Study: Virginia needs to do more for the poor

Even during the good times, Virginia isn’t doing enough to meet the needs of its poorest residents.

That’s the message from the Commonwealth Institute for Fiscal Analysis, which released a report yesterday suggesting that more needs to be done to help those who live in poverty.

The report found that despite a 122 percent increase in unemployment between December 2007 and February 2009, the number of people seeking food stamps rose just 18 percent during that time, and those seeking Temporary Assistance to Needy Families went up by 9.8 percent.

The report pointed out that in 2007, the number of children enrolled in the TANF program was more than 50,000. Yet more than 233,000 children were then living at or below the federal poverty level, which is defined as a household income of $21,000 for a family of four.

Those are “key signals that our safety net programs are not responding as they should,“ said Michael Cassidy, executive director of the Commonwealth Institute.

The report will likely be part of the discussion today at Virginia’s Summit on Poverty and Economic Opportunity at the Omni Hotel in Richmond. Gov. Timothy M. Kaine will deliver opening remarks to nearly 100 businesses, community and nonprofit leaders, as well as legislators and state agency representatives, who have convened to create and implement a sustainable plan to fight poverty in Virginia.

The institute’s report says the state’s strict eligibility requirements for programs like TANF or Medicaid are barriers for many people.

The report suggests that the state should take advantage of stimulus money to create new initiatives and improve insurance assistance for unemployed Virginians.

Virginia could increase the minimum wage, the report says, and expand public health insurance for working parents. The report said currently parents earning more than $6,000 a year likely don’t qualify for Medicaid coverage.

Another suggestion was to eliminate unnecessary asset tests, and raise the income test, for those seeking food stamps. Other options called for making the state’s earned income tax credit refundable, and overall, doing a better job of reaching out to individuals and families so they’re aware of the services available to them.

Holly Prestidge is a staff writer for the Richmond Times-Dispatch.