Key Takeaways:
– New York’s Child Poverty Reduction Advisory Council endorses a $9 billion package to tackle child poverty.
– Proposals include expanding the state child tax credit, increasing cash assistance payments and introducing a state housing voucher.
– Key recommendations would benefit over 1.5 million families.
– Governor Kathy Hochul will consider these proposals in her 2025 budget announcement.
As New York gears up for 2023’s budget season, Governor Kathy Hochul and state lawmakers have considerable considerations on their plate. A standout issue is the state’s alarming child poverty rate and the new proposals tabled to address it by the Child Poverty Reduction Advisory Council.
A Bold Plan to Tackle Child Poverty
The council, which Hochul established via legislation in 2021 with a mandate to halve child poverty, recently voted in favor of an eye-catching $9 billion package of policy proposals. If implemented, these measures are projected to offer financial relief to over 1.5 million families across the state.
Standing out among these strategies is the bid to upgrade the state child tax credit. Doing so could potentially cut down child poverty by 23%. By national statistics, New York ranks fourth in terms of child poverty across the country, making this a highly urgent issue.
The Current Landscape of Child Poverty in New York
The dismal representation of every fifth child in New York living in poverty is even worse for children of color, with nearly one out of three Black and Latino children living below the poverty line. Cities like Buffalo, Rochester, and Syracuse have found an unwanted place among the top 10 U.S. cities for child poverty, with over 40% of their children living in poverty.
The state has made some strides in addressing this concern, such as making children under four eligible for the state child tax credit and raising the state minimum wage. The council projects that these measures, along with others, could lead to a 10% reduction in child poverty.
The Proposed Measures: Increasing Child Tax Credit, Cash Assistance & Housing Voucher Program
Aiming for a 50% reduction, the council has recommended upgrading the child tax credit, heightening cash assistance payments, and creating a new state housing voucher. To clarify, these measures aren’t short-term, superficial remedies. They are proposals targeting long-lasting, systemic change in reducing child poverty. The council urges Hochul to consider these in her budget, set to announce after her State of the State speech in January 2025.
A Glimpse into the Recommendations
The recommendation of the most significant impact is upgrading New York’s child tax credit to $1,500 per child and widening eligibility. Currently, families with children aged 16 and under can receive up to $330 yearly per child. The council proposes to extend the full $1,500 eligibility to families earning less than $10,000 annually.
The council also recommends doubling the cash assistance, which currently offers individuals a maximum of $158 monthly. This increase would significantly reduce child poverty by more than 18%.
Additionally, a state housing voucher programme has been proposed, modelled after the federal Housing Choice Voucher Program (also called Section 8). While one-third of eligible New Yorkers receive the federal voucher, a state-version could fill the gap and potentially slash child poverty by nearly 16%.
Both the Senate and Assembly have supported this voucher in their budget proposals, but the final say depends on the Governor and the legislature agreeing on these considerable expenditures. With news of a budget surplus for New York in 2023 and the federal administration set to revamp public assistance, the future of these proposals lies in judicious decision-making.