national release of the 2014 assets & opportunity scorecard january 30, 2014
TRANSCRIPT
National Release of the 2014 Assets & Opportunity Scorecard
National Release of the 2014 Assets & Opportunity ScorecardJanuary 30, 2014
12 years of using data to build the assets movement and drive policy change
2002
2005
2007
2009
20122013
2014
Kasey Wiedrich
Senior Applied Research Program Manager, CFED
Jennifer Brooks
Director of State & Local Policy CFED
Andrea Levere
President, CFED
Kristin Lawton
Director of Communications CFED
Today’s speakers
Housekeeping
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Housekeeping
National findings from the 2014 Scorecard:
How are families faring?
Economic Recession
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$7,859
$8,624
$9,661
$11,361 $11,645
$12,092 $12,158 $12,328
$13,140 $12,513
$11,199 $10,863
$10,221
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0.060.055
0.0510.046 0.046
0.058
0.0930.096
0.089
0.081
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0.011 0.010.014
0.03
0.0430.046 0.044 0.043
0.033
Annual Unemployment
Average Credit Card Debt
Foreclosure
Improvement on several indicators of economic recovery
Liquid Asset Poorlack savings to cover basic expenses for
three months if job loss, a medical
emergency, or other crisis leads to a loss
of income
Persistent financial insecurity
$5,887 for a family of four
No slack: liquid asset poor borrow to cover unexpected costs
High-cost loans are the only option for
many with subprime credit scores, which can create a cycle of
debt
Subprime credit is a barrier in most states
More than 50% of consumers
have subprime
credit scores in 37 states
and DC
2005 2006 2007 2008 2009 2010 2011 2012
45.5%
47.4%
46.0%
44.8% 44.9%44.6%
44.2%
2005 2006 2007 2008 2009 2010 2011 2012
66.9%67.3% 67.2%
66.6%65.9%
65.4%64.6%
63.9%
2005 2006 2007 2008 2009 2010 2011 2012
24260
25684
26870 27150
29400Average College Graduate Debt
Homeownership Rate
Retirement Plan Participation
Liquid asset poverty means deferring future financial security
Who are the liquid asset poor?
One-quarter of middle income households do not have three months
of savings
U.S. Income Quintiles
Households earning $56,113
to $91,356
25%
Of the 44% of households who are liquid asset poor…
89%
are employed
have at least some college
48%59%
are white
Of liquid asset poor households with children…
51%
49%
2 in 3 households of color are liquid asset
poor
4 in 5 of the poorest households are liquid asset
poor
Low-income and people of color disproportionately affected
Households of Color
White Households
$12,377
$110,637
Net Worth
Households of Color
White Households
46%
72%
Homeownership Rate
Low-income and people of color disproportionately affected
The top 20% of earners have 55 times more
wealth than the bottom 20%
Household median net worth ranges
from $8,328 in Nevada
to $153,554 in Virginia
In 21 states, less than 80% of high school students graduate within 4 years
59% of DC and 63% of Nevada high school
students graduate within 4 years
Percentage of Uninsured by State
Have policymakers helped families become more financially
secure?
The policy response
Local, state and federal policy response
2014 Scorecard policy assessment
States assessed on 67 policies
No longer distinguishing between “Policy Priorities” and “Additional Policies”
New policy assessment in 2014 Scorecard
More comprehensive and accurate description of strength
of states’ policies
67 Financial Security & Asset-Building PoliciesLEARN EARN SAVE INVEST PROTECT
Early Education1. Sufficient
funding?2. Quality
standards? 3. State Head
Start grant?4. Full-day
kindergarten?
K-12 Education5. Adequate
spending?6. Targeted
spending?7. Teacher
evaluation and retention?
8. Financial education in schools?
Postsecondary Education9. WIA-funded
training?10.
Adequate funding for public colleges?
State Tax Credits11.
State EITC?12. EITC
Refundable?13.EITC 15% of
federal?14.Child & Child
and Dependent Care Tax Credit?
Minimum Wage15.
Above federal?16.
Additional coverage?
State Tax Fairness
17.Income tax?18.Progressive tax
rate?19.Property tax
relief?
Tax Preparation Regulation20.Regulate tax
preparers?21.Ban add-on
fees?
Unemployment Benefits
22.Adequate benefit?
23.Expanded eligibility?
24.Low-fee UI prepaid card?
25.Support for unemployed entrepreneurs?
Paid Leave26. Paid
leave?27.
Expanded FMLA?
Lifting Asset Limits 28.TANF asset
test eliminated?
29.SNAP asset test eliminated?
Mainstream Product Access30.Statewide
financial access program?
Direct Deposit31.Automatic
direct deposit?
Savings Programs32.State funding
for IDAs?33.Prize-linked
savings?
College Savings Incentives34.529 matching
programs?35.Partnerships
with large systems?
36.Savings barriers minimized?
Microenterprise Support
37.CDBG funding?38.TANF/WIA funding?39.Loans for
beginning farmers?
First-Time Homeownership40.
Downpayment assistance?
41. Direct lending?
42.Homeownership counseling?
43.Targeted mortgage credit certificates?
44.Housing trust fund?
Manufactured Housing45.
Encourages resident ownership?
46. Titling reform?
Postsecondary Education Financial Aid47.Adequate funding?48.Well-targeted?
Tuition Support49. In-
state tuition for undocumented students?
Predatory Short-Term Loans Protections50.Payday?51.Car-title?52.Short-term installment loans?
Predatory Debt Protections53.Debt settlement protections?54.Debt collection protections?
For-Profit School Regulation55.Tuition compensation?56.Online regulation?
Foreclosure Regulations57.Third-party review?58.Mortgage servicer
regulation?59.Post-foreclosure
protections?60.Redeveloping foreclosed
properties?61.Tenant foreclosure
protections?
Renter Protections62.Section 8 renter
discrimination protections?
63.Affordable rental housing preservation?
Health Insurance64.Medicaid expansion?65.Limitations on hospital
charges, billing and collections?
66.Simplified procedures for Medicaid and CHIP?
67.Expanded COBRA coverage?
Overall state policy adoption
Overall state policy adoption}
8 states adopted half or more
policies
Overall state policy adoption
Most states adopted ¼ to ½ of policies
Overall state policy adoption
7 states adopted fewer than one-quarter of
policies
}
Overall state policy adoption
}
14 policies have been adopted by more than half
of states
Overall state policy adoption
21 policies have been adopted by fewer than ¼ of
states
Policy ranks and outcome ranks
Scorecard now ranks states on policies and outcomes
Allows comparison between strength of policies and outcomes for families
Policy ranks and outcome ranks
Scorecard now ranks states on policies and outcomes
Allows comparison between strength of policies and outcomes for families
Comparison of policy and outcome ranks
Comparison of policy and outcome ranks
Even with strong policies, income
inequality, high cost of living,
demographic diversity make
improving outcomes more difficult
Comparison of policy and outcome ranks
Improving outcomes is easier in states with low cost of living, low income inequality,
homogeneous populations and
strong economies
Assets & Opportunity NetworkLead Organizations
www.assetsandopportunity.org/network
Assets & Opportunity NetworkLead Organizations
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Reflections on the Scorecard from Andrea Levere, President, CFED (@alevere)
Reflections on the Scorecard from Andrea Levere, President, CFED (@alevere)
Reflections on the Scorecard from Andrea Levere, President, CFED (@alevere)
Reflections on the Scorecard from Andrea Levere, President, CFED (@alevere)
Assets & Opportunity NetworkLead Organizations
www.assetsandopportunity.org/network
Assets & Opportunity NetworkLead Organizations
Thank you to our Scorecard funders…
A special thank you to our Scorecard funders…
National Release of the 2014 Assets & Opportunity Scorecard
Thank you!
January 30, 2014