Financial Stability & Family Strengthening in Our Community

1. Financial Stability & Family Strengthening in Our Community September 13, 2011

2. Building Economic Security for Virginia Families Income and Asset Adequacy in Richmond

3. Richmond MSA

4. Defining economic security 2 key questions: • Do individuals and families have enough to meet their minimum day-to-day expenditures? Income Adequacy • Do they have enough money saved to cope with an emergency? Asset Adequacy

5. Income Adequacy

6. Income Adequacy Defined Minimum income necessary to be “self-sufficient” self-sufficient Without having to choose between necessities medical able to meet minimum day-to-day expenditures with no reliance on public or private assistance housing food child care

7. Examining Monthly Expenditures Richmond MSA, 2009 2 Adult, 1 Preschooler, 1 School Age Child Net Taxes $350 9% Miscellaneous Housing + Child Care + Food 60% of costs $320 Housing 8% $825 21% Health Care $380 10% Child Care $850 Transportation 22% $455 Food 12% $700 18% Source: Wider Opportunities for Women, 2006

8. Income Adequacy Income Adequacy vs. Poverty Richmond MSA, 2009 2 Adult, 1 Preschooler, 1 School Age Child Minimum Self-Sufficiency Wages 2 Full-Time Workers [$7.25] (Yearly Self-Sufficiency Wage) > 200% $21,750 (Federal Poverty Line) $46,500 Source: Wider Opportunities for Women, 2006

9. Income Adequacy vs. Poverty Richmond MSA Income Distribution 11% - Poverty (100% FPL) 5% - Extreme Poverty (50% FPL) 29% - Income Inadequate (215% FPL) 71% - Income Adequate Source: 2009 American Community Survey

10. Housing in Richmond MSA, 2009 Median Monthly Costs Renters 31% $1,560 No Mortgage $900 $430 Owners 69% Overextended Have Mortgage 35% of Area Households with Mortgage without Mortgage Renters Source: 2009 American Community Survey

11. Child Care Richmond MSA, 2009 2 Adult, 1 Preschooler, 1 School Age Child Net Taxes $350 9% Miscellaneous Largest part of working family budgets Housing $320 $825 8% 21% Health Care $380 31% of area households have dependent children 9% Child Care $850 Transportation 22% $455 Food 12% $700 18% Source: Wider Opportunities for Women, 2006

12. Food 1 in 4 Richmond area households with children reported food hardship in the past year Average American family spends $10,000 a year on food Hunger forces people to choose between necessities. Sources: BLS Consumer Expenditure Survey; Food Research and Action Center 2011

13. Asset Adequacy

14. Why Assets Matter • Income drops are common • Social safety net does not replace all lost income • Having assets reduces deprivation

15. Asset Adequacy Defined Sufficient wealth to provide for basic needs for a short time • Wealth: financial holdings, including retirement accounts • Basic Needs: subsistence at poverty line • Short Time: 3 months (12 weeks) Self-sufficiencywage 6+ months (27 weeks) 4-person family needs $5,440to be asset adequate $11,640 $26,195 38% 48% 31% of area households asset inadequate Sources: 2009 American Community Survey, 2007 Survey of Consumer Finance

16. Barriers to Asset Adequacy • Income inadequacy • Asset limits for public assistance • Access to appropriatefinancial products • Financial illiteracy

17. How are local agencies helping? • Family Services, Salvation Army – provides short-term, emergency assistance to families • Earned Income Tax Credit (EITC) Coalition– helps families access federal tax refund money • goodChoice, Goodwill – provides alternatives to payday loans that help build financial stability

18. Contact Rebecca Tippett rebecca.tippett@virginia.edu (434) 982-5861 Demographics & Workforce Group Weldon Cooper Center for Public Service www.coopercenter.com/demographics

19. community connections and collaborations Frances Stanley Local Initiatives Support Corporation Virginia LISC

20. Outline • LISC – The Who, What, Where • Sustainable Communities and Neighborhoods Rising • Engaging, Organizing and Building Communities

21. Local Initiatives Support Corporation National LISC • 1980 • 30 cities & 70 rural areas • 3,500 CDC partners • $9 billion of investments Virginia LISC • 1990 • 4 localities in Central Virginia • 17 development partners • Nearly $500 million of investments

22. Sustainable Communities 5 Goals: • Developing and preserving investments in the physical environment. • Increasing family income and wealth. • Stimulating economic activity, locally and regionally. • Improving access to quality education. • Fostering livable, safe and healthy environments.

23. Ten Core Elements • Civic Partnership and Buy-in • Understanding and early consensus around the local Sustainable Communities strategy has been established among key partners. • Selection of Target Neighborhoods and Lead Agencies • Target neighborhoods and lead agencies have been selected, or a plan is in place to guide this process. • Relational Organizing (neighborhood level) • A relational organizing strategy is in place and being implemented by community partners. • Quality of Life Planning • A process is in place for developing quality of life plans for each target neighborhood. • LISC Staffing • A staffing structure, or plan, for the Sustainable Communities strategy is in place, with a shift for LISC staff working on the SC program to a brokering and relationship-management orientation.

24. Ten Core Elements Local Funding Key funding partners have made commitments or a funding plan is in place. Lead Agency Staffing Dedicated staff (and funding support for staff) is in place at the neighborhood/lead agency level. There is a clear distinction between the responsibilities of the lead agency staff and the duties of core LISC SC staff. Communications Strategy A comprehensive multi-level communications strategy is in place and being implemented - both for LISC and at the neighborhood level. Early Action Projects Early action projects have been identified and are being funded: or there is a plan in place for identifying and funding such projects. Neighborhood Outcomes Neighborhood outcomes have been identified and articulated: roles and responsibilities of implementation partners are clear.

25. Comprehensive Community Development Old Model LISC New Model LISC & CDC (or other entity) (Partnership) Target Target CDC Neighborhood

26. Five Targeted Communities

27. Neighborhoods Rising • Issue RFP to select Convening Agency (CA) partners in targeted NeighborhoodsRisingneighborhoodand support them with operating grants for 2 years. • Support CA in engaging neighborhood voices by conducting 50 – 100 civic interviews to identify local leadership & community priorities. • Finalize identification of neighborhood investment areas. • Launch a “Quality of Life” planning process. • Support a neighborhood communication strategy. • Assist in the implementation of Early Action activities. • Document base line existing conditions and measure progress.

28. Greater Fulton Video

29. Engaging, Organizing and Building Community

30. Engaging, Organizing and Building Community

31. Engaging, Organizing and Building Community

32. Engaging, Organizing and Building Community

33. Lunch & Table Discussions Enjoy your lunch and please take a few minutes (as a group) to answer the questions you’ll find at your table.

34. VCU Center on Human Needs Financial Stability & Family Strengthening Event September 13th, 2011

35. Attention Economy “a wealth of information creates a poverty of attention” Carnegie Mellon Professor Herbert Simon

36. Attention Economy

41. 78 Pages Long Methods References

42. In 2009, one of every six Americans lived in a food insecure household In 1999, it was close to one of every nine Within the past decade, the prevalence of food insecurity has increased by nearly 50%

43. The risk of food insecurity is 3.2 times higher in single parent, female headed households compared to households with no children

44. The risk of food insecurity is more than double in Black or Hispanic households compared to White households

45. The risk of food insecurity is more than five times greater in impoverished households compared to non-poor households

46. Food Security by Education

49. Prevalence of Societal Distress in 2009 Housing - the owners and renters of 42.9 million (38.4%) housing units in the United States spent 30% or more of their income on housing Health - one out of eight persons in the United States described their health as fair or poor

50. Prevalence of Societal Distress in 2009 (cont) Education - one third (36.9%) of 12th graders in public schools scored below basic on math proficiency and 41.1% scored below basic on science proficiency Income - 14.3% of the population--43.6 million people--lived in poverty