csas – join the campaign to create a state mechanism for children’s savings accounts!
TRANSCRIPT
Children’s Savings Accounts Join the Campaign!
RE:Conference, Salem OROctober 29, 2015
Jill WinsorNancy Yuill
Elena FracchiaOregon Asset Building Coalition
Oregon Asset Building Coalition
Mission
Values
Goal
What are Children’s Savings Accounts?• Long term asset-building accounts• Established for children as early as birth &
allowed to grow over their lifetime.
Why Are CSAs Exciting?
Children’s Savings Policy Overview• 2004-2009: SEED Initiative drove CSA advocacy
• Incremental wins, but no breakthroughsState Policy Win
AR Authorized & funded pilot project with commitment to expand
TX Authorized (but didn’t fund) matched prepaid tuition program
KY, OK, HI, IL Enacted Study Commissions
OK, TX, CA, ND, HI “Planted a flag” by introducing legislation
• Challenges Advocates needed to explain, show effectiveness AND build political
support Coincided with recession: no interest in programs that cost money
Series1
0 5 10 15 20 25 30 35 40
1
12
36
State Adoption of Children’s Saving Policy
36Universally Available Incentive
Targeted Incentive for LMI Families
Incentive to Noncustodial Parents
Current Policy Landscape
On policy agendas in more than 20 states
Universal Match
3 states
Current Policy Landscape
Of the 36 states with universally available incentives for college savings …
Tax Credit 3 states
Tax Deduction
29 states
Road to CSAs in 2017Fall 2015: • Current & new partners have begun to engage with campaign.• Coalition begins to outline campaign strategy & develop a plan for interim.
Spring 2016:• CSA design work is under way.• Legislators identify as CSA champions & ready to move CSAs forward during 2017 Session.
By Summer 2016:• Coalition engages other allies and philanthropic orgs.• Legislative ask is defined & drafted.
By Fall 2016:• CSA campaign has broad participation form wide range of sectors. • Coalition leadership has shared understanding of strategy, tactics, timeline & roles.• Bill is introduced by committee.
Beginning of legislative session 2017:• CSA advocates have unified voice & increased capacity to advocate within the legislature. • Philanthropic groups are ready with a commitment to match State investment in CSAs.
During legislative session, 2017:• Energy & excitement builds amongst CSA advocates who take action to advocate for CSAs.• Legislative champions are ready to move bill forward. • Broad set of legislators understand & support CSAs, believe in the potential and promise of
CSAs.
End of legislative session 2017:• Political will exists to move CSAs forward in a statewide, bipartisan manner. • State Treasurer’s office implements CSAs.
Final Goals• By 2019, Oregon has a state platform for Children’s Savings Accounts, with a base
level deposit made in each account.• The state program is enhanced by the participation of several state and regional
foundations.
Join Us!Using the Oregon AB Coalition Values as our
touchstone, we want your thoughts on some key questions….
• What should be the program goals? • Who should we serve? • When and how should they sign up?• What’s important in account design?• What do they get?
We want your help on our team!
Examples of Program Goals• Increasing college savings & affordability
• Fostering a college-bound identity in children & promoting educational achievement
• Increasing college attendance & completion
• Increasing child & family financial capability and savings habits
• Building lifelong assets
• Other goals?
Who will be served?Who is the target population?• Participant’s age at enrollment • Eligibility criteria -- universal, or limited? • Program reach (i.e., geographic area or
institution to target) • Other targeting criteria?
How should participants enroll?• Through which system? Schools? At birth? • Will participants be automatically enrolled (opt
out) or will they self-enroll (opt in)?
How important are these elements of account design?
• No need for Social Security Number • Flexible options for making deposits• Physical branch locations• Easy access to account balances• Low fees and costs• Balances not counted towards asset limits• Other considerations for the account
What will they get?Should there be incentives?• Larger initial deposit for families of
low income?• Matched savings for families of LI to
incentivize more deposits over time?
Debrief
Design team, decision making and advocacy
• Who is interested in helping design the program?
• Who can ask their organization to become a member of the coalition?
• Who else needs to be at the table to help us achieve CSAs in 2017?
