Rapid City poor hope for help in stimulus package

By Kevin Woster, Journal staff | Friday, January 25, 2008

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The economic-stimulus package being negotiated at the federal level should be shaped so that it helps the poorest of the poor, low-income people in Rapid City and their advocates say.

Mari King, a 25-year-old pregnant mother of two, who relies on food stamps and income-based housing, didn't qualify for the tax rebate of up to $800 per qualifying individual that was initially proposed by President Bush. And it was unclear Thursday whether she would be covered by an expanded assistance plan being negotiated by congressional leaders to give smaller checks, possibly about $300, to virtually anyone who earns a paycheck.

As an asthmatic with other health issues who is currently out of work, King relies on government assistance to get by. She said she and her children have daily financial needs that could be helped by a few hundred dollars.

"It would do a lot," she said as she selected free food items at the food pantry on North Maple Ave. in Rapid City. "There are things I'd like to buy for my kids that I can't buy. I could do some thing for them that I can't do now."

That would mean spending the money maybe on clothing and extra or different food, and possibly fees for youth-recreation programs for her kids. Additional consumer spending is the intent of the stimulus package proposed by President Bush and now being negotiated between congressional leaders and Bush administration officials.

The initial proposal would have returned more than $140 billion in federal funds to taxpayers through income-tax rebates. The payments could be up to $800 per qualifying individual and $1,200 per married couple.

Low-income families and individuals who paid little income taxes would get reduced rebates in that plan. And the working poor who don't make enough to pay taxes would have been left out entirely.

Democrats initially pushed to expand the stimulus package to low-income people, possibly through temporary increases in food-stamp benefits or unemployment payments. They agreed to drop that in a negotiated package that now includes payments of about $300 per individuals who earn a wage but don't make enough to pay income taxes. There could be additional payments for children in that family, with a possible cap at about $1,200.

The package also would provide businesses with tax breaks designed to encourage improvements or expansion.

King hopes she isn't forgotten in the negotiations. So does her mother, Bridget Defender, who now lives on disability payments and other assistance, including food from the food pantry. Defender hopes federal officials won't overlook her as they develop the financial-stimulus package.

"I worked all my life," Defender said. "And now when I need it, I'd like to get help."

Bill Garland, a supervisor/case worker at Cornerstone Rescue Mission, said a few hundred dollars would go a long way to help with the daily financial challenges of the very poor.

"Man, that would be a big impact for a guy who can't even come up with the money to buy toothpaste and toilet paper," Garland said. "And even somebody who qualifies for subsidized housing still needs a deposit to get in. It could provide that."

Cindy Lloyd, director of individual services for the Club for Boys, sees people in that situation all the time. The Club for Boys organization recently provided clothing for a woman who walks to work but couldn't afford a winter coat, Lloyd said.

Of 1,400 families who use the services of the Rapid City Club for Boys, more than 200 live on $1,000 a month, Lloyd said.

"You get a check for $800, that's almost a month's income," Lloyd said. "I've got one grandma who's essentially raising her 10-year-old grandson on $325 a month. Think what a few hundred dollars could mean to her."

Even when the poor find work and begin rebuilding their lives, they often are blocked from affordable, income-based housing because they can't come up with the money needed for a deposit, Lloyd said. A check from the government for a few hundred dollars would provide deposit money for many, she said.

"When you're homeless and stuck in a cockroach motel room, you can't save up enough for a deposit," Lloyd said. "I have a mother who's been four or five months in that situation, and she has three kids. She needs $200 to even apply for an apartment."

The needs are endless, and the money is short, Lloyd said. Properly designed, the stimulus plan could work for the economy and the poor, she said.

"We have a lot of families where both parents are working minimum-wage jobs, and they can't make enough to eat," she said. "We put up as many safety nets as we can. But a lot of our families still fall through the cracks."

Contact Kevin Woster at 394-8413 or kevin.woster@rapidcityjournal.com