Daily equity news

“Cash Incentive Program for Poor Families Is Renewed,” -  The New York Times

An experimental antipoverty program that pays poor families up to $5,000 a year for going to regular medical checkups, attending school and keeping jobs has been extended for a third year.

Linda I. Gibbs, the deputy mayor for health and human services, said she was encouraged by some early results in the education component of the program that showed students improved their attendance and passed more exams when they were rewarded with cash.

“Experts: Penny per ounce soda tax to fight obesity, health costs,”   - Associated Press

ATLANTA (AP) — In a bid to ramp up the public health battle against obesity, a group of nutrition and economics experts are pushing for a tax of 1 cent on every of ounce of sodas and other sweetened beverages.

Proposals for a hefty soda tax though have repeatedly fallen flat. The idea was even floated as a way to help pay for health care reform, but government officials on Wednesday said that’s not likely to happen.

 ”As farm incomes drop, grocery deals rise,” - USA TODAY

Consumers are reaping some benefits as farmers take their biggest hit in 35 years: lower food prices at the supermarket. The U.S. Department of Agriculture forecasts farm income of $49.1 billion in 2009 when adjusted for inflation. That would be a 39% drop from 2008, a record year when U.S. farmers earned $80.4 billion after expenses.

It would also be the worst annual percentage drop since 1983. In dollars, it would be the worst since 1974, adjusted for inflation.

A recap of this week’s equity news.

“8,800 Road Home properties to return to private hands, ” - Times Picayune

Actor Wendell Pierce and trumpeter Terence Blanchard have come back to their old neighborhood, Pontchartrain Park, and are poised to take over one of every nine properties there — so they can build and sell affordable homes,
On Monday, the New Orleans Redevelopment Authority will vote on an agreement to transfer 114 abandoned and vacant properties to Pierce and Blanchard’s Pontchartrain Park Community Development Corp. It’s a big moment for the star of HBO’s cop drama “The Wire,” the Grammy-winning musician and some of their childhood buddies and fellow investors, who want to return New Orleans’ first middle-class black subdivision to its pre-Katrina glory.

“Homeless numbers ‘alarming’,” - USA Today

More families with children are becoming homeless as they face mounting economic pressures, including mortgage foreclosures, according to a USA TODAY survey of a dozen of the largest cities in the nation.

Local authorities say the number of families seeking help has risen in Atlanta, Boston, Denver, Minneapolis, New York, Phoenix, Portland, Seattle and Washington.

“ACORN fights back,” - San Francisco Chronicle

In the midst of the predictable partisan exaggerations, distortions and occasional lies that close election races generate, ACORN has become the focus of an extraordinary amount of attention over our voter-registration program. We submitted nearly 40,000 voter registration applications in San Diego and throughout California, and 1.3 million nationwide. In communities across the country, anxiety about the direction of our country, and more specifically our economy, is driving much of the interest in this year’s presidential election. Voter turnout is expected to be of historic proportions. What is surprising is that these attacks, issued from partisan sources, have become relentless, and wildly exaggerated. We’ve even been accused by some Republicans of causing the global economic crisis.

The truth, plain and simple, is that no illegal votes will be cast as a consequence of ACORN’s voter-registration program. In fact, illegal votes constitute fewer than 1 out of a million votes cast, and no illegal vote has ever been tied to ACORN, in spite of the almost 2 million registrations we submitted in 2004 and 2006. The small percentage of problematic cards that we have submitted to local election boards in 2008 - and that we are required by law to submit, even cards that we can plainly see are invalid - will not result in any illegal voting, contrary to over-the-top partisan claims. The irony in these attacks is that our registration drive and get-out-the-vote program is nonpartisan.

A recap of this week’s equity news

“Low-Income Borrowers Blamed in Bailout Crisis,” - Washington Independent

Did poor and minority borrowers cause the housing crisis?

That seemed to be the consensus from the fight over the failed $700 billion bailout bill. As Congress and the Treasury Dept. debated how to fix the mortgage mess, the battle over what caused it took hold.

A prime suspect soon emerged: The government forced banks, lenders and Fannie Mae and Freddie Mac to make loans in poor neighborhoods to meet affordable housing goals and regulations. The loans went bad, setting off the market meltdown.

“Police official says city should limit low-income housing,” - Wisconsin State Journal

A top Madison Police Department official says the city should reduce or freeze building low-income housing because the tenants are overwhelming police services.

In addition, Jay Lengfeld, captain of the West District, wrote an e-mail to Madison Alderman Thuy Pham-Remmele, 20th District, on Monday in which he suggested the city should license landlords to “weed out the bad ones” and give landlords more leeway to reject applicants with a history of bad behavior.

“How Can We Reduce the Rising Number of American Families Living in Poverty?,” - Brookings Report

The Census Bureau recently released the official numbers on income and poverty last year (2007) in the United States. Let me underscore a few of the key facts that these data illustrate.

First, poverty did not fall to any appreciable extent during the economic expansion of the 2000s. This is quite unusual. Figure 1 shows the poverty rate and the unemployment rate. In past decades, these two indicators have moved together. When unemployment fell in the 1980s expansion, so did poverty. Unemployment and poverty both fell rapidly in the strong expansion of the 1990s. But when unemployment fell after 2003, poverty remained essentially flat.

A recap of the week’s equity news

“Study Shows Colorado Has Largest Rise in Child Poverty,” New York Times

DENVER — Colorado experienced the nation’s largest rate of growth in impoverished children from 2000 to 2006, according to a study released Tuesday.

The study, by the Colorado Children’s Campaign, a nonprofit group that focuses on child welfare, said that the most recent census data show that 180,000 children — 15.7 percent of the state total — were living in poverty in Colorado in 2006, a 73 percent increase since 2000.

“Jammed Transit Systems Running on Fumes,” MSNBC, June 11

Transportation experts who have pushed mass transit since the 1970s are getting their wish as soaring gas prices persuade Americans to abandon their cars for buses and trains in record numbers. But as the adage says, be careful what you wish for.

Mass transit ridership is at its highest point in 50 years, according to research by the American Public Transportation Association. For many riders, it just got too expensive to drive.

“How HUD Mortgage Policy Fed the Crisis,” Washington Post, June 10

In 2004, as regulators warned that subprime lenders were saddling borrowers with mortgages they could not afford, the U.S. Department of Housing and Urban Development helped fuel more of that risky lending.

Eager to put more low-income and minority families into their own homes, the agency required that two government-chartered mortgage finance firms purchase far more “affordable” loans made to these borrowers. HUD stuck with an outdated policy that allowed Freddie Mac and Fannie Mae to count billions of dollars they invested in subprime loans as a public good that would foster affordable housing.