0)112%!32+..4!! 5(%!6/2%!/7!8/$9!:;;/$#.!! · 2018. 11. 14. · the iowa policy project 20 e....

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The Iowa Policy Project 20 E. Market Street, Iowa City, Iowa 52245 (319) 338-0773 www.IowaPolicyProject.org

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Authors and Acknowledgments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he Iowa Policy Project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`G/@<&%#M!/$!#($/:'(!/#(%$!G/&#+G#.!+K+)2+A2%!+#!/:$!,%A.)#%<!

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iii

Preface !5().!).!#(%!#()$1!+&1!7)&+2!$%;/$#!G/&.#)#:#)&'!#(%!.)F#(!%1)#)/&!/7!!"#$%&'($&)$*+,+-.$+-$/&01<!5(%!7)$.#!$%;/$#!7/G:.%1!/&!A+.)G!&%%1.!A:1'%#.!7/$!7+@)2)%.!)&!N/,+S.!]]!G/:&#)%.!(##;4YY,,,<)/,+;/2)G-;$/P%G#</$'YBCDE1/G.YDEC^CBL3a`BCDEL*+$#D<;17<!5(%!.%G/&1!$%;/$#!;$/K)1%1!&%,!%.#)@+#%.!/7!#(%!;$/;/$#)/&!/7!N/,+!7+@)2)%.!,(/.%!)&G/@%!7+22.!A%2/,!#(%!A+.)G!&%%1.!2%K%2!(##;4YY,,,<)/,+;/2)G-;$/P%G#</$'YBCDE1/G.YDEC^CBL3a`BCDEL*+$#B<;17<!5().!$%;/$#!7/G:.%.!/&!,/$9!.:;;/$#.!+&1!(/,!#(%-!+77%G#!A+.)G!7+@)2-!A:1'%#.<!!!T.!,)#(!#(%!2+.#!%1)#)/&!)&!BCDbM!,%!%F+@)&%!#(%!@+P/$!;:A2)G!.:;;/$#.!+K+)2+A2%!#/!2/,!)&G/@%!7+@)2)%.!)&!N/,+4!3()21!3+$%!T..).#+&G%M!=//1!T..).#+&G%!Z">T*[M!;:A2)G!(%+2#(!)&.:$+&G%!7/$!+1:2#.!+&1!G()21$%&!Z0%1)G+)1!+&1!(+,9L)[M!;$%@):@!+..).#+&G%!+&1!G/.#L.(+$)&'!7/$!(%+2#(!)&.:$+&G%!;2+&.!:&1%$!#(%!T77/$1+A2%!3+$%!TG#M!#(%!`/,LN&G/@%!O/@%!I&%$'-!T..).#+&G%!*$/'$+@!Z`NOIT*[M!#(%!7%1%$+2!+&1!.#+#%!I+$&%1!N&G/@%!5+F!3$%1)#.!ZIN53[M!+&1!#(%!7%1%$+2!+&1!.#+#%!G()21!+&1!1%;%&1%&#!G+$%!#+F!G$%1)#.!Z3H33[<!!!N&!#().!$%;/$#!,%!.(/,!(/,!#(%.%!;$/'$+@.!(%2;!#/!G2/.%!#(%!'+;!A%#,%%&!A+.)G!&%%1.!+&1!#(%!)&G/@%!$%G%)K%1!7$/@!,/$9!7/$!@+&-!N/,+!7+@)2)%.M!+&1!#(%!cG2)77!%77%G#.d!#(+#!()&1%$!#(%!%77%G#)K%&%..!/7!./@%!;$/'$+@.<!8%!+2./!)22:.#$+#%!#(%!)@;+G#!/7!.%2%G#%1!;/2)G-!G(+&'%.!/&!7+@)2)%.!+&1!#(%)$!+A)2)#-!#/!@%%#!A+.)G!&%%1.<!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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The Iowa Policy Project 20 E. Market St. • Iowa City, Iowa 52245 • (319) 338-0773

www.IowaPolicyProject.org

September 2018

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Strengthening Pathways to the Middle Class: The Role of Work Supports !

The Cost of Living in Iowa — 2018 Edition, Part 3 !By Peter S. Fisher and Natalie Veldhouse !Introduction !

8/$9)&'!7:22!#)@%M!-%+$!$/:&1!).!&/#!%&/:'(!#/!':+$+&#%%!+!@)112%LG2+..!.#+&1+$1!/7!2)K)&'<!TA/:#!D!)&!b!,/$9)&'!N/,+!7+@)2)%.M!)&!7+G#M!1/!&/#!%+$&!%&/:'(!#/!@%%#!A+.)G!&%%1.<!T!&:@A%$!/7!#()&'.!G/:21!A%!1/&%!#/!(%2;!.:G(!7+@)2)%.!@/K%!)&#/!#(%!@)112%!G2+..<!*/2)G)%.!+$%!&%%1%1!#/!)@;$/K%!A/#(!#(%!1%@+&1!.)1%!+&1!#(%!.:;;2-!.)1%!/7!#(%!2+A/$!@+$9%#<!a&!#(%!1%@+&1!.)1%M!,%!&%%1!@/$%!@)112%LG2+..!P/A.!,)#(!1%G%&#!,+'%.!+&1!A%&%7)#.<!a&!#(%!.:;;2-!.)1%M!,%!&%%1!@/$%!,/$9%$.!,)#(!#(%!%1:G+#)/&!+&1!.9)22.!&%%1%1!#/!e:+2)7-!7/$!@/.#!'//1L;+-)&'!P/A.<!!!O%$%!,%!7/G:.!/&!+!.%#!/7!c,/$9!.:;;/$#d!;/2)G)%.!#(+#!(%2;!2/,L,+'%!,/$9)&'!7+@)2)%.!.:$K)K%!+&1!9%%;!#(%)$!G()21$%&!/:#!/7!;/K%$#-M!+&1!#(+#!;$/K)1%!+!.#%;;)&'!.#/&%!#/!+!A%##%$!%1:G+#)/&!+&1!+!A%##%$!P/A<!8%!2+-!/:#!+!.%#!/7!;/2)G)%.!#/!.#$%&'#(%&!#(%.%!;+#(,+-.!#/!#(%!@)112%!G2+..4!

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What Does it Take to Get By? !:!$71E?-%#;$!4-5).J!);!617-!7)$+!1;#!7-C#!#-%;#%!-;0!1;#!1%!$71!<+).0%#;!;##0*!LMNOPPP!$1!LQFOPPP!-!J#-%!R2*$!$1!?-J!41%!$+#!K-*)<!<1*$*!14!%#;$O!2$).)$)#*O!4110O!$%-;*?1%$-$)1;O!<+).0!<-%#!-;0!+#-.$+!<-%#<!5(%.%!7)':$%.!+$%!A+.%1!/&!A+.)G!&%%1.!A:1'%#.!G/&.#$:G#%1!7/$!DC!1)77%$%&#!7+@)2-!#-;%.!7/$!%+G(!/7!N/,+S.!]]!G/:&#)%.M!+&1!G+&!A%!7/:&1!)&!*+$#!D!/7!!"#$%&'($&)$*+,+-.$+-$/&018$2345$67+(+&-J!=$/@!#(%.%!A:1'%#.M!,%!G+2G:2+#%!#(%!(/:$2-!,+'%!&%%1%1!f!7:22!#)@%M!-%+$!$/:&1!f!#/!2%+K%!#(%!7+@)2-!,)#(!+7#%$L#+F!)&G/@%!%e:+2!#/!#(%!G/.#!/7!A+.)G!&%%1.<!0%%#)&'!#(%!A+.)G!7+@)2-!&%%1.!A:1'%#!7/$!+!@+$$)%1!G/:;2%!,)#(!/&%!,+'%!%+$&%$M!+&1!%)#(%$!/&%!/$!#,/!G()21$%&!$%e:)$%.!+!P/A!;+-)&'!7$/@!gD]!#/!gBD!;%$!(/:$!Z)7!#(%!7+@)2-!(+.!%@;2/-%$L.;/&./$%1!)&.:$+&G%[<!!!S1*$!5-%%)#0!<12?.#!4-5).)#*!7)$+!<+).0%#;!);!617-!+-B#!$71!7-C#!#-%;#%*O!+17#B#%<D!8()2%!,/$9)&'!(/:$.!+$%!1/:A2%1M!%F;%&.%.!)&G$%+.%!.:A.#+&#)+22-!A%G+:.%!/7!#(%!()'(!G/.#!/7!G()21!G+$%<!=/$!.:G(!7+@)2)%.M!%+G(!;+$%&#!&%%1.!#/!%+$&!A%#,%%&!gD\!+&1!gD^!+&!(/:$M!+.!)22:.#$+#%1!)&!5+A2%!DM!1%;%&1)&'!/&!,(%#(%$!#(%$%!+$%!/&%M!#,/!/$!#($%%!G()21$%&!+&1!,(%#(%$!/&%!/7!#(%!P/A.!)&G2:1%.!7+@)2-!)&.:$+&G%!G/K%$+'%<!!

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(1%!-!*);C.#!?-%#;$O!$+#!K20C#$!5-$+!K#<15#*!51%#!0-2;$);CO!+.!G()21!G+$%!G/.#.!@:.#!A%!;+)1!/:#!/7!+!.)&'2%!;+-G(%G9<!>/,!+&!(/:$2-!,+'%!/7!gBC!#/!gBV!).!&%%1%1M!1%;%&1)&'!/&!,(%#(%$!#(%!;+$%&#!(+.!/&%!G()21!/$!#,/M!+&1!,(%#(%$!#(%!P/A!)&G2:1%.!(%+2#(!)&.:$+&G%M!+.!.(/,&!)&!5+A2%!B<!!!5(%.%!A:1'%#.!)&G2:1%!/&2-!A+.)G!%F;%&.%.h!#(%$%!).!&/#()&'!+22/,%1!7/$!@%+2.!/:#.)1%!#(%!(/@%M!#$);.!/$!K+G+#)/&.M!%&#%$#+)&@%&#M!/$!.+K)&'!7/$!G/22%'%!/$!$%#)$%@%&#<!=+@)2)%.!2)K)&'!/&!#(%.%!A+.)G!&%%1.!A:1'%#.!,/:21!A%!P:.#!'%##)&'!A-<!!=//1!G/.#.!+$%!A+.%1!/&!#(%!J<"<!H%;+$#@%&#!/7!T'$)G:2#:$%S.!#($)7#-!7//1!;2+&<!3()21!G+$%!G/.#.!+$%!7/$!+!2)G%&.%1!(/@%h!G+$%!)&!+!2)G%&.%1!G()21!G+$%!G%&#%$!,/:21!A%!()'(%$<!!!O%+2#(!G+$%!G/.#.!+..:@%!%)#(%$!;:A2)G!(%+2#(!)&.:$+&G%!.:;;/$#.M!/$!)&.:$+&G%!#($/:'(!+&!%@;2/-%$M!+&1!)&G2:1%!#(%!7+@)2-S.!.(+$%!/7!;$%@):@.!+&1!/:#L/7L;/G9%#!%F;%&.%.!.:G(!+.!G/L;+-.!+&1!1%1:G#)A2%.<!N&!#(%!7)$.#!.G%&+$)/M!#(%!7+@)2-!$%G%)K%.!0%1)G+)1!/$!(+,9L)!)7!%2)')A2%M!/$!;:$G(+.%.!+!A+.)G!.)2K%$!)&.:$+&G%!;2+&!/&!N/,+S.!%FG(+&'%!+&1!$%G%)K%.!;$%@):@!+..).#+&G%!#($/:'(!#(%!T77/$1+A2%!3+$%!TG#<!!!

!4

How Many Iowa Families Come up Short? !O/,!@+&-!N/,+!7+@)2)%.!,)#(!+#!2%+.#!/&%!7:22L#)@%!,/$9%$!%+$&!%&/:'(!#/!@%%#!A+.)G!&%%1.!,)#(/:#!+&-!(%2;i!N7!-/:!+$%!+!@+$$)%1!G/:;2%!,)#(!&/!G()21$%&M!-/:!K%$-!2)9%2-!+$%!'%##)&'!A-<!N7!-/:!+$%!+!.)&'2%!;+$%&#M!#(%&!-/:!;$/A+A2-!7+22!.(/$#<!5+9%L(/@%!;+-!7/$!/K%$!#($%%L7)7#(.!/7!#(%!.)&'2%!;+$%&#.!)&!N/,+!).!)&.:77)G)%&#!#/!G/K%$!#(%!A+.)G!&%%1.!A:1'%#<!aK%$+22M!FT'T!?#%<#;$!14!71%I);C!4-5).)#*!01!;1$!#-%;!#;12C+!$1!C#$!KJ!Z=)':$%!D[<!!!

Figure 1. About 1 in 6 Iowa Households Earn Less than Basic Needs Proportion of Iowa Working Households with Incomes below Self-sufficiency Level

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!=/$!#(/.%!,)#(!%+$&)&'.!A%2/,!,(+#!).!&%%1%1M!#(%!.(/$#7+22!G+&!A%!1+:&#)&'<!5(%!+K%$+'%!.)&'2%!;+$%&#!7+@)2-!7+G%.!+&!+&&:+2!1%7)G)#!/7!gBCMCCEM!+&1!7/$!@+$$)%1!G/:;2%.!,)#(!G()21$%&!:&1%$!+'%!DEM!#(%!+K%$+'%!.(/$#7+22!).!gDCMDBV!+!-%+$<!!!!

An Economy of Low-Wage Jobs !5(%!$%+./&!#(+#!./!@+&-!N/,+&.!,/$9!7:22!#)@%M!-%#!%+$&!#//!2)##2%!#/!.:;;/$#!#(%)$!7+@)2)%.!+#!+!A+.)G!.#+&1+$1!/7!2)K)&'M!).!#(+#!#(%$%!+$%!.)@;2-!#//!7%,!P/A.!#(+#!;+-!+!2)K)&'!,+'%<!O+27!#(%!P/A.!)&!N/,+!;+-!2%..!#(+&!gD^<B^!;%$!(/:$M!-%#!@/.#!7+@)2)%.!&%%1!#/!%+$&!@/$%!#(+&!#(+#<!=)':$%!B!.(/,.!#(+#!/&2-!.)&'2%!;%$./&.M!+&1!@+$$)%1!G/:;2%.!,)#(!#,/!,+'%!%+$&%$.!A:#!P:.#!/&%!G()21!Z/$!&/&%[M!G+&!'%#!A-!/&!%+$&)&'.!+2/&%!+#!#(%!.#+#%S.!@%1)+&!,+'%<!!! !8+'%.!/7!N/,+!,/$9%$.!(+K%!.#+'&+#%1!)&!#(%!;+.#!1%G+1%<!5(%!@%1)+&!(/:$2-!,+'%!)&!N/,+!;%+9%1!)&!BCC\!+#!gDV<^W!Z)&!BCDV!1/22+$.[!#(%&!1%G2)&%1!#($/:'(!BCDW!A%7/$%!#)G9)&'!:;!#/!gD^<B^!)&!BCD^<!5().!.#+'&+#)/&!(+.!/GG:$$%1!%K%&!,()2%!#(%!;$/1:G#)K)#-!+&1!%1:G+#)/&+2!+##+)&@%&#!/7!N/,+!,/$9%$.!(+.!G/&#)&:%1!#/!$).%<!5(%!7)$.#!\C!-%+$.!+7#%$!8/$21!8+$!NN!.+,!+!.#%+1-!)&G$%+.%!)&!;$/1:G#)K)#-M!$).)&'!%1:G+#)/&!2%K%2.!7:%2%1!)&!;+$#!A-!#(%!QN!X)22!+&1!A-!2+$'%!)&K%.#@%&#.!)&!;:A2)G!%1:G+#)/&M!+&1!,+'%!2%K%2.!#(+#!$/.%!)&!G/&G%$#<!5(%!'+)&.!7$/@!;$/1:G#)K)#-!,%$%!.(+$%1!,)#(!,/$9%$.M!+&1!+!A$/+1%&%1!+&1!@/$%!;$/.;%$/:.!@)112%!G2+..!,+.!#(%!$%.:2#<!!

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5

Figure 2. For Many Iowa Households, Median Wage is Not Enough to Meet Basic Needs Statewide average, households with public health insurance and/or subsidies !

!")&G%!D]EC!;$/1:G#)K)#-!(+.!G/&#)&:%1!#/!$).%M!A:#!$+#!<1;;#<$)1;!K#$7##;!?%102<$)B)$J!-;0!7-C#*!+-*!K##;!K%1I#;M!)&!2+$'%!;+$#!A%G+:.%!/7!#(%!2/&'!1%G2)&%!)&!#(%!A+$'+)&)&'!;/,%$!/7!,/$9%$.<!8()2%!;$/1:G#)K)#-!$/.%!^W!;%$G%&#!7$/@!D]^\!#/!BCDbM!(/:$2-!;+-!$/.%!/&2-!D\!;%$G%&#<B!0%+&,()2%M!#(%!@)&)@:@!,+'%!(+.!7+)2%1!#/!9%%;!;+G%!,)#(!+!$).)&'!G/.#!/7!2)K)&'!+&1!$%@+)&.!,%22!A%2/,!+!2)K)&'!,+'%<!!!Current Work Supports: An Overview !8)#(!(+27!#(%!P/A.!)&!N/,+!;+-)&'!2%..!#(+&!,(+#!@+&-!7+@)2)%.!&%%1!#/!@%%#!+!A+.)G!&%%1.!A:1'%#M!(/,!1/!#(/.%!7+@)2)%.!'%#!A-i!"/@%!1/!,)#(/:#!(%+2#(!)&.:$+&G%M!+&1!#(%&!$).9!@%1)G+2!)&1)'%&G-!/$!A+&9$:;#G-<!"/@%!$%2-!/&!7$)%&1.!/$!$%2+#)K%.!7/$!G()21!G+$%<!"/@%!.)@;2-!1/!,)#(/:#<!X:#!@+&-!7+@)2)%.!'%#!(%2;!G2/.)&'!#(%!'+;!7$/@!/&%!/$!@/$%!,/$9!.:;;/$#!;$/'[email protected]!!

• =//1!+..).#+&G%!Z#(%!":;;2%@%&#+2!>:#$)#)/&!T..).#+&G%!*$/'$+@M!/$!">T*M!7/$@%$2-!9&/,&!+.!=//1!"#+@;.[!

• 5(%!`/,!N&G/@%!O/@%!I&%$'-!T..).#+&G%!*$/'$+@!Z`NOIT*[!• 3()21!3+$%!T..).#+&G%!Z33T[!• *:A2)G!(%+2#(!)&.:$+&G%4!0%1)G+)1!+&1!(+,9L)!ZN/,+S.!G()21!(%+2#(!)&.:$+&G%!;$/'$+@[!• ":A.)1)%.!7/$!#(%!;:$G(+.%!/7!(%+2#(!)&.:$+&G%!#($/:'(!#(%!T77/$1+A2%!3+$%!TG#!ZT3T[!• 5+F!G$%1)#.4!.#+#%!+&1!7%1%$+2!I+$&%1!N&G/@%!5+F!3$%1)#.!ZIN53[M!.#+#%!+&1!7%1%$+2!3()21!+&1!

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

!6

=)':$%!\!.(/,.!#(%!@+F)@:@!K+2:%!/7!+K+)2+A2%!,/$9!.:;;/$#.!7/$!+!.)&'2%!;+$%&#!,)#(!/&%!G()21!Z+'%!\!#/!V[!+#!K+$)/:.!(/:$2-!,+'%.!Z+..:@)&'!7:22L#)@%!,/$9[M!.#+$#)&'!+#!#(%!G:$$%&#!@)&)@:@!,+'%<!/($'"&C=7$K#$'(:#''#7!#(+#!)#!,/:21!A%!:&:.:+2!7/$!+!7+@)2-!#/!+G#:+22-!A%&%7)#!7$/@!+22!+K+)2+A2%!.:;;/$#.h!#(%!.G%&+$)/.!A%2/,!+$%!#(%!A%.#!;/..)A2%<!T22!#(%.%!;$/'$+@.!(+K%!;+$#)G);+#)/&!$+#%.!Z#(%!;%$G%&#!/7!%2)')A2%!7+@)2)%.!+G#:+22-!:.)&'!#(%!;$/'$+@[!A%2/,!DCC!;%$G%&#M!+&1!,%22!A%2/,!#(+#!7/$!./@%M!)&G2:1)&'!/&%!/7!#(%!@/.#!)@;/$#+&#4!3()21!3+$%!T..).#+&G%<!!!Figure 3. How Work Supports Decline as the Hourly Wage Rises Single parent working full time, one pre-school child

!!

X%&%7)#.!)&!./@%!;$/'$+@.!#+;%$!/77!+.!)&G/@%!)&G$%+.%.4!7//1!+..).#+&G%!+&1!#(%!IN53!+$%!&/#+A2%!%F+@;2%.<!5().!).!G2%+$!)&!#(%!.($)&9)&'!K+2:%!/7!#(%.%!;$/'$+@.!+.!#(%!(/:$2-!,+'%!)&G$%+.%.<!=/$!#(%!(%+2#(!G+$%!;$/'[email protected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gDD<\VM!+#!,()G(!;/)&#!#(%!7+@)2-S.!&%#!$%./:$G%.!f!%+$&)&'.!;2:.!;$/'$+@!A%&%7)#.!f!1$/;!A-!+A/:#!gWM^CC<!5().!cG2)77!%77%G#d!,)22!A%!%F;2/$%1!)&!@/$%!1%#+)2!A%2/,<!!=/$!+!@+$$)%1!G/:;2%!,)#(!#,/!G()21$%&M!A/#(!;+$%&#.!,/$9)&'!7:22!#)@%M!+!.)@)2+$!G2)77!2%+K%.!#(%!7+@)2-!,)#(!$%./:$G%.!,%22!A%2/,!#(%!A+.)G!&%%1.!2%K%2!:&#)2!#(%!(/:$2-!,+'%!$%+G(%.!gDb<CC!Z=)':$%!W[<!=//1!+..).#+&G%!+&1!#(%!IN53!A/#(!1).+;;%+$!+#!+!$%2+#)K%2-!2/,!(/:$2-!,+'%<!3()21!3+$%!T..).#+&G%!).!2/.#!,(%&!A/#(!;+$%&#.!%+$&!@/$%!#(+&!gE<bC!;%$!(/:$M!+#!,()G(!;/)&#!#(%!7+@)2-!2/.%.!/K%$!gEMDCC!)&!$%./:$G%.<!!

!

* Total family earnings, less: payroll and income taxes before refundable credits.

! ! ! !!

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Figure 4. Work Supports Available for Married Couple Both work full time, two children (one age 4, one age 6-11)

!!!T!@/$%!$%+2).#)G!;)G#:$%!/7!#(%!$/2%!/7!,/$9!.:;;/$#.!)&!A$)1')&'!#(%!'+;!A%#,%%&!%+$&)&'.!+&1!#(%!A+.)G!&%%1.!A:1'%#!,/:21!#+9%!)&#/!+GG/:&#!#(%!+G#:+2!:#)2)U+#)/&!/7!%+G(!;$/'$+@<!a7!+22!#(%!7+@)2)%.!,(/!@%%#!#(%!%2)')A)2)#-!$%e:)$%@%&#.!7/$!+!;$/'$+@M!/&2-!./@%!7$+G#)/&!,)22!+G#:+22-!;+$#)G);+#%!+&1!$%G%)K%!A%&%7)#.M!7/$!+!K+$)%#-!/7!$%+./&.!f!7+)2:$%!#/!G/@;2-!,)#(!$%;/$#)&'!$%e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

• ">T*4!EE!;%$G%&#!ZBCDC[W!• IN534!^]<B!;%$G%&#!ZBCDW[V!• 0%1)G+)1!+&1!"10FL+4!E]!;%$G%&#!ZBCD\[b!• 33T4!\B!;%$G%&#!ZBCCDLBCC\[^!• `NOIT*4!\E!;%$G%&#!ZBCCW[E!

!0/.#!,/$9!.:;;/$#.!%&1!,%22!A%2/,!)&G/@%!&%%1%1!#/!@%%#!A+.)G!&%%1.!A%G+:.%!#(%-!+$%!#)%1!#/!/:#1+#%1!1%7)&)#)/&.!/7!;/K%$#-M!&/#!#/!+!$%+2).#)G!@%+.:$%!/7!+!2)K)&'!,+'%<!=)':$%!V!.(/,.!#(%!$%2+#)/&!A%#,%%&!+!A+.)GL&%%1.!)&G/@%!&%%1%1!#/!.:;;/$#!7+@)2)%.!+&1<!#(%!/77)G)+2!;/K%$#-!2)&%<!!!

*Total family earnings, less: payroll and income taxes before refundable credits.

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Figure 5. Official Poverty Level Is Well Below Income Needed to Meet Basic Needs !

!!

Source: The Cost of Living in Iowa, 2018 Edition, Part I: Basic Family Budgets !@+#!4-5).J!*2??1%$);C!);<15#!41%!4-5).)#*!7)$+!<+).0%#;!);!617-!%-;C#*!4%15!G'G!$1!G'U!$)5#*!$+#!144)<)-.!?1B#%$J!C2)0#.);#!41%!$+#)%!4-5).J!*)V#!ZG/&.)1%$)&'!(/:.%(/21.!,)#(!+22!+1:2#.!,/$9)&'[<!j%#!%2)')A)2)#-!7/$!@/.#!,/$9!.:;;/$#!;$/'$+@.!).!#)%1!#/!+!$+#)/!/7!)&G/@%!#/!#(%!;/K%$#-!2%K%2!A%2/,!#(%!7+@)2-!.:;;/$#)&'!2%K%2<!T.!.(/,&!)&!5+A2%!\M!#().!$+#)/!).!A%2/,!D<^!7/$!.%K%$+2!)@;/$#+&#!,/$9!.:;;/$#.M!+&1!$%+G(%.!+!$+#)/!G/&.).#%&#!,)#(!A+.)G!&%%1.!/&2-!)&!#(%!G+.%!/7!(+,9L)!+&1!T3T!.:A.)1)%.<!5().!@%+&.!#(+#!7+@)2)%.!.#/;!+GG%..)&'!%..%&#)+2!,/$9!.:;;/$#.M!.:G(!+.!+..).#+&G%!7/$!7//1M!:#)2)#)%.!+&1!G()21!G+$%M!A%7/$%!#(%-!G+&!@%%#!#(%)$!A+.)G!&%%1.!#($/:'(!%@;2/-@%&#!+2/&%<!!Table 3. Most Programs Cut Off Eligibility Before Family Supporting Income Level is Reached !

! !Note: For all families, these figures are for the case where all adults work full time. The ratio of family supporting income to FPG (Federal Poverty Guidelines) ranges from a low that applies to a family with health insurance from the employer, to a high for a family purchasing health insurance on the private market. Eligibility ceilings for the EITC and for ACA premium subsidies were calculated from the authors’ cost of living policy model based on program rules. The program eligibility ceilings in all cases are not dependent on the work status of the parents, but the ratio of family supporting income to FPG is lower for married couples with only one working — 1.1 to 2.3 (not shown here).

*The eligibility ceilings for ACA subsidies are deceptive; for example, for a single parent with two children, annual benefits fall to zero at 250 percent of poverty (FPG); then when the children lose hawk-I benefits (at 302 percent FPG), the family is once again eligible for premium subsidies, but the amount falls to less than $500 annually at 350 percent of poverty before disappearing at 375 percent FPG.

!

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9

=//1!+..).#+&G%!).!+!K)#+2!.:;;/$#!7/$!N/,+!,/$9)&'!7+@)2)%.<!T2#(/:'(!">T*!A%&%7)#.!1).+;;%+$!+#!D\C!;%$G%&#!/7!;/K%$#-M!#(%-!;2+-!+&!)@;/$#+&#!$/2%!)&!(%2;)&'!#/!7)22!#(%!A+.)G!&%%1.!'+;!7/$!#(%!2/,%.#!)&G/@%!(/:.%(/21.<!T.!/7!R:2-!BCDEM!\W\MD]D!N/,+&.!)&!DbWM\\B!(/:.%(/21.!$%G%)K%1!7//1!+..).#+&G%<!5(%!+K%$+'%!A%&%7)#!;%$!$%G);)%&#!,+.!gDC^!;%$!@/&#(M!/$!gBBW!;%$!(/:.%(/21<]!!!"/@%!;$/'[email protected]!2)9%!#(%!IN53M!'$+1:+22-!$%1:G%!A%&%7)#.!+.!)&G/@%!)&G$%+.%.M!./!,(%&!#(%!%2)')A)2)#-!G%)2)&'!).!7)&+22-!$%+G(%1M!#(%$%!).!&/!1$+.#)G!2/..!/7!A%&%7)#.<!a#(%$!;$/'$+@.!;$/1:G%!+!G2)77!%77%G#!,(%&!)&G/@%!$).%.!P:.#!+A/K%!%2)')A)2)#-4!#(%!2/..!/7!A%&%7)#.!).!.:A.#+&#)+2M!G$%+#)&'!+!;%&+2#-!7/$!%+$&)&'!@/$%<!5(%!7)':$%.!A%2/,!)22:.#$+#%!(/,!#(%!2/..!/7!A%&%7)#.!7$/@!K+$)/:.!;$/'$+@.!+77%G#.!+!7+@)2-S.!&%#!$%./:$G%.4!%+$&)&'.!+7#%$!#+F%.M!;2:.!A%&%7)#.<!!8(%&!7//1!+..).#+&G%!Z">T*[!).!2/.#M!#(%!#,/L%+$&%$!G/:;2%!,)#(!#,/!G()21$%&!%F;%$)%&G%.!+!$%1:G#)/&!)&!$%./:$G%.!/7!g]\C<!X:#!#(%!2/..!/7!33T!%2)')A)2)#-!;:.(%.!#(%!7+@)2-!/K%$!+&!gEMDDV!G2)77<DC!!!Figure 6. Child Care Assistance Produces a Large Cliff Effect Compared to Other Benefit Programs How net resources change as earnings increase for a two-earner couple with two children, ages 4 and 7

!!=/$!+!.)&'2%!;+$%&#!,)#(!/&%!;$%L.G(//2%$M!#(%!G2)77.!+$%!2%..!;$/&/:&G%1!A%G+:.%!#(%!A%&%7)#.!+$%!.G+2%1!#/!+!#,/L;%$./&!7+@)2-!$+#(%$!#(+&!+!7/:$L;%$./&!7+@)2-<!!"#)22M!#(%!2/..!/7!G()21!G+$%!+..).#+&G%!;$/1:G%.!7+$!+&1!+,+-!#(%!2+$'%.#!G2)774!gWM^EV<!T&1!7/$!#().!7+@)2-M!%K%&!)7!#(%-!;+$#)G);+#%!)&!+22!;/..)A2%!+..).#+&G%!;$/'[email protected]!#(%)$!&%#!$%./:$G%.!1/!&/#!+;;$/+G(!#(%!A+.)G!&%%1.!A:1'%#!+@/:&#!%K%&!+#!#(%!.#+#%!@%1)+&!,+'%!2%K%2!/7!+$/:&1!gD^<CC<!!

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Figure 7. Child Care Assistance Produces a Large Cliff Effect Compared to Other Benefit Programs How net resources change as earnings increase for a single parent with one pre-school age child !

!!=:&1)&'!+&1!%2)')A)2)#-!7/$!">T*!+&1!`NOIT*!+$%!%&#)$%2-!7%1%$+2<!N&!#(%!$%@+)&1%$!/7!#().!$%;/$#!,%!7/G:.!/&!7/:$!,/$9!.:;;/$#!;$/'$+@.!,(%$%!#(%!.#+#%!/7!N/,+!;2+-.!+!@+P/$!$/2%!)&!1%#%$@)&)&'!%2)')A)2)#-!+&1Y/$!A%&%7)#.4!(%+2#(!)&.:$+&G%M!G()21!G+$%!+..).#+&G%M!#(%!.#+#%!I+$&%1!N&G/@%!5+F!3$%1)#M!+&1!#(%!.#+#%!3()21!+&1!H%;%&1%&#!3+$%!5+F!3$%1)#<!!!Medicaid, hawk-i, and the Affordable Care Act !

N/,+S.!0%1)G+)1!%F;+&.)/&!ZG+22%1!#(%!N/,+!0+$9%#;2+G%!3(/)G%!*2+&[!#//9!%77%G#!)&!R+&:+$-!BCDW<!5(%!%F;+&.)/&!$+).%1!#(%!%2)')A)2)#-!G%)2)&'!7/$!+1:2#.!7$/@!DCC!;%$G%&#!#/!D\E!;%$G%&#!/7!;/K%$#-M!)&!%77%G#!;:.()&'!#(%!G2)77!%77%G#!f!.:11%&!2/..!/7!0%1)G+)1!A%&%7)#.!f!#/!+&!)&G/@%!2%K%2!\E!;%$G%&#!()'(%$!#(+&!A%7/$%<!=/$!G()21$%&M!%2)')A)2)#-!&/,!%F#%&1.!#/!Db^!;%$G%&#!/7!;/K%$#-<!X:#!,(%&!#(%!G()21$%&!2/.%!0%1)G+)1!%2)')A)2)#-M!#(%!(+,9L)!;$/'$+@!)@@%1)+#%2-!#+9%.!/K%$!,)#(!+!.)@)2+$!2%K%2!/7!A%&%7)#.M!+&1!G/&#)&:%.!:;!#/!\CB!;%$G%&#!/7!;/K%$#-!!5(%!T77/$1+A2%!3+$%!TG#!;$/K)1%.!#,/!9)&1.!/7!+..).#+&G%!7/$!#(/.%!&/#!%2)')A2%!7/$!0%1)G+)1<!*$%@):@!+..).#+&G%!;+-.!+!.(+$%!/7!#(%!G/.#!/7!e:+2)7-)&'!)&.:$+&G%!;2+&.!;:$G(+.%1!/&!#(%!;$)K+#%!@+$9%#!Z@/.#!/7#%&!#($/:'(!#(%!.#+#%S.!(%+2#(!)&.:$+&G%!%FG(+&'%[M!+&1!).!+K+)2+A2%!7/$!7+@)2)%.!,)#(!)&G/@%!:;!#/!WCC!;%$G%&#!/7!;/K%$#-<!3/.#!.(+$)&'!;+-.!;+$#!/7!/:#L/7L;/G9%#!%F;%&.%.!ZG/L;+-.!+&1!1%1:G#)A2%.[!7/$!#(/.%!,)#(!)&G/@%!A%2/,!BVC!;%$G%&#!/7!;/K%$#-<!!!=/$!+!@+$$)%1!G/:;2%!,)#(!#,/!G()21$%&!Z+!;$%L.G(//2%$M!+&1!/&%!+'%!bLDD[M!#(%!;+$%&#.!2/.%!+1:2#!0%1)G+)1!,(%&!7+@)2-!)&G/@%!$%+G(%.!D\E!;%$G%&#!/7!;/K%$#-M!/$!g\\M]CW!Z#(%!%e:)K+2%&#!/7!%+G(!;+$%&#!%+$&)&'!+A/:#!gE<DV!+&!(/:$[<!!X:#!)&.#%+1!/7!7+G)&'!+!A%&%7)#!G2)77!)&!#(%!7/$@!/7!+!gBDM\E^!.:11%&!2/..!/7!(%+2#(!A%&%7)#.M!#(%!;+$%&#!G+&!&/,!;:$G(+.%!)&.:$+&G%!/&!#(%!;$)K+#%!@+$9%#!,)#(!

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.:A.)1)%.!+&1!7+G%.!+&!+11)#)/&+2!%F;%&.%!/7!/&2-!+A/:#!gDM^CVM!#(%!T3T!.:A.)1)%.!G/K%$)&'!#(%!$%@+)&1%$<!@+#!:9:!);!#44#<$!%#02<#*!-!*)C;)4)<-;$!?%1C%-5!<.)44!KJ!UG!?#%<#;$!W()C2%#!XY'!5(/.%!T3T!.:A.)1)%.!#(%&!#+;%$!/77!e:)#%!'$+1:+22-<!5(%&!,(%&!#(%!G()21$%&!2/.%!%2)')A)2)#-!7/$!(+,9L)M!T3T!.:A.)1)%.!+'+)&!9)G9!)&M!%2)@)&+#)&'!@/.#!/7!#(%!G2)77!7$/@!#(%!2/..!/7!(+,9L)!A%&%7)#.<!8(%&!(/:.%(/21!)&G/@%!$%+G(%.!WCC!;%$G%&#!/7!;/K%$#-!Z+#!+&!(/:$2-!,+'%!/7!gB\<bV[M!%2)')A)2)#-!%&1.!7/$!+22!.:A.)1)%.M!A:#!+#!#(+#!;/)&#!#(%!7+@)2-!).!A%##%$!+A2%!#/!(+&12%!#(%!gD^MCCC!G2)77<!!Figure 8. How Health Insurance Programs Interact in 2018 Married couple with two children, both parents working

Figure 9. How Health Insurance Programs Interact in 2018 Single parent with one pre-school age child

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T!.)&'2%!;+$%&#!,)#(!/&%!G()21!2/.%.!0%1)G+)1!+#!+&!(/:$2-!,+'%!/7!gDC<^C<!5(%!T3T!#(%&!9)G9.!)&!,)#(!.:A.)1)%.!/7!+A/:#!gEM]B]!7/$!#(%!;:$G(+.%!/7!+1:2#!)&.:$+&G%M!,()G(!/77.%#.!]C!;%$G%&#!/7!#(%!2/..!/7!+1:2#!0%1)G+)1!A%&%7)#.!Z=)':$%!][<!!!T.!,)#(!#(%!@+$$)%1!G/:;2%M!#(%!T3T!.:A.)1)%.!#+;%$!/77M!#(%&!P:@;!A+G9!:;!#/!G/K%$!@/.#!/7!#(%!2/..!/7!(+,9L)!A%&%7)#.!,(%&!#(%!,+'%!;:.(%.!#(%!7+@)2-!#/!\CC!;%$G%&#!/7!;/K%$#-<!8(%&!#(%!.)&'2%!;+$%&#S.!(/:$2-!,+'%!$).%.!#/!/K%$!g\DM!+22!.:A.)1)%.!%&1M!A:#!+#!#(+#!;/)&#!#(%!7:22!G/.#!/7!(%+2#(!)&.:$+&G%!).!@/$%!$%+1)2-!@+&+'%1<!Z"%%!=)':$%!][DD!!!@+#!#>?-;*)1;!14!S#0)<-)0!+-*!?%1B)0#0!+#-.$+!);*2%-;<#!41%!$+12*-;0*!14!617-;*!-;0!-.51*$!<#%$-);.J!+-*!0%)B#;!017;!$+#!?#%<#;$-C#!14!617-;*!7)$+12$!);*2%-;<#'!915K);#0!7)$+!?%#5)25!*2K*)0)#*!2;0#%!$+#!:441%0-K.#!9-%#!:<$O!617-!4-5).)#*!;1!.1;C#%!4-<#!$+#!.-%C#!S#0)<-)0!K#;#4)$!<.)44*!$+-$!1;<#!-<$#0!-*!-!*)C;)4)<-;$!0)*);<#;$)B#!$1!#-%;);C!51%#'!!Child Care Assistance !

N/,+S.!3()21!3+$%!T..).#+&G%!Z33T[!;$/'$+@!G/K%$.!#(%!G/.#!/7!G()21!G+$%!7/$!,/$9)&'!;+$%&#.!,)#(!)&G/@%.!A%2/,!DWV!;%$G%&#!/7!;/K%$#-M!,)#(!@/1%.#!G/L;+-.!$%e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a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a7!#(%!bMD\B!G()21!G+$%!;$/'$+@.!)&!#(%!.#+#%!+.!/7!R:2-M!BCD^!ZG%&#%$.M!;$%.G(//2.M!$%').#%$%1!+&1!:&$%').#%$%1!(/@%.[M!DMVED!Z+!e:+$#%$!/7!#(%!#/#+2[!1)1!&/#!+GG%;#!.:A.)1)U%1!G()21$%&<DV!!617-!+-*!1;#!14!$+#!.17#*$!#.)C)K).)$J!<#).);C*!);!$+#!<12;$%J'!T.!/7!BCD^M!/&2-!DC!.#+#%.!G:#!/77!%2)')A)2)#-!7/$!33T!+#!+&!)&G/@%!2%K%2!A%2/,!DWV!;%$G%&#!/7!;/K%$#-<!N&!\D!.#+#%.M!#(%!#($%.(/21!,+.!/K%$!D^C!;%$G%&#M!)&G2:1)&'!DW!.#+#%.!,)#(!+!G%)2)&'!/7!D]^!#/!\Cb!;%$G%&#<!N&!.%K%&!+11)#)/&+2!.#+#%.!#(%!$+#%!%FG%%1%1!BWC!;%$G%&#!)&!./@%!;/$#)/&.!/7!#(%!.#+#%<Db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b4!%2)')A)2)#-!).!&/,!1%#%$@)&%1!

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gDD<\C<!5(%!$%.:2#!).!+!.:11%&!1$/;!)&!7+@)2-!$%./:$G%.!/7!gVMWWb<!!5(%!7+@)2-S.!G()21!G+$%!G/.#.!Z+7#%$!G()21!G+$%!+..).#+&G%!+&1!#(%!G()21!G+$%!G$%1)#.[!'/!7$/@!W!;%$G%&#!/7!)&G/@%!#/!BV!;%$G%&#<! 5(%!$%1!2)&%!)&!=)':$%!DC!.(/,.!(/,!#(+#!G2)77!G/:21!A%!%2)@)&+#%1<!=)$.#M!%2)')A)2)#-!).!$+).%1M!)&!#().!%F+@;2%M!#/!BCC!;%$G%&#!/7!;/K%$#-<!"%G/&1M!+!.:A.#+&#)+22-!@/$%!+''$%..)K%!G/L;+-!.G(%1:2%!9)G9.!)&!/&G%!7+@)2-!)&G/@%!%FG%%1.!#(%!G:$$%&#!G%)2)&'!+#!DWV!;%$G%&#!/7!;/K%$#-<!!T!7+@)2-S.!$%e:)$%1!G/L;+-!).!A+.%1!/&!7+@)2-!)&G/@%!+&1!#(%!&:@A%$!/7!c:&)#.d!/7!G()21!G+$%M!,(%$%!+!:&)#!).!+!(+27!1+-<!J&1%$!#(%!%F).#)&'!.G(%1:2%M!#(%!G/L;+-!/$!7%%!;%$!:&)#!$).%.!A-!BV!G%&#.!%+G(!#)@%!)&G/@%!)&G$%+.%.!#/!#(%!&%F#!.#%;!)&!#(%!.G(%1:2%<!8)#(!/:$!@/$%!+''$%..)K%!G/L;+-!.G(%1:2%M!#(%!7%%!A:@;.!:;!^C!G%&#.!)&.#%+1!/7!BVM!+&!+@/:&#!#(+#!).!.:77)G)%&#!#/!)&G$%+.%!#(%!G/L;+-!+&1!#+;%$!A%&%7)#.!&%+$2-!#/!U%$/!A%7/$%!#(%-!1).+;;%+$<!!5(%!.)&'2%!;+$%&#!,)#(!/&%!G()21!@:.#!G/K%$!DW!;%$G%&#!/7!G()21!G+$%!G/.#.!+#!DWV!;%$G%&#!/7!;/K%$#-!Z+&!(/:$2-!,+'%!/7!gDD<\V[<!J&1%$!/:$!+2#%$&+#)K%!.G(%1:2%M!#().!.(+$%!'$+1:+22-!$).%.!#/!^B!;%$G%&#!+.!#(%!(/:$2-!,+'%!)&G$%+.%.!7$/@!gDD<DV!#/!gDV<bC!;%$!(/:$!ZP:.#!A%2/,!BCC!;%$G%&#!/7!;/K%$#-[<!T#!gDV<bVM!33T!%&1.<!=%1%$+2!+&1!.#+#%!G()21!+&1!1%;%&1%&#!G+$%!G$%1)#.!$%@+)&M!(/,%K%$M!2%+K)&'!#(%!7+@)2-!#/!G/K%$!E\!;%$G%&#!/7!G/.#.<!!!!8)#(!#(%.%!$%7/$@.!)&!;2+G%M!#(%!7+@)2-!P:.#!+A/K%!DWV!;%$G%&#!/7!;/K%$#-!&/,!.#)22!;+-.!+!;/$#)/&!/7!G()21!G+$%!%F;%&.%.M!A:#!#(%)$!.(+$%!Z+7#%$!G()21!G+$%!+..).#+&G%!+&1!G()21!G+$%!G$%1)#.[!+@/:&#.!#/!P:.#!W!;%$G%&#!/7!)&G/@%M!)&.#%+1!/7!Bb!;%$G%&#!:&1%$!%F).#)&'!2+,<!5().!;%$G%&#!'$+1:+22-!$).%.!:&#)2M!+#!BCC!;%$G%&#!/7!;/K%$#-!Z,(%$%!33T!1).+;;%+$.[M!#(%!7+@)2-S.!&%#!G()21!G+$%!G/.#.!G/&.:@%!DE!;%$G%&#!/7!)&G/@%<!!!

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Figure 10. How the Child Care Assistance Cliff Could be Eliminated Single parent with one child: Effect of raising eligibility to 200 percent of poverty and adopting higher co-pays

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hild and Dependent Care Credit !

T#!+&!(/:$2-!,+'%!/7!gDW<BVM!+!.)&'2%!;+$%&#!,)#(!#,/!G()21$%&!2/.%.!+22!G()21!G+$%!+..).#+&G%!G:$$%&#2-!)&!N/,+<!O/,%K%$M!#(%!7%1%$+2!+&1!.#+#%!G()21!+&1!1%;%&1%&#!G+$%!#+F!G$%1)#.!@+9%!:;!7/$!+!.@+22!;+$#!/7!#(+#!2/..<!=%1%$+2!2+,!+22/,.!;+$%&#.!#/!1%1:G#!BC!#/!\V!;%$G%&#!/7!G()21!G+$%!G/.#.!7$/@!#(%)$!#+F%.<!5(%!N/,+!G$%1)#!.#+$#.!+#!^V!;%$G%&#!/7!#(%!7%1%$+2!G$%1)#M!+&1!#().!;%$G%&#+'%!1%G2)&%.!+.!)&G/@%!)&G$%+.%.M!+&1!1).+;;%+$.!,(%&!)&G/@%!%FG%%1.!gWVMCCC<!5(%!#/#+2!+@/:&#!/7!#(%!#,/!G$%1)#.!7/$!#(%!G+.%!/7!#(%!.)&'2%!;+$%&#!,)#(!#,/!G()21$%&!).!gDMbBW!+#!#(%!;/)&#!,(%$%!33T!).!2/.#M!+&1!$).%.!#/!+!@+F)@:@!/7!gBMDbC<D^!!@+#!<%#0)$*!01!;1$!#.)5);-$#!$+#!<.)44!#44#<$'!:!*);C.#E?-%#;$!4-5).J!7)$+!$71!<+).0%#;!$+-$!);<%#-*#*!#-%;);C*!4%15!LFQ'GP!?#%!+12%!$1!R2*$!1B#%!$+-$!-512;$!7)..!C1!4%15!+-B);C!UM!?#%<#;$!14!<+).0!<-%#!<1*$*!<1B#%#0!KJ!<+).0!<-%#!-**)*$-;<#!-;0!$+#!<%#0)$*O!$1!+-B);C!R2*$!GP!?#%<#;$!14!$+#!<1*$*!<1B#%#0O!-*!*+17;!)&!=)':$%!DD<!T.!)&G/@%!$).%.!7:$#(%$M!#(%!7%1%$+2!+&1!.#+#%!G$%1)#.!)&G$%+.%!#/!+!@+F)@:@!2%K%2!/7!Bb!;%$G%&#!/7!G()21!G+$%!G/.#.<!!

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Figure 11. Child and Dependent Care Credits Compensate Slightly for Loss of Child Care Assistance Single Parent with Two Children age 6-11, Statewide Average

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Earned Income Tax Credit !

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 In 76 percent of all married couple families in Iowa with children under 18 living at home, both parents were in the labor force, according to American Community Survey data for 2012-2016. 2 Economic Policy Institute, “The Productivity-Pay Gap.” October 2017. https://www.epi.org/productivity-pay-gap/ 3 Center on Budget and Policy Priorities, “Policy Basics: Federal Rental Assistance.” November 2017. https://www.cbpp.org/research/housing/policy-basics-federal-rental-assistance 4 The Urban Institute’s Safety Net Almanac, at https://safetynet.urban.org/snap/snap-participation-rates-state-2007-2010 5 U.S. Internal Revenue Service, EITC Central, at https://www.eitc.irs.gov/eitc-central/participation-rate/eitc-participation-rate-by-states 6 Kaiser Family Foundation at http://kff.org/medicaid/state-indicator/medicaidchip-child-participation-rates/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D These estimates are prior to Medicaid expansions under ACA. 7 Elaine Ditsler, Peter Fisher, and Kristi Lohmeier, Bridging the Gaps in Iowa, Iowa Policy Project, June 2007. www.iowapolicyproject.org/2007docs/070626-BTG_Report.pdf. National estimates indicate that 26 percent of children eligible under state rules receive child care assistance. See U.S. Department of Health and Human Services, Office of the Assistant Secretary of Planning and Evaluation, “Estimates of Child Care Eligibility and Receipt for Fiscal Year 2013.” ASPE Issue Brief, November 2017. https://aspe.hhs.gov/system/files/pdf/258491/ChildCareSubsidyEligibility.pdf 8 FY2004 State LIHEAP Household Reports. 9 USDA, Food and Nutrition Service, Supplemental Nutrition Assistance Program (SNAP), at http://www.fns.usda.gov/pd/supplemental-nutrition-assistance-program-snap 10 The cliff amounts represent the reduction in the family’s net resources — earnings after payroll and income taxes, plus program benefits — resulting from a five cent increase in the hourly wage, equivalent to a $100 increase in annual income. 11 While premium subsidies are available for families earning up to 400 percent of poverty, for a single-parent with two children the cost-sharing formula is such that the family’s expected contribution, which is 9.5 percent of income once income exceeds 300 percent of poverty, exceeds the cost of health insurance in Iowa, so no subsidy is provided. 12 Statewide average child care rates from Iowa Child Care Resource and Referral, State of Iowa Data Sheets for July 2012 and July 2017. https://iowaccrr.org/resources/files/Data/FY17/Iowa%20State%20FY17.pdf The percentage increases in rates for infants, toddlers, two year olds, three year olds, and four and five year olds were averaged. 13 According to one estimate, only 32 percent of those eligible participated; see footnote 7. 14 Reimbursement rates were last increased in July 2013 to just under the 75th percentile of the rates for child care that prevailed in 2006. Given the cost increases that have occurred in the ten years since 2006, reimbursement rates are well below the 75th percentile in 2016. Iowa’s monthly reimbursement rate for center care for a four-year-old was $595, which was $175 (23 percent) below the 75th percentile of current market rates for this type of care. Iowa’s monthly reimbursement rate for center care for a one-year-old was $738, which was $164 (18 percent) below the 75th percentile of current market rates for this type of care. National Women’s Law Center, “State Child Care Assistance Policies: Iowa.” March 2017. https://nwlc.org/wp-content/uploads/2017/04/iowa-childcare-subsidy2016.pdf The Iowa legislature has since agreed to increase provider rates for toddlers and infants to the 75th percentile of 2014 market rate for providers who participate in the Quality Rating System. Rate increases will take effect in January of 2019. 15 Iowa Child Care Resource and Referral, State of Iowa data sheet, July, 2017, at http://www.iowaccrr.org/data_publications/ 16 Karen Schulman and Helen Blank. Building Blocks: State Child Care Assistance Policies, 2015. National Women’s Law Center, Washington, D.C. https://nwlc.org/resources/building-blocks-state-child-care-assistance-policies-2015/. In Colorado, Texas and Virginia, the threshold varies across the state, and in some areas exceeds 240 percent of poverty. 17 The federal credit is non-refundable, and therefore has a limitation equal to tax liability. As income rises, the limit will rise (because tax liability rises) and the credit will rise, even though the credit before the limitation is the same. The Iowa credit is refundable, and is calculated as a percent of the federal credit before the limitation. The credit starts at 75 percent of the federal and the percentage declines as income rises. 18 John Good, “Iowa’s Earned Income Tax Credit.” Tax Credits Program Evaluation Study, Iowa Department of Revenue, December 2016. https://tax.iowa.gov/sites/files/idr/EITC%20Evaluation%20Study%202016.pdf 19 Iowa Fiscal Partnership, “At Iowa tax deadline, remember value of the state EITC. April 2017. http://www.iowafiscal.org/wp/wp-content/uploads/2018/04/180427-IFP-EITC.pdf 20 Chuck Marr, Chye-Ching Huang, and Arloc Sherman. “Earned Income Tax Credit Promotes Work, Encourages Children’s Success at School, Research Finds.” Center on Budget and Policy Priorities. Revised April 15, 2014. http://www.cbpp.org/cms/?fa=view&id=3793 21 Marr, Huang, and Sherman.

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