inclusive saving and asset building strategies 2012 nccaa annual conferenceface to face with...

INCLUSIVE SAVING AND ASSET BUILDING STRATEGIES

2012 NCCAA Annual Conference“Face to Face With Poverty: Real People,

Real Solutions”.May 10, 2012

Presenter:

Michael Morris, JD

Executive Director

National Disability Institute

mmorris@ndi-inc.org

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National Disability Institute

A national research and development organization with the mission to promote income preservation and asset development for persons with disabilities and to build a better economic future for Americans with disabilities.

National Disability Institute

Build a better economic future for Americans with disabilities Founded 2002

Non-Profit Status 2006

Increase economic and employment opportunities for people with disabilities through education and training as national technical assistance lead with Department of Labor nationwide.

Expand access to economic mainstream (tax and financial education) for low- to moderate-income people with disabilities through the Real Economic Impact Tour in 100 cities touching over 500,000 annually.

Modernize disability public policy through congressional education, briefings and national advocacy.

Build strategic partnerships that leverage opportunities that empower community inclusion, employment and promote disability inclusive practices and services.

Partner with over 800 community-based partners and 40 national organizations in the private and public sectors and corporate affinity groups.

Contribute to growing awareness of the economic and employment needs of people with disabilities through participatory and controlled research.

MISSION OBJECTIVES

New Reality for People with Disabilities

54 million Americans in poverty

18 million children People with disabilities 2 to

5 times more likely to experience poverty (She & Livermore, 2009)

Over half people that report income poverty report disability (Fermstad, 2009)

Pay higher out of pocket health expenditures $795 vs. $256 (Livermore & Hill, 2002)

61% increase homelessness since December 2007

57% of unemployed receiving unemployment compensation compared to 40% before recession

50 m people on Medicaid 43 m on food stamps 54 million with disabilities 18 million taxpayers said they

would use free services if they were available

40% of people accessing food pantries, shelters and kitchens report receiving SSI, SSA, or SSDI (Feed American, 2011)

Growing Poverty Not Prosperity

PROFILE AND GAPSTaxpayers with Disabilities

54% earn < $20,000 compared to 35% without disabilities (Adjusted Gross Income)

22% earn > $40,000 compared to 42% without disabilities AGI 35% employed full time compared to 66% without disabilities 46% unemployed or on disability compared to 13% without

disabilities 42 average age of VITA participant compared to 32 years with no

disability 30% of taxpayers with disabilities using free tax preparation

(NYC) reported using a checking account compared to 66% without disabilities (Ford Study 2006)

12% of taxpayers using free tax preparation reported having a savings account compared to 44% with no disability (NYC) (Ford Study 2006)

IRS Benchmark Study: 2007/2010

FINANCES

Be Bold. Embrace Difference. Change Lives.

PROFILE AND GAPSTaxpayers with Disabilities

TECHNOLOGY 2% of people have a disability/illness that makes it harder or

impossible to use the internet 39% of Americans without broadband access living with a

disability 54% use the internet compared to 81% without a disability 10% use tax prep software compared to 20% with no

disability IRS W & I Research recommended IRS and other agencies

partner with tax prep software companies to ensure software is disability compatible and accessible

Pew Internet & American Life Project January 2011

Federal and State Disability Spending

TOTAL SPENDING

$429 Billion spending on Federal/State disability programs

30% growth 2002 to 2008

$71,190 Billion spending on State expenditures for working-age pwd 2008

EXPENDITURE CATEGORIES

40.8% Income Maintenance

54.9% Health Care

2.7% Housing and Food Assistance

1.2% Education, Training and Employment

0.6% Other Services

Mathematica Policy Research Center for Studying Disability Policy September 2011, Number 11-03

Self-Sufficiency Investment Model*Cyclical Dependency Model Education - Segregated; out-of-

home district; not on diploma tract Transition – Lowest expectations;

lack career counseling; Employment – Presumption of

unemployability; subminimum wages; little skill development

Housing; Institutional or congregate living; little choice allowed;

Financial Planning – Asset limits not revised since 1985 remains at $2000; few savings accounts that are tax advantaged or exempt from asset limits:

RESULTS: Chronic impoverishment, cyclical dependency loss of human dignity across the lifespan

* Serena Lowe, September 2011, Federal Reserve Bank of Boston, REI Tour Mayor’s Academy

Self-Sufficiency Model

Education – Full inclusion; community integration; exposure to general ed; access to same extracurricular activities

Transition – Need presumption of employability; begin transition planning age 14;

Employment – presumed eligibility to employment supports via VR, OneStops and other programs; integrated employment; access to skills training;

Housing – in integrated setting; ongoing personal support; focus investment on individual not programs;

Financial Planning – Individual budgets; increase asset limits;

RESULTS: Optimal self-sufficiency, independent living, economic empowerment and full community participation across the lifespan.

U.S. Disability Demographics

Demographics

54 million people 22 million families

Employment

22.0 million working age 7.6 million employed 15.8% unemployed

Geography

15% in the Northeast 31% in the South 28% Midwest 16% West

Ethnicity

12.7% White - 10.7% DE

17.5% Black/AA - 14.1%

DE

21.7 Native American -

14.2% DE

6.3% Asian/Pacific Rim -

3.9% DE

11.9% Other - 10.2% DE

Supporting the American Dream10

“About 44 million Americans – one in seven – lived last year in homes in which the income was below the poverty level, which is about $22,000 for a family of four. This is the largest number of people since the Census began tracking poverty 51 years ago.”

Washington Post, September 17, 2010

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For individuals with disabilities, current state of income that falls below the poverty level is at least double when compared to their non disabled peers

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No group in America is more in need and more deserving of economic recovery

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For millions of working age adults with disabilities a dependence on public benefits for income, health care, food, and housing becomes a trap that requires staying poor to stay eligible

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In addition to income, another dimension of poverty is a lack of assets.

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Research has documented that assets produce

Improved economic stability Increased long term planning Greater educational attainment Increased civic engagement

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Why is it important?

Savings and asset building will: Impact mental and physical health.

Impact positively self-concept. Change status with other community stakeholders.

Directly impact quality of life.

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For people with disabilities, there is a new level of focus, energy, and commitment to build a roadmap out of poverty at a national, state, and local level.

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Economic Empowerment

Where do we begin?

Economic Empowerment, What is it?

A paradigm shift that moves us from

the acceptance of a life of poverty due to the need for public assistance

to

the right to equality of opportunity, full participation, independent living, and economic self-sufficiency.

Why is Economic Empowerment important?

Economic Empowerment is a series of strategies that will: improve your economic stability, decrease stress and financial crisis in

your life provide opportunities for you to learn,

earn, save and build offer savings strategies that will not

cause a loss of public benefit put you back in control of your financial

life

New Focus New Tools and Strategies New Partnerships

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Making the shift requires

Focus on Economic Empowerment

Cross agency collaboration to remove policy and program barriers to self-sufficiency

Increase awareness and understanding of ways social insurance, employment, and asset development programs work together rather than in conflict

Empower persons with disabilities with new knowledge, choices, and supports

Shift employment from THE goal to ONE step towards financial stability.

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New Tools and Strategies Increase access to health care through

enrollment in the Medicaid Buy-In Increase access and benefit from the Earned

Income Tax Credit (EITC) and other favorable tax provisions

Qualify for an Individual Development Account (IDA) to achieve an asset goal through matched savings

Increase use of Social Security Work Incentives Benefit from financial education and affordable

financial services Set savings and asset goals as part of peer-

support strategies Consider the possibilities of self-employment

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New Partnerships

Establish community-wide savings and asset building work groups

Build a bridge across disability and non-disability, public and private, for profit and not for profit entities

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New Partnerships

Mayor’s Offices United Way IRS

FDIC IDA Providers EITC Coalitions Financial Institutions Microenterprise

Lenders Home Ownership

and Credit Counseling Programs

DD Council VR Agency Social Security Field

Office WIPA Grantees Peer Support Groups Centers for

Independent Living OMH Community Action

Agencies

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For More Information

CONTACT:

Michael Morris, Executive Director

1667 K Street, NW, Suite 640

Washington, DC 20006

mmorris@ndi-inc.org

202-296-2046