A recent webinar hosted by the Asset Funders Network (AFN) entitled The Health and Wealth Connection: Opportunities for Investment Across the Life Course, explored several variables that when combined, create the social determinants of health. These variables are socioeconomic status, education, physical environment, employment, social support networks, and access to healthcare, which all factor into a community’s overall health. The webinar described this equation simply as “health happens where we live, learn, work, and play.” The webinar was presented by Jason Q. Purnell from the Brown School at Washington University in St. Louis, Anjum Hajat from the Department of Epidemiology School of Public Health at the University of Washington, Padmini Parthasarthy from the California Wellness Foundation, and Colleen Briggs from JPMorgan Chase & Co.

Although health is commonly perceived to be confined within doctors’ offices and hospitals, the social determinants of health indicate that health happens everywhere. In fact, access to healthcare is the last step, and least critical, in determining the overall health of a community. The importance of each social determinant was discussed by Dr. Purnell and began with economic stability, neighborhood and physical environment, education, food, community and social context, and healthcare. In order to achieve optimal health and financial stability throughout a person’s life, service providers must make multifaceted and interconnected interventions to positively affect all the social determinants of health.

For example, although medical treatment for lung cancer exists, it is costly, carries risks itself, and only addresses the social determinant of healthcare access. Instead, it is more effective to prevent lung cancer through efforts to reduce tobacco consumption which addresses several determinants of health including economic stability, education, and community and social context. For example, providing financial counseling can reduce stress related to economic instability which has been linked to poor health behaviors, such as consuming tobacco & alcohol, lack of exercise, and poor diets. Incentivizing higher education through Children’s Savings Accounts can increase overall wealth and income, further mitigating financial stress. Educating the public about the dangers of tobacco consumption can reduce the number of tobacco users. Finally, having strong community support systems, including support groups that assist individuals with addictions, can decrease overall tobacco consumption.

Unfortunately, there is a widening wealth gap among Americans, a trend exacerbated among Americans of color. If the wealth of the average black family continues to grow at its current rate, it will take 228 years to accumulate the wealth the average white family enjoys today. For Latino families, it will take 84 years. As there is mounting evidence that financial health and physical health are linked, this growing wealth gap correlates into a similarly growing health gap. As the wealth and health connections has an intergenerational relationship, it is important that service providers emphasize and adopt multifaceted and interconnected interventions now in order to best serve America’s minority and impoverished communities for generations to come. Coordinated interventions aiming to improve economic, local neighborhood, educational, food accessibility, community support, and healthcare outcomes must occur without disenfranchising or ignoring popular demographics including minority, female, youth, ex-offenders, and others. These interventions include physical services such as workforce development and financial counseling, but also include policy positions like supporting stronger predatory lending regulations and the Affordable Care Act.

To learn more about the health and wealth connection, please view AFN’s recently released brief on the topic here or view a recording of the webinar here.

Since its founding in 1974 by the federal housing policy expert, Cushing Dolbeare, the National Low Income Housing Coalition (NLiHC) has used data to document America's housing affordability crisis. As part of her original analysis, Cushing observed a fundamental mismatch between the wages people earn and the price of decent housing, what we now call Out of Reach. Today, housing is still out of reach for far too many, and the gap between what people earn and the price of decent housing continues to grow.

Read more.

The 2016 Market Size Study is presented by CFSI and Core Innovation Capital and made possible by funding from Morgan Stanley and the Ford Foundation. It is the 6th annual market analysis and aims to illustrate the size of and the opportunity to address the needs of financially underserved consumers and identify significant trends driving marketplace evolution and growth. 

The study presents a snapshot of:

• Interest and fees spent by underserved consumers to borrow, spend, save, and plan

• Volume of consumers usage generating revenue

• Current and projected revenue growth rates

• Key trends driving market developments

2016 Financial Underserved Market Size Study

This month at the Indiana Statehouse, Assets & Opportunity Network partners helped spearhead the defeat of SB 245, a bill to authorize new, longer term predatory loans with high interest rates. The bill would have allowed a borrower to take out up to a $2,500 loan at 240 percent APR and repayment terms of 24 months. The bill was amended to a cap of 18 months, $1,750, and 216 percent APR. Nineteen opponents testified against the bill, representing credit counselors, former payday borrowers, non-profit organizations, religious leaders, a former payday loan company employee, veterans’ groups, and more. The bill was defeated in a 4-5 vote. Please help us thank Senators Bray, Melton, Mrvan, Ruckelshaus, and Walker for their key votes to help protect Indiana families.

A bill to eliminate the asset test from SNAP eligibility determinations so that families can save for self-sufficiency passed out of committee, but has yet to be heard on the Senate floor. The administratively cumbersome asset test “catches” very few individuals, .4 percent in Indiana, who are over the limit of $2,250 in savings. Both national research and interviews with Hoosier SNAP recipients and service providers suggest that it deters participation in banking and saving. We encourage members to call their senators and encourage passage of SB 154.

On the national front, the Consumer Financial Protection Bureau (CFPB) continued its defense of Hoosier consumers. It fined Russell Simmons’ prepaid card for blocking consumer access, ordered Prospect Mortgage to pay fines for an illegal kickback scheme, sued debt relief attorneys for illegal practices, ordered Citi subsidiaries to pay for making it more difficult for borrowers to save their homes, and sued TCF National Bank for tricking customers into signing up for an expensive overdraft service. Because of its many years of work standing up to companies that mislead or overcharge consumers, the CFPB has become a target for reforms that would limit its effectiveness. As a member of the banking committee, Senator Donnelly will be on the front lines of these efforts; please let him know that you would like him to maintain strong consumer protections through an active, independent CFPB.

On February 16, hundreds of Indiana residents joined demonstrators across the country in a national strike and participated in a “Day Without Immigrants” in protest against President Trump’s recent efforts to crack down on illegal immigration. Demonstrators opted to stay home from school, work, and even temporarily closed their businesses for the day to show unity with their friends, family members, coworkers, and employees who immigrated to the United States. By not participating in their regular routines, demonstrators hoped to show how immigrants directly contribute towards the lifestyles of American consumers through the goods they produce, services they provide, and jobs they create.

In addition, demonstrators participated in physical marches and gatherings. In Indianapolis, hundreds marched from Garfield Park to the Statehouse where they shared stories with one another and broke into chants. In southern Indiana, participants traveled to Kentucky’s State Capital in Frankfurt where Catholic Charities of Louisville, Kentucky Refugee Ministries, Americana World Community Center, and International Center of Kentucky hosted a gathering in unity with the 36 southern Indiana and Kentucky businesses who closed their stores for the day.

Although thousands participated in “Day Without Immigrants” demonstrations across the country, these numbers only modestly reflect the critical role immigrants have on the American economy. For instance, 2015 data from the U.S. Bureau of Labor Statistics reports that there are nearly 26.3 million foreign-born workers in the United States, making up 16.7 percent of the American workforce. Further, the Organization for Economic Cooperation and Development reports that immigrants accounted for 47 percent of the increase in the United States workforce from 2000-2010. Finally, in 2014, Standard & Poor’s finds that both low skilled and highly skilled immigrants complement the existing American-born workforce, and that they are more likely to start their own small businesses which is the true engine of job creation in the American economy. Unfortunately immigrants like Jesus Ramirez who helped organize the march in Indianapolis, currently do not feel that their economic impact is visible or respected by the average American consumer. In order for continued growth windianaithin the American economy, there must be a cultural and political shift away from denigrating American immigrants but instead incentivizing them to continue helping America prosper.

When Republicans decidedly won all three branches of our federal government on Election Day, many of us were left contemplating what will become of the progress we have made in the last eight years, and where our efforts should be applied going into the future.

To ease anxiety and begin strategizing, the Indiana Assets & Opportunity Network hosted a conference call on January 27th in order to discuss the changing political landscape which may affect our collective mission to increase asset acquisition for low-wealth Hoosiers. Coalition members were invited to hear from Jenny Robnett and Jose Alvarez from Americans for Financial Reform and Erin Macey from the Indiana Institute for Working Families (IIWF) who largely discussed the future of the Consumer Financial Protection Bureau (CFPB) and about Indiana Senate Bill 245, a bill that if passed, would broaden the ability for payday lenders to keep borrowers indebt for up to two years.

On the topic of CFPB, Robnett and Alvarez explained that the Bureau was created in the wake of the 2008 economic recession as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act which aimed to protect American families from the predatory and unfair lending practices responsible for contributing to the 2008 financial crisis. The CFPB’s duties include enforcing federal laws and regulating the banking and lending industry through the writing of new rules with the protection of American consumers in mind. The CFPB has been highly successful and has returned nearly $12 billion to American consumers since it formed in 2011. Several examples include ordering Wells Fargo and JP Morgan Chase Bank to pay over $24 million in civil penalties and an additional $11 million in refunds to consumers, ordering Moneytree, Inc., a payday loan and check cashing service provider, to pay a $250,000 civil penalty and an additional $255,000 in refunds to consumers, suing Navient, the largest servicer of federal and private student loans, and suing the for-profit college chain ITT Technical Institute. The institutions involved in all these cases were found responsible for deceiving consumers and pushing consumers towards paying higher costs on their loans.

However, Dodd-Frank and the CFPB have been under attack from conservatives since their inception and most recently from the current administration. Robnett and Alvarez listed several different methods the new administration could use to dismantle or thwart the efforts of the CFPB. First, defunding and “defanging” the CFPB through federal legislation and converting the leadership of the Bureau from a single effective director into a slower moving committee which would make it easier to fill with industry members. Conversely, the new administration may aim to prematurely replace current CFPB director Richard Cordray, whose five-year term ends in July 2018, with a new director willing to rollback CFPB’s progress. Finally, the CFPB can also expect to have every rule attacked as the Congressional Review Act only requires a majority to vote down any rule and could deny the Senate the ability to prevent the removal of rules through filibustering. Although organizations may need to shift efforts towards defending the CFPB, Robnett and Alvarez also emphasized the need to continue CFPB’s mission by remaining on the offense against predatory lenders.

In particular, the coalition was encouraged to take action against payday lenders; especially as it is individual states, and not the CFPB, who have the authority to set interest rates on loans which can reach close to 400% Annual Percentage Rate (APR) in Indiana. Macey with IIWF specifically mentioned Senate Bill 245, an attempt by payday lenders to expand their product offerings in the state, as an important piece of legislation to strike down. The bill, which has been covered by the IndyStar and The Journal Gazette of Fort Wayne, would allow payday lenders to offer an installment loan of up to $2,500 over 24 months at 240% APR. This is a radical departure from Indiana’s existing 36% APR cap on installment loans under $2,000, and is over three times higher than the 72% APR minimum currently necessary to be considered felony loan sharking.  Although member organizations have already signed onto an open letter in opposition to SB 245, Erin urged members to call senators on the Insurance and Financial Institutions Committee and pledge your support against SB 245. In addition, if you have been negatively affected by using a payday loan or would like your organization to sign onto the open opposition letter to SB 245, please contact Erin Macey at emacey@incap.org.

To find the senators who sit on the Insurance and Financial Institutions Committee, please click here or review the list below:

Senator Travis Holdman—317-232-9807

Senator Greg Walker— 317-232-9984

Senator Rodric Bray—317-234-9426

Senator Jeff Raatz—317-233-0930

Senator John Ruckelshaus—317-232-9808

Senator Joseph Zakas—317-232-9490

Senator Andy Zay—317-234-9441

Senator Frank Mrvan—317-232-9532

Senator Eddie Melton—317-232-9491

The Indiana General Assembly is back in action. Two bills that would expand access to the Supplemental Nutrition Assistance Program (SNAP) received hearings in the Senate Committee on Family and Children’s Services on Monday, January 23rd. The first, SB 9, would eliminate the lifetime ineligibility of individuals who have served time for a felony drug conviction. It passed out of the committee 8-1.

The second bill, SB 154, would remove one of the two tests of eligibility for SNAP access – an asset test that requires households to have less than $2,250 in countable resources to be eligible. Kathleen Lara, Policy Director at Prosperity Indiana, testified in support of the bill, noting that one of the unintended consequences of the asset test is that families receiving or considering receiving benefits might choose not to participate in mainstream financial products, like checking and savings accounts. Removal of the asset test in other states has resulted in increased bank account ownership among SNAP households and increases in average savings amounts in those accounts.

Jessica Fraser from the Indiana Institute for Working Families also testified in support of the bill, noting that the policy can also result in denials due to burdensome documentation requirements or due to intake errors in valuing certain resources. Prosperity Indiana and the Indiana Institute for Working Families were among the many organizations supporting these bills.

Your voice is still important on both bills:

• On SB 9, make sure your senator knows that you support this bill and to vote “yes” when it comes up on third reading. Find your legislator here.

• On SB 154, call Senator Grooms, Chairperson of the Senate Committee on Family and Children’s Services, at 317-234-9425 and ask him to hold a vote on SB 154. Without a vote, the bill will die in committee.

We also need your voice on SB 254, another attempt by payday lenders to expand their product offerings in the state. The new bill allows payday lenders to offer an installment loan of up to $2,500 over 24 months at 240% APR. This would amount to over $9,500 in interest on a $2,500/24 month loan. Our current cap on small installment loans in the state is 36%. Last year, the Indiana General Assembly pledged to study the issue of high-cost lending further.

• On SB 254, call 317-232-9807 and ask Senator Holdman, Chairperson of the Insurance & Financial Institutions Committee, to hold the bill until the issue of high-cost lending has been thoroughly studied, as proposed by the legislature in 2016. 

The Indiana Assets & Opportunity Network is pleased to announce that the Expert Directory is now live! All data and profiles came directly from a survey sent to Network partners in early December asking for their levels of expertise in various subject matters and fields. There are 35 different areas of expertise, including savings accounts, financial services and products, public benefit programs, VITA service delivery, public policy, housing, education, marketing and communications, and research and data collection. To view the Expert Directory, please follow the link below:

http://www.indianaopportunity.net/expert-directory-1/

For the purpose of the Network’s Expert Directory, an expert is an individual who has extensive experience working on a policy or program and who would be comfortable giving advice to peers or policy makers on theissue. Further, Network partners, policy makers, peers, and reporters are encouraged to contact individuals listed in the Expert Directory when seeking more information about their respective topics of expertise.

If you are not listed in the Expert Directory but believe yourself to be an expert in one of the subject areas, please contact Kelan Fong at kfong@prosperityindiana.org or click this link to receive a survey. If you are listed in the Expert Directory and would like to include a professional headshot, your organization’s logo, edit your profile, or have any questions; you are invited to contact Kelan as well.

Many research institutions, law firms, banks, and other industries in the United States are desperately in need of qualified and highly-skilled employees. Doctors, engineers, lawyers, scientists, and bankers, are critical positions in driving the United States economy and providing essential services to its citizens. Unfortunately, there is a void of capable candidates due of rising costs of secondary education and increasingly strict immigration laws causing these crucial positions to remain vacant. Without adequate public investment for native citizens to obtain the advanced degrees necessary to fill high-skilled positions, the United States must create policies that better utilize and encourage immigrants to participate in its economy.

According to a 2009 study by the National Science Foundation, 33 percent of science and engineering doctorates in the United States were foreign students on temporary visas. However, in order to remain in the United States, these graduates must first find an employer to sponsor an H-1B visa, and secondly be selected in the lottery. Although President-elect Trump has suggested he will further restrict the number of H-1B visas, current law allows for a maximum of 20,000 immigrants who have an advanced degree (a master’s degree or higher) and an additional 65,000 immigrants that have a bachelor’s degree or higher from a United States university to receive an H-1B visa. Despite this number of H-1B visas made available to immigrants each year, up to 90 percent of immigrants graduating with an advanced degree are required to leave the United States due to immigration laws. Without the ability to legally hire these immigrants which consist of a major proportion of all advanced degree graduates, many positions remain unfilled and impair the economy’s ability to grow. 

However, providing immigrants with advanced degrees with additional visas needed to remain in the United States is only the first step. We must also assist the immigrants already in the United States who are unable to reach their full potential. For example, in 2012-2014 over 1.8 million immigrants in the United States were college educated but were either unemployed or underemployed and working low-wage jobs. Although qualified for better jobs, immigrants often lack proper American professional etiquette and therefore may not have strong interviewing skills, resume writing skills, or networking skills. Further, immigrants are often unaware of the licenses or certificates necessary to convert their working and educational experiences from their home country into a comparable job in the United States. 

Luckily, there are organizations such as Upwardly Global, a nonprofit dedicated to helping skilled immigrants properly assimilate into the American professional environment by teaching the skills necessary to get hired. Through workshops, immigrants learn how to create a resume, write cover letters, network, and participate in mock interviews. Furthermore, Upwardly Global created professional licensing guides to assist immigrants who have had their careers interrupted after resettling in the United States which helps them navigate the steps necessary to earn professional licenses, credentials, and certificates needed to return to their profession.

The efforts of Upwardly Global have shown successful. In 2011, Upwardly Global assisted 280 clients in obtaining job offers, 71 percent of whom were previously unemployed and relying on their savings or government assistance. These clients collectively increased their families’ income that year by $8.4 million, positively impacting the economy simply by beginning to significantly participate in the tax base, a stark reversal for many who previously relied on government aid. More so, with higher incomes, these families are now able to spend more money directly supporting local businesses. Ultimately, the White House Council of Economic Advisors suggest that immigrants stimulate the United States GDP by $37 billion each year.

In order to reach their full potential, immigrants also need assistance with “coming out of the shadows” of poor or nonexistent credit. Referred to as “invisibles,” these immigrants have difficulty obtaining car loans, personal loans, and educational loans. Without these loans, even relicensing can be too expensive, creating an additional barrier for skilled immigrants trying to fully integrate into the United States. Solutions include participating in a lending circle* hosted by Mission Asset Fund who reports payments to credit bureaus or obtain a secured credit card which requires users to make an initial deposit with a bank to guarantee that any debt accumulated through the card can be paid.

A major boon to the American economy, immigrants and especially skilled immigrants, need to be better incentivized to reach their full potential. Through increasing the number of H-1B visas granted every year, assisting immigrants in translating their work experiences and education from their native country into an equitable job, and providing opportunities for invisibles to build their credit, the United States can raise its tax base and more efficiently develop its economy. 

*A lending circle is a short-term, interest-free loan among close associates who each decide to pay a specified amount each month into a pot which is then given to a different member each month until everyone has received the pot. Receiving the pot can help pay for emergencies, down payments, repairs, and other expenses which may not have been affordable otherwise.

Released by Prosperity Now and Institute on Assets and Social Policy (IASP), this report focuses on the role that policy design can have on closing the country's unrelenting and unacceptable racial wealth divide. The report utilizes a new framework—The Racial Wealth AuditTM—launched jointly by the Institute on Assets and Social Policy at Brandeis University (IASP) and Demos to show what impacts policy initiatives may have on narrowing or widening the racial wealth gap, one of the most pressing dynamics of inequality facing the United States today. Specifically, this report examines education policies that affect financial outcomes in relation to:

• Children's Savings for College and Asset Development

• Student Debt and College Affordability

• Education and Employment Outcomes

Read more.