Sen. Gounardes: State Poverty Council’s Report Underscores the Need for my Working Families Tax Credit

New York State Senator Andrew Gounardes issued the following statement today after the New York State Child Poverty Reduction Advisory Council (CPRAC) issued its final report with recommendations to address child poverty:

“This report makes clear what we’ve been saying for years: the time to pass the Working Families Tax Credit is now. The cost of living is crushing working-class and middle-class families in New York, making it hard to raise children here and pushing people into poverty. But it doesn’t have to be this way. As the report outlines, there are policies we can implement to put more money in New Yorkers’ pockets and help them make ends meet—and my Working Families Tax Credit is at the top of the list. We have all the information, research and data we need to permanently slash child poverty and help families thrive. Now, it’s time to act.”

Background:

The New York State Child Poverty Reduction Advisory Council (CPRAC), established by Governor Hochul under the Child Poverty Reduction Act, is responsible for analyzing child poverty in New York; making policy recommendations to reduce child poverty by 50 percent over ten years; and measuring and reporting on the State's progress towards that goal.

After two years of study and discussion, CPRAC today issued a final report outlining key principles, and policy proposals to reduce child poverty in New York. According to the report, “the research is clear that poverty, particularly childhood poverty, leads to negative outcomes for families and children later in life.”

Among other conclusions, CPRAC’s report identifies the following key principles to guide its policy proposals:

• The cost of living for low-income New Yorkers can make it challenging to live and raise a family in New York State. 
• Economic supports currently available to New Yorkers may not always be sufficient to meet basic needs, including food, housing, energy, daily essentials, transportation, clothes, child care, and health care, which are exacerbated by inflation. 
• Current eligibility policies may exclude some New Yorkers who need assistance.
• Administrative burdens make it more difficult for New Yorkers to get assistance.
• Many New Yorkers may not know about the range of programs available to them. 

The report’s top policy recommendation is to increase the value of and expand eligibility for the child tax credit, including to consider larger increases for youngest children, which it calls – a proven method for reducing child poverty.”

Senator Gounardes’ Working Families Tax Credit (S.277C) would do just that by streamlining and expanding current state tax credits. The plan would raise the maximum tax credit to $1,600 per child, provide a $100 minimum credit per child regardless of income, eliminate the cap on the number of eligible kids, and pin the credit to inflation. The bill also eliminates the benefit phase-in, allowing the lowest-income families to receive the biggest credit. It would be paid out quarterly, providing families with four regular payments per year instead of just one annual lump sum.

According to Census data, more than 800,000 children, or more than 1 in 5 New Yorkers under age 18, are living in poverty in New York. The child poverty rate in New York State is the 4th highest in the nation. At the same time, the rising cost of child care and housing is driving families with young kids to leave New York City.

Press Contact:

Billy Richling

Communications Director

State Senator Andrew Gounardes

billy@senatorgounardes.nyc

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