States and Cities Take a Lead in Poverty Reduction

There has been much discussion in the policy world about the roles of states and cities in the fight to end poverty. There are now twelve states with commissions, caucuses or summits geared toward reducing poverty. And of those states, five, including Connecticut, Delaware, Minnesota, Oregon and Vermont have specific targets - a numerical goal (e.g. 50 percent reduction) and a date by which they hope to achieve the target. As noted earlier, New York City has led the way in changing the way we calculate poverty and places like Washington DC, Montgomery County, Maryland, and San Francisco have instituted their own local versions of the Earned Income Tax Credit.

Due to the skyrocketing federal deficit, which Jonathan Weisman of the Washington Post writes today will grow to a whopping $490 billion dollars this year, it looks like states and cities will have to continue to lead the way and find creative solutions to reduce poverty and boost social mobility regardless of who wins the White House this fall.

Both candidates have promised to put poverty reduction at the forefront of their administration. Obama has committed to cutting poverty in half in ten years, saying:

I absolutely will make that commitment. Understand that when I make that commitment, I do so with great humility because it is a very ambitious goal. And we’re going to have to mobilize our society, not just to cut poverty, but to prevent more people from slipping into poverty.

And McCain vowed to:

Make the eradication of poverty a top priority of the McCain Administration. A strong and vibrant America, one in which people can move up into the middle-class, put their kids through college, work hard and one day retire in dignity, is critical not only to our economic future but to the very security of our nation. As president, I will set aside the needs of the special interests to advance the interests of the American people, especially those 12 million children who deserve every opportunity to achieve the American Dream.

Yet, given the fiscal realities that either Obama or McCain will inherit in January coupled with the potential price tags for other priorities like health care, states and cities should not count on a big influx of cash and resources.