Challenges confronting nonprofit housing organizations’ self‐sufficiency programs

Abstract

In recent years, interest has grown at the federal level in strategies to combine subsidized housing with programs promoting household self‐sufficiency. This article explores how nonprofit housing organizations conceptualize their self‐sufficiency programs for their residents. A broad definition of self‐sufficiency is presented—one that is not exclusively focused on the individual and, instead, also includes program strategies that are focused on changing the context in which individuals live and work.

The paper then analyzes the relationship between the self‐sufficiency strategies being implemented in the nonprofit housing world and how these organizations will be affected by welfare reform, the shrinking and restructuring of federally subsidized housing, the emergence of block grant job training and workforce development programs, and the general devolution of government programs into ever more fungible pots at state and local levels. These transformations in the domestic policy agenda will present challenges to nonprofit housing organizations and to the goal of promoting self‐sufficiency.     

Inefficient households and the mix of government spending

A model is presented in which individuals can vote over government subsidies to a private good and over redistributive taxation. The subsidized good is purchased and shared by couples who act noncooperatively, while possibly being altruistic towards each other. The framework allows a separation of the subsidy policy from redistributive policy. In a majority voting equilibrium the subsidy is used exclusively to correct the individuals' spending pattern. The results suggest that spending on private goods should be an important item in government expenditures when there is strong positive income bias in the political process and/or when household decisions are relatively inefficient.     

The Impact of Home‐Based Child Care Provider Unionization on the Cost,Type, and Availability of Subsidized Child Care in Illinois

In February 2005, Illinois became the first U.S. state to grant home‐based child care providers (HBCPs) the right to form a labor union in order to bargain collectively with the state government. This policy inspired similar efforts across the country and represents a potentially important direction for child care policy. To date, the implications of labor unions for the cost, type, and availability of subsidized child care have not been evaluated empirically. In this study, we examine the impact of granting Illinois HBCPs the right to form a labor union on (a) the type of child care (licensed vs. license‐exempt/home‐based vs. center‐based) used by subsidy‐receiving Illinois infants and toddlers; (b) the per‐child cost of subsidized child care for infants and toddlers; and (c) the percentage of Illinois infants and toddlers who use child care subsidies. To conduct these analyses, we combine data from the Current Population Survey with Child Care and Development Fund administrative records on U.S. infants and toddlers whose families received child care subsidies during the period from 2002 to 2008. We use both a traditional difference‐in‐differences as well as a comparative case study with a “synthetic” control group approach. The synthetic control group approach improves on traditional comparative case studies by providing a transparent, empirical approach for constructing the counterfactual, documenting comparison units’ contribution to the synthetically created control group and detailing the degree to which the synthetic control group is, or is not, similar to the treated unit on preintervention measures of the outcome as well as on other selected characteristics. We find that subsidy‐receiving Illinois infants and toddlers spent an average of between 6.4 and 7 percentage points more hours in licensed care settings, as compared to license‐exempt settings, in the three years following child care unionization. We also find that between 0.7 and 1.1 percentage points fewer Illinois infants and toddlers used child care subsidies following unionization.     

The effects of the National School Lunch Program on education and health

This paper estimates the effects of participating in the National School Lunch Program in the middle of the 20th century on adult health outcomes and educational attainment. I utilize an instrumental variables strategy that exploits a change in the formula used by the federal government to allocate funding to the states. Identification is achieved by the fact that different birth cohorts were exposed to different degrees to the original formula and the new formula, along with the fact that the change of the formula affected states differentially by per capita income. Participation in the program as a child appears to have few long‐run effects on health, but the effects on educational attainment are sizable. These results may suggest that subsidized lunches induced children to attend school but displaced food consumption from other sources. Alternatively, the program may have had short‐run health effects that dissipated over time but that facilitated higher educational attainment. © 2010 by the Association for Public Policy Analysis and Management.     

Tax and direct expenditures: Perspectives on prepayment proposals

Abstract

If the government were committed to replenishing the inventory of project‐based assisted housing units when losses occurred, owners’ prepayment rights, with prepayment penalties, would be a desirable feature of the program. Additional unsub‐sidized housing units would be created every time a prepayment occurred, the freed‐up subsidies and insurance commitments would support a replacement low‐income unit, and prepayment penalty income could be used to offset mortgage insurance losses and thereby reduce the cost of mortgage insurance.

Under the much less than ideal conditions now prevailing, with no replacement project‐based housing available and no buy out arrangements in place, federal policy must attempt to limit prepayment by the owners of subsidized projects over the next few years.

An approach to establishing a “maximum price” that the government should be prepared to pay to induce each prepayment‐eligible building owner not to prepay is presented.     

Public Subsidies for Private Schooling: A Comparative Analysis of Argentina and Chile

Argentina and Chile have long-standing policies that award public subsidies to private schools. This article compares the academic outcomes of seventh- and eighth-graders in public and private schools in each country. Three types of private schools are analyzed: Catholic schools that are subsidized by the government, nonreligious schools that are subsidized, and private schools that receive no subsidies. Ultimately, the analyses suggest a mixed portrait of private school effectiveness, in which Catholic schools have the most consistent links to achievement. Nonreligious subsidized schools in Chile, often operated by for-profit corporations, produce outcomes no different from public schools.     

Mexican migration policies after IRCA

The evolution since 1964 of Mexican government policy regarding migrant workers in the US is discussed. For a decade after the "bracero" program was terminated by the US, the Mexican government attempted to encourage creation of another legal framework for migration, regarded as inevitable whether legal or clandestine. Around 1974-75, a more distant attitude, termed the "policy of no policy," acquired considerable support in Mexican government and academic circles. The no-policy strategy allowed Mexico to achieve certain objectives regarding migration without prompting US intervention in its internal affairs, as for example by a linkage of US migration policy to specific Mexican government actions. The 1986 passage of the US Immigration Reform and Control Act effectively ended the no-policy strategy that had allowed the Mexican government to count on the continued emigration of Mexican workers without compromising its position of promoting respect for migrant rights. The unilateral change in the status quo by the US led to substitution of the "policy of dialogue," a clear signal of the Mexican government's search for a new migration agreement. The policy of dialogue has entailed greater discussion of the two traditional Mexican objectives regarding migration. Some progress has apparently been made concerning migrant rights, but the second and less explicit objective, that of preventing abrupt changes in US immigration policy and in migratory flows, is harder to judge. The atmosphere of freer public debate in Mexico is politicizing migratory policy.     

National health insurance: Some lessons from the Canadian experience

In the current American debate over national health insurance an examination of the Canadian governmental experience is very instructive. Canada is enough like the United States to make the effects of Canadian health insurance policies rather like a large natural experiment. The Canadian experience—universal government health insurance administered by the ten provinces with some fiscal and policy variations—can be used to predict the impact in the United States of proposed national health insurance plans on the medical care system, and the reaction of mass publics and national policymakers to these effects.The central purpose of the Canadian national health insurance was to reduce and hopefully eliminate financial barriers to medical care. In this it succeeded. But it also produced results which Canadian policymakers never anticipated: essentially unexpected side-effects on cost, quality, organization, and manpower distribution of the particular national health insurance program adopted. It should be cause for concern, the article concludes, that most of the prominent American national health insurance proposals resemble the Canadian program in failing to provide a single level of government with both the means and incentives to curb the inflationary effects of national health insurance. The lesson from Canada is that unless the system has very strong anti-inflationary mechanisms and incentives built into it, national health insurance will feed the fires of medical inflation despite great formal governmental authority to control it.     

Do State‐Funded Property Tax Exemptions Increase Local Government Inefficiency? An Analysis of New York State's STAR Program

This study tests the effects of a growing form of indirect state aid—state‐supported property tax exemptions—on local government efficiency. We hypothesize that larger exemptions, by lowering the effective tax price paid by local homeowners and thus their incentive to monitor efficiency, will reduce local government efficiency. We test this hypothesis by examining the introduction of New York State's large state‐subsidized property tax exemption program, which began in 1999. We find evidence that, all else constant, the exemptions have reduced efficiency in districts with larger exemptions, but the effects appear to diminish as taxpayers become accustomed to the exemptions.     

The Effect of Breakfast in the Classroom on Obesity and Academic Performance: Evidence from New York City

Participation in the federally subsidized school breakfast program often falls well below its lunchtime counterpart. To increase take‐up, many districts have implemented Breakfast in the Classroom (BIC), offering breakfast directly to students at the start of the school day. Beyond increasing participation, advocates claim BIC improves academic performance, attendance, and engagement. Others caution BIC has deleterious effects on child weight. We use the implementation of BIC in New York City (NYC) to estimate its impact on meals program participation, body mass index (BMI), achievement, and attendance. While we find large effects on participation, our findings provide no evidence of hoped‐for gains in academic performance, or of feared increases in obesity. The policy case for BIC will depend upon reductions in hunger and food insecurity for disadvantaged children, or its longer‐term effects.     

Unintended consequences: Regulating the quality of subsidized day care

Advocates for the poor frequently support uniform, high federal standards for subsidized social services. While such standards may improve the quality of services for those who qualify, they can also have unintended but important side effects. Stringent regulations may actually curtail the supply of services, promote segregation, and expand the role of large subsidized for-profit firms. All these possibilities are illustrated by the history of federal regulation in subsidizing child day care. The federal government's retreat from regulation in 1980 and 1981 may have had results that—even if unintended—were in many ways salutary.     

The Medicaid Mandates of the 1980s: An Intergovernmental Perspective

Medicaid, the health care program for the poor, has undergone significant changes in the last fifteen years. Many of those changes relate to the intergovernmental nature of the program. Medicaid is jointly operated, with the federal and state governments sharing program costs. Despite a set of program guidelines dictated by the federal government, states have traditionally had substantial latitude in Medicaid decisions. However, a series of developments in the 1980s led to increasing constraints on state Medicaid discretion, including federal mandates to expand Medicaid coverage. This article examines the inception and effectiveness of the Medicaid mandates from the perspective of interstate equity of health care services for poor families.     

Market imperfections,government imperfections,and policy mixes: policy innovations in Singapore

Proper roles for government and market in addressing policy problems may be assessed by considering the duality between market imperfections and government imperfections. The potential of government interventions or market mechanisms as core policy instruments can be eroded by fundamental deficiencies deeply rooted in either government or market as social institutions. The impacts of such deficiencies are much more extensive than postulated by the existing theories. Analysis here, based on policy innovations in land transport and health care in Singapore, suggests how policy mixes might become the norm of response for addressing policy problems found in a range of sectors. The analytical framework presented may help to distinguish among different policy mixes according to their effectiveness, but also provides some useful guiding principles for policy design.     

Privatizing Federal Credit Programs: Why Sallie Mae?

The federal government subsidizes lending to a number of borrowers—notably students, farmers, and homeowners. Government‐sponsored enterprises issue the securities that channel capital to many of these privileged borrowers. One of the largest of these enterprises, the Student Loan Marketing Association (Sallie Mae), is scheduled to be wholly privatized by September 30, 2008. What explains the privatization of this enterprise? To identify distinctive features of Sallie Mae that permitted or abetted privatization, we investigate the structure, related capital market innovations, and growth of three government‐sponsored enterprises. We conclude that a unique structural feature of Sallie Mae may explain the pace of privatization. The core asset of Sallie Mae, the student loan, is guaranteed and subsidized by the government. The case of Sallie Mae is an instructive yet poorly understood example of how the federal government can leverage private‐sector assets and incentives to achieve public policy missions.     

COORDINATION IN STATE ADMINISTRATION: A CASE STUDY

Abstract: "Coordination is one of the perennial concerns of public administration, and has been a particular problem of State-level policy-making in Australia. This paper describes a policy initiative under the Dunstan government in South Australia which was necessarily an exercise in State administrative coordination. The story illustrates the complexity of a multi-Departmental program aimed at producing an innovative, flexible and decentralized policy. While it shows the awkwardness of conventional administrative and policy-making procedures in such a situation, it also provides examples of constructive cooperation among and readjustment within departments. The general policy "parameters" inspired by the Dunstan government are regarded as a significant influence on the outcome of the program.     

Contracting for Indigenous Health Care: Towards Mutual Accountability

In Australia and other industrialised countries, governments contract with the non‐government sector for the provision of primary health care to indigenous peoples. Australian governments have developed policies and funding programs to support this health sector, but the current arrangements are unduly complex and fragmented. The results of our study show that the complex contractual environment for Aboriginal Community‐Controlled Health Services (ACCHSs) and their funders is an unintended but inevitable result of a quasi‐classical approach to contracts applied by multiple funders. The analysis in this article highlights potential policy and program changes that could improve the effectiveness of funding and accountability arrangements, based on the use of an alliance contracting model, better performance indicators and greater clarity in the relative roles of national and jurisdictional governments.     

When government programs create inequities: A guide to compensation policies

When the government institutes a program thought to be useful for society as a whole, such as building a highway or controlling air pollution, those that benefit from such programs are usually quite different from those that bear its costs. Sometimes the government responds by postponing or modifying the program, sometimes by compensating those that are bearing an inequitable share of the costs. By using familiar economic concepts, the analyst can more effectively choose between the two approaches. Applying those concepts to the case of highway construction in California, we conclude that in this instance cash compensation is clearly superior to postponement as the policy of choice.     

Politics of childcare policy beyond the left–right scale: Post‐industrialisation,transformation of party systems and welfare state restructuring

Childcare policy has become an integral part of social and economic policy in post‐industrial democracies. This article explores how the transformation of party systems structures the politics of childcare policy. It reveals that political parties contend with each other over childcare and female employment policy on the social‐value dimension as well as the redistributive dimension. Assuming that different party policies have distinct impacts on public childcare policy, it is hypothesised in this article that a government's policy position – composed of the governing parties' policy positions – affects changes in public spending for childcare services. Through an analysis of the pooled time‐series and cross‐section data of 18 advanced industrialised countries from 1980 until 2005 using multivariate regression methods, it is revealed that a government's redistributive left–right policy position interacts with its social liberal–conservative policy position, and that a left–liberal government raises its budget for childcare services while a left–conservative government does not.     

Uneven Development, Territorial Politics and the British Health Care Reforms

The paper considers the relationships between the uneven development of the British economy, the political strategies pursued by the Conservative government, and the changes to the character of the NHS in the 1980s which culminated in the NHS reforms. It describes the context in which spatial resource allocation policies in the NHS were operating—one of heightened uneven development, with particularly rapid growth taking place in South East England with harmful effects on the NHS. It shows that one response was pressure by backbench MPs on government for a more equitable distribution of funds. Developments within the NHS are interpreted as strategic attempts to prioritize the interests of key geographical locations within a broader 'two nations' political strategy. Three issues are raised: the usefulness of the idea of 'spatial coalitions' in understanding pressures for change in health care policy; the extent to which spatially-uneven development and the 'two-nations' political strategy influenced the character and timing of changes in health care policy; and the possibility that the politics of the welfare state will increasingly be shaped by territorially-based conflicts.     

The Danish ‘Competition State’: Still Along the Third Way?

This brief review article addresses the question of whether the so-called “competition state” was “abandoned” during the recent Danish election of 2019, which brought the Social Democrats back in government under the leadership of Mette Frederiksen. During the prior Social Democratic government of 2011-2015, led by Helle Thorning-Schmitt, this concept was introduced as a highly controversial policy concept and came to summarize the government’s program of economic reforms and recovery. The concept was subsequently strongly criticized in broader public political discourse as well as by the Social Democratic party and Mette Frederiksen herself. It is thus worth considering, whether the competition state reform program has been “buried” with the recent election, as this might imply a more radical break or discontinuity away from the “third way” competition state reform program embarked upon by most western European Social democrats since the 1990’s. This article will, first, briefly review the public discussion about the competition state in Denmark, before it, second, will recapitulate the academic debate about the competition state and clarify the concept. Third, it will review central tenets of the economic policy of the Thorning-Schmitt government of 2011-2015, as well as, fourth, the announced reform program of the new Social Democratic government. Finally the article will contrast and compare the two programs, and conclude that the “competition state” to a large extent endured the election of 2019, even if the Frederiksen government seems to lead the Danish competition state into reform trajectory towards increasing dis-universalization of social security and pensions.