DOR Budget Sheds Little Light on the Fate of the EITC
If you don’t read the WCCF blog, let me bring you up to date on what we know and don’t know about funding in the next biennial budget for the state’s Earned Income Tax Credit (EITC).
The Dept. of Children and Families’ budget request for the 2013-15 biennium recommends a large reduction in one of the funding sources for the EITC. Beginning in fiscal year 2014-15, DCF proposes cutting $37 million from the portion of the credit’s funding that comes from the block grant known as Temporary Assistance for Needy Families (TANF). But since the rest of EITC funding is the responsibility of the Dept. of Revenue, the DCF recommendation doesn’t tell us whether the intent is to reduce total EITC funding or only to shift the funding sources.
In a post on the WCCF Blog on Monday, I explain why a funding shift could be a good thing for important programs for low-income kids, such as the Wisconsin Shares child care subsidy program. However, it’s still unclear whether the DOR budget will include state GPR funding to replace the proposed cut in TANF dollars for the EITC. As Monday’s blog post notes, the DOR budget request makes no mention of the proposed TANF reduction and how it would be handled. It appears that we’ll have to wait to learn the Walker Administration’s plans for the EITC.