1 Asset Building in Washington State November 2009

2 Why promote asset building? Asset Building means improving savings and financial skills, behaviors and outcomes for working families At least 30% of WA state residents are asset poor – without liquid savings to maintain their household for more than three months. –At least 25% low and moderate income folks do not have and/or use a bank or credit union account

3 Why promote asset building? Average American credit card debt is $8,500 – 15% higher than % households spend more than they earn annually 44% workers say they live “pay-check to paycheck” in 2007, up from the prior year BUT, research shows that savings and ownership of assets is possible for low income families The TIME IS NOW to focus on savings and asset building – economic crisis has sobered up our national spending spree… Across WA, communities are taking action and beginning to show results

4 Asset Building Update State funds have helped start and sustain 15 local asset building coalitions since 2007 WABC is promoting policies to support savings, financial education and consumer protection Over 85 WABC organizational members; WABC e-newsletter sent to over 1000 recipients

5 WABC members Community action, housing & social service agencies United Ways Federal, state & local government agencies Banks, credit unions and regulatory groups Advocacy and organizing groups Native and tribal entities Micro-enterprise providers

6 WABC Policy Principles Expand Financial Skills For Success –Increase financial fitness in schools and for adults; integrate into public services Help People Save And Invest –Support small biz development, IDAs, home ownership, savings and EITC Remove Barriers To Gaining And Keeping Assets –Expand lower cost lending alternatives, regulate predatory lending, eliminate asset limits

7 WABC Board and Teams Executive Team President: Todd Pietszch, BECU Vice President: Dave Sieminski, Express Credit Union Treasurer: Roberta Marsh, South Sound Outreach Secretary: Barb Gorzinski, Pierce County ABC Develop smart asset building public policy TEAM Board Anee BrarWA State Department of Commerce Abby Cooper Kennedy Douglas Consulting Karan GillBurst for Prosperity Paul KnoxWashington Asset Building Coalition Liz MynttiLower Columbia Community Action Yuh-Line NiouStatewide Poverty Action Network Kerri RodkeySNAP Financial Access Cheryl SesnonWashington CASH Diana StoneSeattle-King County ABC Expand financial education TEAM Local Coalitions & Statewide Institutions

8 WABC Vision The homeownership rate is over 70%. People have housing choices and homeownership is feasible all across the state. Tax credits are claimed by those who have earned them. A state EITC-like product is also offered. Saving is Cool! Social marketing changes behaviors, rewards for saving are offered by FI’s, employers, government, nonprofits, etc. Financial educ. is taught in all schools Asset Building Vision People are planning for the future, and have opportunities to achieve financial health and security Mainstream banking is the norm for low income people. Payday loans are gone or significantly reduced, and strong alternatives are offered. AB and financial health is a top priority for governor and legislature. Major policy changes have been made Tribes are providing AB leadership in and outside native communities. AB resources come from many sources. Meaningful public, private, nonprofit partnership. AB is talked about, embraced and funded. Local AB coalitions flourish and produce outcomes. Low income people are involved at state and local level. People have hope, freedom to choose their future High Level of Involvement of employers on behalf of employees: Incentives, matching, benefits, etc. Financial Health is valued in the same way as physical health, with prevention a public policy issue as well as a family issue

9 Local Asset Building Projects In 2005, only one community had organized around asset building – now, 15 coalitions are planning and taking action Actions include: promoting savings and banking, providing financial literacy and help with credit repair, marketing EITC, and promoting home ownership and business start-up State funds have leveraged significant private and other funds since 2007 to expand start-up and existing activities

10 Asotin Clallam Jefferson Grays Harbor Pacific Whatcom Skagit Snohomish King Pierce Lewis Mason Cowlitz Thurston Clark Skamania Klickitat Yakima Kittitas Chelan Douglas Grant Okanogan Ferry Stevens Spokane Lincoln Adams Whitman Franklin Benton Walla Columbia Garfiel d San Juan Island Kitsap Wahkiakum Pend Oreille Funded in and New counties funded Asset Building Coalitions in WA

Highlights WABC’s June 2008 Building Assets-Strengthening Communities conference in Yakima inspired and educated 280 leaders and practitioners from across the state –Plan on attending our Nov. 5-6 Conference in Tacoma Over one million mailing inserts, handbills and posters marketed EITC tax benefits and resulted in an increase of 18% at free tax prep centers Two local “Bank on” initiatives were launched and a statewide WA Saves campaign promoted savings and financial education

Legislative Policy Agenda Building Assets to Access the American Dream Bank-On Washington Initiative: A statewide bank-on initiative is essential to promote a culture of savings in the state and link tens of thousands of “unbanked” people to mainstream institutions. –Position: Resources to help local coalitions establish and run Bank-On projects Individual Development Accounts: In order to become self-sufficient, people with low incomes must have the opportunity to save money and build wealth. Washington State’s Individual Development Accounts (IDAs) are matched savings accounts for people with lower incomes that help them save for homes, small businesses and other assets. Participants receive financial training to help them plan a family budget and save. –Position: Dedicated Funding Source for Individual Development Accounts Elimination/Modification Asset Limits: In addition to using a family's income to determine eligibility for public benefit programs, Washington State also limits eligibility to those with few or no assets (savings, car, etc). If a family has assets over the state’s very low limits, it must deplete longer-term savings in order to receive what is often short-term public assistance. –Position: Eliminate/Modify Asset Limits in public benefits programs

Legislative Policy Agenda Building Assets to Access the American Dream Increase and Strengthen Financial & Consumer Education: There are a lack of resources for Washington state consumers for financial and consumer education. Resources are difficult to find, marketing is not wide spread or coordinated, and there is a lack of knowledge about the best curriculum offered. Washington state needs a fully developed, robust network of financial education and coaching resources across the state. –Position: Pilots and Resource Bank for Financial and Consumer Education College Savings Incentive/Children Savings Accounts: Post-secondary education is one of the best investments an individual can make in his or her economic future. Unfortunately, escalating costs discourage many from pursuing post-secondary education. For low-income families, the net out-of- pocket cost of a four-year public university education is estimated to be as high as 39 percent of total income. –Position: Create Incentives for College Savings/Open Children Savings Accounts

14 WABC Needs You! Horizon communities can become involved with local coalitions This is not a “program” of a local agency, but a “movement” requiring involvement from all sectors – Horizon members and areas Now is the time to act to increase financial fitness, savings and asset building policies and protect people Lots of ways to get involved -- Please join us!

15 Contact us For more information contact: Paul Knox, WABC Executive Director Phone: