Key Facts About the CalWORKs Program in the Aftermath of the

Cuts and Consequences:
1107 9th Street,
Suite 310
Sacramento,
Key Facts About the CalWORKs Program in the
Aftermath of the Great Recession
California 95814
(916) 444-0500
www.cbp.org
[email protected]
THE CALIFORNIA BUDGET PROJECT
February 2012
Overview





As a result of the Great Recession, poverty has increased
dramatically and California’s families face the toughest job
market in decades.
The recession hit single mothers and their children particularly
hard and – while California’s economy is slowly recovering –
women have not shared equally in the state’s modest job gains.
The California Work Opportunity and Responsibility to Kids
(CalWORKs) Program is a key part of California’s safety net for
low-income families with children. More than three out of four
Californians who receive CalWORKs cash assistance are children.
CalWORKs provides modest cash assistance and job-related
services to help families move toward self-sufficiency.
Spending on CalWORKs has declined sharply since the state
implemented welfare reform in the 1990s and now accounts for
less than 3 percent of the state budget.
2
Overview (continued)





The number of families in CalWORKs dropped steeply after welfare
reform, bottomed out in 2007, and then increased due to the Great
Recession.
State policymakers have repeatedly made deep cuts to CalWORKs
in order to help close budget gaps.
The Governor proposes more deep cuts to CalWORKs, including
reducing parents’ access to welfare-to-work services and shifting
most families to a new Child Maintenance Program, which would
sharply reduce cash assistance for children.
The Governor’s proposal implicitly assumes jobs are available for
CalWORKs parents, even though California’s unemployment rate is
projected to remain in double digits for several years.
Reducing support for low-income children at a time of economic
distress and rising poverty could limit California’s future.
3
As a Result of the Great Recession,
Poverty Has Increased Dramatically
and California’s Families Face the
Toughest Job Market in Decades
4
California's Poverty Rate Increased Significantly Between 2006 and 2010
The State's 2010 Poverty Rate Was the Highest Since 1997
Percentage of People With Incomes Below the Federal Poverty Line
19%
18%
17%
16.3%
16%
15.1%
15%
12.9%
14%
12.7%
12.3%
13%
12.8%
12%
12.2%
11%
11.3%
10%
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
California
US
Source: US Census Bureau
5
California's Child Poverty Rate Increased Significantly Between 2009 and 2010
Nearly One Out of Four California Children Lived in Families With Incomes Below the Poverty Line in 2010
29%
Percentage of Children Under Age 18 in Families
With Incomes Below the Federal Poverty Line
27%
25%
23.4%
22.0%
23%
22.0%
21.0%
21%
20.7%
20.6%
16.4%
18.1%
19%
17%
17.4%
16.3%
15%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
California
US
Source: US Census Bureau
6
California's Annual Jobless Rate Is Projected To Remain Above 10 Percent Through 2014
14%
12.4%
11.8% 11.8%
12%
11.4%
11.2%
10.3%
9.6%
10%
9.0%
Unemployment Rate
8.5%
8%
7.2%
6.7% 6.8%
6.2%
6%
5.4%
4.9%
5.4%
5.3%
4.9%
4%
2%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Note: 2012 through 2017 are projected.
Source: Legislative Analyst's Office and US Bureau of Labor Statistics
7
The Total Number of Unemployed and Underemployed Californians
Remains More Than Twice the December 2007 Level
4,500,000
4,153,000
3,939,000
3,888,000
4,000,000
3,500,000
3,000,000
2,501,000
2,500,000
2,000,000
1,797,000
1,500,000
1,000,000
500,000
0
Dec-07
Dec-08
Dec-09
Underemployed
Dec-10
Dec-11
Unemployed
Note: Data reflect 12-month averages ending in December. "Unemployed" includes individuals who want
to work and are available for work, but who have not searched for work within the past month.
Source: Employment Development Department
8
The Number of Californians Who Have Been Jobless for at Least Six Months
Is Still Nearly Seven Times Higher Than It Was Before the Recession Began
Number of Jobless Californians Unemployed for At Least 27 Weeks
1,200,000
December 2011
964,000
1,000,000
February 2011
1,032,100
800,000
600,000
400,000
July 2007
143,500
200,000
0
Note: Data reflect 12-month averages ending in the month displayed.
Source: Employment Development Department
9
The Number of People Looking for Work Nationwide Exceeds Available Jobs by More Than Four to One
14
13.3
Seasonally Adjusted Number of Unemployed and
Job Openings Nationwide, November 2011 (in Millions)
12
10
8
6
4
3.2
2
0
Unemployed
Job Openings
Source: US Bureau of Labor Statistics
10
The Recession Hit Single Mothers
and Their Children Particularly Hard
11
The Weak Job Market Has Hit Single Mothers Hard



The Great Recession significantly reduced employment for women
raising children without the help of a spouse.
The employment rate for California’s unmarried mothers – the
share of working-age single mothers with jobs – dropped by 10.4
percentage points, from a recent peak of 69.2 percent in 2007 to
58.8 percent in 2010. In just three years, the downturn erased all
of the employment gains that single mothers made following the
implementation of welfare reform, which imposed strict work
requirements and lifetime limits on cash assistance at both the
state and federal levels in the late 1990s.
Single mothers’ earnings were also affected by a decline in the
average workweek. In 2010, single mothers with jobs worked an
average of 36.6 hours per week, down from 38.6 hours per week
in 2006. That drop represented the largest decline in average
weekly hours for single women with children in at least 20 years.
12
In Just Three Years, the Share of Single Mothers With Jobs Fell by More Than 10 Percentage Points
Employment Rate for Unmarried California Women With Children
80%
69.8%
70%
69.2%
California implements
welfare reform
60%
55.8%
58.8%
50%
50.0%
40%
30%
Source: CBP analysis of US Census Bureau data
13
While California’s Economy Is Slowly
Recovering, Women Have Not Shared Equally
in the State’s Modest Job Gains
14
Women Have Not Shared Equally in California’s
Modest Recovery



California’s job market is slowly recovering from the recession, but
women have seen little improvement in their employment situation.
The employment rate of California’s women – the share of workingage women with jobs – declined by 1.2 percentage points between
November 2010 and November 2011, from 50.7 percent to 49.5
percent. This decline was comparable to the 1.5 percentage point
drop in women’s employment rate during the prior 12 months.
In contrast, the share of California’s working-age men with jobs held
steady at 62.6 percent in November 2011, the same rate as in
November 2010. In other words, men’s gains kept pace with growth
in the male working-age population – a significant improvement over
the prior 12 months, when men’s employment rate declined by 1.5
percentage points.
15
More Than Three Out of Four
Californians Who Receive CalWORKs
Cash Assistance Are Children
16
More Than Three Out of Four Californians Who Receive CalWORKs Cash Assistance Are Children
Adults
21.8%
Children
78.2%
Number of Individuals Receiving CalWORKs Cash Assistance in November 2011 = 1,397,443
Source: Department of Social Services
17
CalWORKs Provides Modest
Cash Assistance and Job-Related Services
To Help Families Move Toward Self-Sufficiency
18
Combining CalWORKs and CalFresh Assistance Still Leaves Families Well Below the Federal Poverty Line
80%
72.2%
Maximum CalWORKs Grant and CalFresh Assistance
as a Percentage of the 2011 Federal Poverty Line
70%
60%
50%
41.3%
40%
30%
20%
10%
0%
Maximum CalWORKs Grant
CalWORKs Program
Maximum CalWORKs Grant Plus CalFresh Food Assistance
CalFresh Program
Note: CalWORKs grant is for a family of three living in a high-cost county.
Source: Department of Social Services, Legislative Analyst's Office,
and US Department of Health and Human Services
19
60%
South Dakota
Alaska
Wisconsin
Wyoming
North Dakota
Montana
Michigan
Iowa
New Hampshire
Minnesota
Utah
Vermont
Kansas
Ohio
Oregon
New York
West Virginia
Maine
Rhode Island
Connecticut
Nebraska
New Mexico
Massachusetts
Colorado
Pennsylvania
Washington
Illinois
California
Idaho
Oklahoma
Maryland
Kentucky
Missouri
Indiana
Virginia
North Carolina
Hawaii
Nevada
Georgia
Delaware
New Jersey
Arkansas
Alabama
Texas
Louisiana
South Carolina
Arizona
Florida
District of Columbia
Tennessee
Mississippi
Maximum Monthly Grant for a Family of Three as a Percentage
of the Average Fair Market Rent for a Two-Bedroom Unit, 2011
The CalWORKs Grant Level Is Lower Than TANF Grants in 27 States, After Adjusting for Housing Costs
100%
90%
80%
70%
46.9%
50%
40%
30%
20%
10%
0%
Source: Center on Budget and Policy Priorities and National Low Income Housing Coalition
20
Cash Assistance Has Dropped Substantially as a Share of Total Welfare Spending
Since 1996-97, While Spending on Welfare-to-Work Services and Child Care Has Increased
Expenditures as a Percentage of Total AFDC/CalWORKs Spending
90%
84.5%
80%
70%
60%
56.2% 55.4%
50%
40%
30%
20%
16.3%
18.5%
16.9% 16.5%
8.3%
10%
4.9%
10.6% 9.6%
2.3%
0%
Cash Assistance
1996-97
Welfare-to-Work Services
Child Care
2011-12 Estimated
Administration
2012-13 Proposed
Note: Spending includes federal, state, and county dollars and, in 2012-13,
the Governor's proposed Child Maintenance Program.
Source: Department of Finance and Department of Social Services
21
Spending on CalWORKs Has Declined
Sharply Since the State Implemented
Welfare Reform in the 1990s and Now Accounts
for Less Than 3 Percent of the State Budget
22
Welfare Spending in California Fell by More Than One-Third From 1996-97 to 2011-12,
After Adjusting for Inflation, and Would Drop Further Under the Governor's Proposal
AFDC/CalWORKs Spending (2011-12 Dollars in Millions)
$12,000
$10,000
$9,583
$8,000
$6,098
$6,000
$5,181
$4,000
$2,000
$0
1996-97
2011-12 Estimated
2012-13 Proposed
Note: Spending includes federal, state, and county dollars and, in 2012-13,
the Governor's proposed Child Maintenance Program.
Source: Department of Finance and Department of Social Services
23
Welfare Spending as a Share of Total State Spending Fell by More Than Half From
1996-97 to 2011-12 and Would Decline Further in 2012-13 Under the Governor's Proposal
8%
AFDC/CalWORKs Spending as a Percentage of
Total Spending Through the State Budget
7%
6.8%
6%
5%
4%
2.9%
3%
2.5%
2%
1%
0%
1996-97
2011-12 Estimated
2012-13 Proposed
Note: AFDC/CalWORKs spending includes federal, state, and county dollars and, in 2012-13,
the Governor's proposed Child Maintenance Program. Total spending includes federal
dollars and state General Fund, special fund, and bond fund dollars.
Source: Department of Finance and Department of Social Services
24
The Number of Families in CalWORKs
Dropped Steeply After Welfare Reform,
Bottomed Out in 2007, and Then Increased
Due to the Great Recession
25
The Number of CalWORKs Families Increased Starting in Mid-2007, But Has Recently Declined
1,000,000
Number of Families Receiving AFDC/CalWORKs Cash Assistance
Caseload peak
(March 1995)
900,000
Federal welfare law enacted
(August 1996)
800,000
CalWORKs implementation begins
(January 1998)
700,000
Great Recession ends
(June 2009)
600,000
Caseload trough
(July 2007)
500,000
400,000
2001 recession begins
(March 2001)
2001 recession ends
(November 2001)
Great Recession begins
(December 2007)
300,000
Source: Department of Social Services
26
State Policymakers Have Repeatedly
Made Deep Cuts to CalWORKs
in Order To Help Close Budget Gaps
27
Policymakers Have Cut CalWORKs Cash Assistance



State policymakers have repeatedly cut grants and suspended costof-living adjustments to help close budget gaps. The Legislature, for
example, reduced the maximum grant for a family of three in a highcost county from $723 per month in 2008-09 to $638 per month in
2011-12 – roughly the same amount that a family of three received in
1987-88 ($633), without adjusting for inflation.
As a result, CalWORKs grants have not kept pace with inflation. In
2012-13, CalWORKs grants will be worth less than half (46.6 percent)
of their 1987-88 value, after adjusting for inflation – assuming that
maximum CalWORKs grants remain frozen at their current levels, as
the Governor proposes.
The maximum CalWORKs grant for a family of three in a high-cost
county would have to rise to $1,368 in 2012-13 – more than double
the proposed level of $638 – to have the same purchasing power as it
did in 1987-88.
28
Purchasing Power of CalWORKs Grants Has Dropped by More Than Half Since 1987-88
$1,600
Maximum AFDC/CalWORKs Grant for a Family of Three
$1,368
$1,400
$1,200
$1,000
$800
$633
$723
$638
$600
$694
Loss of
purchasing power
since 1987-88 =
53.4 percent
$400
$200
$0
Maximum Grant if Grant Had Been Adjusted for Inflation Each Year
Actual Maximum Grant
* Proposed.
Note: Maximum grants are for high-cost counties beginning in 1996-97.
Previously, maximum grant levels did not vary by county.
Source: CBP analysis of Department of Finance and Department of Social Services data
29
Policymakers Have Made Additional Cuts to CalWORKs

The Legislature has also:
– Cut funding that counties use to provide welfare-towork services and child care by approximately $375
million in each of 2009-10, 2010-11, and 2011-12.
– Reduced the lifetime limit on cash assistance for adults
from 60 months to 48 months effective July 2011.
– Reduced from $225 to $112 the initial amount of
earnings that are not counted – “disregarded” – in
calculating CalWORKs cash assistance effective July
2011. As a result, CalWORKs families with earnings
now receive lower grants and, as their earnings rise,
lose cash assistance more quickly.
30
The Governor Proposes More Deep Cuts
to CalWORKs, Including Reducing Parents’
Access to Welfare-to-Work Services
and Shifting Most Families to a New
Child Maintenance Program
31
Governor Proposes To End CalWORKs as We Know It


The Governor proposes to cut state spending by $985 million in 201213 by restructuring the CalWORKs Program.
The Governor’s proposal would:
– Divide CalWORKs into two sub-programs. CalWORKs Plus would
serve families with adults working sufficient hours in unsubsidized
jobs to meet federal Temporary Assistance for Needy Families
(TANF) work participation requirements. CalWORKs Basic would
assist families in which adults are preparing for a job.
– Cut from 48 months to 24 months the amount of time that adults
could receive welfare-to-work services, and reduce the amount of
time that adults could count certain services toward their required
hours of participation.
– Create a Child Maintenance Program (CMP) outside of CalWORKs
that would provide sharply reduced cash assistance for children in
families who would not be eligible for a CalWORKs grant.
32
The Governor's Proposed CalWORKs Restructuring Would Create Three Programs That Differ Significantly
CalWORKs Plus
CalWORKs Basic
Child Maintenance Program
$638
$638
$375
$257
$471
$392
48 months, including any previous
months on cash assistance
After 48 months, the adult would lose
eligibility for cash assistance, but the
family would continue to receive a
CalWORKs Plus grant on behalf of the
children if the adult continues to meet
federal work requirements through
unsubsidized employment. Otherwise,
the family would shift to the Child
Maintenance Program, if eligible.
24 months, applied retroactively effective
April 1, 2013
After 24 months, the family would shift to
the Child Maintenance Program, if
eligible. However, if the adult meets
federal work requirements through
unsubsidized employment, the family
would move to CalWORKs Plus, where
both the adult and children would receive
a grant for up to 24 additional months if
the adult continues to work sufficient
hours.
Children only, generally until age 18
Children must receive an annual wellchild exam to qualify.
Eligibility for Services
Limited employment services,
including transportation and
counseling, are available so long as
the adult continues to meet federal
work requirements through
unsubsidized employment
24 months of welfare-to-work services,
including job search, training, and
substance abuse treatment
None
Eligibility for
Child Care
Unlimited, provided that the adult
continues to meet federal work
requirements through unsubsidized
employment
24 months
30 cumulative days every six months to
attend job search
First $200 of earned income plus
50 percent of the remainder
First $112 of earned income plus
50 percent of the remainder
50 percent of earned income
25,445
128,938
368,776
Maximum Monthly
Grant*
Average Monthly
Grant
Eligibility for
Cash Assistance
Earned Income
Disregard
Projected Caseload
(as of April 1, 2013)
* For a family of three living in a high-cost county. The Child Maintenance Program grant assumes a single parent with two children.
Source: Department of Finance and Department of Social Services
33
CalWORKs Plus Would Serve Families Meeting Federal
Work Requirements Through Unsubsidized Jobs



CalWORKs Plus would serve families with parents working sufficient
hours in unsubsidized jobs to meet federal TANF work participation
requirements – generally 30 hours per week, or 20 hours per week for
families with a child under age 6. These are jobs in which the employer
does not receive a subsidy through TANF or another public program.
CalWORKs Plus families would:
– Receive cash assistance for up to 48 months, and beyond 48 months
for only the children so long as the adult continues to work sufficient
hours in an unsubsidized job.
– Receive employment services and child care for as long as the adult
continues to work sufficient hours in an unsubsidized job.
– Qualify for a higher earnings disregard compared to current law.
The state estimates that approximately 25,000 CalWORKs families would
meet CalWORKs Plus requirements as of April 1, 2013.
34
CalWORKs Basic Would Assist Families in Which the
Adult Is Preparing for a Job, But for Just 24 Months



CalWORKs Basic would help parents prepare for and find unsubsidized jobs.
Families would be limited to 24 months of welfare-to-work services and
child care – half the current limit. Moreover, the amount of time that parents
could count vocational education, substance abuse treatment, and other key
services toward their required hours of participation would be reduced.
The new 24-month time limit would be applied retroactively – including to
families previously exempted from work participation requirements – as of
April 1, 2013. Families with an adult who exceeds the new time limit and is
not working sufficient hours in an unsubsidized job to meet federal work
participation requirements would lose access to welfare-to-work services.
The state estimates that 131,000 families would exceed the 24-month time
limit as of April 1, 2013. Of these, 109,000 would move to the CMP, where
only the children would receive cash assistance. The remaining 22,000
families, which include 41,000 children, would lose all cash assistance since
their incomes would exceed the CMP limit.
35
Most Child-Only Families Would Shift to the
Child Maintenance Program as of October 1, 2012



Effective October 1, 2012, CalWORKs families with adults who are not
eligible for cash assistance – broadly defined as “child-only” families –
would shift to the CMP if they meet income eligibility requirements. These
families include those in which non-needy relatives, such as an aunt or a
grandmother, care for the children, as well as “safety-net” families in
which the parent has exceeded the lifetime limit on cash assistance, but
the children remain eligible for a grant.
Some families in the CMP could receive child care on a limited basis, but
other welfare-to-work services would not be provided.
The state estimates that there will be 301,000 child-only families in
CalWORKs as of July 2012. Of these, 260,000 would be moved – as of
October 1, 2012 – to the CMP, where the children would receive reduced
cash assistance. The remaining 41,000 families, which include 84,000
children, would lose all cash assistance since their incomes would exceed
the CMP limit.
36
Nearly 370,000 CalWORKs Families Would Shift to the
Child Maintenance Program by April 2013 Under the Governor's Proposal
600,000
545,253
523,159
500,000
Child-only
families
removed from
CalWORKs
400,000
300,000
259,810
Child-only
families plus
families who
lose eligibility
for CalWORKs
Basic
586,442
368,776
200,000
285,443
100,000
154,383
0
July 2012
October 2012
CalWORKs Program
April 2013
Child Maintenance Program
Source: Department of Social Services
37
The Child Maintenance Program
Would Sharply Reduce
Cash Assistance for Children
38
The Child Maintenance Program Would Provide an
Income Substantially Below the Poverty Line



Currently, the maximum monthly CalWORKs grant for a
family of three with two children in a high-cost county
generally ranges from $516 to $638, depending on the
family’s circumstances.
Under the Governor’s proposal, a single-parent family with
two children shifted to the CMP would be eligible for a
maximum monthly grant of $375 in high-cost counties, less
than one-quarter (23.6 percent) of the federal poverty line.
In addition, a family of three in the CMP would lose all cash
assistance if their earnings exceeded $8,760 per year – less
than half (45.9 percent) of the poverty line.
39
The Governor Proposes Deep Cuts to Cash Assistance for Families Shifted to the Child Maintenance Program
Current Maximum
Monthly CalWORKs
Grant
Proposed
Maximum Monthly
Grant for Families
Transferred to the
Child Maintenance
Program
Dollar Reduction
Percentage
Reduction
Families in which the adult has
reached the lifetime limit on
cash assistance, but the children
continue to receive a reduced
grant ("safety-net" families)
$516
$375
-$141
-27.3%
Families in which a non-needy
relative, such as a grandmother,
cares for the children
$577
$375
-$202
-35.0%
Families in which the adult
meets work participation
requirements, but not entirely
through unsubsidized
employment as the Governor's
proposal requires
$638
$375
-$263
-41.2%
Examples of CalWORKs Families
Note: Figures are based on a family of three with two children in a high-cost county.
Source: Department of Social Services and Legislative Analyst’s Office
40
Even With CalFresh Food Assistance, Families in the Child Maintenance Program
Would Have an Income Equivalent to Less Than 60 Percent of the Federal Poverty Line
Maximum Child Maintenance Grant and CalFresh Assistance
as a Percentage of the 2012 Federal Poverty Line
60%
56.6%
50%
40%
30%
23.6%
20%
10%
0%
Maximum Child Maintenance Grant
Child Maintenance Program
Maximum Child Maintenance Grant Plus CalFresh Food Assistance
CalFresh Program
Note: Child Maintenance Program grant is for a family of three with two children living in a high-cost county.
Source: Department of Social Services and US Department of Health and Human Services
41
Income Eligibility Limit for a Family of Three With Two Children in a High-Cost County
The Child Maintenance Program Income Eligibility Limit Would Be Less Than Half of the Federal Poverty Line
$25,000
115.4% of the 2007
federal poverty line
$20,000
$19,812
86.1% of the 2012
federal poverty line
$16,428
$15,000
45.9% of the 2012
federal poverty line
$10,000
$8,760
$5,000
$0
2007-08
2012-13 CalWORKs Basic Program*
2012-2013 Child Maintenance Program*
* Proposed.
Source: Department of Social Services and US Department of Health and Human Services
42
The Governor’s Proposal Implicitly Assumes
Jobs Are Available for CalWORKs Parents,
Even Though California’s Unemployment Rate
Is Projected To Remain in Double Digits
for Several Years
43
The Governor’s Proposal Assumes That Jobs Are
Available for CalWORKs Parents



The Governor’s proposal would allow parents to receive cash
assistance, limited employment services, and child care for a full 48
months only if they meet federal work participation requirements
through a single activity – unsubsidized employment.
In contrast, federal and state law allow parents to meet work
participation requirements through an array of welfare-to-work
activities besides unsubsidized employment, including subsidized
employment, on-the-job training, vocational educational training, and
mental health and substance abuse treatment.
The Governor’s proposal would penalize CalWORKs parents for not
finding – or not working enough hours in – unsubsidized jobs at a time
when such jobs remain scarce and single mothers’ average workweek
has fallen sharply. The Legislative Analyst’s Office, for example,
projects that California’s unemployment rate will remain in double
digits through 2014.
44
Reducing Support for Low-Income Children
at a Time of Economic Distress and
Rising Poverty Could Limit California’s Future
45
Rising Poverty Could Limit Our Future


Poverty imposes steep costs on society through the lost potential
of children who grow up in families with very low incomes.
Research finds that children raised in poverty:
– Are more likely to drop out of high school and less likely to get
a college degree than their peers with higher incomes.
– Tend to earn substantially less as adults compared to similar
adults whose families had incomes above twice the poverty
line when they were children.
Even “recession-induced” poverty – which is brought about by
economic downturns – can have devastating consequences for
children. Research shows that children who fall into poverty
during a national recession are more than three times as likely to
live in poverty when they are adults, compared to their peers
whose families do not fall into poverty during the same recession.
46
Rising Poverty Could Limit Our Future (continued)



The negative effects of poverty extend beyond the children
affected to society as a whole. Since children who grow up in
poverty tend to have less education and lower earnings, poverty
can diminish workforce productivity and reduce the nation’s –
and California’s – ability to compete in the global economy.
Estimates suggest that even before the Great Recession began,
childhood poverty cost the nation around $500 billion per year in
lost adult productivity and wages, increased crime, and higher
health expenditures – equivalent to 4 percent of national Gross
Domestic Product (GDP).
By comparison, US GDP growth averaged 2.5 percent annually
over the past 15 years. In other words, economic growth could
more than double if none of the nation’s children grew up in
poverty.
47