accessible assets asset building and the disability community karen harris supervising attorney...

Accessible Assets

Asset Building and the Disability Community

Karen Harris Supervising Attorney

Hannah Weinberger-DivackAsset Building Specialist

Shriver Center

Asset Poverty

Asset poverty focuses on total household wealth, rather than just income

An “asset poor” household does not have enough assets to meet its expenses for 3 months if no outside sources of income

Asset Poverty in Illinois

21.8% of residents are asset poor

14.1% experience extreme asset poverty

Illinois ranks 25th in the country in asset poverty, and 29th by race

Asset Poverty

33% of all American households have zero or negative net assets.

54% of Hispanic households have a similar status.

60% of African American households have no net assets.

For persons with disabilities, estimates are as high as 80%.

Source: http://www.census.gov/prod/2008pubs/p70-117.pdf

Selected Disability Measures By Selected Age Groups 2005(numbers in thousands)

Source: http://www.census.gov/prod/2008pubs/p70-117.pdf

Selected Disability Measures By Selected Age Groups 2005(numbers in thousands)

Labor Force Statistics from the Current Population Survey

Employment Status and Disability StatusOctober 2009

http://www.bls.gov/cps/cpsdisability_102009.htm

Working Age People (25-61) with Income Below the Annual Poverty Line in 1997

By Disability Status

1 or More Disabilities No Disabilities

Source: Peiyun She and Gina A. Livermore, “Long-Term Poverty and Disability Among Working-Age Adults,” Journal of Disability Policy Studies 2009; 19; 244.

Working Age People (25-61)ExperiencingLong-Term Income Poverty (more than 36 months

over a 4 year period) by Disability Status

1 or More Disabilities

No Disabilities

Source: Peiyun She and Gina A. Livermore, “Long-Term Poverty and Disability Among Working-Age Adults,” Journal of Disability Policy Studies 2009; 19; 244.

What We Know:

Research Findings and Existing Barriers

Research FindingsIDAs

Research FindingsIDAs

Research FindingsCredit Union Savings

Programs

Existing Barriers

Barriers to savings include:

Lack of banking experience

Lack of knowledge of basic operations of financial institutions

General financial illiteracy

Distance from banking institutions

Limited access to technology and internet

Existing Barriers

Existing Barriers:Federal Asset Limit

Reform

Existing Barriers:State Asset Limit Reform

States have authority to eliminate asset tests in TANF and Medicaid and, with USDA approval, in Food Stamp Program

States can implement asset limit reform by legislation or administrative rule

Several states have implemented asset test reform

See “Reforming State Rules on Asset Limits,” Clearinghouse Review (Mar-Apr 2007), State Asset Limit Toolkit, and CFED Resource Guide

Existing Barriers : Lack of Access to the Financial Mainstream

Successful Asset Building Programs

REI TOUR

REI Tour

REI Tour Outcomes

YEAR CITIES PARTNERS REFUNDS PREPARED

TAX REFUNDS RECEIVED

$$ SAVED

2005 11 ----- 7,600 $6.8 mil $1.5 mil

2006 30 200 17,223 $15.3 mil $3.4 mil

2007 54 355 36,275 $32.6 mil $7.2 mil

2008 62 555 90,653 $81.0 mil $18.1 mil

2009 84 634 181,152 $176.6 mil $36.2 mil

2010 100

TOTAL: 332,903 $312.3 mil $66.4 mil

Allies, Inc.

Success of Saving (SOS)

A saving program engaged in the fight to reverse endemic poverty among people with disabilities in New Jersey. The program is modeled after Assets for Independence, a Federal program.

The goals of SOS are to:

Reduce barriers to full participation in the economy and increase personal economic self-sufficiency through the use of banking and other financial services among people with disabilities,

Establish integrated approaches to employment, wealth creation and asset management,

Evaluate the promotion of wealth creation and asset management among people with disabilities, and,

Reduce rates of poverty and reliance on public assistance by increasing overall access to capital to people with disabilities.

Allies, Inc.SOS Program

Allies Inc.IDA Program

Asset for Independence

Program Funding

The Assets for Independence (AFI) program is the primary source of Federal funds for IDAs

AFI has funded nearly 65,000 out of the approximately 85,000 savers to date

Authorization for AFI expired in 2003, and nearly every IDA program in the country has a waiting list

Take action by sending a letter on your organization's letterhead to Senator Burr who sits on the HELP Committee asking his support of AFI reauthorization

Prospects for the Future

Achieving a Better Life Experience (ABLE) Act of 2009

ABLE Accounts vs. Special Needs Trust Funds

ABLE Act of 2009

ABLE Act Resources

For full text of the bill, type “ABLE Act of 2009” under Search Bill Summary & Status at: www.thomas.gov/

Take Action: go to www.autismvotes.org and click on the Federal Initiatives tab

Asset Building Resources

Asset Poverty Information

Corporation for Enterprise Development http://www.cfed.org

Asset Limit Reform

State Asset Limit Toolkit www.povertylaw.org

Corporation for Enterprise Development www.cfed.org

Asset Building Resources