State of the REI Tour Address Federal Reserve Bank of Chicago November 3, 2010 Johnette Hartnett, Ed.D.

Real Economic Impact Tour Mission REI Tour is a national movement in 100 cities dedicated to: Improving economic lives; Building disability inclusive communities of practice; and Promoting economic and social justice.

Real Economic Impact Tour Activities - Model Increase access Create new partners Test innovative solutions Free tax preparation and asset strategies – audio conference series, monthly grantee calls, Mayor’s Academy, financial ed, IDAs, Webinars, legislative advocacy. REI Tour Workgroups, Asset Summits, Benefit Trainings, BEST Clubs, corporate employee resource groups, private sector sponsors. Use of Video Phones/deaf tax; social media/communication; video contests; self tax preparation; private sector opportunities.

REI Tour Individual Significant Outcomes Taxpayers with Disabilities 694,402 free returns prepared $73.6 million in EITC (($800 less in EITC than taxpayer with no disability, IRS 2010) $663.8 million in refunds 52% of taxpayers with disabilities used a paid preparer in 2008 compared to 66% in 2007 (IRS 2010) Providing new skills, volunteer opportunities Promoting community integration Increasing knowledge and awareness

REI Tour System Outcomes 40 + national partners 713 Community-Based partners New legislative presence Capitol Hill TaxWise® VITA Software Adds Disability Question IRS develops internal disability initiative (yearly trainings) Federal Reserve Bank of Boston IRS Wage and Investment Research 2007, 2010 FDIC’s Money Smart Program in Braille – new curriculum U.S. Treasury Bank on Program

REI Tour System Outcomes New federal partners – Administration on Families and Children, Administration Developmental Disabilities, (ADD); Office Community Services (IDAs): Substance Abuse Mental Health Service Administration (SAMHSA), VA, Small Business Administration, and others. Convening new local/state/federal partners (Social Security Administration; Vocational Rehabilitation; Department of Labor, OneStops; Veteran Groups; Department of Agriculture) Key national partners – United Way Worldwide, One Economy, National Community Tax Coalition,

REI Tour System Outcomes NDI and REI Tour’s Building Communication Channels  600% increase of Facebook fans  40% increase in Twitter followers  91% increase in visitors to our blogs  American Dream Video contest leveraged 700 direct relationships – disseminated message to 150,000 target constituencies

New Reality Growing Poverty not Prosperity 43 million Americans living in poverty 13 million children < million people with disabilities > 50% of people reporting income poverty report disability (Fermstad, 2009) People with disabilities 2 to 5 times more poverty (She & Livermore, 2009). 65% of long-term poverty (> 1 year) are people with disabilities  40% of people accessing food pantries on SSI, SSA or SSDI (Feed America 2010)  61% increase homelessness since 2007  $16,366 Median income taxpayers with disabilities (compared to $32,028) IRS 2010  Taxpayers with disabilities received roughly $800 less in EITC than non-disabled (IRS 2010)  37% less likely to have savings/investment compared to 51% with no disability

Next Generation of Work Given the Changing Economy Is it possible to recapture the American Dream? Jason Traslow Adams - Epic of America 1931 – Created concept of American Dream What kind of economy do we want? Two economies in the US - one production and consumption - the other based on finance (FIRE economy – finance, insurance and real estate). Need to restructure - reindustrialize TECI – transportation, energy, community infrastructure of US – become most energy-efficient and least energy dependent nation Eric Janszen, The Post Catastrophe Economy (2010) Founded iTulip.com

Next Generation of Work Given the Changing Economy Concentration of wealth during 1928 and 2008 (1% of population paid 23%) requires a reorganization of the economy so the broad middle class has enough buying power to rejuvenate the economy. Robert B. Reich, After-Shock (2010)

Next Generation of Work Given the Changing Economy Economic crisis requires innovation and investment. Need shift from consumption to investment. US 6 th in the world in innovation and ranked #52 math and science Requires retraining for new jobs and government funding for research similar to WWII Currently 80% of income for American corporations (like Coca Cola) coming from global markets Trends – will be outsourcing not only technical but service jobs whatever can be done cheaper will be outsourced Fareed Zakaria, How to Restore the American Dream – Time Magazine November 2, 2010 (send suggestions )

Next Generation Questions REI Tour How do we provide taxpayers with disabilities access to tax and asset building services? Why is it important? What are the gaps? REI Tour What will the field look like by 2020? How will the field build inclusive scale and sustainability? What role(s) will transportation, energy, communication, technology and education play?

Next Generation Questions What is the future of VITA/Asset Development field? What are the market conditions or factors contributing to the slow rate of VITA pick-up in 2010? (1% growth in 2010 compared to 10% growth in the 2000’s) What does moving to scale mean for non-profits? for VITA?

Next Generation Questions What interventions, intermediaries, systems and infrastructures will accelerate the process? What funding is needed for each stage? Who are the partners and stakeholders needed? How can we share our platforms with each other? Who is the VITA market? How well are you adapting to market preferences? Use of technology, different languages, seniors, youth, disability? How are you responding to the evolving market forces? What is the future of VITA and asset building work given decreases in “civic market” investors?

Immediate Steps for Restoring the Dream 1)Develop cohesive business case across diverse groups – united voice 2)Identify new research and funding opportunities 3)Create strong Washington, DC presence and legislative messages 4)Produce research data 5)Engage private sector – demonstrate value – build business case 6)Serve on boards (public and private) introduce work CNN Fareed Zakaria suggest the following: Do something unique – customize your services for broader application Go local – what are you doing that cannot be outsourced? What services are you providing that are indispensable? Send ideas to