Asset Building Policy

1. Asset Building Policy Jeremie Greer Director of Government Affairs Corporation for Enterprise Development April 24th, 2013

2. About CFED We combine the vision of a think tank with real-world experience to: Identify Good Ideas: CFED’s research finds ideas with potential for making the economy work for everyone, particularly those on the margins. CFED (Corporation for Enterprise Development) empowers individuals and families to build and preserve assets by advancing policies and strategies that help them go to college, buy a home, start a business, and save for now and for the future. Develop Partnerships: CFED works in partnership with diverse organizations across the country to promote lasting change. Bring Ideas to Scale: CFED brings together community practice, public policy and private markets to achieve the greatest economic impact.

3. Agenda • Define the problem • Political/Budget Environment • CFED Policy Priorities • “All Politics is Local”

4. Driving policy change for more than 10 years • 2005 • 2009 • 2002 • 2007 • 2012

5. Families are living on the edge Liquid Asset Poor lack savings to cover basic expenses for three months if job loss, a medical emergency, or other crisis leads to a loss of stable income 26% of households earning between $55,000 and $90,000 are liquid asset poor

6. Savings and wealth gap for households of color Liquid Asset Poverty

7. Liquid Asset Poverty in Oregon

8. Political Environment

9. Drivers of the Deficit

10. Drivers of the Deficit

11. Sequestration • On March 1, the president issued a sequestration order requiring $85 billion to be cut from the federal budget • Cut to nondefense spending of $42.7 billion • Reduced from $54.7 billion, or to 5.0 percent • Medicare cuts ($11.1 billion) comprise about 26 percent of the total nondefense cut

12. Agency Effects of Sequestration

13. CFED Policy Priorities

14. Budget

15. Savings Priorities • Reauthorize and reform the Assets for Independence Act • Create new child savings opportunities through the federal government • Integrate child savings into existing federal funding streams • Reform asset limits in SNAP, TANF, and SSI • Expand tax time savings opportunities—protect the EITC, CTC, and paper savings bonds • Expanding access to retirement savings for low and moderate income individuals • Expand and protect tax incentives for savings for low and moderate income individuals

16. Financial Inclusion Priorities • Integrate asset building into existing federal funding streams • Enhance accessibility to financial products for the un/under banked (e.g.Bank-on USA, Savings Bonds, etc…) • Curb predatory lending practices • Enhance access and impact of financial capability and education initiatives

17. Homeownership Priorities • Take the Manufactured Housing agenda to the next level of advocacy • Explore CFED’s role in the larger housing finance reform discussion

18. Entrepreneurship Priorities • Expand access to capital for microenterprises and self-employed individuals • Identify and address barriers to success for special populations of entrepreneurs—immigrants, racial/ethnic minorities, women, low-income and first-time entrepreneurs • Eliminate barriers to microenterprise growth throughout the business lifecycle

19. Assets for Independence • Low Hanging Fruit • Aligning eligibility with other Fed. Programs • Diversifying eligible matching sources. • Expand eligible uses (i.e. children’s savings) • Revise first-time home buyer to include women escaping domestic violence. • Burden Too Heavy • $75 Million (current appropriation is 20 million) • Higher match rate • Series of smaller changes that make bill longer

20. Asset Limits Reform Lift Asset Limits in Public Benefit Programs Asset limits are a relic of entitlement policies that, in some cases, no longer exist. Personal savings and assets are precisely the kind of resources that allows families to move off public benefit programs.  36 states have eliminated Asset Limits in SNAP 6 states have eliminated asset limits in TANF 24 states have eliminated Asset Limits in Medicaid, all must do so by 2014   . Note: Ryan Budget seeks to eliminate state flexibility on SNAP asset limits.

21. Comprehensive Tax Reform • The US Tax Code is central in helping individuals grow assets and accumulate wealth • Mortgage Interest Deduction • Special Rate for Capital Gains • Credits for Children and Earned Income • Business related credits and deductions

22. Distribution of federal asset-building tax subsidies Source: CFED and Annie E. Casey Foundation. 2010. Upside Down: The $400 Billion Federal Asset Budget

23. Distribution of federal asset-building tax subsidies $26 Source: CFED and Annie E. Casey Foundation. 2010. Upside Down: The $400 Billion Federal Asset Budget

24. Recommendations for Comprehensive Tax Reform • Continue to ensure access to the Earned Income Tax Credit and Child Tax Credit for working families • Provide a stronger savings incentive. • Make existing Saver’s Credit Refundable • Expand the Saver’s Credit to non-retirement accounts, such as college savings or short-term savings accounts • Support Volunteer Income Tax Assistance (VITA) sites and other free or low-cost tax preparation strategies. .

25. “All politics are local” Thomas Phillip “Tip” O'Neill Former Speaker of the House of Representatives

26. A&O Network

27. Assets & Opportunity Network Structure General Members • 900+ General Members representing 49 states and DC General Members Lead Organizations • 36 State Organizations and 39 Local Organizations Lead State and Local Organizations Network Steering Committee • Guides direction of Network Network Steering Committee

28. Lead State & Local Organizations in the A&O Network OREGON Lead State Organization: Lead Local Organizations:

29. Join the Assets & Opportunity Network as a General Member! • Stay informed • Share your experiences • Participate in intensive learning opportunities • Engage in national dialog on asset-building solutions • Access responsive technical assistance • Be eligible for event scholarships • Build your communications skills To join or learn more, go to assetsandopportunity.org/network

30. Representing Oregon in Congress:Your Delegation! Appropriators Sen. Jeff Merkley Banking Sen. Jeff Merkley Health and Human Services, Labor and Education Rep. Suzanna Bonamici (D-OR) Tax Sen. Ron Wyden (D-OR) Rep. Earl Blumenauer (D-OR)

31. Thank You Jeremie Greer Director of Government Affairs 202-870-6821 jgreer@cfed.org www.cfed.org www.assetsandopportunity.org