Inclusive Saving and Asset Building Strategies

1. 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

2. 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.

3. National Disability Institute MISSION OBJECTIVES 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.

4. New Reality for People with Disabilities Growing Poverty Not Prosperity • 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)

5. FINANCES 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

6. 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 Be Bold. Embrace Difference. Change Lives.

7. 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

8. Self-Sufficiency Investment Model* Cyclical Dependency Model 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. 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

9. 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

10. Supporting the American Dream

11. “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

12. 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

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

14. 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

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

16. Research has documented that assets produce • Improved economic stability • Increased long term planning • Greater educational attainment • Increased civic engagement

17. 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.

18. 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.

19. Where do we begin? Economic Empowerment

20. 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. Economic Empowerment, What is it?

21. 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 Why is Economic Empowerment important?

22. Making the shift requires • New Focus • New Tools and Strategies • New Partnerships

23. 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.

24. 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

25. 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

26. 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

27. For More Information CONTACT: Michael Morris, Executive Director 1667 K Street, NW, Suite 640 Washington, DC 20006 mmorris@ndi-inc.org 202-296-2046