2. Source. U.S. Census Bureau, American Community Survey

3. Source. EPI analysis of Current Population Survey

4. Source. WV Center on Budget and Policy

6. Source. New York Federal Reserve, Quarterly Report on Household and Consumer Debt

7. Source. WV Center on Budget and Policy

8. Source. Workforce WV

9. Source. WV Executive Budget 2011

10. 1. Enact a refundable state Earned Income Tax Credit (SEITC). (Already covered) 2. Modernize state Unemployment Insurance system to include more workers. 3. Expand opportunities to build assets with Voluntary Employee Retirement Accounts.

11. In 2009, UI pulled 11,000 West Virginians out of poverty American Recovery and Reinvestment Act (ARRA) includes $33 million for West Virginia to modernize its Unemployment Insurance (UI) program. West Virginia has drawn down one-third ($11M), but needs to make two additional changes by August 2011 or it forfeits remaining $22 million. Four options, but we are looking at cheapest two: – Part-Time Workers – Compelling Family Reasons.

12. 28 states allow part-time workers to qualify for Unemployment Insurance. One in every six (128,000) West Virginia workers work part-time. Two-thirds (85,000) are women. Policy Change will directly benefit an estimated 1,850 workers.

13. This recognizes that the workplace has changed since 1935. Many states have approved benefits for family-related quits (see numbers in parentheses below). – It would allow people to get UI if they quit their jobs due to domestic violence (31 states & DC); – They were caring for a sick or disabled member of their immediate family (24 states); or – They were following their spouse to a job located where it is impractical to commute (22 states). All three are required to qualify for federal funds. Nineteen states have enacted all three of these reforms.

14. Source. NELP

15. Source. Workforce WV $9M Hole!

16. The UI Trust Fund is schedule to be $9 million in the red by March 2011. $22 million would prevent the state from increasing taxes or borrowing from the federal government. Funds will last 4-7 years and can be received within 30 days. Reforms do not have to be enacted until 2012.

17. Over half of West Virginia’s workforce (300,000) lacks a job-based pension. Lack of retirement assets is one of the leading causes of poverty among the elderly. Social Security provides a necessary stable base of income, but workers also need pensions and savings for true security and comfort in old age. Pensions coverage and availability of a retirement account is often based not on need, but where you work. VERA would provide every worker in the state with access to retirement account.

18. Source. WV Center on Budget and Policy

19. Median Retirement Assets Among Households, Age 55-59 Source. WV Center on Budget and Policy

20. Similar to the SMART 529 plan, the State Treasurer’s Office could oversee the program and contract with a private financial institution to administer it. The plans could offer payroll deduction IRAs and SIMPLE IRAs and employees could choose their investments from a smaller menu of options. The program would benefit from economies of scale by pooling investments, thus reducing fees and increasing retirement income. $3 million start-up cost, but there would be no net-cost to the state, as participation would cover the costs over time.

21. Source. WV Center on Budget and Policy

22. Remove Assets Limits from TANF and maximize these funds. Refrain for unnecessary budget cuts. Index and expand the state minimum wage to cover more workers. Enact a work-sharing program Create a job subsidy program to boost labor demand Create long-term investment in infrastructure.

23. The West Virginia Center on Budget and Policy encourages you to reproduce and distribute these slides, which were developed for use in making public presentations. If you reproduce these slides, please give appropriate credit to WVCBP. The data presented here may become outdated. For the most recent information or to sign up for our free E-Mail Updates, visit www.wvpolicy.orgwww.wvpolicy.org West Virginia Center on Budget and Policy 723 Kanawha Blvd, Suite #300 Charleston, WV 25301 P 304.720.8682 F 304.720.9696