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Policy Update, February 6, 2015 
Thank you for your interest and support. The Indiana Association of United Ways usually provides its Policy Update on "odd Fridays" (1st, 3rd and 5th Fridays). Contact us if you have any questions or comments about content (past, present or desired for the future).
Income Priority Area
Legislation would change or repeal certain tax credits 
Tax policy is a top priority for your IaUW Policy Team this session. Here are a few key issues most important to our members and stakeholders:

 

State EITC -

HB1349 recouples the State EITC to the Federal EITC. IaUW supports recoupling, or reconnecting, EITC to the federal calculation because recoupling:  

  • helps working families by removing the marriage penalty and allowing 3 children to be claimed; 
  • is aligned with tax simplification efforts, reduces administrative burden on IN Dept. of Revenue, tax preparers and taxpayers; and 
  • reduces opportunity for unintentional errors, fraud and identity theft. 

This provision had been included in SB438, but is being amended out. Review our one-pager on State EITCTell your legislators why it is important to maintain the State EITC and recouple it to the Federal EITC.

 

Charitable Giving Tax Credits - HB1349 and SB441
each include a list of tax credits targeted for repeal among other changes to deductions, exemptions and processes. Charitable giving credits that are targeted for repeal include Neighborhood Assistance Program (NAP), College Contribution and IDA Contribution credits. IaUW supports thorough review of tax credits, deductions and exemptions and opposes repeal of effective credits. NAP Credits help increase the number of donors to certain programs serving distressed communities and families through child care, housing, domestic violence shelters, food pantries, senior transportation and home-based services. NAP often "doubles" the contribution by an individual or corporate donor, providing the donor a 50% tax credit. Tell your legislators why it is important to maintain effective tax credits such as NAP.


Review our testimony on HB1349 or our draft comprehensive tax credit summary


Garnishment of Tax Refunds - HB1358

would create a process for third-party creditors and debt collection agencies to seize tax refunds through the IN Dept. of Revenue. IaUW has expressed concerns about including adequate protections for individuals and families working to become self-sufficient, including provisions for notice of exemptions and injured spouse protections. While EITC refunds would be exempt, refunds for taxpayers with incomes just above EITC eligibility or who don't claim EITC would not. (Note that an estimated 1 in 5 who are eligible for EITC do not claim it.) Community- and faith-based organizations often work with families to use their tax refund to pay down debt on the path to financial stability.


 


2-1-1 2-1-1 funding bill will be heard in Ways and Means on Tuesday
HB1010, the legislation for 2-1-1 funding, passed out of the House Family, Children and Human Affairs committee and will be heard in House Ways and Means Committee
 on Feb.10. Is your legislator on House Ways and Means?  
Ask them to support HB1010 and tell them how the 2-1-1 service has benefited you, a friend or your community.

2-1-1 callers include veterans, victims of domestic abuse, disaster survivors, seniors and job seekers, among others. Currently,   2-1-1 receives the vast majority of its funding from the philanthropic sector, even though government agencies such as the State Dept. of Health, FSSA and 9-1-1 regularly refer Hoosiers to 2-1-1. Without government funding, this service is unsustainable.

Follow Indiana 211 Partnership, Inc. on Twitter and Facebook to share the message with your organization's followers and friends.
Income Priority Area
Legislation to smooth the child care cliff effect advances
Two bills propose to smooth out the child care cliff effect. HB1616 advanced out of the first committee and will be heard in Ways and Means Feb. 10. SB129 is scheduled for Feb. 9.

The "Cliff Effect" is the term used to describe when as little as a 50-cent raise causes a family to lose all benefits, making them worse off than before the raise.

Currently, families lose child care benefits when their incomes reach 171% of poverty. Pending legislation would allow the parents to continue eligibility and pay increased co-pays until the income reaches 250% of poverty, effectively smoothing out the cliff to help the family reach self-sufficiency before losing all benefits. 

IaUW supports smoothing out the child care cliff effect. See our one-pager on the Cliff Effect.

Health Priority Area
Nine days to enroll in Marketplace plans or face penalties
February 15 is the deadline to enroll in health insurance plans through the Marketplace. Anyone who will have income above 138% of poverty in 2015 will need to enroll by the deadline or face tax penalties when they file their tax returns in 2016.

If you know someone who is uninsured and has income above the HIP limits below, urge them enroll at healthcare.gov or 1-800-318-2596 or find an enrollment event. Nearly everyone has a nephew, cousin or colleague who is uninsured. Please encourage enrollment by Feb. 15. The majority of people enrolling in Marketplace plans receive assistance through cost-sharing reductions and advanced premium tax credits. 
Health Priority Area
HIP 2.0 applications soar! Q&A 
Indiana FSSA announced it has already transitioned 180,000 Hoosiers to HIP 2.0 and accepted another 26,000 applications. 

Hoosiers whose income is under the limits below should apply for HIP 2.0 (133%FPL + 5% income disregard). Hoosiers whose income is above the limits below should apply for Marketplace by Feb. 15 (see article above). 
  • Single - $16,296 annual income; $1,358 monthly income
  • 2 in household - $21,960 annual income; $1,830 monthly income 
  • 3 in household - $27,636 annual income; $2,303 monthly income

Please note that FSSA is posting detailed information, copies of notices sent to participants, explanations and FAQs on its site--with messaging and processes unique to each type of applicant (those transitioning from traditional Medicaid, HIP 1.0 or Marketplace and new applicants). Information is being updated as they receive additional questions.

FSSA posted its emergency rule authorizing HIP 2.0. More info coming soon.
At the Statehouse - Take Action
Register for United Way Day at the Statehouse
IaUW's annual United Way Day at the Statehouse event will be on Wednesday, March 4, the afternoon before our State Leaders Conference


At the Statehouse - Take Action
State CapitolStay informed and get involved
The Indiana General Assembly is off and running with a number of bills already passing the first chamber. Bookmark key sites.

Tools from IaUW - 
UPDATED--some daily!

General Assembly pages

At the Statehouse
IaUW Public Policy
IaUW is a nonpartisan organization that works to advance policy principles and compromise solutions for the common good. We focus on policies that are aligned with the impact work in local communities conducted by our 61 United Ways and United Funds.
  • Education, so that children are prepared for and succeed in school;
  • Income/Financial Stability, so that individuals and families may achieve and sustain financial stability;
  • Health, so that individuals may access quality healthcare; and 
  • Strong Communities, where a statewide 2-1-1 network and a strong charitable sector help communities thrive.
Our policy priorities are developed and guided by our Public Policy Committee and our IaUW membersbased on their work in Hoosier communities.

Frequently Requested Links / Documents
  
iauw.org - Learn about the Indiana Association of United Ways, current trainings and conferences and the ways we support local United Ways/Funds, partners and communities.

IaUW Policy / Advocacy info - Review and download IaUW Policy Priorities, Third House calendar, bill lists, fact sheets, talking points and testimony.
  
Advocacy Action Center - Contact your member of Congress or State Legislator, provided through our partnership with United Way Worldwide.

IaUW Policy Update Archive - Read prior issues, special articles and key documents produced by IaUW related to public policy and advocacy.

NEW - Community Report Card - Check out key indicators in Education, Income and Health for your neighborhood, county or region.

IN211.org - Search for human service information available through the referral database or by calling 2-1-1. Download reports about resources, needs, gaps and trends from Indiana 211 Partnership.
  
NRN Calendar - Register for high-quality and affordable training for nonprofit staff and volunteers by the Indiana Nonprofit Resource Network.

Funding and Other Opportunities Explore current requests for proposals, funding and recognition opportunities.

Indiana General Assembly
 - Check the hearing or floor schedule, watch a live or recorded hearing or floor session and look up your legislators. 

Library of Congress
 - Look up bills introduced in Congress. Note that the THOMAS site will be maintained through 2014 and fully replaced by Congress.gov.