 7D 20S

BUDGET AGENDA of ALEC & ALLIES Attack Revenue Adequacy Ex Americans for Prosperity: Ex. Americans for Prosperity: Tax breaks for wealthy & corporations Higher sales taxes sin taxes etc Higher sales taxes, sin taxes, etc Less overall revenue Attack the Safety Net Ex Fdtn for Gov’t Accountability: Ex. Fdtn for Gov t Accountability: Drug testing Benefit cuts for workers and non-workers A few little anti-poverty initiatives

KANSAS TAX CUTS: Bi Big tax cuts for the wealthy t t f th lth

TAX CUTS: A FAILED STRATEGY for ECONOMIC GROWTH ECONOMIC GROWTH

TAX-CUT CONSEQUENCES FOR ENERGY STATES FOR ENERGY STATES

SALES TAXES worsen INEQUALITY The Poorest Families Pay Highest General Sales & Excise Tax Rate (as shares of income; average for all states) Source: Who Pays? 2015, Institute on Taxation and Economic Policy

INCOME TAXES lessen INEQUALITY State & Local Personal Income Tax (as a share of income ; average for all (as a share of income ; average for all states) Source: Who Pays? 2015, Institute on Taxation and Economic Policy

FIGHTING BACK with a BUDGET STRATEGY that WORKS BUDGET STRATEGY that WORKS 1. Emphasize evidence-backed investments investments . 2. Boost participation in the economy. 3. Strengthen fiscal planning. 4. Collect the revenue we need for success. success.

SCHOOL FUNDING INCREASES LEAD SCHOOL FUNDING INCREASES LEAD to BIG GAINS FOR POOR KIDS to BIG GAINS FOR POOR KIDS to BIG GAINS FOR POOR KIDS to BIG GAINS FOR POOR KIDS For low-income students, a 10 percent increase in per-pupil spending (for all 12 school-age years) is associated with: Source: C. Kirabo Jackson et. al, “The Effects of School Spending on Education and Economic 28 Outcomes: Evidence from School Finance Reforms.” Quarterly Journal of Economics , October 1, 2015.

SCHOOL FUNDING INCREASES LEAD SCHOOL FUNDING INCREASES LEAD to BIG GAINS FOR POOR KIDS to BIG GAINS FOR POOR KIDS to BIG GAINS FOR POOR KIDS to BIG GAINS FOR POOR KIDS For low-income students, a 10 percent increase in per-pupil spending (for all 12 school-age years) is associated with: Source: C. Kirabo Jackson et. al, “The Effects of School Spending on Education and Economic 29 Outcomes: Evidence from School Finance Reforms.” Quarterly Journal of Economics , October 1, 2015.

TAX CREDITS & NON TAX CREDITS & NON- -CASH BENEFITS CASH BENEFITS REDUCE CHILD POVERTY RATE REDUCE CHILD POVERTY RATE REDUCE CHILD POVERTY RATE REDUCE CHILD POVERTY RATE 30

EITC and CHILD TAX CREDIT EITC and CHILD TAX CREDIT Help at ever Help at e Help at ever Help at e Help at ever Help at e Help at ever Help at e ery stage of life ery stage of life ery stage of life ery stage of life y stage of life y stage of life y stage of life y stage of life 31

EITC and CHILD TAX CREDIT EITC and CHILD TAX CREDIT Increase earnings in ne Increase earnings in next generation Increase earnings in ne Increase earnings in next generation Increase earnings in ne Increase earnings in next generation Increase earnings in ne Increase earnings in next generation xt generation xt generation xt generation xt generation 32

REVENUE INCREASES HELP KIDS REVENUE INCREASES HELP KIDS Minnesota Raised Taxes in 2013 Look What Happened Minnesota Raised Taxes in 2013 Look What Happened Minnesota Raised Taxes in 2013. Look What Happened. Minnesota Raised Taxes in 2013. Look What Happened. Minnesota Raised Taxes in 2013. Look What Happened. Total Revenue Raised: A new bracket on the top 1% raised $1.1 Billion $2.1 Billion Youth Investments Include: • $485M more for E-12 • $2M for youth intervention $485M f E 12 $2M f th i t ti • $134M for all day K • $250M more for higher-ed. • $40M for early learning • $47M more for financial aid scholarships scholarships • Higher ed tuition freeze • $4M for homeless youth Source: Minnesota Budget Project

Revenue Increases Help Kids Minnesota Raised Taxes in 2013. Look What Happened. Total Revenue Raised: A new bracket on the top 1% raised $1.1 Billion $2.1 Billion Youth Investments Include: • $485M more for E-12 • $2M for youth intervention • $134M for all day K • $250M more for higher-ed. • $40M for early learning • $47M more for financial aid $40M f l l i $47M f fi i l id scholarships • Higher ed tuition freeze • $4M for homeless youth Source: Minnesota Budget Project statepriorities.org 34

WHAT ROLES CAN WHAT ROLES CAN PHILANTHROPY PLAY? PHILANTHROPY PLAY? PHILANTHROPY PLAY? PHILANTHROPY PLAY? 1. Engage policymakers directly 1 E li k di tl 2. Encourage grantees’ engagement 2. Encourage grantees engagement 3. Invest in tools that grantees need to be effective in policy debates ff ti i li d b t • Data & analysis ata & a a ys s • Coalitions & message d evelopment

Strategies for A Strategies for Action Strategies for A Strategies for Action ction ction

Q & A Q & A