Home care worker Evelyn Coke brought her fight for fair pay all the way to the Supreme Court. PHI has released this video on the first anniversary of her passing.

PHI President Steven Dawson speaks about direct-care workers at a Brookings Institution event called “Health Care Reform and Older Americans: Achieving Better Chronic Care at Lower Costs” on January 28, 2010.

Ancil Alexander, a home care worker with Cooperative Home Care Associates in New York, talks about the challenges of her job at the National Long-Term Care Symposium, sponsored by Genworth Financial, on September 14, 2009.

Many direct-care workers may qualify for the earned income tax credit (EITC), a refundable tax credit designed for low- and moderate-income working individuals and families. The maximum 2009 EITC is $5,657, depending on family size and income. As many as 24 states have a state EITC that provides an additional credit on state taxes.

People who are eligible for the EITC can save even more money by avoiding paying commercial tax preparers. Instead, workers can have their taxes done for free at a volunteer income tax assistance (VITA) site. These sites are available in most communities across the country starting in mid to late January and are staffed by IRS trained and certified volunteers.

“When it comes to taxes, every dollar that someone does not spend on preparation fees is a dollar that can be put towards improving their future,” says Ross Yednock, director of the Asset Building Policy Project of the Community Economic Development Association of Michigan.

Another option is I-CAN! E-File, a free alternative to other on-line tax programs which is available to anyone, regardless of income. I-CAN! is easy to use, provides on-line support, and can help people become more comfortable with doing their own taxes — and taking charge of their finances.

Both VITA and I-CAN! are also an alternative to expensive “rapid refund” loans, getting people their refunds within 10 days at no cost.

“We want to increase the number of EITC-eligible filers who use free VITA tax sites or I-CAN, because too often they go to commercial tax preparers and pay as much as 30 percent of their EITC for a ‘rapid refund’ loan,” says Peter Ruark of the Michigan Statewide EITC Coalition and the Michigan League for Human Services.

As tempting as a “rapid refund” may be, they come at a cost. In addition to the fee that commercial providers charge to process “rapid refunds” the loans can come with interest rates as high as 200 percent.

PHI is helping to get the word out about EITC, VITA, and I-CAN! E-File through the Earn, Keep, Save MORE campaign. The Michigan campaign provides employers with information and tools to share with their staff and can answer workers’ questions about these services and programs. To find VITA sites in other states, contact the local United Way, or visit the IRS or State Treasury Department websites.

PHI has released a fact sheet on Michigan’s direct-care workforce (pdf). The eight-page document reveals that while demand for workers is at a historic high and growing, the labor pool is shrinking and poor job quality is adding to the difficulty of attracting and keeping new workers.

These factors, warns the fact sheet, are leading to a potential workforce crisis for the long-term care industry and the families who rely on long-term care services and supports.

Some key facts from the report:

• Roughly a quarter of the state‘s direct-care workers do not have any health insurance.
• A third of Michigan’s direct-care workers live in households that rely on some kind of public benefits, such as Medicaid or food stamps.
• In 2007, the average Michigan direct-care worker received an annual income of $16,446.

“The problem for Michigan,” says PHI Midwest Director Hollis Turnham,
“is that the low wages earned by most direct-care workers put these jobs at income levels that do not support a family.

“Greater investment in direct-care jobs would make them more attractive to workers from shrinking industries like manufacturing, helping to keep Michigan residents employed here — rather than moving out of state.”

The document concludes with five policy recommendations for improving Michigan’s direct-care jobs including increasing wages, improving training, and improving access to health benefits.