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Expanding the Ownership Society: State Asset Policy Initiatives

Expanding the Ownership Society: State Asset Policy Initiatives. Presentation for the NGA Center for Best Practices Annual Retreat for Governors’ Human Services Policy Advisors June 18, 2005 Heather McCulloch, Consultant/Asset Building Strategies. Why Do Assets Matter?.

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Expanding the Ownership Society: State Asset Policy Initiatives

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  1. Expanding the Ownership Society: State Asset Policy Initiatives Presentation for the NGA Center for Best PracticesAnnual Retreat for Governors’ Human Services Policy Advisors June 18, 2005 Heather McCulloch, Consultant/Asset Building Strategies

  2. Why Do Assets Matter? • Assets enable families to… • Weather financial crises • Invest in their children and their communities • Plan for a secure retirement • Pass resources on to future generations • Income enables families to get by. Assets build their long-term economic security.

  3. Challenge: Asset Poverty • Over 25% of families are asset poor • 39% of children are being raised in asset- poor households including: • 54% of all Hispanic children • 52% of African American children • 26% of white children

  4. Public Policy Challenges • Families are leaving welfare but living in poverty • Policies that encourage savings and investment are often inaccessible to lower-income families • Asset limits discourage families from saving • Low-income families have few opportunities to build their long-term financial security

  5. Asset Building Movement • Based on concept that asset-building policies work, but they need to be more accessible • Started with IDAs in 1990s and grew to include other strategies • Recognized role of public policy in taking strategies to scale

  6. States and Asset Policy • States have supported individual asset-building policies • Today, many are beginning to take a comprehensive approach • Exploring a range of integrated strategies • Bringing diverse stakeholders to the table to identify solutions to asset poverty

  7. Emerging State Initiatives • Delaware – Governor’s Task Force for Financial Independence (2001) • California – Asset Policy Initiative of California (2003) • Illinois – Illinois Asset Building Group (2003) • Pennsylvania – Governor’s Task Force for Working Families (2004) • Hawai`i – Ho`owaiwai Asset Policy Initiative of Hawai`i (2004) • Michigan – Michigan IDA Partnership (2004)

  8. Investment Savings Preservation Common Goals

  9. Common Goals • Savings/asset accumulation – addressing barriers and creating opportunities for families to save • Investment/asset leveraging – expanding opportunities to invest in home, business and real estate equity • Protection/asset preservation – advancing measures to protect families’ assets

  10. Emerging Policy Priorities

  11. Savings/Asset Accumulation • Financial education – Improving and expanding access to financial education • Asset limits – Raising or eliminating asset limits in public benefit programs • Individual Development Accounts (IDAs) – Increasing public support for IDAs

  12. Savings/Asset Accumulation • Earned Income Tax Credit (EITC) – Capturing federal EITC and creating state EITCs • Retirement savings – Expanding access to retirement savings • Children’s Savings Accounts – Supporting children’s savings accounts programs

  13. Investment/Asset Leveraging • Homeownership – Increasing affordable homeownership opportunities • Business ownership – Supporting low-wealth entrepreneurs to build business equity • Real estate – Leveraging economic development opportunities to build wealth for community residents

  14. Protection/Asset Preservation • Health insurance – Exploring ways to expand health insurance coverage • Anti-predatory lending – Reducing abusive lending practices • Anti-insurance redlining – Implementing/strengthening measures to prevent insurance redlining

  15. Common Elements of Success • Reframing the policy dialogue • Providing strong leadership • Building a bipartisan discussion • Engaging diverse stakeholders

  16. Outcomes to Date • Legislation – Advancing specific pieces of legislation • New strategies and resources – Developing new strategies/leveraging resources • Policy dialogue – Ensuring assets part of state policy discussions • Public will – Building public support for asset-building policies

  17. Closing • Building an ownership society requires inclusive public policies • State asset policy initiatives are leading the way

  18. State Asset Policy Initiatives: Expanding the Ownership Society Report will be published by the Fannie Mae FoundationAvailable at www.knowledgeplex.org in July 2005By Heather McCullochConsultant/Asset Building Strategies Heathermcc@sbcglobal.net

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