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Category: Public Policy
As Republicans roll out their ideological model of welfare reform, work requirements for welfare benefits reemerge for millions of the nation’s poor. The agenda has two primary goals: make the poor earn their government benefits and reduce welfare rolls purported as a necessity to move the dependent to self-sufficiency and restore American prosperity. While it is true that there is a dignity associated with work and self-sufficiency, the fear is a misguided plan that will adversely affect those with legitimate need without adequate support and resources.
This is, of course, not the first time that we’ve seen this plan. President Clinton rolled out a similar mandate back in 1996 – problem was, there were no jobs. Things are a little different because most welfare recipients today are currently employed. Since the advent of TANF (Temporary Aid to Needy Families), our current welfare system, a work requirement for benefits clause is already in place. Trump simply signed an Executive Order to cut funding to major programs (i.e. Medicaid and food stamps) and asking states to reinforce the mandate in effect reducing rolls by eliminating recipient benefits. However, it is a fact that the economy is booming with unemployment rates at all-time lows even below the 5% national standard for full employment. According to the Bureau of Labor Statistics, the national rate stands at 3.9% and a 4.6% rate here in Michigan as of May 2018. Even Detroit carries an estimated low of 8.6% as of March 2018 plummeting from its peak of a 28% unemployment rate in 2009. All things considered, the official numbers (both nationally and locally) would likely double since part-time and discouraged workers are not included. Still, there is a marked improvement in job availability and employment opportunities now than what it was under Clinton’s plan in 1996. People are also more educated these days as high school graduation and college enrollment rates have risen drastically over the past decade. The national high school graduation rate is at 84%. The State of Michigan is holding at about a 79% graduation rate since 2015, and Detroit’s graduation rate stands slightly over 80% for the 2016-17 school year, according to the Michigan Center for Educational Performance. Unfortunately, though, only about 30% of American adults hold a Bachelor’s degree. Only 39.4% of working-age adults (between 25 and 64) hold a two-year degree. That number drops in the Detroit area with a low 28% college graduation rate showing about 11% with Bachelor degrees and just over 8% holding a two-year Associates degree. That’s according to the Open Data Network (2016). White House Budget Director, Mike Mulvaney (CNN Money, May 2017) states, “We are no longer going to measure compassion by the number of programs or the number of people on those programs. We’re going to measure compassion and success by the number of people we help get off those programs and get in charge of their lives.” As such, the employment requisite is set to offer a variety of options for recipients to satisfy the work requirement such as documented job-seeking activities, going to school, performing community service, or participating in a job-training program. But the plan may be misguided or incomplete, at best, because most welfare recipients already have jobs as a requirement of the current benefit structure under TANF. The plan also does not take into consideration the many barriers to employment such as the required job skills and qualifications needed to obtain a job, transportation, child care, or, even, health. Then, what happens when we factor in the part-time workers who are employed but less than the mandated work requirement and can’t find full-time jobs. And, what about the fact that this same plan calls for defunding job training programs. We can be sure that the severely poor will get caught in the cross-fire and lose their safety net in the process. Some tend to forget that the poorest population are children at a national poverty rate of 21% - that’s about 15 million U.S. children who live in abject poverty. We have become so defocused by able-bodied adults on welfare that it is forgotten that those benefits are received because of needy children or disabled persons in the household. Furthermore, the benefit structure of TANF imposes lifetime limits on assistance up to five (5) years and no longer allow benefits to be significantly raised for every additional child born to the household. That was the AFDC (Aid to Families and Dependent Children) program. Yet, these myths continue to be perpetuated to stigmatize the poor who depend on government assistance to survive. Here’s the breakdown of employment for Medicaid recipients: 41% are employed full-time, 18% work part-time, and another 41% are unemployed. The percentage of unemployed recipients include children, seniors, and the disabled. The clear target of the States’ revival of work mandates are the able-bodied, working-age adults who acquired health insurance from the Medicaid expansion provision through Obamacare. This provision, in effect, made Medicaid an entitlement as some would assess. Under TANF, work requirements only applied to food stamps, cash, and housing assistance. Medicaid had no work requirement clause so states could not mandate recipients to work for government healthcare, until now. In Michigan, legislators voted to implement a “workforce engagement rule” under Medicaid. This will require recipients to maintain full-time employment, at least 29 hours per week to retain their health coverage. Trump signed his Executive Order on Tuesday, April 10, 2018, a week later the Michigan Senate passed the work requirements bill for Medicaid on Wednesday, April 18, 2018. The rule will go into effect in October 2019 and does provide for satisfying the requirement by either employment, school, or job-seeking activities. Michigan residents who live in counties with an 8.5% unemployment rate or higher, disabled persons, full-time students, and those receiving substance abuse treatment would be exempt from the rule. Was this post helpful? Leave a comment and share your thoughts. If you’re in need of case management services or assistance please Contact Us by completing the confidential contact form. Also, consider donating to continue this important work and expand our reach to the broader community. Contact Us: http://www.canmichigan.com/reach-out-to-us.html Donate: https://www.paypal.com/donate/?token=u9ZbQw7yTRWAm9K4Yl2MKERd76oKf_lBrejXuVLAx0j5rsSTG72gmICfR9S-bVY4az_Imm&country.x=US&locale.x=US Related Posts: [Opinion] The Working Poor: On Welfare With A Job http://www.canmichigan.com/blog/opinion-the-working-pooron-welfare-with-a-job Community Resources http://www.canmichigan.com/community-resources-michigan.html Links: Trump Signs Executive Order Pushing Work Requirements for Welfare Recipients https://www.cbsnews.com/news/trump-signs-executive-order-pushing-work-requirements-to-receive-welfare-benefits/ MI Senate Passes Bill That Would Require People on Medicaid to Work https://www.wxyz.com/news/mi-senate-to-vote-on-bill-that-would-require-people-on-medicaid-to-work Republicans Want the Poor to Work for their Government Benefits http://money.cnn.com/2017/05/30/news/economy/republicans-work-requirements-poor-benefits/index.html Bureau of Labor Statistics https://data.bls.gov/timeseries/LASST260000000000003 Detroit’s True Employment Rate http://michiganradio.org/post/detroits-true-unemployment-rate Open Data Network https://www.opendatanetwork.com/entity/310M200US19820/Detroit_Metro_Area_MI/education.graduation_rates.percent_bachelors_degree_or_higher?year=2016 Trump’s Budget Proposes 40% Cut to Job Training Programs http://money.cnn.com/2017/05/24/news/economy/trump-budget-job-training-programs/index.html?iid=EL
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Category: Social Topics
The ‘major programs' referenced as being measured in the U.S. Census Bureau report include cash assistance, food stamps, Medicaid, SSI, and WIC. Census Bureau stats show that number of participants ballooned to approximately 110 million welfare recipients by the fourth quarter of 2012. The Bureau of Labor Statistics reported approximately 106 million full-time workers for 2013 but not all of them worked the full year. From this view alone, some may conclude that the problem is welfare recipients and how they out-number the working people who has to subsidize them. But, let’s examine the numbers a little closer so that we have an accurate depiction of what they really mean. It’s always better to know the real answers so that we can address the real problem and attempt to resolve the problem with real solutions. First, the reports cited do not take into consideration the estimated three-quarters (3/4) of workers who are employed but still rely on anti-poverty programs like food stamps and Medicaid. These are the “working poor” a new and rising economic class that’s often overlooked. According to a study by the Berkley Center for Labor Research and Education cited by the New York Times (2015), “taxpayers not only support the poor but also pay a huge subsidy for employers with low-wage workers…this is the hidden cost of low-wage work.” The cost of subsidies such as the Earned Income Tax Credit and Medicaid when workers are denied living wages and health insurance also fall into the pockets of other taxpayers. The University of California – Berkley further estimates a $150 billion annual expense for state and federal governments for workers who also rely on welfare to make ends meet. Politicians, generally, like to spew out stats that appear to show that hard working people are being overtaken by the shiftless to justify the need to end welfare. Of course, without giving the full picture of who receives these benefits, why, and for how long. They also do not tell us how the studies were conducted, things like what is being measured, how it was measured, or what portion was taken from a small sample and generalized to an entire demographic. Believe it or not, these factors and others make a significant impact on the outcomes Instead, stereotypes are created like ‘welfare queens’ and ‘the makers versus the takers’ rather than deal in reality about real social problems that have attainable solutions. It is important to note that when analyzing studies on welfare to understand that in every case the measurements (in terms of what is being measured) were different. For example, if you look at studies that is supposed to measure the number of people on welfare, some some may only include recipients of TANF (cash assistance), food stamps, and Medicaid. Other studies may include SSI, WIC, and housing subsidies. Some are longitudinal studies which follow a large sample of people over time while others simply counted the number of people on welfare rolls, and so on. But, the common thread is that few studies, rarely if ever, discuss or offset the numbers by workers on welfare or how many workers held their job an entire year, etc. This is important because it gives us a skewed sense of reality about the economy and the human condition. So, in the world of fake news and alternative facts we search for the truth - things we need to consider in our political debates and certainly when developing public policy.
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Related Posts:
Redefining Social Welfare...Again http://www.canmichigan.com/blog/redefining-social-welfare-again Wraparound Services Section Free Tax Preparation – Earned Income Tax Credit Panel http://www.canmichigan.com/wraparound-services.html Links: https://www.census.gov/newsroom/press-releases/2015/cb15-97.html https://www.census.gov/newsroom/blogs/random-samplings/2015/05/how-long-do-people-receive-assistance.html https://www.nytimes.com/2015/04/13/business/economy/working-but-needing-public-assistance-anyway.html
Category: Government Benefits and Programs
A homestead is your permanent, primary residence and must be located in the State of Michigan. You must be the owner and occupant or contracted to pay rent and occupy the residence at least six (6) months out of the year. According to Michigan state law, vacation homes, cottages, second homes, property you rent to others, and college/university operated housing does not qualify for the credit. You can only have one (1) homestead at a time. This is a summary of the homestead tax credit. You may claim a property tax credit if all of the following apply:
Homeowners and renters whose total household resources (100%) are received from the Michigan Department of Health and Human Services (i.e. FIP cash assistance, FAP food assistance, etc.), you do not qualify. This rule does not apply to recipients of social security and other disability payments. To calculate your total household resources: www.michigan.gov/documents/taxes/ChecklistDetermineTHR_444822_7.pdf Checklist for preparing a Michigan Homestead Property Tax Credit Claim https://www.michigan.gov/documents/taxes/MI-1040CR-Checklist_405711_7.pdf Sample Property Tax Statement https://www.michigan.gov/documents/TaxStmt_139884_7.pdf You may submit your Michigan Homestead Property Tax Credit Claim (MI-1040CR) with your MI-1040, if you are required to file an individual tax return. However, you are not required to file a Michigan tax return to claim the homestead property tax credit. You have four (4) years from the original due date to file your claim. Additional Recommendations Active military personnel, eligible veterans, or surviving spouse of a veteran should complete both the MI-1040CR and the MI-1040CR-2 (Michigan Homestead Property Tax Credit Claim for Veterans and Blind People). Submit the form that gives you the larger credit. Blind homeowners should also complete both the MI-1040CR and the MI-1040CR-2 and file the form that gives you the larger credit. Renters who are blind must file the MI-1040CR. Total Household Resources The goal in tax planning is to find ways to reduce your taxable income. You begin that process by analyzing your household income and assets. Total household resources include all income received by all household members during the year, including income that might be exempt from federal adjusted gross income. Losses from business activity may not be used to reduce total household resources. Some things to consider as household resources include:
Special Qualifying Circumstances
Renters aged 65 or older qualify for the Alternate Property Tax Credit whose rent is 40% of their total household resources. Visit the Michigan Homestead Property Tax Credit – Homepage for further information on the worksheet and estimator. For cooperative housing you may claim your share of the property taxes on the building and land under the building. If rent is paid on the land, you may claim 20% of that land rent. Association fees do not apply. Family Independence Program (FIP) recipients who receive cash assistance from the Michigan Department of Health and Human Services (MDHHS) can claim a prorated credit based on income from other sources compared to your total income. FIP recipients who receive 100% of their total household resources from MDHHS do not qualify for this credit. Visit the Michigan Homestead Property Tax Credit – Homepage for further information on the Individual Tax Credit instructional booklet and how to calculate the credit. Homeowners involved in a mortgage foreclosure or home repossession will have an impact on their Individual Income Tax Return (MI-1040) and Homestead Property Tax Credit (MI-1040CR). Visit the Michigan Homestead Property Tax Credit – Homepage on Information for Mortgage Foreclosure or Home Repossession and Your Michigan Income Tax Return. Mobile home park residents qualify to claim $3/month specific tax up to $36 and 20% of their annual rent expense less the maximum $36 specific tax. You may also claim tax payments on attached buildings (i.e. garage, tool sheds, etc.). Homeowners and renters must know the move-in and move-out dates from a home. Renters must know the date you rented and move-out date. Homeowners must know the purchase date and the date you sold a home. Homeowners with more than one property may only claim the prorated taxes for homes with a taxable value of $135,000 or less. The taxable value is the value on which property taxes are calculated (See your tax statement or contact your local city/township/county assessor’s office). If you sell your home for more than you paid, plus improvements, it is considered a capital gain. In general, capital gains are not taxable but must still be added to your total household resources from the sale of your home. When buying or selling a home you must prorate only the taxes levied (billed) to determine the taxes that can be claimed for credit. Taxes are prorated by using the amount billed during the tax year on each homestead and divide based on the days of occupancy. The combined property taxes and/or rent may not exceed twelve (12) months. Residents of “special care” facilities (nursing home, home for the aged, adult foster care) may claim the credit for rent only. If the rent includes other services, you can calculate the portion that constitutes the rent by determining your portion of the property taxes by square footage, or, by dividing the amount of property taxes by the number of residents the home is licensed for. You may be required to submit the landlord’s documentation to verify the claim.
If you live in public housing and the owner does not pay property taxes or a service fee, you are not eligible for the homestead property tax credit. If you live in Section 8 housing and a portion of your rent is paid by MSHDA, or any government agency, you may claim your portion of the rent that you actually paid. If you live in Service-Fee Housing you may claim only 10% of the rent for the homestead property tax credit. Service-Fee Housing is a program where the property owner and the municipality agree on a service-fee payment instead of property taxes. Service-fee housing are typically low-income or senior-citizen housing and may be an apartment or single-family home. Service-fees are usually less than property taxes. In shared housing situations, it should be noted that in all scenarios you are required to include gifts of cash or expenses paid on your behalf in your total household resources. This includes all contributions from other occupants in the home used to pay taxes, rent, utilities, etc. Eligibility criteria for shared housing:
Principle Residence Exemption (PRE) Owner/occupants of their principle residence may be exempt from a portion of your local school operating taxes. The PRE (formerly, the Homestead Exemption) exempts a principle residence from taxes levied by a school district for school operating purposes up to 18 mills. You must be a Michigan resident who owns and occupies the property as a principle residence. The PRE is a separate program from the Homestead Property Tax Credit. A property owner may claim a PRE by submitting Affidavit Form 2368 (link below) to the assessor for the city or township where the home is located. The first deadline is June 1 and a second deadline is November 1 each year. However, when you no longer own or occupy the property as a primary residence, you must file a Request to Rescind Homeowner’s Principle Residence Exemption (PRE) – Form 2602. You must request to rescind the PRE by submitting From 2602 to the city assessor within ninety (90) days of the change or be penalized. Failure to rescind a PRE may result in additional taxes, interest and penalties. A conditional rescission allows an owner to receive a PRE on their current property and previously exempted property simultaneously up to three (3) years. The owner must submit a Conditional Rescission of Principle Residence Exemption (PRE) – Form 4640 to their city or township assessor before June 1 or November 1 of the first year of the claim. Disabled Veterans Property Tax Exemption Disabled veterans may be eligible to receive a full exemption from paying property taxes on their primary residence if 100% disabled, service-connected. They are also eligible for the Homestead Property Tax Credit separate from the property tax exemption program. Disabled veterans or surviving spouse may request the exemption by filing an affidavit to the Michigan Department of Treasury the first two (2) months of the assessment year (January or February). This benefit also qualifies disabled veterans for specially adapted housing. Please contact the Michigan Department of Treasury for more information. First-Time Homebuyers and Homesteaded Properties One final note, first-time home buyers should also verify if their property has been homesteaded. In such cases, this means that your property taxes are significantly reduced. In Michigan, the tax break for “homesteaded” properties equate to the millage amount of a school district, which is about one-half of your tax bill. The benefits of a homesteaded property are not only lower taxes, but, lower taxes also mean lower mortgage payments. Be sure to inquire with your realtor regarding properties that are homesteaded vs. non-homestead before you purchase a home. When submitting a request for review if your credit was less than expected, use the following checklists depending on your occupancy status. Homeowner’s Checklist: https://www.michigan.gov/documents/taxes/MI-1040CROwnersChecklist_405714_7.pdf Renter’s Checklist: https://www.michigan.gov/documents/taxes/MI-1040CRRentersChecklist_405697_7.pdf Be sure to visit the Homestead Property Tax Information – Homepage for more information regarding frequently used homestead property tax credit forms and instructions. If you still have questions, it is advised that you contact a local tax professional for further assistance. Was this post helpful? Leave a comment and share your thoughts. If you’re in need of case management services or assistance please Contact Us by completing the confidential contact form. Also, consider donating to continue this important work and expand our reach to the broader community. Contact Us: http://www.canmichigan.com/reach-out-to-us.html Donate: https://www.paypal.com/donate/?token=u9ZbQw7yTRWAm9K4Yl2MKERd76oKf_lBrejXuVLAx0j5rsSTG72gmICfR9S-bVY4az_Imm&country.x=US&locale.x=US Related Posts: Utility Assistance: The Michigan Home Heating Credit http://www.canmichigan.com/blog/the-michigan-home-heating-credit Free Tax Preparation Services http://www.canmichigan.com/wraparound-services.html Links: Michigan Homestead Property Tax Information – Homepage https://www.michigan.gov/taxes/0,4676,7-238-43535_43538-155081--,00.html Michigan Homestead Property Tax Information for Separated or Divorced Taxpayers https://www.michigan.gov/documents/taxes/2105_509978_7.pdf Worksheet for Married, Filing Separately, and Divorced or Separated Claimants https://www.michigan.gov/documents/taxes/5049_609035_7.pdf Checklist for Total Household Resources https://www.michigan.gov/documents/taxes/ChecklistDetermineTHR_444822_7.pdf List of Income and Deductible Items from Total Household Resources https://www.michigan.gov/documents/taxes/CC-41011_608354_7.pdf Qualified Health Insurance Premiums https://www.michigan.gov/taxes/0%2C1607%2C7-238-43535_43538-228583--%2C00.html Information for Mortgage Foreclosure or Home Repossession and Your Michigan Income Tax Return https://www.michigan.gov/taxes/0,4676,7-238-43513-228580--,00.html Michigan Department of Treasury – Individual Income Tax Division https://www.michigan.gov/taxes/0,4676,7-238-43513---,00.html Principle Residence Exemption – Homepage https://www.michigan.gov/taxes/0,4676,7-238-43535_43539-210891--,00.html Homeowner’s Principle Residence Exemption Affidavit – Form 2368 https://www.michigan.gov/documents/2368f_2605_7.pdf Principle Residence Exemption Guidelines https://www.michigan.gov/documents/taxes/2856_PRE_guidelines_607370_7.pdf Request to Rescind Homeowner’s Principle Residence Exemption (PRE) – Form 2602 https://www.michigan.gov/documents/2602f_2607_7.pdf Conditional Rescission of Principle Residence Exemption (PRE) – Form 4640 https://www.michigan.gov/documents/taxes/4640_231633_7.pdf Michigan Homestead Property Tax Credits for Separated or Divorced Taxpayers https://www.michigan.gov/documents/taxes/2105_509978_7.pdf Michigan Married Filing Separately or Divorced and Separated Claimants Schedule https://www.michigan.gov/documents/taxes/5049_609035_7.pdf
Category: Government Benefits and Programs
But, before delving into the tenets of the Michigan Home Heating Credit, let us begin by first stating for the record that understanding tax code is certainly not my strong suit (area of expertise) but I wanted to expound on this important tax credit because it has some strong implications for low-income households. Although, tax season is technically over it is always an appropriate time for tax preparation and planning. Tax preparation is not just filling out forms and putting them in the mail, it is also an active planning process of making informed decisions throughout the year that are most beneficial in maximizing your returns when it’s time to file.
Even more relevant to the topic, for our purposes, is that new work requirement legislation has passed in Michigan. It will mandate all able-bodied adults to return to work, school, or job training for a minimum of 29 hours a week to keep their Medicaid. This new legislation termed the “workforce engagement rule” is actually a revisit to President Clinton’s “welfare-to-work” initiative under the Personal Responsibility and Work Opportunity Act (PRWORA) of 1996 that created TANF. Temporary Aid to Needy to Families (TANF) is our current system of welfare benefits that replaced Aid to Dependent Children (ADC), created by President Roosevelt’s New Deal during the 1930s Great Depression. It later became Aid to Families with Dependent Children (AFDC) in the 70s. Of course, the open-ended benefit structure of ADC/AFDC is a thing of the past and lawmakers are doing everything possible to be sure of it. To the point, the new “workforce engagement rule” passed in the Michigan Senate in April 2018 and will go into effect in October 2019. One month after the expiration of the Michigan Energy Assistance Program (MEAP) which funds utility bill payment assistance programs across the state. Needless to say, lots of changes are coming and many will be required to enter the workforce and encounter tax laws that they may not understand. Still, many others who are already employed may not be fully aware of the existing tax structures and how they may benefit or be adversely affected by them. This information is critically important to recipients of unearned income (i.e. state cash assistance (FIP), disability, etc.) and low-wage earners, particularly those who supplement their incomes with food stamps (FAP). The first issue with the Home Heating Credit is to understand what a “homestead” is and what it isn’t. The short answer is that a homestead is your primary residence. A homestead is not the house that you use for rental property, a vacation home, cottage, college or university operated housing (i.e. dorms, apartments, resident halls), or a home you have in another state. You are only qualified to claim the Homestead Credit for your permanent home where you live in Michigan. You must be the owner and occupant or contracted to pay rent and occupy the home. You can only have one (1) homestead at a time. General eligibility criteria are as follows:
The Standard Credit You must be eligible to use the standard method and indicate on the Home Heating Claim if your heating costs are in someone else’s name or included in the rent. The standard credit computation is based on the standard allowances for the number of exemptions you claimed. You may be eligible to use the standard method if:
Table A - Standard Allowance Table
(Note: If you lived in your homestead less than 12 months, the standard allowance must be prorated)
The Alternate Credit
The alternate credit allowance utilizes home heating costs to calculate your credit. You must add up the amounts you were billed for heat from November 1, 2016 to October 31, 2017. If you buy bulk fuel (oil, coal, wood, or bottled gas), add your receipts to get your total heating cost. Be sure to maintain receipts as treasury may request them to verify your claim. You Are Not eligible to calculate the credit using the Alternate method if:
Table B – Alternate Credit Computation Table
Total Household Resources
The goal in tax planning is to find ways to reduce your taxable income. You begin that process by analyzing your household income and assets. Total household resources include all income received by all household members during the year, including income that might be exempt from federal adjusted gross income. Losses from business activity may not be used to reduce total household resources. Some things to consider as household resources include:
Other Qualifying Special Circumstances
You may claim the credit if you share a home with another contracted renter who pays a share of the rent (i.e. roommates). Each occupant should file a claim based on their individual total household resources and share of the standard allowance. Use Table A to determine the standard allowance for the number of occupants in the home. You may qualify for the credit as a Part-Year Resident if you occupied your Michigan home (own or rent) for less than twelve (12) months. See the link “Michigan Home Heating Credit – Homepage” for information on how to calculate the credit. You do not qualify for the credit if you live in a licensed care facility (i.e. Adult Foster Care, Licensed Home for the Aged, Nursing Home, and Substance Abuse Treatment Centers). However, subsidized senior apartments are not licensed care facilities and senior citizens may apply for the credit.
If a claimant dies before the end of the tax year, a personal representative or surviving spouse may claim the standard heating credit but may not claim the alternate credit. In the case of a surviving spouse, file a joint claim using the same number of exemptions you would have used had your spouse lived all year. You must report the deceased’s income, date of death, and write that you are “Filing as a Surviving Spouse” in the appropriate sections of the claim. There are additional special instructions if you are filing as a personal representative for a deceased single taxpayer or if both taxpayers are deceased. See the Michigan Home Heating Credit – Homepage link below. Other important factors to keep in mind:
People rarely think of tax credits as a utility assistance program such as the Michigan Energy Assistance Program (MEAP) or Low-Income Self-Sufficiency Program (LSP) both of which we have previously discussed. But, the Home Heating Credit is, in fact, a federally-funded energy assistance program, administered by several State of Michigan agencies and designed to benefit low-income households. But it is important to know that the Home Heating Credit can affect the amount food assistance benefits you receive. According to the Michigan Department of Health and Human Services, food benefits for some renters may be increased if the household received a home heating credit greater than $20 in the current month or previous twelve (12) months. This is important for renters whose heating costs are included in their rent. You can make sure that your home heating credit is used to calculate your food benefits by informing your DHS worker or indicating it on your MDHHS public assistance application. If you receive any type of public assistance your Home Heating Credit will be paid directly to your utility provider and credited to your account. Be sure to visit the Michigan Home Heating Credit – Homepage for more important information regarding mistakes to avoid in filing your claim, the payment process, how to check the status of your home heating credit, forms and instructions, and other helpful information. Click the links below for more information on free tax preparation services, tax planning, how to calculate your Total Household Resources, qualified health insurance premiums, and how to file your Michigan Home Heating Claim. See the link “Home Heating Credit and Shared Housing Situations” for information on how to calculate the credit. Was this post helpful? Leave a comment and share your thoughts. If you’re in need of case management services or assistance please Contact Us by completing the confidential contact form. Also, consider donating to continue this important work and expand our reach to the broader community. Contact Us: www.canmichigan.com/reach-out-to-us.html Donate wih PayPal Related Posts: Free Tax Preparation Services www.canmichigan.com/wraparound-services.html Community Resources - Utility Assistance http://www.canmichigan.com/community-resources-michigan.html Links: Tax Planning for Beginners (Turbo Tax article) turbotax.intuit.com/tax-tips/tax-planning-and-checklists/tax-planning-for-beginners/L1zd34qfu Michigan Home Heating Claim Instruction Booklet www.michigan.gov/documents/taxes/MI1040CR7_BOOK_610872_7.pdf Michigan Home Heating Credit - Homepage www.michigan.gov/taxes/0,4676,7-238-43513_66852-330928--,00.html Checklist for Total Household Resources www.michigan.gov/documents/taxes/ChecklistDetermineTHR_444822_7.pdf List of Income and Deductible Items from Total Household Resources https://www.michigan.gov/documents/taxes/CC-41011_608354_7.pdf Qualified Health Insurance Premiums https://www.michigan.gov/taxes/0%2C1607%2C7-238-43535_43538-228583--%2C00.html Home Heating Credit and Shared Housing Situations https://www.michigan.gov/taxes/0,4676,7-238-43513-228582--,00.html MI Bridges: Apply for Assistance or Manage Your Account https://www.mibridges.michigan.gov/access/
Category: Consumer Services
 Know Your Legal Rights or Lose Them
The purpose of the No Fault Act is to guarantee payment of certain benefits to all accident victims regardless of fault in causing the accident. It was originally intended to simplify the auto claims process but the opposite occurred mainly due to the broad language of the law leaving it up to legal interpretation and maneuvering thereby complicating the system.
However, this fact works in favor of claimants if, and, when there is the unfortunate occurrence of a motor vehicle accident. In Michigan, there is a growing trend of attorney tv advertisements bolstering personal injury claims resulting from motor vehicle accidents. The reason is that few policy holders are aware of the compensable benefits they are entitled to when injured by a car. Although we pay the enormous costs to insure vehicles, claims are rarely filed in fear of raising insurance costs. But what policy holders usually don’t know is that in cases of injury the benefits can be just as significant, at least, here in Michigan. Thus, it is of critical importance for accident victims to fully understand their legal rights regarding auto claims or they may lose them. The ability to file personal injury claims for auto-related accidents stems from the statutory Section 3105 of the Michigan No Fault Act which is considered the pivotal or gateway section to No Fault PIP benefits. While Section 3105(2) gives the No Fault system its name, Section 3105(1) sets forth the basic legal entitlement test for compensable PIP benefits. The Section reads: “Under personal protection insurance an insurer is liable to pay benefits for accidental bodily injury arising out of the ownership, operation, maintenance, or use of a motor vehicle, as a motor vehicle, subject to the provisions of this chapter.”
Entitlement disqualifications fall into two (2) categories: (a) the parked vehicle exclusion, and (b) the statutory disqualification. The parked car exclusions are outlined in Section 3106(1) and Section 3106(2). It is important to know that neither section does not expressly state you are disqualified from entitlement benefits if accidental bodily injuries are sustained in a collision with a parked car but does require specific circumstances that make those benefits payable. Also, when an accident occurs involving, both, a parked and moving vehicle at the same time, the moving vehicle takes precedence for eligibility to benefits and the parked car criteria are not applied. An accident with a parked vehicle must fall into the following four (4) scenarios:
The fifth parked car exclusion criteria as stated in Section 3106(2) specifies that benefits are not payable when an accident occurs with a parked car and an injury occurs during loading, unloading, performing mechanical duties, or getting in or out of a vehicle while in the course of employment. The reason is that injuries sustained in the course of employment are generally covered under workers’ compensation laws. Exceptions to this exclusion is when the injured person is an occupant of the vehicle or driving the vehicle in the course of employment. In the case of either occupying, or, driving a vehicle in the course of employment, the employee would be entitled to both workers’ compensation and PIP benefits. Statutory disqualifications are outlined in Section 3113 which states that an injured persons are not entitled to PIP benefits when operating: (1) a stolen vehicle or motorcycle; (2) an uninsured vehicle; (3) a vehicle registered and insured in another state outside of Michigan and the occupant is a foreign resident; and, (4) a vehicle or motorcycle as an unauthorized user. Finally, PIP benefits can be payable to Michigan residents when an accident occurs out-of-state. But the injured party must be covered under a Michigan No Fault policy as the insured, the spouse or resident relative of the insured, or the occupant of a Michigan insured vehicle. Out-of-state residents may also be entitled to PIP benefits when occupying a Michigan insured vehicle, or as a pedestrian, bicyclist, or motorcyclist injured by a insured moving vehicle. Furthermore, out-of-state citizens may draw benefits if insured by an insurance company authorized to do business in Michigan stipulated by a maximum $500,000 limitation in certain cases. Out-of-state claimants should seek legal counsel to interpret the complicated scenario of non-resident entitlements. If you have questions, please complete the Contact Form for more information. Credit Commons Photo Credit: Source Related Posts: AUTO ACCIDENT VICTIMS AND NO FAULT INSURANCE auto-accident-victims-and-no-fault-insurance.html AUTO INJURY CASE MANAGEMENT SERVICES www.canmichigan.com/case-management-services.html
Category: Public Policy
So, why do we look at the numbers? We do not review the numbers simply to gauge the rates of criminality, initial incarceration, and relapse. But the numbers also give us a sense of urgency about the need to appropriately reengage former offenders and an idea about the window of opportunity to do so. Furthermore, the numbers reveal the need for more opportunities, fair chance laws, and supportive services for individuals with criminal backgrounds. The subject of fair chance laws lends to the issue of a little-known concept called “Ban-the-Box.” As people return to society with criminal records they are likely aware of most challenges they will face. The range of challenges can go as far as gaining employment, establishing independent living, acquiring a driver license or student loan, or having access to healthcare and other social service benefits. These factors can be a set-up for failure even for those with the best intentions causing them to reoffend and reenter the criminal justice system. Under these difficult circumstances, there is a law that you should know about that may increase your chances of obtaining new employment for those on a quest to reenter the workforce. The “Ban-the-Box” or “Fair Chance” law addresses the issue of whether, or not an employer can include questions about an individual’s criminal background or convictions on employment applications. Currently, there are seventeen (17) states who have adopted “Ban-the-Box” laws including California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, New Mexico, Ohio, Rhode Island, Vermont, and Virginia. With over 100,000 (about 15%) of adult African American Detroiters (ages 25 - 54) with felony records in 2010, Detroit adopted a "Ban-the-Box" ordinance and further required contractors and vendors with the City to completely remove criminal history questions from applications. However, adopting a form of the fair chance ordinance for employment and housing vendors who receive grants from the City still did not apply to private employers and landlords. But, although the law was gaining ground, Michigan Governor Rick Snyder opposed legislation that would require government or private employers to remove questions about criminal or credit histories from applications. Instead, the "Local Government Regulatory Limitation Act" was signed into law on March 26, 2018. The law states that employers located in cities and counties in the State of Michigan are, in fact, prohibited from adopting "ban-the-box" ordinances for felony convictions, in effect, reversing the menial progress made. It should also be noted that “Ban-the-Box” laws only prohibit employers from asking about your criminal history until after you have been identified as a viable candidate for a job. Know the law in your state and check the links below for more information. Related Posts: RESOURCES FOR RETURNING CITIZENS SECTION www.canmichigan.com/returning-citizens.html Links: Bureau of Justice Statistics https://www.bjs.gov/index.cfm?ty=pbdetail&iid=4986 CBS News Article: “Once a criminal, always a criminal?” (April 2014) https://www.cbsnews.com/news/once-a-criminal-always-a-criminal/ Business Insider: “Why is Norway’s prison system so successful?” (December 2014) http://www.businessinsider.com/why-norways-prison-system-is-so-successful-2014-12 Jobs for Felons Hub: “Will a felony show up after seven years?” https://www.jobsforfelonshub.com/will-felony-show-seven-years/ Federal Trade Commission: Fair Credit Reporting Act templates.legal/fair-credit-reporting-act/ Goodwill Industries: “Understand your employment rights as a person with a criminal background” http://www.goodwill.org/blog/career-and-financial-advice/understand-your-employment-rights-as-a-person-with-a-criminal-background/ Employment Law Lookout: "Michigan Bans Local Ban-the-box Laws" www.laborandemploymentlawcounsel.com/2018/04/michigan-bans-local-ban-the-box-laws/ ACLU: Request for Fair Chance in Detroit Ordinance Overview http://www.detroitmi.gov/Portals/0/docs/CM%20-%20Ayers/Docs/FairChanceOrdinance.pdf
Category: Government Benefits and Programs
On October 24, 2017, the Michigan Agency for Energy (MAE) and the Michigan Department of Health and Human Services (MDHHS) announced the ten (10) community agencies who will share in the $45.5 million dollars in energy grants provided by the State of Michigan. The Michigan Energy Assistance Program (MEAP) allows low-income residents who fall behind on their gas and electric bills to stay safely in their homes and become energy self-sufficient through utility bill payment assistance and an array of other support programs.
The Michigan Energy Assistance Program (MEAP) is sustained by two funding sources: the state-funded Low-Income Energy Assistance Fund (LIEAF) and the federally-funded Low-Income Home Energy Assistance Program (LIHEAP). The Low-Income Energy Assistance Fund (LIEAF) was signed into law on July 13, 2013 by Michigan Public Act 95 which created the program. On July 31, 2017, the Michigan Public Service Commission (MPSC) established a monthly .93 cents per meter surcharge on all participating electric utilities who have opted-in to fund the program. The Michigan Public Service Commission (MPSC) is the regulatory authority for all utility providers in the State of Michigan. Michigan Public Act 95 allows the Michigan Public Service Commission (MPSC) to approve a low-income energy assistance “funding factor” (a surcharge on utilities), not to exceed $50 million dollars, every year to fund the program. The Act also designates the Michigan Department of Health and Human Services (MDHHS) to administer the program. Michigan Public Act 615, established on March 28, 2013, set forth the purpose for MDHHS to administer MEAP funds to community organizations across the state who will provide energy assistance and self-sufficiency programs to eligible low-income households. Michigan Public Act 147, signed into law by Governor Rick Snyder on July 8, 2016 extended the Michigan Energy Assistance Program (MEAP) for three (3) years to expire on September 30, 2019. Related Posts: Michigan Energy Assistance Grants http://www.canmichigan.com/michigan-energy-assistance-grants.html Community Resources - Utility Assistance http://www.canmichigan.com/community-resources-michigan.html Click the links below to view Michigan legislation for MEAP funds, the history of the program, and outcome reports. Links: Michigan Agency for Energy https://www.michigan.gov/energy/0,4580,7-230--450586--,00.html Michigan Energy Assistance Program https://www.michigan.gov/mpsc/0,4639,7-159-52493---,00.html Michigan Public Act 615 http://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0615.pdf Michigan Public Act 95 http://www.legislature.mi.gov/documents/2013-2014/publicact/pdf/2013-PA-0095.pdf Michigan Public Act 147 http://www.legislature.mi.gov/documents/2015-2016/publicact/pdf/2016-PA-0147.pdf Michigan Public Service Commission – Case #U-17377 https://www.michigan.gov/documents/energy/0105_603220_7.pdf
Category: Consumer Services
The State of Michigan requires all vehicle owners to purchase and maintain minimum basic coverage insurance known as No Fault Insurance. This basic coverage allows you to operate and properly license a vehicle. But, when it comes to car accidents there are things you should know about how your car repairs, medical care, and financial entitlements will be handled depending on the type of policy you purchase.
Because Michigan is one of twelve No Fault states in the country, certain criteria applies to your personal injury benefits and car repairs. Currently, No Fault laws in Michigan, which are said to be the most generous allows for certain unlimited lifetime benefits regardless of fault or injury. But, it does not pay for the repairs to your car or the other vehicle. In fact, not all benefits are covered for a lifetime usually lifetime benefits only apply to your medical care. So, here’s some basic tips you should know. Basic coverage (No Fault) does provide for you medically, for the rest of your life without a cap on the cost of your care. The only way that you can lose that benefit is if you, through your lawyer, negotiate or waive your features at the settlement of the claim. If you experience wage or employment loss due to your injuries, No Fault insurance will pay 85% of your earned income up to a maximum benefit of $5541 per month for three (3) years. If you are killed in an accident, your survivor’s will receive that benefit based on the earnings and fringe benefits you would have received. This is known as the Work-loss Benefit. Work loss benefits may also be paid if you are unemployed but in the process of looking for a new job. Consult your attorney for more information. You are also entitled to other benefits besides your medical care, medical equipment, home safety accommodations, or other rehabilitative expenses such as transportation and home care. The formal name for home care is Household Replacement Services that is usually paid to the primary caregiver in the home. The benefit allows $20/day for your care, assistance with daily living activities, and routine household maintenance. Attendant Care is another entitlement typically provided by a professional medical company and the benefit paid is a negotiated hourly rate. In some cases, your lawyer negotiates that rate and receives 30% of the benefit for Attendant Care over and above the legal fees assessed for handling the case. No Fault insurance provides for Residual Liability Insurance referring to bodily injury and property damage. This means that No Fault will pay up to $1 million dollars if you damage someone's property with your vehicle (i.e a building or parked car). But, the No Fault Law protects you from being personally sued except under special circumstances. You can be sued in Michigan if you cause an accident where someone is seriously injured, permanently disfigured, or killed. You can be sued if you are in an accident in another state or in-state if the other vehicle is registered to another state and the occupant is a non-resident. You can also be sued up to $1,000 if you are at least 50% or more at fault and cause damage to another vehicle that is not covered by insurance. You can normally purchase additional Limited Property Damage Liability Insurance called a “mini tort” to cover that $1000 expense for added protection in case of this circumstance. In the case of residual liability where you are found legally responsible (50% or more at fault) for causing bodily injury or property damage No Fault insurance will pay certain benefits. No Fault will pay up to $20,000 for claimants hurt or killed in an accident, up to $40,000 per accident if several people are hurt or killed, and up to $10,000 for property damage in another state. Finally, it is important to remember that No Fault insurance covers every member of the household even when you or a family member are passengers in another car or pedestrian That means, if you are involved in an accident the law requires that claims must be filed against the policy registered to you or in your home. Personal Injury Protection (PIP) benefits also extends entitlement benefits to individuals without No Fault coverage and are injured as a passenger or pedestrian by your car. This is basic information about No Fault benefits. Note that certain criteria and structures change annually. Follow the link below for more information about No Fault insurance and how to purchase additional coverage. Related Posts: CASE MANAGEMENT SERVICES www.canmichigan.com/case-management-services.html Links: www.michigan.gov/documents/cis_ofis_ip202_25083_7.pdf
Category: Social Topics
Historically, social welfare was synonymous with the human condition of well-being characterized by socioeconomic security against major life risks, contentment in meeting one’s basic needs, and the ability to manage problems and achieve goals. But thanks to revisionists, the term has been reduced to the services provided to the poor by public welfare departments and charity organizations. When members of society have a fundamental, tangible model of social welfare they experience a reasonable standard of health, extended life expectancy, quality housing, higher incomes, and minimal social problems. A society with poor social welfare is marked by poverty, low living standards, and high rates of violence. The historical context of social welfare also includes self-preservation as a matter of personal diligence. Inasmuch as society accepted social responsibility for the needy, well-being was also thought of as a matter of individual effort and family support. The involvement of external agents such as government and charitable organizations was considered a “safety net” that was operationalized when individuals and families lacked the ability to manage their life challenges. But, it was understood that life, oftentimes, presents an array of unexpected, complex events beyond the individual’s control. Unemployment, for example, resulting from the lack of economic growth directly affects the welfare of individuals and their families in the form of decreased employment opportunities and income. The death of a spouse or debilitating medical condition of a person who is the primary provider of the household will cause a family to be economically vulnerable and at-risk for poverty. Any number of problems can arise that affects an individual or family’s ability to cope with their problems and has grave consequences for social welfare.
Because we live in a market society, social welfare programs were meant to protect individuals, spouses, and dependent children from poverty because of the loss of income due to unemployment, injury, disability, retirement, and death. How a country responds to the needs of its people answers questions about its values and social goals regarding equity, efficiency, and assumptions about social norms such as gender roles and family responsibility. It is these kinds of factors that interact to shape and form Public Policy which determines the size, structure, generosity, and administration of a nation’s social welfare system.
Societies that provide universal welfare gives us an idea about their values for the collective good of their citizenry. In American society, a target approach to program delivery supposedly intended to fish-out the poor and specifically direct benefits to those who need it most is the standard. But with our skewed sense of equity, the idea of the deserving poor has a deleterious effect and neglects many groups of people who have legitimate needs. The process of targeting benefits also impedes system efficacy and imposes stigma on recipients. Administrative costs associated with means-tested programs for fact-finding purposes regarding assets and income creates enormous, and, oftentimes, exploitative financial burdens on the system by service providers. Income-testing also may deter potential recipients from pursuing benefits and causes adverse work incentives. Because the system requires a reduction in benefits when earnings rise even slightly above the so-called “poverty line”, individuals and families are conversely incentivized to keep their earnings low or work “under-the-table.” Not considering the inadequacy of federal standards of poverty, costs associated with new employment, or deteriorating living wages creates the “poverty trap” that affects the efficiency of the system and lowers the well-being of recipients. In sum, as we briefly review the original purpose and design of welfare it is time to put aside assumptions about its goals and the people who need it. We do that when we consider all the ineffective variables of the system and the systemic forces that promote and maintain poverty which are too many to name here. The beginning of that process is to understand that people are not always poor because they are inherent social derelicts, make bad choices, live high-risk lifestyles, and the like. More often, than not, people are victims of market forces and life circumstances beyond their control. But, as times are changing, and new social values emerge we should, at least, maintain a basic decency and dignity toward the less fortunate.
Category: Government Benefits and Programs
The first energy grant is the Low-Income Home Energy Assistance Program (LIHEAP), a federally-funded block grant government program. LIHEAP funds are administered by the Department of Health and Human Services. The Department of Health and Human Services (DHHS) administer these funds on an emergency basis through the Michigan State Emergency Relief (SER) program either to prevent service interruption, restore services, or aid in qualifying for long-term aid with other utility assistance programs.
The second is the state-funded Michigan Energy Assistance Program (MEAP). MEAP funds are administered by the Michigan Department of Health and Human Services (MDHHS) and allocated to contracted community organizations. Several community organizations in Michigan dispense MEAP funds under varied program designs, program names and eligibility requirements within funding guidelines but are not directly handled by utility companies. The Heat and Warmth Fund (THAW) and Neighborhood Organization Services (NSO) are two such agencies that provide utility assistance to consumers with MEAP funds. Visit the Community Resources section for a complete list of utility assistance programs. Each agency has implemented their programs with special names but monies are distributed from the same fund and divided among participating agencies to provide consumer services. Community organizations submit proposals to participate in the program each fiscal year and develop partnerships for the continuity of care. Continuity of care is a social services term that simply refers to other services a client may need to maintain low-energy costs or other financial needs, for example. That means, each community organization will assess your household needs such as employment, budgeting classes, etc. and coordinate those services to provide them directly through their agency or other partnerships in the community. The Low-Income Self-Sufficiency Program (LSP) funded by the Michigan Energy Assistance Program (MEAP) is a utility assistance program with monies allocated to most MEAP participating community organizations by MDHHS. The Low-Income Self-Sufficiency Program (LSP), most commonly administered by United Way, is a long-term utility assistance program with a specific structure to prevent utility shut-offs, reduce energy costs over time, and promote financial self-sufficiency. Community organizations dispense LSP funds but not under special program names. They are contracted with the Michigan Department of Health and Human Services (MDHHS) to process enrollment applications for qualifying households based on predetermined eligibility criteria. DTE and Consumer’s Energy (the main energy providers in Michigan) do not handle LSP enrollment but does offer support services for LSP enrollees. LSP funds are also available through community organizations such as THAW and NSO but are not handled directly by utility companies or Department of Human Services (DHS), formerly, the Family Independence Agency (FIA). Please check the Community Resources section for participating agencies, income and other eligibility criteria for LSP enrollment which allows an affordable structured payment plan (usually about 5% of the total bill) for energy consumers up to two (2) years. Approved applicants also remain eligible for the Home Heating Credit tax refund program. Energy consumers should not confuse these funding sources with internal protection plans offered by the utility company. For example, DTE Energy offers a Shut-off Protection Plan that requires high deposits and monthly bills that are usually not affordable for consumers to sustain. We recommend that you apply for utility assistance. LIHEAP and MEAP grants are available to energy consumers who are both in the “Past Due” or “Shut-Off” status and after service interruption. Assistance through the Low-Income Self-Sufficiency Program (LSP) are not available after utility services are disconnected. Open enrollment for United Way's LSP FY18, closed Wednesday, April 25, 2018 and new enrollment is expected to begin October 1, 2018 pending state and federal appropriation budget approvals. We will keep you posted. LIHEAP funds are available through the State Emergency Relief (SER) program year-round pending funding availability. This program is helpful in preventing shut-offs prior to October 1 as well as restoring services that have been terminated. For added protection, the State of Michigan also prohibits utility shut-offs due to non-payment during the winter season beginning November 1st to March 31st. You may contact the Michigan Public Service Commission (the utility regulatory authority in Michigan) to file a complaint in case of illegal service interruption. See the Community Resources section for contact information. If you need further information or assistance please complete the confidential Contact Form. Related Posts; COMMUNITY RESOURCES - UTILITY ASSISTANCE SECTION http://www.canmichigan.com/community-resources-michigan.html |
Deborah Mitchell2016 Wayne State University Alumni - Bachelors of Science in Social Work, social services professional and Registered Social Work Technician. Human service background since 2007 which includes medical case management and service navigation for the indigent population, outpatient mental health counseling for SUD disorders with comorbidities (experienced in medication-assisted and social model treatment modalities), supportive employment and job development for mental health consumers, and structured living domicile management. Archives
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