MEPC recently blogged on how well families are faring in Mississippi, according to the Corporation for Enterprise Development’s (CFED) 2013 Assets & Opportunity Scorecard. It is evident from the Scorecard that the recession’s lingering effects have taken a huge toll on Mississippi families. Fully, 21.2 percent of state residents live in poverty and far more are financially vulnerable. The Scorecard, which takes a comprehensive look at Americans’ financial security, ranks Mississippi second to last, only behind Georgia, in asset ownership and financial stability, a measure of tax adequacy that describes whether or not a tax grows at a predictable rate.

Asset poverty refers to the percentage of households without sufficient net worth to live at the poverty level for three months in the absence of income. Furthermore, asset poverty includes durable assets, such as a home or business that would need to be liquidated to cover day-to-day expenses. The Scorecard found that 26 percent of American households and 29.5 percent of Mississippi households are asset poor, meaning that the assets they do have, like a savings account or durable assets, are overwhelmed by debt (See Chart). Additionally, 17.5 percent of American households and 18.9 percent of Mississippi households are extreme asset poor, meaning that they have zero or negative net worth. Essentially, their household debt exceeds their financial assets and they have no financial cushion to weather any type of financial crises.

The high rate of asset poverty in Mississippi underscores the importance of implementing policies that promote asset accumulation, as far too many households lack the financial resources necessary to weather a financial crisis like a job loss, medical emergency or the need to fix a car. Mississippi can improve this problem by providing opportunities for Mississippians to save for emergencies and the future through appropriate financial products, services and incentives, such as Children’s Savings Accounts (CSAs). Fundamentally, CSAs are tax-favored, investment accounts that are established for children as early as birth and are seeded with an initial deposit. These accounts are built by contributions from family, friends and the children themselves to save for financing higher education, starting a small business, buying a home or funding retirement. CSAs are powerful financial tools that provide an opportunity for long-term investment in children and their families by encouraging long-term planning, building family wealth, and promoting financial literacy.

America Saves Week 2013 begins Monday, February 25th
As part of America Saves Week 2013, MEPC is doing a series of blogs to educate our readers on liquid asset poverty, net worth, sub-prime credit, the numbers of unbanked and underbanked in Mississippi, and ways working families can start to build assets. Join us on Policy Matters to learn more.

Author: Jessica Shappley, Policy Analyst Sources: Corporation for Enterprise Development. (2013). Assets and Opportunity Scorecard, 2013. Retrieved from http://assetsandopportunity.org/scorecard/ Corporation for Enterprise Development. Children’s Savings Accounts: An Investment in Americas Future. Retrieved from http://cfed.org/assets/documents/onepagers/childrens_savings_accounts.pdf

Make your voice heard!

The good news:

Midas just released our Impact Report for 2012, which shows that savings incentives, financial education, and consumer advocacy are making a difference. We are working to improve on what the Assets & Opportunity Scorecard for Massachusetts shows are the needs and opportunities for our state, in order to improve financial security for all.

The questionable news:

The gridlock in Congress related to the budget sequester threatens the financial stability of Massachusetts residents. Please see details here on the list of cuts to services for our most vulnerable residents if the sequester is not prevented by next Friday, March 1. Midas member, Action for Community Development in Boston (ABCD) hosts a website with more details and a portal to communicate with your legislators. Please take a minute to make your voice heard.

This alert comes from South Florida Interfaith Worker Justice.

On Wednesday, February 20, Stephen Precourt (R), HD-44 from Orlando, the Majority Leader of the Florida House, will introduce a preemption bill - HB 655 - in the Local and Federal Affairs Committee that will, if passed, take away the Miami-Dade County Living Wage and other benefits. The bill is supported by many big business lobbyists including the Florida Retail Federation, which has unsuccessfully tried to preempt our local Wage Theft Ordinance for the past two years.

We urge you to call and email key members of the Local and Federal Affairs Committee that are from South Florida. Here is the message:

Urge them to VOTE NO on HB 655 and ask them protect the Living Wage that has helped keep thousands of South Florida workers and their families above the poverty level. Please protect our local economies.

1. Top priority call- he is leaning strongly in support of the bill:

Miami-Dade:

Rep. Eddy Gonzalez (R) - HD-111 305-364-3066 / Eddy.Gonzalez@myfloridahouse.gov Chair of the House Local and Federal Affairs Committee

1. Secondary priority calls- positions unknown:

Broward

George Moraitis - HD-93 850-717-5093

Palm Beach

Mary Lynn Magar - HD-82 (850) 717-5082

Bobby Powell - HD-88

(850) 717-5088

Background on the issue:

There are currently living wage ordinances in place in Miami-Dade County, Broward County, Palm Beach County, the City of Miami, the City of Orlando, the City of Gainesville, and the City of Miami Beach. These ordinances have been in effect for anywhere from six to fourteen years and allow local governments to use wage rates and benefits offered as considerations when awarding contracts. The contracts with these cities and counties alone comprise thousands of Florida workers who would take an immediate cut in pay and benefits, completely undermining local economies.

The "living wage" is so named because it is calculated on the basis of cost of living in the city or county where it is in place. Using a "one size fits all" strategy when it comes to employee pay, especially in these areas where the cost of living is higher, will only push more and more Floridians into poverty and into government assistance. Further, it completely undermines the ability of local government to make determinations based on local needs.

This bill does not only affect living wage ordinances, but also eliminates the ability of any city or county to use the following factors as preference when awarding contracts: health benefits; disability benefits; death benefits; group accidental death and dismemberment benefits; paid or unpaid days off for holidays, sick leave, vacation, and personal necessity; retirement benefits; and profit-sharing benefits. Again, this would eliminate access to these benefits for thousands of Floridians and would undermine both our local governments and our local economies.

For more information regarding this issue or other items that SFIWJ is working on, please contact Jeanette Smith at this address:

jeanettesmith@sfiwj.org

For more information on South Florida Interfaith Worker Justice, go to:

http://sfiwj.org/

For more information on the Miami-Dade and other living wage ordinances, go to:

http://www.miamidade.gov/business/library/reports/living-wage-facts.pdf

http://www.floridalegal.org/cjp/index.php/updates/living-wage/133-living-wage-florida

A Systems Change Agent... Examples include, but are not limited to:

• Improved access to One-Stop services through readily available assistive technology.
• Development and implementation of a reasonable accommodation policy and procedure.
• Change in relationship with a specific collaborator, including negotiation of co-location and/or MOU.
• Increased access and use of Individual Training Accounts (ITAs) by job seekers with disabilities.
• Training on serving customers with disabilities as part of One-Stop new-hire orientation.

A Problem Solver... Examples include, but are not limited to:

• Identifying appropriate community resources for job seekers with disabilities to remove barriers to employment (i.e., training, transportation, housing, assistive technology needs, etc.).
• Working together with the Community Work Incentive Specialist to show customers how to use work incentives to reach employment goals.
• Finding answers to questions that One-Stop staff have regarding the ADA or other disability-related topics.
• Providing consultation to employers on providing reasonable accommodations to employees with disabilities.

A Relationship Builder... Examples include, but are not limited to:

• Coordinating One-Stop orientations, tours, and Open Houses targeting the disability community.
• Regularly participating in community events, resource fairs and business roundtables as a One-Stop representative.
• Consulting with mandated and non-mandated partners regularly about accessibility, accommodations and other disability-related topics.
• Organizing or joining an interagency collaboration which focuses on accessibility, sharing of resources and/or improving employment outcomes for persons with disabilities.

A Resource... Examples include, but are not limited to:

• Being available to answer questions staff have on serving job seekers with disabilities.
• Offering guidelines to One-Stop staff on interacting with people with a wide range of disabilities.
• Presenting orientations on WIA and One-Stop services to a wide variety of community service providers.
• Coordinating workshops in One-Stops on disclosure, reasonable accommodations, work incentives and job seekers’ rights and responsibilities under the ADA.
• Offering information to the business community on hiring and retaining individuals with disabilities.

A Facilitator... Examples include, but are not limited to:

• Bringing together multiple partners who are working with one individual to foster a collaborative effort.
• Coordinating staff training on a variety of disability-related topics.
• Improving communication between the One-Stop and partners by educating both about their systems.
• Bridging the gaps between the business and human service communities by organizing forums for discussion.

"For the third year in a row, Jacksonville resident John Kelso got his tax return prepared free by the Real Sense Prosperity Campaign.

Kelso had used national tax preparation companies in the past. But he is working two part-time jobs to make ends meet, so he said being able to file his return at no cost makes a big difference to him.

“The cost of gas has gotten so expensive that every penny counts,” he said.

Heading into its 10th year, the nonprofit Real Sense Prosperity Campaign has become a go-to site for tax preparation for thousands of Northeast Florida residents like Kelso.

Since 2003, Real Sense has coordinated hundreds of volunteer tax preparers working at sites in Duval, St. Johns, Clay, Nassau, Baker, Putnam and Flagler counties.

It’s posted a sharp increase in clients, going from 1,563 returns its first year to 16,629 returns last year.

“We really try to target our message to hardworking, low-income folks who have simple tax returns and don’t need to be paying somebody to do their tax returns,” said Jeff Winkler, director of Real Sense.

The campaign is aimed in part at people who qualify for the Earned Income Tax Credit, which can result in refunds at tax time. Last year, Real Sense prepared 3,802 tax returns for people able to claim the Earned Income Tax Credit. Those returns generated almost $6.3 million in refunds for those taxpayers.

Bonnie Moore, who oversees the Real Sense site at the Kent Campus of Florida State College at Jacksonville, said even when clients have been able to find jobs, they are struggling financially. Sometimes, they need to work two or more jobs to get by, she said.

“I haven’t seen the economy rebound the way we’re all hoping for — not for the bulk of the clients we’re seeing,” she said.

Real Sense is affiliated with the United Way and draws support from an assortment of government, business and philanthropic sources.

The Jessie Ball duPont Fund is providing $200,000 for this year’s campaign, accounting for about one-third of the budget. The city of Jacksonville is providing a $61,573 grant.

Real Sense also has year-round programs with financial education classes and counseling. A three-year, $300,000 grant by Wells Fargo enabled the opening of a financial service center at the bank’s branch in the Springfield neighborhood."

david.bauerlein@jacksonville.com, (904) 359-4581

The Issue: The Indiana House of Representatives has proposed a state budget that slashes funding for the successful Individual Development Account (IDA) program in half. Despite tough economic times, until now Indiana has protected this important tool for Hoosier families by providing the minimum $1 million needed to meet the mission of the program. However, the proposed budget would cut that funding by half to $500,000. Compounding the problem, while Indiana currently receives $1 million from the federal Assets to Independence Demonstration Program, continued receipt of this grant requires a dollar-for-dollar match with state funds. In addition to lost state support, Hoosier families would lose access to the federal grant if the state does not do its part to match $1 million in state appropriations for the IDA program.

IDA programs consist of matched savings accounts that enable low-income families to save, build assets, and enter the financial mainstream. Savers are matched $3 for each $1 of earned income deposited by qualifying individuals, up to $400 matched annually each year, for a maximum of four years. Additional matching beyond the $3 to $1 is provided as resources permit. Currently, IDAs can be used to purchase one of three economic assets including: purchasing or rehabilitating a home, pursuing post-secondary education, or opening a small business. In order to purchase these assets, savers must successfully complete a financial literacy program which teaches skills to successfully manage their asset, and also builds financial skills with benefits that promote economic stability extending far beyond the matching period. Despite the downturn in the national and state economies, over 93 percent of Indiana’s IDA participants fully met their savings requirement in each of the past five years.

What You Can Do: Ask your state representative to support a 2nd amendment reading amendment to appropriate no less than $1 million a year for the state's IDA program. Call 800-382-9842 or email NOW!

If you do not know who your representative is, look up your representative at www.in.gov/apps/sos/legislator/search/

The Partnership for Science and Technology recently awarded Partners for Prosperity, the Idaho National Laboratory and Idaho State University with the 2013 Energy Educator of the Year Award for the ESTEC Program. The ESTEC (Energy Systems Technology and Education Center) is a unique public/private partnership to provide education and training that leads to living wage, high-demand jobs. The three operating partners each have a distinct role. P4P has the lead on outreach, recruitment and retention of students in the program with a particular focus on low income and underserved populations. P4P also identifies barriers to program entrance and completion and works to remediate those barriers through various programs and resources. The Idaho National Lab provides the connection to the energy industry, hands on technical assistance including nationally accredited curriculums, and financial support. Idaho State University houses the actual training program including a 24,000 state of the art working laboratory that mimics real world working conditions. Over 200 students have completed the 1 and 2 year programs with over 90% placed in jobs that average $50,000 to $70,000 annually. This collaboration is unique because of the role a community based; asset-building organization has within the partnership and the emphasis on building assets for Idaho's low income and working people.

Partners for Prosperity launched its 9th annual C.A.S.H. Campaign on February 1, 2013. The CASH Campaign educates community members about the Earned Income Credit as well as other tax credits aimed at building assets for low income and working people. In addition the campaign educates people about free tax prep locations. Partners for Prosperity partners with the IRS and the Idaho State AARP Association to bring this program to the eastern Idaho region. Since 2005 the campaign has increased EIC utilization every year and over $15 million in tax credits have been brought into the region as a result. The P4P board of directors are currently planning to expand the program by adding financial education classes in an integrated services approach that includes referrals to home ownership and education and training. The CASH Campaign "creates assets, savings, and hope"!

Real$ense also opens first year-round service center in Springfield

JACKSONVILLE, Fla., January 22, 2013 – The United Way-led Real$ense Prosperity Campaign today held its official launch of the 2013 tax filing season for the 2012 tax year. In conjunction with the season launch, Real$ense announced its plans to open its first year-round financial service center at the Wells Fargo Historic Springfield Community Learning Center. The center marks the first time in the non-profit’s 10 year history that it will have a home base for year-round financial education and other services along with free tax preparation.

Select tax preparation sites are now open for business and the IRS will accept electronic filing of tax returns starting on January 30, 2013, when the vast majority of the remaining Real$ense sites will start seeing customers and taking appointments. A full list can be found at www.realsensejax.org, or by calling United Way by dialing 2-1-1 or 904-632-0600.

“Our partners and volunteers have worked very hard during the last 9 years to help residents in Northeast Florida keep more of their hard-earned money in our community,” said Jeff Winkler, the director of Real$ense. “We’re excited to start our 10th year, and the new One-Stop Financial Service Center will allow us to help even more taxpayers and continue our mission to encourage and teach financial responsibility, wellness and security.”

“I commend the Real Sense Prosperity Campaign for its tireless efforts to keep more than $122 million in the pockets of Northeast Florida taxpayers throughout the past decade. Especially in our current economy, this money makes a serious difference,” said Mayor Alvin Brown. “It’s about protecting our resources for the good of our hardworking families and dedicated business people.”

Real$ense Prosperity Campaign in partnership with the IRS, AARP Tax-Aide and the City of Jacksonville, along with major funders Jessie Ball duPont Foundation, Wells Fargo Bank, Bank of America, FINRA, Wal-Mart, and SunTrust launched the 2013 tax season and opened the One-Stop Financial Service Center at an event held today. Mayor Alvin Brown and City Councilman Johnny Gaffney were in attendance to welcome Real$ense to his district.

The opening of the One-Stop Financial Service Center will allow Real$ense to offer a home base to its clients as well as offer year-round financial education services. The opening of the center marks 10 years of year-over-year growth of the program and the first time the coalition has a permanent location. The center is located in the Wells Fargo Historic Springfield Community Learning Center at 1601 North Main Street and can be reached at 904-271-9903.

The One-Stop Financial Service Center was made possible by a $300,000 multi-year grant from Wells Fargo and part of a $5 million partnership with United Way Worldwide to build a nationwide network providing financial counseling for low- and moderate-income households. “We’re very proud to support Real$ense in bringing the One-Stop Financial Service Center to the Historic Springfield community,” said Michelle Braun, Florida Community Development Manager for Wells Fargo and Volunteer Chair of the Real$ense Prosperity Campaign. “This creates a great opportunity for members of the community to access services and resources that they may not have been aware of and will help improve their financial prosperity”

In 2012, Real$ense helped more than 16,000 taxpayers in our communities file their taxes for free and access more than $22 million in refunds. The program also helped eligible taxpayers in Northeast Florida claim more than $6.2 million in Earned Income Tax Credits (EITC), returning those dollars back to our local communities.

The IRS has designated Friday, January 25, 2013, as EITC Awareness Day, a national grassroots effort spotlighting this potentially life-changing tax credit.

More than 500 Real$ense volunteers at 64 area locations in Baker, Clay, Duval, Flagler, Nassau, Putnam, and St. Johns counties help taxpayers at no charge during tax filing season. Real$ense partners provide financial education classes, financial counseling, EITC filing and other outreach services throughout Northeast Florida.

Washington Asset Building Coalition's Moveable Issues Supported by 2013 Scorecard

On January 30th Washington Asset Building Coalition’s (WABC) Executive Director Stephanie Bowman participated in CFED’s 2013 Assets & Opportunity Scorecard launch webinar. During this presentation, Stephanie spoke about WABC’s 2013 policy agenda and how they would leverage the most recent Scorecard data on Washington State to help advance these policies.

The issues that the WABC believes are moveable in 2013 are:

• Getting financial education into the K-12 system;

• Eliminating “Zombie Debt” scams, and

• Getting funding for local asset-building programs & microenterprise efforts

To advance these most moveable issues, WABC hosted an Advocacy Day at the Washington State capitol, where coalition members MET to review the Scorecard data and discuss the legislative issues with elected officials.

As a gateway to get traction on all of WABC’s issues, we will first use financial education in schools to start our conversations with policymakers. This issue has the broadest bipartisan support in Washington State of our top 3 priorities.

Already we have gotten a financial education bill introduced and have a public awareness campaign in motion to push it forward. This includes having our coalition members testify at hearings and getting local coalition members to write op-eds that will be placed in local papers around the state.

From there we will continue to advocate for our other priorities, and the 2013 Assets & Opportunity Scorecard data is a great way to motivate our policymakers to get something done.