1. I NNOVATIVE L EGISLATIVE S TRATEGIES FOR P ROMOTING E CONOMIC A DVANCEMENT OF P ERSONS WITH D ISABILITIES IN THE 112 TH C ONGRESS August 2, 2011 Michael Morris Director, National Disability Institute Director, Burton Blatt Institute at Syracuse University

2. C ONSIDERATIONS FOR F ISCAL R EFORM A GENDA IN THE 112 TH C ONGRESS  Promoting Economic Self-Sufficiency in the Context of Fiscal Reform 2

3. 3 C HANGING P OLITICAL E NVIRONMENT G ROWING C HALLENGES Congressional Impasse H.Con. Res. 34 (nonbinding) proposed ending Medicaid and Medicare entitlements for FY2012 budget; cuts Medicaid by 1/3 and transitions program into state block grants Senate FY2012 budget strategy still influx; Reid proposals continue to meet objections; Gang of 5/6 also meeting resistance Federal Deficit Crisis Govt will hit $14.3 trillion debt ceiling on 8/2 Accord reached, but all parties weary of impact (particularly consequences of discretionary spending cuts) State Fiscal Crises Majority of states with their own deficits with Medicaid spending surpassing education as the largest share of state spending.

4. 4 B UILDING R EFORM FROM A C OMMON V ALUE F RAMEWORK Equality Home CommunityCompetence Equity Work Choice Dignity Of Risk

5.  In 2009, 43.6 million people were living in poverty in the US. This is up 3.8 million from 2008 and is the highest number since 1959.  Poverty rate jumped 14.3% in 2009.  This number is equal to one in seven residents.  For people with disabilities, the number is one in three. 5 P OVERTY BY THE N UMBERS

6.  Higher out-of-pocket health expenditures ($795 vs $256) (Livermore & Hill, 2002).  65% of people experiencing long-term poverty (greater than a year) are persons with disabilities. 6 P OVERTY BY THE N UMBERS

7. S OCIAL S ECURITY BY THE N UMBERS  For the last five years, Social Security has paid out more in benefits to disabled workers than it has taken in from payroll taxes.  The downturn in the economy has led to record increases in application for Social Security benefits.  About 8.2 million people collected disabled worker benefits totaling $115 billion in 2010.  About one in 21 Americans from ages 25 – 64 receive the benefit. 7

8. S OCIAL S ECURITY BY THE N UMBERS  Out of 12.5 million disabled workers and those who receive benefits for the disabled poor, only 13,656 returned to work during 2009 – 2011, with less than a third earning enough to drop benefits altogether. 8

9.  The proportion of employed US workers identified as having disabilities declined by 9 percent.  The proportion of workers between ages of 18 – 39 reporting disabilities dropped by 17.5 percent over the same period.  Workers with disabilities are more likely to be in low-skill occupations. However, there is no disproportionate impact of the recession on workers in high-skill and low-skill occupations. 9 IMPACT OF 2007 – 2009 RECESSION ON WORKERS WITH DISABILITIES

10. For millions of working age adults with disabilities, a dependence on public benefits for income, health care, food, and housing becomes a trap that requires staying poor to stay eligible. L ACK OF P OLICY A LIGNMENT

11. D ISABILITY AND E CONOMIC A DVANCEMENT No group in America is more in need and more deserving of economic recovery.

12. D ISABILITY & E CONOMIC A DVANCEMENT For people with disabilities, there is a new level of focus, energy, and commitment to build a roadmap out of poverty at a national, state, and local level. 12

13. W HERE DO WE BEGIN ? Economic Empowerment 13

14. W HY IS E CONOMIC E MPOWERMENT IMPORTANT ?  Economic Empowerment is a series of strategies that will:  improve your economic stability;  decrease stress and financial crisis in your life;  provide opportunities for you to learn, earn, save and build;  offer savings strategies that will not cause a loss of public benefit; and  put you back in control of your financial life. 14

15.  Making the shift requires:  New Partnerships  New Tools and Strategies  New Focus 15

16. N EW P ARTNERSHIPS  Mayor’s Offices  United Way  IRS  FDIC  IDA Providers  EITC Coalitions  Financial Institutions  Microenterprise Lenders  Home Ownership and Credit Counseling Programs  DD Council  VR Agency  Social Security Field Office  WIPA Grantees  Peer Support Groups  Centers for Independent Living  Community Action Agencies  Family Self-Sufficiency programs 16

17. N EW T OOLS AND S TRATEGIES  Increase access to health care through enrollment in the Medicaid Buy-In.  Increase access and benefit from the Earned Income Tax Credit (EITC) and other favorable tax provisions.  Qualify for an Individual Development Account (IDA) to achieve an asset goal through matched savings. 17

18. N EW T OOLS AND S TRATEGIES  Increase use of Social Security Work Incentives.  Benefit from financial education and affordable financial services.  Set savings and asset goals as part of peer-support strategies.  Consider the possibilities of self-employment. 18

19. Local Returns Refunds Tax Prep $ Year Cities Partners Prepared Received Saved 200511---- 7,600 $6.8 m $ 1.5 m 200630200 17,223 $15.3 m $ 3.4 m 200754355 36,275 $32.6 m $ 7.2 m 200862555 90,653 $81.0 m $18.1 m 200984634 181,152 $176.6 m $36.2 m 2010100710 360,499 $351.5 m $72.0 m 2011 100 >800 397,090 $387.1m $87.4m TOTAL 1,090,402 $1.05b $ 225.8 m 19 R EAL E CONOMIC I MPACT T OUR O UTCOMES

20.  Cross agency collaboration to remove policy and program barriers to self-sufficiency.  Increase awareness and understanding of ways social insurance, employment, and asset development programs work together rather than in conflict. 20 F OCUS ON E CONOMIC E MPOWERMENT

21.  New Legislative Proposals to reduce disincentives to work, savings, and asset accumulation.  Changes to Tax Policy.  Changes to Social Policy  Workforce Investment Act  Raising Asset Limits  Asset for Independence Act  Social Security Reform 21 F OCUS ON E CONOMIC E MPOWERMENT

22.  Empower persons with disabilities with new knowledge, choices, and supports. 22 F OCUS ON E CONOMIC E MPOWERMENT

23. B OTTOM L INE “My American Dream seems simple: to live on my own and be self-sufficient, to live with dignity and independence. I struggle with my finances right now, but I am an optimist – I believe that I can make progress with my job, move forward and become part of the mainstream economy and achieve my goals.” Cynthia Battles 2008 REI Tour Adult Blogging Contest Winner Rutland, VT 23

24. C ONTACT I NFORMATION 24 Michael Morris Director, National Disability Institute Director, Burton Blatt Institute at Syracuse University mmorris@ndi-inc.org