Milwaukee Asset Building Coalition A-B-C

1. Milwaukee Asset Building CoalitionA-B-C Material Developed by SDC / Collaborating Partners

2. Low-Income Worker Outcomes • Increase in Number Filing for EITC • Increase in Number Obtaining Bank Accounts • Increase in Number Completing Financial Literacy Course • Increase in Number Starting IDAs • Increase in Number Accumulating Assets

3. Need for Milwaukee Initiative This initiative can impact children and families who live below or near the poverty level. The State of Milwaukee’s Children Report 2001 published by Start Smart Milwaukee indicates the following: • In 1999, there were 28,538 employed families in Milwaukee County with income earnings below poverty. • A fifth (20%) of employed families with children had income earnings below the poverty level in 1999. • Over 113,800 children are in families with earnings below 185% of poverty.

4. Goal, Strategy, and Approach Goal: • Through education, planning and income, this initiative supports Milwaukee residents to achieve financial independence. Strategy: • Asset Development Strategy for working families that are less than 200% of the federal poverty guidelines. • Do not limit eligibility based on an asset test. Approach: • Implement community wide initiative with a public-private partnership. • Coordinate outreach networks and a service delivery system.

5. What is the Milwaukee Asset Building Coalition (MABC) • Established in 2001 • To increase participation in VITA sites and claiming of EITC • To assist residents in becoming asset owners • Emphasizes coordination of existing services, leveraging of community resources and community collaboration • 69 Members strong, CAA lead organization

6. Benefits (Projection Fall 2000) To the Community: • An additional 5000 EITC filers would bring $7 million additional dollars to Milwaukee year after year. • If the estimated 20,000 “unbanked” Milwaukee households each deposited $20,000 annually into checking accounts, the total new deposits would equal $400 million a year. • Utilizing their EITC, many individuals could start IDAs. If 500 individuals save $1,000, the annual total would be $500,000. To Individuals: • For a family with two or more children, the maximum refund Earned Income Tax Credit is $3,888. The average refund is about $1,400. • With a Get Checking account, an individual can channel approximately $20,000 into the banking system annually. A worker could save approximately $350 a year in check cashing fees. • With an Individual Development Account, an individual can save money, often $1,000 - $4,000 over a two-year period with the opportunity for a financial match. .

7. 2004 Benefits to the Community • Free tax preparation to 9,757 households • Free filed tax returns of 10,017 • Tax credits claimed of $6,517,782 • Refunds of $11,051,273 • Opened 131 bank accounts • Assisted 50% of households to utilize direct deposit of refunds • 142 individuals approved for Badger Care, etc.

8. EITC Benefits to Milwaukee(City at large) • $113,688,000 additional income • $135,561,000 indirect effect – additional money turning over in the economy • $249,249,000 total effect • Creation of 992 jobs • Additional compensation of $23,874,000 • Additional sales tax revenue $142,000 UWM Center for Urban Initiatives and Research, July 2003

9. The Network Awareness and Education Tax Preparation Asset Building Major Components of the Network

10. Linkage with Benefit Programs • Energy Assistance (LIHEAP) • Federal Financial Student Aid (FAFSA) • Financial Literacy • GED/HSED Preparatory Classes and Testing • W-2 (TANF) • Head Start • Health related Programming • Badger Care • Healthy Start • Family Planning • Medicaid • Senior Care • WIC • Food Stamps • GAMP

11. Program Integration Example:Head Start • Family advocate is in weekly contact with parents • Family advocate assists parents in array of activities • Training of family advocates performed in the fall • Family advocates set appointments with parents to complete taxes, become banked and enroll for services Result: Head start parents save up to $500 for free tax preparation with direct deposit… money in 10 days Note: example may be used for other programs…

12. Program Integration Example:Head Start • Head Start staff persons expand knowledge in finance, taxes, and communication • Head Start is responsible for increasing services to the household (centralized) • Head Start has leveraged resource, inkind, with substantial value • Head Start brings parents contacts not otherwise available to certain households

13. Super Site Traffic Pattern Tax Preparation (4) Classroom (5) Greeter (2) (6) Entry Area (1) Waiting and Presentation Area (3)

14. Health Related AchievementsBy the City of Milwaukee Health Department

15. 2005 Evaluation Standards • Timeliness of pre-tax season services (e.g., financial literacy, energy assistance, GED preparation, investment clubs) (October 2004 to January 2005) • Numbers and characteristics of people who utilize the VITA super sites • Amounts of monies brought into the community through tax credits and the ways in which these monies are used by filers • Awareness of, access to and use of other super site resources such as health related-services, banking services, FAFSA, home ownership and energy assistance • Viability of the “mobile site” • Participation of other organizations and institutions, including banks and public and private funders • Consumer satisfaction with services provided

16. Questions? Kristin Schultz (414) 906-2805 Nayoakee Parker (414) 906-2807