Community Investment News (August 2007)


Asset Limits in Public Benefit Programs Cost More than They're Worth

States consider income and assets, but not debts, in determining participant eligibility in public benefit programs to ensure that only those who truly need help get the assistance. The rationale is to guarantee that people use their assets as cash reserves in times of need rather than tap into public assistance programs. When debts were factored, participants in these programs are more likely to have no net worth or a negative net worth, even though caseworkers are required to administer and validate asset amounts. To read more of this article click here.

 

Hot Federal Legislation

  • HR 3172- The Freedom to Save Act will eliminate asset tests for SSI, SCHIP, TANF, and reform Food Stamp asset rules.
  • HR 1514/S.871- The Savings for Working Families Act will increase saving incentivies for low-to moderate-income people to save through individual development accounts.

Illinois' TANF Grant: Inadequate for Too Long

Despite strong support from the Illinois House, a long overdue and much needed increase in the cash grants Illinois pays to families in its Temporary Assistance for Needy Families (TANF) program remains uncertain. Click here to read more.

Calendar of Events

Sept. 12: 2007 Assets and Opportunity Scorecard Release

Oct. 3 & 10: All My Money training. For more information contact Karen Chan.

Oct. 4: 2007 Scorecard Event at the Federal Reserve Bank of Chicago. For more information click here.

Nov. 14: Illinois Asset Building Group Member meeting- Location TBD

Nov. 29: Annual Shriver Dinner in Chicago

 

Auto-IRAs Would Help Employees Save for Retirement

More than half of the workforce in America lacks access to an employer-sponsored retirement savings plan. Click here to find out what the U.S. Congress and some states are doing to address this problem.

Minority Women and Subprime Lending

The rate of homeownership within a community is more than just a monetary asset. Lending rates charged to minority women have a lasting impact on individuals as well as their communities. Many mortgage brokers label women as “high risk” borrowers, but recent research reveals how financial institutions perpetuate this stereotype. To read more of this article click here.

The Community Investment Unit develops and promotes policies and programs that move people from poverty to prosperity, including financial education, access to mainstream financial services, asset building, and consumer protection. For more information, contact Dory Rand at 312.368.2007.

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