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Building Assets

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Criteria for important health and income assistance programs for people with ... VITA & AARP sites. Benefits Planners/VR/case managers. Asset Building Coalitions. 9 ... – PowerPoint PPT presentation

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Title: Building Assets


1
Building Assets
  • November 9, 2006
  • JoAnne Malloy,
  • Institute on Disability, University of New
    Hampshire
  • Tobey Davies, MS
  • Southern New Hampshire University
  • 2006 NCHSD Fall TA Conference

2
Introduction
  • Asset Building Rationale
  • Conceptual Model
  • Strategies, particularly IDAs
  • Systems and Process Model
  • Examples

3
The Problem
  • Criteria for important health and income
    assistance programs for people with disabilities
    create systemic barriers to entering competitive
    employment and moving out of poverty creating
    asset wealth
  • Individuals must show that they cannot work
    enough to earn a living SGA, so disability
    inability to work
  • This is in obvious contradiction to what people
    with disabilities say they want and exactly what
    grants like the MIGs are designed to address

4
Asset Building Programs People with
Disabilities
  • Utilization Very low utilization of asset
    building programs by people with disabilities --
    especially within Medicaid buy-ins. Programs
    are largely marketed to other low-income
    populations (TANF).
  • Integration with work incentives Existing asset
    building tools can work in conjunction with each
    other AND with other work incentives programs.
  • Program implementation People with disabilities
    often have trouble accessing information on how
    to enroll and participate in asset building
    programs.

5
Conceptual Model
  • Principles
  • Self-determination/ Self Direction
  • Asset-Building
  • Full Accessibility to Services and Supports
  • Peer Solidarity

6
Outcomes
  • Value of Assets is Increased
  • Decreased Consumer Debt
  • Individuals Make Progress Toward Their Financial
    Goals
  • Financial Literacy is Increased
  • Employment
  • Increased Economic Empowerment and Control

7
Strategies
  • Work Incentives and Benefits Counseling
  • Employment Development and Supports
  • Micro-Enterprise Development
  • Earned Income Tax Credit
  • Extended Medical Eligibility (Buy Ins)
  • Individual Development Accounts
  • Financial Literacy
  • Specialized Financial Services
  • Debt Restructuring
  • Trusts

8
Referral/Entry points
  • Community development Corporations
  • Banks and Credit unions
  • Housing organizations
  • Business development
  • VITA AARP sites
  • Benefits Planners/VR/case managers
  • Asset Building Coalitions

9
What are Financial Assets?
  • Definition of Assets
  • Capacities and resources that enable individuals
    to identify, choose, and implement activities
    that enhance the quality of life experience.
  • Capacities and resources can be further explained
    by defining individual assets.
  • Definition of Individual Assets
  • Individual financial assets (money, stocks, real
    and personal property)
  • Income Assets (job)
  • Human capital assets (skills, knowledge, and
    experience gained from education and training)

10
Making Work Pay (Center on Budget and Policy
Priorities, 2003)
  • Earned Income Tax Credit
  • Work incentive for workers and self employed
  • Available to child childless singles.
  • Must file for taxes

11
EITC, cont.
  • Even workers whose earnings are too small to have
    paid taxes, can still get EITC.
  • - employer-paid disability benefits qualify as
    earned income
  • - Adult children may qualify as qualifying
    child also meet Child tax credit.
  • Refunds from EITC is often the most money filers
    have at any one time and can equal up to 40 of
    some filers annual income.

12
Medicaid Buy In Programs
  • Work incentive Maintaining healthcare coverage
    for workers
  • Sliding fee scale for premiums
  • Higher Income and asset standards for Medicaid
    eligibility
  • Individuals are allowed to save more

13
Social Security Work Incentives
  • SSI 2 for 1 disregard
  • Impairment related work expenses
  • Self-employment exclusions and deductions
  • Student Earned Income Deduction
  • Plans for Achieving Self Support
  • Property Essential for Self-Support
  • Un-incurred Business Expenses

14
Other mechanisms for asset building
  • Independence Building Accounts
  • Special Needs Trusts
  • Not owned by beneficiaries

15
Social Security Protection Act 2003
  • For a period of 9 months.
  • Disregard retroactive checks from SSA for SSI
    eligibility
  • EITC refunds
  • Child Tax Credit refunds

16
SSPA 2003, cont.
  • Effective June 2004, disregard
  • All education related income,
  • scholarships,
  • fellowships, and
  • gifts income.
  • Excluded as an SSI resource for 9 months

17
Assets for Independence Act
  • Passed with bipartisan support in 1998
  • Designed to provide funds to states for
    Individual Development Accounts
  • 11 match
  • Eligible EITC eligible 200 of poverty
    eligible for TANF or SSI eligible.
  • Must work or have an eligible working member of
    the same household.

18
Individual Development Accounts
  • Time-limited Matched Savings Accounts match
    earned income
  • Two Thousand Dollars Per Individual Federal IDA
    ( there is a growing number of non-federal
    IDAs)
  • Required Financial Literacy Training
  • Targeted Goals for Savings
  • Managed through CBOs, Banks, Faith Based
    Organizations.

19
How IDAs Work
  • 1 of savings could .50 to 8 in dollars
    matched by private and public institutions.
  • IDAs managed by community organizations, and the
    accounts are held at local financial
    institutions.
  • Participation includes economic literacy training
    to improve credit, creation of a budget and
    savings schedule and the development of long-term
    management skills.

20
Activities
  • Individuals create personal savings plans
  • IDA accounts established
  • Money management courses completed
  • Establish and save at or above monthly targets
    and
  • Meet asset goals.

21
Early Research Findings
  • Low income individuals can and will save and
    accumulate assets
  • Participants in ADD save an average of 25 per
    month
  • IDAs have been successful in promoting economic
    stability and educational attainment
  • Data collection has not focused on identification
    of IDA participants with disabilities.

22
Federal Exclusion from Means Tested Eligibility
  • Social Security policies allow for
  • Exclusion of the individual puts into the IDA
    from monthly SSI calculation
  • Exclusion of resources saved in the IDA account
  • Exclusion of interest S earned on deposits for
    TANF and AFIA IDAs

23
Asset Based Training
  • Home Ownership
  • Postsecondary education
  • Self employment

24
Financial Literacy
  • An essential element of successful asset building
    strategies.
  • Even when incentives to save and invest are
    strong, most individuals of low and moderate
    income lack the basic knowledge to manage their
    income, avoid excessive debt, and build assets.
  • A trained work incentives counselor must be
    on the team for individuals with disabilities

25
Money Smart and the FDIC
  • In July 2001, the FDIC began offering Money
    Smart, a comprehensive financial education
    program.
  • The target audience is adults outside the
    financial mainstream to develop improved
    financial skills and positive banking
    relationships.
  • The curriculum is available for free from the
    FDIC website and Train-the-Trainer programs are
    available through many banks and credit unions
    nationwide.
  • It is available online and in multiple languages.

26
Access to Micro-enterprise Supports
  • Financial counseling for individuals who are
    starting their own businesses
  • Includes peer support lending clubs, etc.
  • Individuals with disabilities have additional
    resources and challenges
  • SSA Work incentives for self-employed individuals
  • Must be careful to know about SSA work incentives
    and communicate with SSA

27
Collaboration Across Systems
  • Multiple points of entry to start an account.
  • Benefits specialists are available who are
    knowledgeable about multiple public benefits and
    successful approaches to bundling in a
    self-directed account.
  • Fiscal intermediaries are available to offer
    efficient financial management.

28
Peer Support
  • Savings clubs and buying coops
  • Managing illness and financial wellness
  • Organization skills
  • Navigating marketplace
  • Working toward goals

29
Certified Credit Counseling
  • Credit history recommendations
  • Spending Savings Plans
  • Credit Use and management
  • Survival skills in the marketplace
  • Preparing for asset goal

30
IDA Resources
  • The New America Foundations Asset Building
    www.assetbuilding.org
  • CFEDs IDA Network www.idanetwork.org
  • Center for Social Development
    www.gwbweb.wustl.edu/csd
  • Center on Budget Policy Priorities
    www.cbpp.org
  • The Abilities Fund www.abilitiesfund.org
  • Association for Community Action Now
    www.acorn.org

31
Work Incentives Planning and Assistance (WIPA)
  • Individuals with disabilities have to plan
    carefully around asset development strategies-
  • Assessment of current benefits/financial
    situation
  • Income projections and work incentive options
  • Information and referral
  • Follow up as needed

32
So What?Can we Achieve Financial Independence
For Persons With Disabilities?
  •   1. EXPAND KNOWLEDGE
  • Empower individuals with disabilities to manage
    personal resources and improve informed
    decision-making about credit, savings, tax
    credits/provisions, banking services and asset
    development.
  • 2. CHANGE POLICY
  • Remove disincentives to work, home ownership,
    long-term services and supports, and business
    ownership for building assets that are part of
    state and federal public policy for working
    people with disabilities.

33
Financial Independence For Persons With
Disabilities
  • 3. PROVIDE INCENTIVES
  • Create incentives to savings with IDAs and match
    to earned income set aside for continuing
    education, microenterprise start up, and home
    ownership objectives.
  • 4. NATIONAL OUTREACH AND TRAINING
  • Improve utilization of financial and tax services
    by individuals with disabilities through outreach
    to local disability organizations, providers of
    services and non-profit and private sector
    organizations.

34
Pursue employment and work incentives planning
and assistance.
Charting Path to Asset Wealth
Get job
Are you interested in Financial Literacy
training
Is individual interested in saving toward a goal
such as post-secondary education, first home
purchase, or business start-up?
Assist with tax preparation and filing for the
EITC.
Does individual qualify for an IDA or PASS?
Get Financial Literacy in conjunction w/Benefits
Counseling incorporate PASS IDA
Write PASS or IDA
35
Asset Building Programs Work Together
  • All of these programs are not exclusive
  • Programs can work together to compound the same
    amount of earnings
  • Polar opposite of public programmatic policy

Public Return To Work Policy Same amount of
earned income Deductions in SSA cash
benefits Deductions in HUD voucher Deductions in
food stamps Deductions in childcare assistance
Asset Building Policy Same amount of earned
income Can be matched by SSA in PASS Can be
matched again in IDA Can be added to EITC
refund Can be filed for free at local VITA
36
Referral/Entry points
  • Community Development Corporations
  • Banks and Credit unions
  • Housing organizations
  • Business development
  • VITA AARP sites
  • Benefits Planners/VR/case managers
  • Asset Building Coalitions

37
NHCLF-IDA Impact in NH
  • 778 Total Enrolled
  • 345 Active
  • 274 Homeownership
  • 35 Education
  • 33 Small Business
  • 3 Other
  • 275 Withdrawn/Term
  • 158 Graduated
  • 132 Homeownership
  • 8 Education
  • 9 Small Business
  • 9 Other
  • Those 778 participants received 13,844 hours of
    training.

38
NHCLF- IDA Impact
  • IDA Funds have leveraged 20,184,162.99 in asset
    purchases!
  • 80 of clients are below 50 of HUDs Area Median
    Income (AMI)
  • 17 of participants were unbanked when they
    enrolled in the Program
  • Over 55 had previously received TANF

39
Role for MIG in Asset Building Programs
  • Assess (map) existing asset building programs and
    resources.
  • Develop mechanisms and capacities for agencies
    and programs to work together
  • Develop outreach materials and strategies to
    reach more individuals with disabilities
  • State-level systems change and policy development.

40
MIGs and Asset Building Programs
  • Intertwined goals of Asset Building Programs,
    WIPAs MIGs
  • Both programs support and encourage employment
  • Both create an environment that works toward
    financial empowerment
  • Financial literacy prepares individuals future
    for competitive employment

41
Implications
  • Entry points vary
  • Interaction of long term supports to obtain and
    maintain asset (s)
  • Long time to save
  • Incremental process
  • Must interact with career development
  • Knowledge transfer across counseling methods (VR,
    BP, CM, etc.)
  • Benefits counseling

42
Asset Building Creating Opportunities to become
part of the Ownership Society
  • Connecting asset development with employment
    builds a concrete out of poverty.
  • The challenge of benefits counseling in the
    future is to recognize and support asset
    development strategies as the most powerful
    incentive to work.

43
State Based Resources
  • Tobey Davies - t.partch-davies_at_snhu.edu
  • Abby Cooper - cooplind1_at_comcast.net
  • JoAnne Malloy - Jmmalloy_at_aol.com
  • Megan ONeil - megan_at_wid.org
  • David Foster - david.foster_at_hcs.state.or.us
  • Joe Entwisle- jentwisle_at_hdadvocates.org
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