Is it time for Woodbury County to join the party?

This week, two more counties in Iowa — Linn and Wapello — joined Johnson County in setting a countywide minimum wage. In Linn County, the wage will rise to $10.25 by January 2019, while Wapello County followed Johnson County’s lead in raising the wage to $10.10 in three installments. Polk County is expected to take up a proposal soon to raise the wage there to $10.75 by 2019. Lee County supervisors, meanwhile, have appointed a study group to consider a minimum wage.

Unlike these counties, Woodbury is part of a three-state metropolitan area that includes counties in Nebraska and South Dakota where the state minimum wage has already been raised above the federal. The minimum wage is currently $8.55 in South Dakota and $9.00 in Nebraska. Sioux City employers are already competing in a labor market with wages above the Iowa minimum of $7.25.

Using data from the U.S. Census Bureau’s American Community Survey, economists at the Economic Policy Institute estimate that about 10,000 workers in Woodbury County would see an increase in their hourly wage if the county set a minimum equal to Nebraska’s $9.00 by January 2018. Those 10,000 workers on average would see their annual income rise by about $1,500.

If the Woodbury County wage were raised further, to $10.25 by January 2019, putting it on a par with Linn County, the number of workers benefiting would grow to about 12,600. The average gain in income would about double, to $3,000.[i]

The Census data dispel the usual myths about low-wage workers. In Woodbury County, over 80 percent of those benefiting from the $9.00 or $10.10 minimum would be age 20 or over, with about a third over age 40. Well over half of them work full time. About 26 percent are parents, and 3,400 to 4,700 children live in a family that would see a rise in income.

Raising the minimum wage puts more disposable income in the pockets of the work force. Much of that income would be returned to the local economy as workers spend more at grocery stores, car dealerships, clothing stores, restaurants, theaters — in fact, throughout the local retail and service sectors. Increased sales in turn would create a need for more workers.

It is this increase in local spending that is a major reason that studies of local minimum wage laws have found no effect on employment. The higher labor costs to employers are offset in part by increased demand for their goods and services, and in part by lower employee turnover and greater productivity.

The Iowa Policy Project’s 2016 Cost of Living in Iowa shows what it takes for families to get by, just covering basic expenses for food, rent, transportation, child care and health care. In Woodbury County, a married couple who both work and who have two children needing child care would each need to earn at least $13.00 an hour to get by, even with health insurance provided by an employer. Without health insurance, they would need to make over $16 an hour. Even a single person living alone would need a wage of $12.46 to get by without public assistance, or nearly $11.00 an hour in a job with health benefits.

While $9.00 or $10.10 does not represent a living wage in Woodbury County, it gets workers closer to that goal and helps thousands of families, many struggling below the poverty line. And it provides a significant boost to the local economy through increased spending.

 

[i] These estimates include those affected directly and indirectly. About three-fourths of the workers gaining a higher wage represent those earning less than the new minimum. But the other fourth represent those a little higher up the wage scale who would benefit as employers adjust pay levels to remain competitive or to restore parity within a business.

2010-PFw5464Posted by Peter Fisher, Research Director of the Iowa Policy Project

pfisher@iowapolicyproject.org

A new baseline: Drop in number of uninsured Iowans

The new census numbers set a baseline to evaluate the effects of Iowa’s move this year to privatize Medicaid. After sharp declines in Iowa’s uninsured population, it will be interesting to see if declines continue.

Nineteen out of 20 Iowans are now covered by health insurance, thanks in large part to the Affordable Care Act and Iowa’s Medicaid expansion. The latest census data, released today, show that the percent of Iowans who were uninsured dropped from 8.1 percent in 2013 to just 5.0 percent in 2015. While 248,000 Iowans were without insurance in 2013, by 2015 the number had dropped to 155,000.

Only four states have a lower percent of the population without health insurance: Massachusetts, Hawaii, Minnesota and Vermont, plus the District of Columbia.

Across the country, the gap has widened between states that expanded Medicaid and those that did not, as shown below. Twenty-eight states, including Iowa, chose to expand Medicaid eligibility in 2014 or 2015 to families with income up to 138 percent of the poverty level. The uninsured population has declined faster in the last two years in the states that chose to expand.

In Iowa, the 2015 census numbers establish a baseline for evaluating the effects of Iowa’s Medicaid privatization, which took place early this year. It will be interesting to see if the uninsured population continues to decline in 2016.

2010-PFw5464Posted by Peter Fisher, Research Director

pfisher@iowapolicyproject.org

For more on this issue, see:
Census Data Show States Not Expanding Medicaid Falling Further Behind, by Matt Broaddus, Center on Budget and Policy Priorities

Solar power shines when most needed

Distributed solar is good for the environment because the electricity produced is clean. It also is likely to come just when it is needed. Let’s make sure we have the policies in place to encourage more solar.

By David Osterberg and Nathaniel Baer

The hot sun we experienced this August not only caused the local electric grid to experience high use, but it also powered solar systems distributed around Eastern Iowa.

The middle of a hot summer day is a time when almost any U.S. electric utility expects to see highest demands during the year. Aug. 11 was going to be one of those days in Eastern Iowa. Peak demands of high electricity use translate to high costs.

So, a day in advance, MidAmerican Energy asked the University of Iowa’s Facilities Management team to cut back the university’s electric load from 12:30 p.m. to 5 p.m. on Aug. 11, 2016.

The university has an arrangement with the electric utility to decrease its electric load by cutting back on air conditioning and other usage, when called upon, in exchange for a reduced electric rate. The goal is to reduce costs for all utility customers by encouraging some customers to reduce their electricity use at the highest and most expensive times.

This type of arrangement is a win-win not only for UI and MidAmerican, but also other MidAmerican customers. Utilities often make these arrangements available to large customers as well as residential customers with air conditioning.

The university has two small solar energy systems that produce electricity. The data for one of them, a 38-kilowatt solar array, showed energy production varying during the morning of Aug. 11 (below). During the utility’s predicted peak period of energy use, the solar array’s production rose quickly and continued to be strong for the remaining period.

Basic RGB

Similarly, the solar arrays at Johnson County’s Secondary Roads and SEATS campus began producing much higher levels of solar energy shortly after the 12:30 p.m. high-use period started. These panels also continued with strong production through 5 p.m., when the period ended. (below)

160822-solar-timeofday

The hot sun caused the MidAmerican system to experience a peak day but also powered distributed solar systems in the area to help meet those higher energy needs.

Distributed solar is good for the environment because the electricity produced is clean. It also is likely to come just when it is needed. Let’s make sure we have the policies in place to encourage more solar.

2016-osterberg_5464David Osterberg is an energy and environment researcher at the Iowa Policy Project. dosterberg@iowapolicyproject.org

 

OLYMPUS DIGITAL CAMERANathaniel Baer is the energy program director at the Iowa Environmental Council. baer@iaenvironment.org.

 

A version of this column ran in the Sept. 6 Cedar Rapids Gazette.

On Labor Day, don’t forget single workers

Hundreds of single workers — and millions nationally — are taxed into poverty because they do not have kids and do not qualify for the EITC. And problems with child care assistance are being used to oppose a minimum-wage increase, even though the vast majority of affected workers do not have children. On Labor Day, let’s not forget the needs of single workers.

Our focus at the Iowa Policy Project frequently emphasizes the impact of public policy on working families.

But the demand of meeting a household budget is faced by more than parents, whether in single- or married-couple families. Single workers without children also need to get by.

So, on Labor Day weekend, let’s make sure the spotlight hits those folks as well. Here are three areas:

•    the Earned Income Tax Credit (EITC);
•    the Cost of Living in Iowa; and
•    the minimum wage.

EITC
chuck_marr-5464A new report from the Center on Budget and Policy Priorities (CBPP) focuses on single working people who do not raise children and thus do not benefit from the Earned Income Tax Credit (EITC). Childless workers under age 25 are ineligible for that benefit, notes CBPP’s Chuck Marr, who states:

On Labor Day, many of these low-wage workers will be serving meals in restaurants, ringing up back-to-school supplies at the mall, or driving a truck down the highway. They deserve a decent day’s pay for a hard day’s work, but many of their paychecks are too small to make ends meet. An expanded EITC that targets this group would do more to help deliver a decent day’s pay.

There are bipartisan proposals on the table in Washington to extend the EITC to these workers, 7.5 million of whom are now “taxed into poverty,” Marr notes. The table below shows the Iowa impacts of these proposals.

Iowa Workers helped under Obama, Ryan plans Workers helped under Brown, Neal plans
Cooks  6,000  6,000
Cashiers  5,000  6,000
Waiters and waitresses  5,000  5,000
Retail salespersons  4,000  5,000
Custodians and building cleaners  4,000  4,000
Laborers and freight, stock, and material movers  4,000  4,000
Truck drivers  4,000  4,000
Nursing, psychiatric, and home health aides  3,000  4,000
Maids and housekeeping cleaners  3,000  3,000
Stock clerks and order fillers  2,000  3,000
Child care workers  2,000  2,000
Construction laborers  2,000  2,000
Food preparation workers  2,000  2,000
Grounds maintenance workers  2,000  2,000
Personal and home care aides  2,000  2,000

Source: Chuck Marr blog, Center on Budget and Policy Priorities

CBPP has done much work on this issue. See this earlier report and another report by Marr and his colleagues at CBPP.

Cost of Living in Iowa
2010-PFw5464As IPP’s Peter Fisher shows in Part 2 of our “Cost of Living in Iowa” report for 2016, more than a quarter of working single persons statewide (27.5 percent) do not make enough at work to meet a basic-needs household budget. In fact, for those workers who fall short, they fall more than $10,000 short, on average. It is worth noting that this basic needs gap is even more severe for single parents, who fall almost $23,000 short, on average.

Minimum Wage
One of the efforts being used to stop or hold down local minimum wage increases in Iowa is the issue of “cliff effects” in work support programs — particularly Child Care Assistance — in which benefits abruptly drop for a worker if he/she gets slightly higher pay.

This is a very real issue for some workers, but not for the vast majority of workers who would benefit from a minimum wage increase statewide to $12 (phased in over five years), because they do not have children.

It makes no sense to block a wage increase for the three-fourths or more of workers who are not affected by the child care issue.

Rather, Iowa could raise the minimum wage and, separately, improve access to its Child Care Assistance program so that the cliff effects are eased or erased. There are ways to do so. See Fisher’s report with Lily French from 2014, Reducing Cliff Effects in Iowa Child Care Assistance.

owen-2013-57Posted by Mike Owen, Executive Director of the Iowa Policy Project

mikeowen@iowapolicyproject.org

Spreading a friend’s message

“At 93 I am nearing the end of my life on this planet. As a parting message, I want to encourage you in the strongest terms to use your influence to make distributed solar energy a major source of electricity. … Please use your influence.” — Don Laughlin, in his letter to Warren Buffett

I visited an old friend, Don Laughlin, in a nursing home before he died. A stroke had paralyzed half of his body but certainly had not affected his mind. Even with his impending death he was looking toward the future as he spoke with Nathan Shepherd of IPP and me.

Our conversation was about renewable energy, which he had promoted for decades. He told us that one of his many unfinished projects was a letter to Warren Buffett, the owner of MidAmerican Energy, to ask him to be more supportive of rooftop solar power. Nathan suggested to Don that he dictate a letter and that we would send it to the billionaire. And we did.

160810-CLIP-dmr-openletterBut we realized that with probably hundreds of letters every day, Warren Buffett might never hear of Don’s letter. We spoke with the Des Moines Register’s opinion editor, who loved the idea of publishing Don’s letter as an open letter to Buffett. So, two days after we spoke to Don, a third of the Register’s op-ed page was Don’s letter, an introduction by Nathan and me, and a huge picture of solar panels. (Click on image.)

Within several days, Don Laughlin would be gone at the age of 93.

At a celebration of Don’s life at Scattergood School near West Branch August 27, my neighbor Deborah Dakin suggested that while she was sure Don was happy to do one last act to encourage solar power and reduce the effect of climate change, more could be done.

Basic RGBShe suggested that everyone who reads this write to Warren Buffett to ask him to pull his company back from efforts to reduce the return to homeowners from their own rooftop solar. That is because MidAmerican is trying to kill net metering, the ability of a homeowner or business to receive retail rates for any excess electricity they generate beyond their own usage.

Your letter would honor Don Laughlin’s last public activity, and, if it succeeds, each of us will be doing our part to stave off the worse and worst effects of climate change.

IPP-osterberg-75David Osterberg, Co-Founder and Environmental Researcher, IPP

dosterberg@iowapolicyproject.org

The hope for nonpartisan dialogue to practical strategies on issues

Editor’s Note: This post ran on Charles Bruner’s blog as “Light at the end of the party conventions.” Bruner is a former co-director of the Iowa Fiscal Partnership, the fiscal policy analysis collaboration of the Iowa Policy Project and the Child and Family Policy Center, two Iowa-based nonprofit, nonpartisan organizations.

By Charlie Bruner

America needs every one of us to lend our energy, our talents, our ambition to making our nation better and stronger —where you can get a good job and send your kids to a good school, no matter what zip code you live in, where all our children can dream, and those dreams are within reach.

When I am President, I will work to ensure that all of our kids are treated equally and protected equally. Every action I take, I will ask myself: Does this make life better for young Americans in Baltimore, in Chicago, in Detroit, in Ferguson who have in every way the same right to live out their dreams as any other child in America?

There is an old saw that says: “I went to a hockey fight and, lo and behold, a game broke out.” I watched much of both political party conventions – and, lo and behold, amidst all the partisan rhetoric and campaigning, at least one common “issue/concern” was raised.

The above are direct quotes from Hillary Clinton and Donald Trump as they accepted their party’s nomination for President. The first paragraph is from Clinton’s speech, the second from Trump’s. Taking them at face value, the challenge is now for a public dialogue to “break out” that begins to build consensus around responses.

The common sentiments these statements express require actions that cannot be achieved by whoever is elected President, through the power of that office alone. Ultimately, as an electorate and as stewards of our future, we need to insist on a dialogue that goes beyond expressing these sentiments to developing practical and proximate strategies — public and private, professional and voluntary — that will enable us to realize them.

In such a dialogue, Democrats may stress the need for public responses that provide additional income and service supports and a proactive government that ensures a living wage to reduce material poverty. Republicans may stress the need for greater personal responsibility and community initiative based upon indigenous leadership that fosters more points of light within poor communities to enhance personal efficacy. In the end, the solution (for reasons of achievable politics and most effective policy) is not a matter of either/or, but of both/and.

These statements should be seen and used as an opportunity for us to insist on further, deliberative dialogue — dialogue that goes beyond sound bite proclamations mapping out a partisan political position. It is incumbent, for our children and our nation, that this dialogue does “break out” in ways that lead to that action, not only at the Presidential campaign level but in our states, communities, and neighborhoods.

At least that’s my story, and I’m sticking to it.

08-Bruner-5464 Charlie Bruner is Director Emeritus of the Child and Family Policy Center, which he founded as he completed 12 years as an elected Iowa state legislator. Prior to that, he received his Ph.D. in political science from Stanford University and has had different stints at both teaching and research. Thus, he brings three dubious backgrounds — academic, politician, and advocate — to his current work as a co-principal investigator for the Learning Collaborative on Health Equity and Young Children (see: childequity.org for his website).

Join us Sept. 15 to celebrate IPP’s 15th anniversary

The Iowa Policy Project is 15 years old and we’re having a party. Join us for our anniversary reception and help us move forward to the next 15!

Bill Stowe on clean water • Peter Fisher on work supports •
and more!

THURSDAY, SEPT. 15 • 6 P.M. • RECEPTION
PRAIRIE MEADOWS CONVENTION CENTER • ALTOONA

Hors d’oeuvres, cash bar — 6 p.m. • Program — 6:45 p.m. to 7:30 p.m.
Tickets $50 per person • Sponsorships available • RSVP TODAY!

Featuring: Bill Stowe, Des Moines Water Works
Hear from the CEO and General Manager of Des Moines Water Works, one of Iowa’s most prominent advocates of clean water stewardship.

Sneak Preview: The Cost of Living in Iowa Part 3 — Work Supports
IPP Research Director Peter Fisher will offer a peek at upcoming analysis of how Iowa can enhance eligibility for child care assistance so that working families are not penalized if they work more or achieve a slight boost in pay.

Special recognition by co-founder David Osterberg of early IPP supporters
Mark L. Smith, G. David Hurd and Fred and Charlotte Hubbell

And a silent auction you won’t want to miss!

RSVP today — download this response form to order tickets or become a sponsor.

INDIVIDUAL TICKETS: $50 per person

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