Integrated Financial Service Delivery NATIONAL COALITION for HOMELESS VETERANS 2017 Annual Conference June 2, 2017

Model’s Context and Definition Even after obtaining employment, individuals/families are often forced to borrow heavily and rely on high-cost alternatives to cover many of their daily living expenses. The cycle of increasing debt to keep up with the rising cost of living leaves many individuals/families still living paycheck to paycheck. These individuals/families are more vulnerable to crisis, and in the long-term, they have a limited ability to save for advanced education, a home, reliable transportation or retirement, thus limiting the economic potential of both the family and the communities in which they live. Integrated Financial Service Delivery combines the full array of workforce development interventions with tailored financial education classes, guidance, training, and other services to help individuals and families achieve long-term economic stability. “Think of it like a transparent template that is laid on top of your existing program services model – an appropriate and constructive addition to your HVRP Grant! “

Two Financial Paths or Outcomes Stable, Adequate Income derived from obtaining/retaining a job paying sustaining wages and/or additional income supports and subsidies. Stable, Adequate Financial Resources to maintain savings and assets to cover unexpected expenses, build wealth, and to afford/access safe and affordable housing.

Assisting with Employment While Building Wealth Most workforce development programs focus only on increasing short-term income generation by providing job training and placement assistance. Integrated Financial Service Delivery provides these, but also provides enhanced assistance in three major areas which include: 1.) Enhancing Credit / Reducing Debt Assistance through an Assessment of Financial Literacy, Financial Counseling, Workshops, Credit / Debt Management Services and Foreclosure Prevention Assistance; 2.) Increasing Long-Term Income through Continuing Financial Education and Follow up Case Management; 3.) Building Assets / Savings through assisting with establishing Checking, Savings, IRA Accounts, First Time Homebuyer Assistance, and investment counseling. 1.)

Shared Characteristics Over past several years, a number of programs from across the country have launched Integrated Service Delivery models that include participation from multiple community-based organizations. These programs reduce the challenges to accessing multiple services, eliminate redundancy, and improve overall employment retention and wealth. They have the following shared characteristics: Bundling and Sequencing of Services Long-Term Commitment to Serving Clients One-on-One

Bundling and Sequencing of Services Strategically bundling and timing services to reach a targeted set of outcomes is an important part of the Integrated Service Delivery Model. Bundling is the “combining of services from two or three ‘core areas’ to help working individuals and families achieve economic advancement. Core areas include employment and education services, income and work supports, financial education, and asset building services. In addition to bundling, many services are undertaken sequentially. For Example, a client will complete job training, enroll in public benefits, and subsequently attain stable employment. Following employment, the client will begin to address debt or credit issues. Once these issues are resolved, the client may identify and begin to work toward more long-term financial goals.

Long-Term Commitment To Serving Clients One-on-One Multi-Year Commitment to Serving Clients: Because of the emphasis on bundling and sequencing of services, Integrated Service Delivery Programs make a multi-year commitment to the individuals and families served. One-on-One Services: Financial counseling, coaching and case management are core services at Financial Stability Centers. Both Center staff and volunteers provide these individualized services, which can serve as a critical component for tracking a client’s progress over time and across participating agencies. Quarterly Support Group Workshops: Share positive and challenging experiences and Financial successes followed by group feedback and additional counseling, coaching and case management. Collaboration with Community-based organizations who provided these services is strongly encouraged.

Example Programmatic Results Clients are 4-5 times more likely to achieve a major economic outcome, such as getting and keeping a job or buying a house. Bronx Study indicates that all workforce dropouts had excessive debt in common. One visit with a financial coach increased job retention 100% (JARC) 38 point increase in credit score on average with a $427 average increase in monthly net income (Boston) 73% of clients increased their income; 43% increased their credit score & 43% increased their net worth/wealth. (Detroit)

Financial Achievement Goal Defined The primary goal of this work is “helping individuals achieve long-term financial stability, as defined by: Livable income that reaches the Self-Sufficiency Standard (i.e., $65,000 for a family of four in San Francisco) Good credit score of 650 or above; Savings equal to three months of living expenses; and Debt less than 40% of monthly income. Additional possible performance goals and outcomes are discussed in sections below.

Questions and Issues All Questions and Issues are encouraged to be brought forward. For additional Information Contact: Mike Palumbo MP3 Associates (443)562-8907 mjpalumbo3@yahoo.com