This area is mostly flat or slightly rolling and dominated by agriculture. Small forest preserves closer to Indianapolis. Larger parks in the Whitewater River valley east towards Ohio.
Large FWA adjacent to an active military base. Flat hiking trails.
Knobstone Trail is the highlight of Indiana Hiking. Pick a trailhead and enjoy. Check with your doctor to be sure you’re ready for repeated 400 foot climbs and descents.
Nice variety of rail trails, state and county parks, nature preserves, a quarry and an arboretum. This is mostly flat walking. St. Joseph County offers many options.
A village, a historic canal, a deep valley and a rail trail provide options in Delphi, along the Wabash. The bridge is under reconstruction, but you can hike up to one end and you can hike beneath it in the valley.
Travelers have come to know and love the outdoor recreational facilities of France Park, with scenic trails, beautiful waterfall, clear swimming lake with picturesque cliffs, quiet fishing areas, and spacious camping facilities.
The Nickel Plate Trail runs from Kokomo to Rochester. There are a dozen trailheads along its 40 mile length. Although mostly flat, this is a surprisingly scenic trail where it crosses 3 major rivers and approaches Lake Manitou south of Rochester.
The prairie and stream trails are enjoyable. The Gabis arboretum resources and gardens are nice. But the highlight is the outdoor model train and landscaping.
Potato Creek is west of South Bend. The trails take advantage of a lake, historical and planted areas. The state is investing in this park for the future.
The Erie Trail is a straight 20 mile rail-trail segment of the American Discovery Trail, starting north of the Tippecanoe River SP and heading WNW to North Judson, IN.
Located out of the way, near the headlands of the Wabash, this state park is more developed than expected, with a dammed lake, pine woods and bison area.
“Typical welfare family”, a single parent and 2 children (cue the video), receives $35,000 of welfare benefits annually claims the Wisconsin congressman in 2014. That number has stuck in our minds, just like the “welfare queen” and escaped prisoner “Willie Horton”.
Fact checkers debunked this claim, but it’s important to work through the details to get back to a reasonable “order of magnitude” estimate of “welfare benefits”.
If a family has ZERO income, they may receive maximum benefits. The Clinton “welfare reforms” limited the primary benefits to a total of 60 months. Families cannot receive benefits “forever”. Most household heads do work and have some income during the year. The maximum benefit number is an inappropriate “anchor”.
Temporary Assistance for Needy Families (TANF) (welfare) participation rates have fallen from 80% of those eligible to less than 25% since “reform” was implemented. The reform has had it’s intended effect. Two-thirds of those previously participating no longer do so. Some have become more productive and income earning members of society. Others “make do”.
Current average TANF benefits in my home state of Indiana are $346/month or $4,152. That’s a long way from $35,000 of cash benefits, which is the “anchor” that needs to be removed. $4,000 per year of cash is the typical Indiana welfare benefit. The maximum is $700/month or $8,400/year, twice as high. More kids, no income, still eligible. This is possible, but it’s not a useful reference point. The normal received benefit is just one-half of the maximum.
Supplemental Nutritional Assistance Program (SNAP of food stamps) is the next welfare program. For an Indiana family of 3, current benefit value is $6,240 per year. A family of 3 can earn up to $25,000 annually before benefits start to decline. The national ratio of SNAP to TANF recipients is 82%. In Indiana, just 75% of those eligible receive ANY SNAP benefits.
Housing assistance is listed at $9,000. There are various federal and state programs. This is like “winning the lottery” for low income families. In Indiana, 1 in 8 eligible families (12%) receive housing subsidies. These average $736/month or $8,832 per year. On an “expected value” basis, this is only $1,060 per year. From a public policy point of view, this is the relevant number.
In the Wisconsin representative’s model, there is $7,000 of higher education benefits. This is clearly irrelevant to public policy. Individuals do not make ongoing annual work choices based on education benefits.
The Cato Institute started this “conversation” about “welfare versus work” in 1995 and updated their analysis in 2013.
Like the congressman, they note that the “welfare benefits” received are in “after-tax” dollars, so they “should” be translated back into pre-tax dollars to be “fair”. Since the marginal tax rate for low-income wage earners is often just 10%, this is immaterial. More importantly, the emotional, political currency is cash. “how much do THEY receive?” is THE question. This is an after-tax amount. No “grossing up” is required.
The Cato folks also include the full value of Medicaid benefits received by those below the eligible income transition. The value paid per child ($2,145) and per adult ($4,211) yields an $8,501 annual “benefit” currently. Is this a “welfare” benefit or a “citizen” benefit? The US health care system is primarily funded through tax-deductible employer plans. Medical plan subsidies are now available up to 400% of the federal poverty level. From a federal budget perspective, lowest income families receive more value. From an “incentive” perspective, low income families are generally indifferent between federal and employer sponsored plans. This $9,000 does not belong in “the cost of welfare”.
The Cato analysis includes the cost of the “earned income tax credit” (EITC) as a welfare benefit. The EITC was created and enhanced as an incentive for unemployed persons to work and earn some income, thereby providing themselves with short-term and long-term benefits and reducing the cash level welfare benefits. It grows quickly with earned income up to about $18,000 and then falls back down nearly as quickly as income grows to $40,000 per year. This is not what most people think of as a “welfare benefit”.
The Cato analysis also focuses on welfare benefits versus the minimum wage, emphasizing that overly generous welfare benefits provide a disincentive for recipients to seek paid employment (ignoring the 60 month TANF benefits limit). As the effective minimum wage in 2021 approaches $15/hour and $31,200/year, we won’t be hearing this comparison again.
As a professional “cost accountant” since 1978, I was often asked to provide the “exact cost” of various products or services. College courses, residence hall rooms, food service meals, buildings for rent, account managers, computer hardware, installed cables, telephone services, computer maintenance, software development, dresses, tops, retail stores, extension cords, surge protectors, imported goods, cell phones, returned cell phones, etc. The answer is always “it depends”. This is never a popular answer. It depends on what decision you are making. Short-term, medium-term or long-term timeframe. Do we include opportunity costs? Which externalities should we consider, if any? Do we include strategic, brand or cultural consistency as factors?
For the “welfare benefits” question, I think that the relevant public policy/budget and personal incentive numbers are largely the same. Welfare/TANF and food stamps/SNAP matter. EITC, medicaid, education benefits, housing assistance, and income taxes don’t matter.
Welfare/TANF for an Indiana family of 3 is worth $4,152 annually. The complementary food stamp/SNAP benefits are worth $6,240. The total quasi-cash welfare payment is $10,392 per year of eligibility. Maximum of 5 years. This is the right “anchoring” number: $10,000 per year for a family of 3. They will be going to the local food pantry every week. They will be seeking family and private charity. They will be leaning on friends, relatives and neighbors for “subsidized” child care. They will be working and seeking to advance themselves.
There are disincentive challenges remaining in our current systems.
But, these technical, marginal, incremental, opportunity rates are not the heart of the matter. Lower income families are not “optimizing” their benefits. I volunteered to provide low income/elderly federal income tax services for several years. The benefit and tax rules are complex beyond comprehension.
The core public policy question is “Is $10,000 of annual benefits a reasonable amount for our state to pay to a family of 3 with no income?”. I would argue that it is too low, half what it ought to be.
Support for a universal basic income (UBI) has grown in recent years, as the economy, productivity and equity returns have grown by 3% annually but wages have remained flat for 40-50 years in the US.
Indiana maintained its 11th place rank from 1920 through 1970.
Since 1970 it has fallen 6 places to just 17th.
Of the 9 “nearby” states, only Iowa, dropping 7 places performs worse at attracting and retaining citizens. Missouri, Wisconsin and West Virginia are essentially the same as Indiana, dropping 5 places each in this half century. Michigan and Kentucky slipped by 3 places. Illinois and Ohio, starting near the top at 5th and 6th place, declined just one place. Tennessee gained one place, from 17th to 16th, moving ahead of Indiana.
The economic recovery between 2007 and 2019 was one of the slowest after a recession. Average U.S. personal income grew by 2.0% overall. Indiana’s 4 way tie for 19th place at 1.9% is above the median state, even though it is slightly below the U.S. 2.0% average. 10 states grew by 2.4% annually or faster. 19 grew by 1.5% or less per year. Among the nearby states, Indiana was the second fastest grower, trailing only Tennessee at 2.2%. Iowa, Wisconsin, Ohio and Kentucky grew just a little less quickly, with 1.5-1.6% rates. Michigan (1.4%), Missouri (1.3%), West Virginia (1.1% and Illinois (1.0%) trailed significantly.
Indiana per capita income has trailed the national average throughout the last half century, starting at 91% of the national figure. Indiana gained a small amount in the first 30 years, reaching 92%. Indiana has slipped quite significantly to 86% in the last 20 years.
In the 20 years from 1998-2018, Indiana per capita GDP grew by an average level for the heartland, 19%, the same as Ohio, West Virginia and Tennessee. Kentucky, Missouri and Michigan grew by only 10-14%. Illinois, Wisconsin and Iowa grew by 24% or more, close to the national average.
During this time, Indiana dropped from a middling 27th rank to a lower 32nd rank. Ohio and Tennessee also dropped by 5 places. Kentucky dropped by 9, Michigan by 11 and Missouri by 15 places. Illinois and West Virginia slipped by 1 notch. Iowa and Wisconsin increased their rankings.
Over a slightly longer time period, 1984-2018, Indiana again slipped by a few places, from 30th to 34th place. Four states dropped by 8 or more places: Wisconsin, Ohio, Missouri and Michigan. Illinois and Kentucky maintained their relative positions. West Virginia, Tennessee and Iowa improved their rankings.
Indiana has been average or above average versus its “peer group” of 9 nearby states, but it has lost position versus the nation on all 5 measures. Personal income growth since 2007 is the best result, at 1.9% versus 2.0% national average. Indiana population has fallen 6 spots to 17th in 50 years. Per capita income versus the nation has slipped by 6% to just 86% of the average in 20 or 50 years. Per capita state GDP has dropped 5 places to 32nd place in 20 years. Median household income has fallen 4 places to 34th place in 34 years.
Indiana’s business friendly low tax/low service strategy has helped the state do better than its peers, but has not delivered above average growth by any measure.
Indiana Coronavirus update. Daily cases are a little (-10%) lower. Last 3 weeks averaged 1,032 versus 1,144 in prior 3 weeks. This is up a little from the March average of 800 but way down from the Nov-Jan peak average of 4,700. Daily deaths have dropped even faster, from 75 at the peak to 11 in March to 7 in April/May.
The death rate is now less than 1%, compared with 2% last Fall and 1.6% during the peak infection period (improved treatment and age profile).
Indiana vaccination rate has lagged, after a positive early start, with 31% fully vaccinated. This is 39th best state. Median state is 36% vaccinated. 4 adjacent states are 35-37% vaccinated. Indiana’s vaccination rate (74%) for seniors (65+) is slightly better than the national average (72%).
National vaccines per day increased to 2M by the end of Feb and 3M by the end of Mar, peaking in early April. Daily vaccine rate declined to 2.6M at the end of April and continues to fall. Indiana follows the same pattern with 35,000 per day at the end of Feb, 42,000 at the end of March and April, but just 30,000 in mid-May.
At the county level in metro Indianapolis, the vaccine rates vary widely. Central Marion County is at 28% fully vaccinated. 4 counties are at 30-33% (Morgan, Johnson, Shelby and Madison). 4 others are at 40-41% (Boone, Hendricks, Hancock and Hamilton)
Good News 