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 c) Purpose of today’s webinar and introduction of speakers

2) Trends in state budget debates Nick Johnson State Priorities 2) Trends in state budget debates– Nick Johnson, State Priorities Partnership 3) Q & A ) f h h l h k 4) Lessons from the states – Maari Porter, Philanthropy Network Greater 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

l l l l local levels

• 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

h Why?

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 so c Jo so Center on Budget & Policy Priorities Center on Budget & Policy Priorities March 15, 2016 March 15, 2016

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

• mmunities

es Fam amili ilies es an and C d Commun

• mmunities

es

Philanthrop Philanthropy & Go y & Government rnment Philanthrop Philanthropy & Go y & Government rnment A Budge A Budgetar ary y Per Perspectiv pective A Budge A Budgetar ary y Per Perspectiv pective A Budge A Budgetar ary y Per Perspectiv pective A Budge A Budgetar ary y Per Perspectiv 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 di iti It di iti It can disempow er communities. It can disempow er communities. 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 t 18 Democrat 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 t t f th lth Big tax cuts for the wealthy

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:

28 Source: C. Kirabo Jackson et. al, “The Effects of School Spending on Education and Economic 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:

29 Source: C. Kirabo Jackson et. al, “The Effects of School Spending on Education and Economic 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 e Help at ever ery stage of life y stage of life Help at e Help at ever ery stage of life y stage of life Help at e Help at ever ery stage of life y stage of life Help at e Help at ever ery 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 xt generation Increase earnings in ne Increase earnings in next generation xt generation Increase earnings in ne Increase earnings in next generation xt generation Increase earnings in ne Increase earnings in next 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:

$2.1 Billion

A new bracket on the top 1% raised $1.1 Billion

$485M f E 12 $2M f th i t ti

Youth Investments Include:

• $485M more for E-12
• $134M for all day K
• $40M for early learning

scholarships

• $2M for youth intervention
• $250M more for higher-ed.
• $47M more for financial aid

scholarships

• $4M for homeless youth
• Higher ed tuition freeze

Source: Minnesota Budget Project

Minnesota Raised Taxes in 2013. Look What Happened.

Revenue Increases Help Kids Total Revenue Raised:

$2.1 Billion

A new bracket on the top 1% raised $1.1 Billion Youth Investments Include:

• $485M more for E-12
• $134M for all day K

$40M f l l i

• $2M for youth intervention
• $250M more for higher-ed.

$47M f fi i l id

• $40M for early learning

scholarships

• $4M for homeless youth
• $47M more for financial aid
• Higher ed tuition freeze

34 statepriorities.org

Source: Minnesota Budget Project

WHAT ROLES CAN WHAT ROLES CAN PHILANTHROPY PLAY? PHILANTHROPY PLAY?

1 E li k di tl

PHILANTHROPY PLAY? PHILANTHROPY PLAY?

• 1. Engage policymakers directly
• 2. Encourage grantees’ engagement
• 2. Encourage grantees engagement
• 3. Invest in tools that grantees need to be

ff ti i li d b t effective in policy debates

• Data & analysis

ata & a a ys s

• Coalitions & message development

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

Q & A Q & A

Poll Poll

• If your organization is involved in the state

If your organization is involved in the state budget debate, how so?

– Educating members on the impact – Educating members on the impact – Educating the public on the impact Advocating for certain solutions – Advocating for certain solutions

Lessons from the States ‐ PA Lessons from the States PA

• Maari Porter, Executive

Maari Porter, Executive Director, Philanthropy Network Greater Philadelphia

11.23.15

The two regional associations of grantmakers serving Pennsylvania ‐ Philanthropy Network G Phil d l hi Greater Philadelphia and Grantmakers of Western PA ‐ issue a non‐partisan joint statement in support of pp the statewide PA People Count Campaign.

2.16.16 Philadelphia Inquirer op-ed:

No way to treat Pa. citizens

Co‐signed by: Jim Cawley, President & CEO United Way of Greater Philadelphia Jim Cawley, President & CEO, United Way of Greater Philadelphia and Southern New Jersey Maari Porter, Executive Director, Philanthropy Network Greater Philadelphia Pedro A. Ramos, President & CEO, The Philadelphia Foundation Pedro A. Ramos, President & CEO, The Philadelphia Foundation

Lessons from the States ‐ IL Lessons from the States IL

• Alison Leipsiger,

Alison Leipsiger, Director of Public Policy and Advocacy, Forefront

Illinois’ Budget Impasse Impasse

Alison Leipsiger Alison Leipsiger Director of Policy and Advocacy

A Little Background: A Little Background:

Illinois’ Budget Impasse

g

A.Pension mismanagement (decades) B.Flat tax (as prescribed by the constitution) C.Temporary tax increase (2011) D.Reforms and attempted reforms (2011‐2014) p ( ) E.Expiration of the tax increase (2015) F.Political stalemate (2015 – ????)

So What: So What:

• No FY2016 budget
• Questions about the FY2017 budget
• Between $4 and $10 billion dollar

deficit

• Complete paralysis

p p y

• Decimating infrastructure

Illinois’ Budget Impasse

Our go Our go-

• to tactics had

to tactics had failed failed

 Letters to editors  Earned media  Public pressure  Good old lobbying and advocacy

We needed to think outside the box We needed to think outside the box

Illinois’ Budget Impasse

How could Forefront bring grantmakers to How could Forefront bring grantmakers to g g g g the table? the table?

1.Pool funds from multiple foundations 2.Bring together existing nonprofit coalitions, include foundations 3.Use funds to coordinate a public education campaign 4.Coordinate messaging and strategy to “get out the word” 5.Target new audiences through relationships with coalitions and foundations

Closing and Thank You Closing and Thank You

• Thank you to our presenters and to all of you

Thank you to our presenters and to all of you for participating.

• Big thank you to the Mott Foundation for their
• Big thank you to the Mott Foundation for their

generous support of this work.