Why people leave Nebraska and what brings new people to our state is a hot-button topic in policy debates on taxes and economic development.
Join the OpenSky team for a discussion on Tuesday, March 7 at 12:15PM with two leading experts on what influences interstate migration and the role taxes might play. Josie Gatti Schafer of the Center for Public Affairs Research at the University of Nebraska – Omaha will discuss recent trends in brain drain out of Nebraska and what’s behind people leaving our state while Cristobal Young of Cornell University will review recent evidence on tax-related migration and especially the decision-making habits of millionaires.
Two bills to be heard in Health and Human Services Committee would address food insecurity, childcare costs
A pair of bills that would ensure continued support for Nebraska’s lowest-paid families, LBs 35 and 84, will be heard in the Health and Human Services Committee tomorrow.
LB 35 would help support Nebraskans wanting to enter the workforce by renewing expanded access to the state child care subsidy while LB 84 would help keep them fed by keeping eligibility for the Supplemental Nutrition Assistance Program (SNAP) at 165% of the Federal Poverty Level.
Both bills not only support families, but also their local economies, as they allow people who couldn’t otherwise afford childcare to work and provide discretionary income that supports area businesses.
The loss of programs like the child care subsidy and SNAP can quickly wipe out the increase in income from a worker’s promotion and disincentivize Nebraskans from seeking or accepting raises and advancement opportunities. For example, if the SNAP threshold goes back to 130% of the Federal Poverty Level in Nebraska, a $0.43 raise could cause a $16,000 reduction in annual income for some parents working full-time and raising two children, if it pushed their income above $36,075. In order to make up for such a drastic loss in income, the parent would need to work an extra 24 hours a week.
These programs not only help families, but also employers, who may face significant churn in lower-paying positions because of the cliff effect, meaning they may be “perpetually recruiting, hiring and training for the same entry-level positions,” according to the National Conference of State Legislatures. “To the detriment of all, the workforce shortage is not filled, families do not exit social support systems, and economic growth is stymied.”
Employers also benefit from the increased consumer spending power created through support programs, especially SNAP. Studies show that for every $1 of benefits redeemed, local economies see $1.70 in economic growth during a recession. This economic boost comes at little cost to the state, as the federal government pays the full cost of SNAP benefits and splits the cost of administering the program with states.
To examine the effects a cut would have on SNAP recipients, OpenSky Policy Institute, in partnership with Professor Laurel Sariscsany of the University of Nebraska-Omaha and Voices for Children conducted a qualitative research study on SNAP recipients most likely to be affected by a change in eligibility levels. Four themes emerged from the in-depth interviews systematically sampled and conducted: 1) the effects of inflation; 2) a struggle to survive among most participants; 3) the impact of the cliff effect; and 4) participants feeling the need to be “worthy” of benefits.
Findings from these interviews suggest that Nebraska SNAP recipients benefited substantially from the 2021 expansion in eligibility but that SNAP remains a challenging program to navigate, even in the context of ongoing food insecurity in Nebraska and with inflation averaging 6% in the past year.
See below for a summary of the findings!
