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Low-Income Programs

Page history last edited by Rebecca May 13 years, 3 months ago


  • Reduces W-2 (welfare assistance) benefits. The budget a reduction of $20 in W-2 cash benefits (after 15 years of frozen benefits) coupled with a reduced opportunity for education and job training. (Wisconsin Budget Project)

  • Increases costs for low-income seniors’ prescription drugs. Forces 91,000 low-income seniors to switch from SeniorCare, a state prescription drug plan benefit, to the federal Medicare Part D. The change would result in an increase in costs from $30/year to an average $58/month for eligible seniors. (WSJ 3/3/11) 

  • Increases taxes for low-income working families. Cuts the Earned Income Tax Credit (EITC) – a program that gives tax rebates to low-income taxpayers who earn $48,362 or less – by $16.3 million per year. For a single working mother with two children wearing minimum wage, the EITC would be reduced from $704 to $302 per year. Walker calls the EITC a “redistribution program” that involves “taking money from other taxpayers and giving it to individuals who have a limited tax liability.” (WSJ 3/6/11) 

  • Allows for private vendors to perform administrative functions for food assistance and Badgercare programs. Moves responsibility for determining eligibility for the Supplemental Nutrition Assistance Program (formerly referred to as the Food Stamp program) and the Medicaid and Badgercare medical assistance programs from the county to the state level, and allows for the transfer of basic administrative functions of the food stamp and medical assistance programs statewide to private vendors, a move the state has already tried on a small scale with troubling results. Privatized local efforts have had error rates of 3.2 percent, compared to 1.2 percent for county-run enrollment services, and wait-times for calls to the centers are almost twice as long for the private vendor as for the county-run programs. (Capital Times, 3/7/11) http://host.madison.com/ct/news/local/govt-and-politics/article_695e9f87-c2b3-5454-9ad5-282efa4aef82.html 

  • Increases taxes for low-income homeowners. Cuts $9 million from the Homestead Tax Credit which provides tax rebates to low-income homeowners who earn no more than $24,500 per year, by freezing the credit at the current level rather than allowing for it to rise with inflation. (WSJ 3/6/11) 

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