4/28/2015 Inside the Statehouse: Week 13

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IIWF conducts research and promotes public policies to help Hoosier families achieve and maintain economic self-sufficiency.

Monday, April 6, 2015

This week is make­or­break for legislation making its way through the 2015 session of the

Indiana General Assembly, as it is the last week for committee hearings. Next week,

conference committees will be formed to reconcile differences in legislation that has passed

both chambers.

The Senate Appropriations committee calendar does not yet include HB 1616 ­ a bill to

smooth out the child care benefit­cliff. TAKE ACTION here by asking lawmakers to give

this bill a hearing to remove this barrier to economic mobility. Remind them that this

bipartisan bill sailed through two House committees, the full House and a Senate committee

so far without a single vote against it.

A bill (SB 441) to strengthen the state EITC by recoupling to the federal EITC­ meaning

larger families will receive the benefit and the marriage penalty will be eliminated ­ is on

second reading in the House. The Commerce and Technology Committee will vote on SB

1601 dealing with workforce development matters, opening the door to increased

cooperation between agencies on training programs for low income Hoosiers. And finally,

despite still­declining household incomes and hourly wages, the Senate Tax and Fiscal

Policy Committee will vote on HB 1019, a bill to repeal the common construction wage (see

our opposition testimony from last week here).

As a reminder, legislative calendars are subject to change, so please check back for

updates. Here is a complete list of all legislation affecting working families we are

Inside the Statehouse: Week 13

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following. We'll send a separate email calling for specific action on legislation as necessary.

For now, you can contact your legislator to support any of this week's activity here.

This Week

HB 1616: Eligibility for Child Care Voucher

Description: Provides that a child who is otherwise eligible for participation in the federal

Child Care and Development Fund voucher program may continue to participate unless the

child's family income exceeds 250% of the federal income poverty level.

Last Action Taken: The bill passed committee on Family & Children Services 7­0.

Referred to Appropriations committee. The Institute testified in support of the bill.

Our Position: SUPPORT­ The 'exit­level' threshold in the Childcare Development Fund

(CCDF) design is responsible for the economic phenomenon known as the childcare 'cliff

effect' ­ which occurs when a .50 increase in hourly wages leads to the complete

termination of the benefit and a dramatic net loss of resources. This creates a disincentive

towards economic mobility; a parent or guardian turns down the raise due to the prohibitive

cost of childcare, or does accept the hard­earned increase but is now financially worse off.

By reforming income thresholds in the childcare development fund, policymakers can

restore the most basic incentive for hard work ­ a raise that results in an increase in net

resources ­ and provide Hoosier families with a smooth landing into economic self­

sufficiency. See our infographic video here.

Hearing Location & Time: Thursday April 9, 9AM, Room 431

HB 1601: Various Workforce Development Matters

Description: Reorganizes and recodifies the duties and programs of the department of

workforce development (department). Allows the division of family resources and the

department to enter into a memorandum of understanding concerning administering federal

work requirements for public welfare programs. Permits the Indiana career council to meet

only at the call of the chair rather than monthly. Repeals obsolete, expired, and superseded

provisions. Updates cross­references and makes conforming and technical changes.

Last Action Taken: Public testimony was heard. No votes were taken.

Our Position: While most of this bill deals with technical corrections needed for the

implementation of the new federal Workforce Innovation and Opportunity Act, two

provisions are of consequence to us. First, we support and are encouraged by the provision

allowing for a memorandum of understanding between DWD and FSSA for the purposes of

the federal work requirements of public benefit programs. This indicates to us a movement

toward greater access to the DWDs workforce training programs for Indiana's public benefit

recipients. However, we oppose another provision of the bill which repeals a requirement to

measure and report on Middle Skill Credentials. Reporting on these credentials regularly is

crucial as Indiana tries to align workforce development and post­secondary resources and

programs and tries to put Indiana on the path to realizing the Big Goal of 60% of Hoosiers

with a post­secondary credential or degree by 2025.

Hearing Location & Time: Thursday April 9, Room 233. Vote only

SB 441: Various Tax Matters

Description: Uses the most recent Internal Revenue Code for determining the earned

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TaxVox

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income tax credit.

Last Action Taken: Passed Committee on Ways and Means. On second reading in the

House Chamber.

HB 1019: Common Construction Wage

Description: Repeals the common construction wage statute. Repeals related statutes

superseded by the repeal of the common construction wage statute. Makes conforming

amendments.

Last Action Taken: Tax a Fiscal Policy committee heard public testimony. The Institute

testified against the bill. No votes were taken

Our Position: Oppose: Construction, a mid wage industry (with an average hourly wage

of nearly $25 an hour) was one of the hardest hit industries during the recession,

representing 38% of the mid wage jobs in the state from 2007 ­ 2013. This law would force

a low­road wage­dive for highly skilled construction workers at a time when there is

demand for skilled workers in Indiana and wages are still declining in Indiana. For example:

­>Median household income has been on the decline since the beginning of the century ­

down by nearly $8,000 since 2000, and still declining as of last count. Again, while all

neighbor states' median household incomes are growing, ours is still declining.

­>Median hourly wages and 20th percentile wages ­ which are still declining ­ are down by

about .80 each since 2007.

­>Of the half­million jobs in the top three industries, 74% pay below $13.00 per hour.

­>During the growth period from 2001 ­ 2007, Indiana netted only around 18,000 jobs,

while the population grew by hundreds of thousands. Only the low­wage category

experienced a net gain (97% of which pay less than $13.00 per hour).

­>Or, since the recession started, only the low­wage category experienced a net gain. Of

the jobs lost in mid­wage industries during the recession (2007 ­ 2010), 43% were

manufacturing jobs and 38% were construction and contracting jobs. Despite a strong

comeback in manufacturing, both of these middle­class jobs are still well below pre­

recession levels.

Hearing Location & Time: Tuesday April 7, 9AM, Room 431. Amend and vote

SB 438: State and Local Tax Issues

Description: Amends the sales tax exemption for medical equipment, supplies, and

devices to: (1) restate the application of the sales tax exemption for medical equipment,

supplies, and devices; and (2) provide a sales tax exemption for food, food ingredients, and

dietary supplements that are sold by a licensed practitioner or pharmacist. Amends the

sales tax exemption for drugs, insulin, oxygen, blood, or blood plasma to restate the

application of the sales tax exemption. Repeals the sales tax exemption for food and food

ingredients prescribed as medically necessary by a physician.

Last Action Taken: The Institute testified asking for an amendment to reinsert language

regarding recoupling Indiana's state EITC to the Federal eligibility guideline. Public

testimony was heard. No votes were taken.

Hearing Location & Time: Wednesday April 8, 1:30PM, Room 404. Amend and vote

HB 1001: State Biennial Budget

Description: State biennial budget. Appropriates money for capital expenditures, the

operation of the state, the delivery of Medicaid and other services, and various other

distributions and purposes.

4/28/2015 Inside the Statehouse: Week 13

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Last Action Taken: The Appropriations committee heard testimony. No votes were taken.

Hearing Location & Time: Thursday April 9, 9AM, Room 431

Last Week

HB 1019: Common Construction Wage

Description: Repeals the common construction wage statute. Repeals related statutes

superseded by the repeal of the common construction wage statute. Makes conforming

amendments.

Last Action Taken: Taken: Tax a Fiscal Policy committee heard public testimony. The

Institute testified against the bill. No votes were taken

Our Position: Oppose: Construction, a mid wage industry (with an average hourly wage

of nearly $25 an hour) was one of the hardest hit industries during the recession,

representing 38% of the mid wage jobs in the state from 2007 ­ 2013. This law would force

a low­road wage­dive for highly skilled construction workers at a time when there is

demand for skilled workers in Indiana and wages are still declining in Indiana. For example:

­>Median household income has been on the decline since the beginning of the century –

down by nearly $8,000 since 2000, and still declining as of last count. Again, while all

neighbor states’ median household incomes are growing, ours is still declining.

­>Median hourly wages and 20th percentile wages – which are still declining ­ are down by

about $0.80 each since 2007.

­>Of the half­million jobs in the top three industries, 74% pay below $13.00 per hour.

­>During the growth period from 2001 – 2007, Indiana netted only around 18,000 jobs,

while the population grew by hundreds of thousands. Only the low­wage category

experienced a net gain (97% of which pay less than $13.00 per hour).

­>Or, since the recession started, only the low­wage category experienced a net gain. Of

the jobs lost in mid­wage industries during the recession (2007 – 2010), 43% were

manufacturing jobs and 38% were construction and contracting jobs. Despite a strong

comeback in manufacturing, both of these middle­class jobs are still well below pre­

recession levels.

HB: 1613: Family and Social Services Administration

Description: Specifies that the secretary of family and social services, rather than certain

division directors, is: (1) the appointing authority for divisions within the office of the

secretary of family and social services (office of the secretary); (2) authorized to advise the

governor concerning adopted rules; (3) authorized to adopt administrative rules; (4)

authorized to enter into contracts for the office of the secretary; and (5) the authority for

administering specified programs and grants.

Last Action Taken: Passed the Senate 47­1

HB 1497: Reemployment services for unemployment recipients

Description: Reemployment services for unemployment recipients. Provides that

certain individuals who have been determined by the department of workforce

development to need reemployment services may be required to participate in

certain additional services provided by the department of workforce development.

Last Action Taken: Passed the Senate 45­3

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