Edmonton Social Planning Council

Author: Web Administrator

  • A made-in-Alberta child-tax benefit would reduce cost of poverty: Investment in poor would pay dividends to society, economy

    John Kolkman, Opinion Editorial
    Edmonton Journal, March 16, 2010

    Alberta has experienced a modest drop in child and family poverty in recent years due to a strong economy and some reinvestment in social programs. Yet the 2006 federal census, taken at the height of the economic boom, found that 77,595 Alberta children (over one in 10) continued to live in poverty.

    Moreover, even these modest gains will be put at risk if the Alberta government makes the wrong choices in its upcoming budget.

    The government of Alberta should consider investing in a refundable child-tax benefit for low and modest income Alberta families. Alberta would thereby join several other provinces that have their own child-tax benefits to supplement federal child tax benefits.

    Child-tax benefits (including the supplement for low-income families) already contribute significantly more to alleviating poverty than provincial social assistance payments. Introducing a parallel Alberta benefit — is the single-most important social policy innovation that would put a significant dent in the number of children living in poor families.

    Refundable child-tax benefits have numerous advantages.

    Unlike social assistance, there are no complicated rules stigmatizing low-income families.

    Eligibility is determined by the Canadian Revenue Agency based on filing a tax return with benefits directly deposited into the family’s bank account.

    Child-tax benefits are available to all families regardless of the source of income — working poor as well as those on income support. Lowincome families receive the maximum benefit, and benefit levels are gradually reduced as family income rises.

    By piggybacking on existing federal child-tax benefits, an Alberta benefit could be introduced at no additional administrative cost.

    At first glance, it may seem counter-intuitive to advocate a new spending initiative at a time the provincial government’s finances are tight. The last time the Alberta economy hit some turbulent waters back in the early 1990s, the government responded by making deep cuts to social programs including social assistance, affordable housing and benefits to Albertans with disabilities.

    The results were predictable. Homelessness soared. Poverty spiked.

    So did the number of children in government care. This time around the Alberta government must make better choices.

    Investments in poverty reduction generally, and an Alberta Child Benefit specifically, would help stimulate the Alberta economy. Lower-income Albertans will spend increases in social benefits on necessary goods and services, thereby creating jobs and economic activity.

    Fortunately, the Alberta government is in a much stronger budgetary position today than during the early 1990s.

    By the time of the deep cuts of 1993, the then Getty government had been running multibillion dollar budget deficits since the mid-1980s.

    By contrast, until this year, there has been a spectacular run of consecutive multibillion-dollar budget surpluses.

    Some of these surpluses were deposited in a short-term savings account called the Sustainability Fund.

    According to the most recent quarterly financial update, $13.3 billion is still forecast to be available in the Sustainability Fund even after covering last year’s deficit.

    This fund is purposely designed as a short-term savings account to be used to cover the kinds of sudden and short-term declines in government revenues as are currently being experienced.

    The government of Ontario adopted a poverty-reduction strategy in December 2008 which calls for a 25-per-cent reduction in child poverty over five years, thereby lifting 90,000 Ontario children out of poverty.

    A cornerstone of Ontario’s strategy is more than doubling its refundable child tax benefit.

    By July 2010, low and modest income Ontario families will receive up to $1,310 a year per child at a total annual cost to the provincial Treasury of $1.3 billion. I

    If Ontario — facing much more severe budgetary challenges — can make a firm commitment to its children, surely Alberta can.

    Assuming comparable benefit levels, and adjusted for differences in population, the corresponding cost to the Alberta treasury would be a relatively modest $350 million per year.

    Failing to invest today in reducing child and family poverty in this province will only lead to even higher societal costs down the road. Based on a recent study in Ontario, persistent poverty could be costing the Alberta economy $8 to $10 billion a year in lost economic potential and extra costs for services like ambulances, hospitalization, child welfare, policing and corrections.

    Including strategic investments in poverty reduction like an Alberta Child Benefit would pay dividends for all Albertans in the long-term.

  • Valorizing Immigrant’s Non-Canadian Work Experience

    Valorizing Immigrant’s Non-Canadian Work Experience.

    Report from Canadian Council on Learning, 2009.

    As a result of Canada’s low birth rate, and the retirement of an aging population, immigrant workers are becoming increasingly important in Canada’s labour force. This report explores foreign work experience and its role in the assessment and recognition of immigrants’ qualifications for Canadian jobs.

    The identified barriers that immigrants face when searching for work in Canada include (1) lack of recognition for foreign credentials, (2) language barrier, and (3) the lack of valorization of foreign work experience. Unfortunately, most programs and initiatives today are only designed to address the first two.

    This becomes a major problem, placing immigrants in a Catch 22 situation where they are unable to get a job without Canadian experience, and are unable to get Canadian experience without a job.

    This report further examines foreign work experience through innovative practices, challenges, and government support

    Innovative Practices to Valorizing Foreign Work Experience

    One innovative practice includes the preparation, organization, and conduct of interviews. Organizations such as RBC, Assiniboine Credit Union, and Manulife train or coach immigrant applicants in cross cultural communication techniques to explain and understand how foreign experience relates to the Canadian labour market. This approach requires thatimmigrants learn about the cultural context of the Canadian workplace, the Canadian labour market, and the operations and informal culture of the industry sector; and recruiters and managers learn about the different effects of cultural differences on communication.

    Innovative practices also include bridging programs that integrate immigrants’ foreign experience into the assessment of their knowledge and skills, the demonstration of competencies, resume preparation and job searches, and customized internships and placements. These bridging programs are evident in a few organizations including The Immigrant Skilled Trades Employment Program (ISTEP), Workplace Integration of Newcomers (WIN), and International Brotherhood of Electrical Workers (IBEW).

    Challenges

    One of the prevailing challenges is the lack of recognition by employers of the value of work experience acquired outside Canada. This is often due to the inability of employers to understand how foreign work experience may relate to the Canadian workplace and contribute to it. This causes many employers to simply refuse foreign work experience as valid experience for employment.This report also argues that the “diversity advantage” that immigrants with foreign experience can bring to our economy to enhance our international competitiveness is utilized by few employers; some who may even argue that it does not exist.Addressing this problem will require investments of time, effort, and money to provide effective communication and well-designed education and training.

    Government Support
    Many innovative practices for valorizing foreign work experience have been exercised by the Immigrant Settlement Agencies (ISAs), with support from Citizenship and Immigration Canada’s Immigrant Settlement and Adaption Program and some provincial governments. As well the federal government’s Foreign Credential Recognition (FCR) program in late 2003 with a budget of $68 million stimulated a variety of initiatives.

    These initiatives have resulted in an increased openness among employers to understand the experience and needs of immigrants, and to take unaccustomed risks in recruitment, hiring, and workplace integration practices.

    Promising Developments
    Although there are many promising developments surrounding the issue of valorizing foreign work experience, it is evident that Canada’s employers and governments still face many challenges in creating a smooth transition for immigrants looking for work in Canada. Organizations must begin to recognize and value immigrant experience to not only address the trending worker shortage in Canada, but to also identify the opportunity of hiring immigrants as a ‘diversity advantage’ where they are gaining new skills and experience that will further drive organizations to new strengths and economic competitiveness.

    Read this report if you are an organization interested in valorizing foreign work experience, or are an individual interested in immigration work related issues.

    Read the report online.

    Review by Darlene Paranaque 

  • Little Good News in Budget for Alberta Renters and Homeless : 18.6% Cut Puts Ten Year Plan to End Homelessness at Serious Risk of Failure

    The Edmonton Social Planning Council (ESPC) says the 2010 provincial budget contains major cuts for Alberta’s renters and puts the provincial plan to end homelessness in ten years at serious risk of failure.  

    “Last March, the provincial government committed to ending the scourge of homelessness in this province.  Yet the last two provincial budgets have delivered less than one-third of the financial resources needed to achieve this worthy objective,” said John Kolkman, the ESPC’s Research and Policy Analysis Coordinator.

    Kolkman notes that the government appointed Alberta Secretariat for Action on Homelessness estimated the cost of ending homelessness at $3.3 billion over ten years (or $330 million per year).  Yet the 2010 budget only commits to funding of $400 million during the first four years (or $100 million per year).  “How can the government expect to meet its goal of ending homelessness without investing the necessary resources to bring it about?” he asks.

    The bit of good budget news is the increase of $10.1 million in outreach support services for those being housed under the Ten Year Plan.  “This helps those who are vulnerable retain their housing rather than fall back into homelessness,” said Kolkman.

    The ESPC is also concerned about the deep cuts in provincial rent supplements in the last two budgets. “Rents remain high, yet assistance to help low income Albertans pay their rent has fallen from $144 million last year, to $88 million this year, and will be further reduced to $75 million next year. People who can’t afford to pay their rents risk becoming homeless. It is more cost-effective to help low income Albertans pay their rents before they become homeless than to only help them after they do,” he emphasized. 

    While some emergency housing assistance is available through social assistance (Alberta Works), this program is also facing a $47 million (8%) cut.  “All in all, Budget 2010 spells trouble for Albertans who are homeless or unable to pay their rent,” Kolkman concludes.

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    For more information contact:
    John Kolkman
    (780) 423-2031 x350 or (587) 989-4442

    website: www.edmontonsocialplanning.ca

    More Information

  • Minimum Wage Freeze a Backward Step: No evidence the scheduled 12 cent per hour increase would harm employers

    The Edmonton Social Planning Council (ESPC) called today’s announcement of a freeze in the province’s minimum wage a backward step. 

    “Two years ago, the provincial government took the politics out of setting the minimum wage by tying it to changes in the average weekly earnings of Albertans,” said Susan Morrissey, the ESPC’s Executive Director.  “This is a transparent way of ensuring that the wages of Alberta’s most vulnerable low income workers keep pace with those of other Albertans.”

    Morrissey noted that the government has provided no evidence that retaining the link to the average weekly earnings index would hurt employers.  “According to Statistics Canada, the average weekly earnings index increased only 1.4% in the most recent twelve month period. This would have translated into a 12 cent per hour increase in the minimum wage, which is certainly affordable even in today’s economic climate.”

    Alberta’s minimum wage ranks only sixth among all provinces.  “A single parent of two children working 40 hour per week at minimum wage for the full year would have an income more than $9,000 below the poverty line,” Morrissey emphasized.

    “The ESPC is not opposed to an all-party review of the minimum wage. But there is no need to impose a freeze in the meantime.  I urge the provincial government to reverse this backward decision,” Morrissey concluded.

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    For more information contact:
    Susan Morrissey
    (780) 423-2031 x353

    website: www.edmontonsocialplanning.ca

     

    More Information

     

     

  • Financial Literacy: Strategies to meet the needs of low-income Albertans

    Financial Literacy: Strategies to meet the needs of low-income Albertans. Report from Social and Enterprise Development Innovations, June 2009.
    Everyone is talking about money these days. Or rather, everyone is talking about lack of money; the last eighteen months have proven difficult for most Canadians. While financial literacy is not a new idea, it has received attention as the general public realizes they might not be making the best financial decisions. We are not as financially literate as we could be.

    Social and Enterprise Development Innovations (SEDI) is a Canadian non-profit organization dedicated to helping low-income Canadians achieve economic self-sufficiency. Their work spans areas including financial literacy, asset building, and entrepreneurship. Briefly defined, SEDI is working from the premise that the goals of financial literacy are to increase financial knowledge and change financial behaviour. The Alberta Ministry of Employment and Immigration asked SEDI to look at financial literacy in Alberta, more specifically how it is effective and could improve the lives of low-income Albertans.

    This project resulted in Financial Literacy: Strategies to Meet the Needs of Low-Income Albertans, a report that surveys best practices in financial literacy programs and policies around the globe and within Alberta. It contains feedback from program participants on how policies and strategies can be most effective.

    Around the world
    Internationally, New Zealand has taken the lead in successful financial literacy programs and policies. They are one of a small number of countries that has conducted a national financial literacy survey (Statistics Canada is currently working on a similar project); this survey indicated which demographics have lower levels of financial literacy. The data collected has been used to create a national strategy, which focuses on inclusion of financial education in school curriculum, provision of adequate information for any citizen faced with financial decision, and promotion of financial literacy programs in the workplace. The strategy focuses on teaching financial literacy at every age, with the recognition that financial habits develop early in life.

    Hallmarks of a good national strategy
    Programs in the UK, USA and Australia are also examined. Successful approaches to financial literacy in all these countries have several characteristics:

    • Attitudes that financial literacy is a basic skill needed over the course of one’s life
    • A national survey to create a baseline measure, with follow-up surveys every few years
    • Multi-sectoral strategies, in the form of partnerships with many types of organizations to reach all audiences
    • Ongoing program evaluation
    • Information and programs are provided free of charge In Canada

    The Canadian government invested five million dollars in financial literacy over the course of 2007 and 2008, through the Financial Consumer Agency of Canada. Several other organizations, including the Canadian Foundation for Economic Education, SEDI, the Canadian Centre for Financial Literacy, and the Joint Forum of Financial Market Regulators, are also involved in financial literacy program and policy development. The only province to currently boast financial literacy components within school curriculum is British Columbia. Several programs have been developed to target low-income Canadians who aren’t in school in major cities such as Ottawa, Winnipeg, Toronto, and Vancouver, in conjunction with the YMCA, CIBC, and other local organizations.

    In Alberta
    Here in Alberta, organizations in municipalities across the province have set up financial literacy programs for their clients and other low-income earners in their communities. In Edmonton, the Candora Society’s Women’s Savings group focuses on strategies for saving money and connecting to community resources. The Edmonton Financial Literacy Society creates financial literacy curriculum tailored to several specific target audiences, such as aboriginals or immigrants. In Calgary, Momentum has programs to help low-income earners better manage their resources to achieve financial self-sufficiency.

    Current concerns
    As a result of recent economic events, approaches to financial literacy have become more reactive rather than proactive. It is important that policy developers keep in mind the need for proactive strategies even as they deal with current crises. Recent events have also proven that, while financial literacy education is crucial, regulation and public policy to protect consumers must also be in place.

    This report contains solid grounding on the ingredients of sound financial literacy policy, and feedback from program participants will provide the Alberta Ministry of Employment and Immigration with insight into the barriers program developers and participants may face.
    Read this report if you are involved in financial literacy program or policy development and delivery; if you are working to improve the lives of low-income Albertans; if you are interested in financial education.

    Visit our library catalogue to find this publication in our library or online. For more information on SEDI’s own perspective on financial literacy, visit their website at www[dot]sedi[dot]org, or check out some of the following publications (available online or through the ESPC library):

    Financial Inclusion for Homeless Persons and Those at Risk. SEDI, 2008.
    Delivery Models for Financial Literacy Interventions: A Case Study Approach. SEDI, 2008.
    Financial Capability: Learning from Canadian Communities. SEDI, 2006.
    Review by Jennifer Hoyer
     

  • Stretched to the Limit: Economic Impact Survey, Alberta’s Nonprofits & Charities

    Stretched to the Limit: economic impact survey, Alberta’s nonprofits & charities by the Calgary Chamber of Voluntary Organizations. Results from October 2009.

    No one needs to be reminded that times are tough; as we develop coping mechanisms for the current economic situation, many nonprofit organizations are unsure of what the future will bring.
    The Calgary Chamber of Voluntary Organizations (CCVO) has released data from its third survey of nonprofits in Alberta, and results line up with the general atmosphere: Nonprofits have been hit hard by the economic downturn and are afraid of what further economic hardship may bring.

    The sector has done a good job of coping with the various impacts of the recession. Organizations have looked to streamline their operations, letting go of staff where necessary while trying to maintain programs. Cost cutting is done in areas that will not affect programs; in some instances this results in greater collaboration, partnerships, and mergers. Many programs have been saved by these efforts.

    Another major impact of economic hard times has been an increase in service demands, especially in the health and social service sectors. Respondents in this survey revealed that many clients are coming to them who have never had to look for outside help before. As organizations are struggling to find finances to meet existing needs, the demand for their services is increasing.

    The CCVO’s survey shows that nonprofit organizations have seen decreases in revenue received from every source: fundraising campaigns, corporate support, earnings, government grants, and every other type of support.

    While organizations have efficiently dealt with tighter budgets up to this point, this survey indicates that there is little room for them to deal with further constraints if current conditions continue.

    The survey data represents responses from organizations across Alberta, although most participants were from nonprofits in Edmonton and Calgary.

    For more information on this or the CCVO’s other surveys on economic impacts of the recession go to their website at www[dot]calgarycvo[dot]org.

    Read this report if you work in the nonprofit sector and would like to know how your organization measures up with current trends.

    You can find this report in our library, or download the PDF online through our library catalogue.
    Review by Jennifer Hoyer