Indiana has the dubious distinction of being one of 14 states that has not eliminated asset limits for the Supplemental Nutrition Assistant Program(SNAP), formerly known as food stamps. Under current law, prospective SNAP beneficiaries must prove they have fewer than $2,250 in assets – or $3,250 for households with a member who is 60 years old or older or is disabled – to qualify for the program. If a household’s assets exceed this amount, they must spend down savings or sell off assets to become SNAP eligible. Although some may argue low income families with savings do not deserve to receive government benefits, there are many good reasons for eliminating asset limits.

To begin with, food insecurity is endemic in Indiana. In 2013, over one million Hoosiers were food insecure, equaling about 15 percent of the population. Extensive research shows that food insecurity negatively impacts the economy and health, particularly for children. As a low cost intervention, with an average monthly benefit of $122 per individual, SNAP has been found to reduce food insecurity, alleviate poverty, and reduce obesity. Expanding SNAP eligibility is both good policy and the compassionate thing to do.

Not only do asset limits discourage saving, they also limit families’ ability to be self-sufficient. The SNAP program has a cliff effect, where benefits drop out after a family’s income exceeds 130% of the federal poverty line. Requiring families to have no more than $2,250 in savings or assets makes coming off of the SNAP program risky. According to Prosperity Now, a family of four with assets less than $5,963 was considered liquid asset poor in 2014. Clearly, there is a significant gap between the current asset limit and what is needed for a family to weather a three month period at the poverty level.

We know from other states that eliminating the asset test simplifies the application process, leading to administrative efficiencies. For example, Pennsylvania’s recent elimination of asset limits was estimated to save the state $3.5 million annually. Mathematica Policy Researchrecognizes the benefits of eliminating SNAP asset limits, writing “Eliminating the asset test simplifies the SNAP eligibility process, reduces State workloads, and reduces errors associated with collecting detailed asset and vehicle information.” And it is not as if eliminating the asset limit will flood the SNAP rolls. Only 897 out of 382,000 applications (0.23%) were denied due to assets in excess of state limits between December 2013 and November 2014.

So what can be done to reduce food insecurity, encourage household savings, and realize administrative efficiency? The solution is simple: implement broad based categorical eligibility (BBCE). States and the federal government share authority to set SNAP eligibility requirements. The Indiana General Assembly should pass a bill to adopt BBCE, allowing applicants to become SNAP eligible by receiving a service funded by the Temporary Assistance for Needy Families program, something as a simple as a brochure or notice on the application about their potential SNAP eligibility. Doing so would make more efficient use of Indiana’s SNAP program and allow it to provide nutrition assistance to Hoosiers who need it while allowing them to save for the day when they don’t.

The Indiana Assets & Opportunity Network was formed to support low-wage workers and to help build asset-acquisition for Hoosiers. With that mission in mind, A&O Network Manager Kelsey Clayton gave testimony today before members of the Indiana General Assembly during a Pensions and Labor Committee meeting voicing concern about Senate Bill 20.  This preemptive bill was introduced by Chairman Phil Boots (R-Crawfordsville) and written, in part to prevent local governments and cities from creating regulations to limit just-in-time scheduling. The intent of SB 20 is to thwart attempts to require more reasonable scheduling practices for workers, many of who are part-time, low-wage earners.

Currently, there is no state solution to just-in-time scheduling, a common practice of employers posting schedules less than a week in advance and giving short-to-no notice in schedule changes. The practice hinders families' abilities to effectively balance family time and obligations, such as childcare, transportation, and continuing education. In 2015, Senator Karen Tallian (D-Portage) introduced SB 416, concerning an employee's right to scheduled employment. The bill was heard, but no action was taken.

The A&O Network conducted a survey in late 2014. The survey respondents were asked to mark the top three business practices that should be changed or expanded to help Hoosiers become financially stable. More than 37 percent identified flexibility and job scheduling as a high priority. This is likely because the typical age of low-wage workers has changed; more than half are between 35 and 64 years old. Indiana policies need to respond to this older and likely more educated workforce.

The A&O Network will track SB 20 and its progress. We will continue to voice concern on the issue and release updates as events warrant.

The Network has identified our top three policy priorities:

Eliminate Asset Limits

The Supplemental Nutrition Assistance Program (SNAP) is the new name for The Food Stamp Program. To be eligible for SNAP, a household's monthly income must not exceed 130 percent of the poverty line or $2,177 for a three-person family in fiscal year 2015, and; a household may not exceed $2,250 in countable resources such as a bank account, or $3,250 in countable resources if at least one person is age 60 or older, or is disabled. Asset limits send a message that saving is a behavior that warrants punishment by forcing families to spend down longer-term savings in order tocontinue to receive SNAP benefits, which creates a cycle of reliance on those benefits. By eliminating the asset limit, we are better able to help families develop good savings behaviors. And it is not as if eliminating SNAP asset limits will swell the rolls. According to Indiana's Legislative Service Agency, only 0.23% of SNAP applications -897 out of 382,000 applications - were denied due to assets in excess of state limits between December 2013 and November 2014. Eliminating asset limits will reduce the administrative burden of verifying reported assets, allowing case workers to pay greater attention to other aspects of their job. States that have eliminated asset limit tests have seen improvedadministrative efficiency post elimination.

Indiana would not be alone if it eliminated the SNAP asset limit test.  In fact, Indiana would join the majority of the country.Forty-two states (including Washington D.C.) have raised or eliminated the SNAP asset limit, and 37 states have eliminated SNAP asset tests altogether. States and the federal government share authority to set or eliminate SNAP asset limits, making it possible for the Indiana General Assembly to pass legislation eliminating the administratively burdensome and costly asset limit tests.

Reform Predatory Lending

Payday loans are small dollar loans that are generally repaid as a lump sum within a short period of time, typically on the borrower’s next payday. To secure collateral, lenders require borrowers to provide either a post-dated check for the principal and finance charges or authorize lenders to withdraw the amount due directly from the borrower’s bank account. Payday loans provide a service for underqualified borrowers at a steep cost. On the one hand, payday lending provides a credit market for people in need of immediate funds, thereby serving a segment of the population that would otherwise be shut out of mainstream financial institutions. On the other hand,researchconsistently shows payday lending leads to debt traps, where borrowers are unable to repay their initial loan and re-borrow to service their debt.

The Indiana General Assembly should require additional truth-in-lending disclosures. For financial markets to function fairly and efficiently, consumers must have adequate information about loan products. Payday loans are marketed as short-term alternatives to tide people over until their next payday but often end up beinglonger-term commitments. Prospective borrowers should have access to information about the borrowing trends of customers at the lender from which they intend to borrow. By seeing that repeat and longer term borrowing is prevalent, prospective borrowers will better understand that they may also fall into the debt trap. To make loan repayment more feasible, borrowers taking out an initial loan should have the option to make installment payments of no more than $100 per month, without extra service fees. The $100 monthly limit is supported by typical borrowers’ stated ability to repay and survey research. According to aPew survey, 49% of respondents said they could not afford to pay more than $100 per month. A differentPew survey found that Americans believed a four-to-six-month repayment period is reasonable for a $500 loan, which equates to about $100 per month.

Preserve and Expand EITC

“There's another fellow," muttered Scrooge; who overheard him: "my clerk, with fifteen shillings a week, and a wife and family, talking about a merry Christmas. I'll retire to Bedlam."
                  - Charles Dickens ‘A Christmas Carol’

First, you may be wondering why I am including this quote as it still certainly doesn’t feel like the holidays in Indiana with the unseasonably warm weather we have been having, but alas the holiday has come and gone. I recently decided I was going to read Charles Dickens classic, “A Christmas Carol,” this holiday season. I’ve nearly seen every film adaptation, but had never taken the time to read the novella. Now after having finished it, I sit here and reflect on the themes within the story as well as the work I am involved with for Goodwill Industries of Central Indiana. I can’t help but find parallels between poverty and generosity, hope versus hopelessness, and connecting past, present, and future. I believe anyone working in direct services can relate to this image in the quote above to the people we serve; individuals with families to take care of, trying to earn a living wage, and maintain a positive attitude despite the circumstance and barriers they face. In a sense, the Cratchit family shares many qualities of families of Indiana we serve. While acknowledging the unfortunate nature of such circumstances, we are connected to resources, as well as one another to make a change from poverty to economic stability.

As the Indiana Assets and Opportunity Network continues to grow, it’s important to take time to reflect on the great work we’re all doing, as well as focus on expanding our efforts, resources, and sharing the message of the Network to other community leaders and agencies. 2015 has been a great year for Goodwill of Central Indiana. We have focused our efforts on a two generational approach. In 2015 we have seen a lot of growth in a number of areas and with our new C.E.O., Kent Kramer, at the helm, we continue to build on the good work. Our Nurse Family Partnership program has served over 1,300 mothers and their families since its inception, and they are expecting the 1,000th baby to be born early next year. They have also expanded to Delaware and Madison Counties, as well as Tippecanoe County.

Two new Excel Centers opened earlier this year and have already graduated students. To date, we have graduated over 2,100 students from our Excel Centers and the Indianapolis Metropolitan High School. We have provided hundreds of certifications and trainings. The certifications offered also continue to expand, which has led to countless employment opportunities. In 2015 across Mission Advancement, including TalentSource, Goodwill Guides, Disability Services, and a number of other programs we have placed nearly 950 people in employment with an average starting wage of $10.00 an hour. We opened retail stores in Noblesville, Bloomington, Columbus, and Stones Crossing. We are slated to open more sites next year. As you can see, there have been a lot of things to celebrate and a lot more successes that I don’t have the time to share, but like any good stewards of change we recognize the work has only just begun.

It is great to reminisce on the many successes of this past year and embrace the present while we can. However, what excites me the most, and I imagine those involved in the Network, is what’s to come in our future. As we define roles, construct new goals, and identify opportunities I believe the sky is the limit as far as the positive impact we can have on Indiana residents. Thinking back on the themes of “A Christmas Carol,” there are many valuable lessons to take away. It’s important to reflect on the past. What we have done right. What we could have done better. It’s important to examine the present. What is working? What connections do we currently have. And most importantly, that we allow both past and present to influence and help guide us as we progress toward the future. Ebenezer Scrooge’s experience transformed him from a greedy misanthrope to a benevolent citizen whose change impacts all of those within his community. He is just one individual, but his transformation touches many lives with a renewed kindness, benevolence, and interest in the well being of his fellow men and women. Imagine all the lives we can touch and change by working together and growing our network. There is a lot of hope, promise, and growth to look forward to in 2016.

Happy Holidays,
David Dalton – TalentSource Employment Specialist/Goodwill Industries of Central Indiana
Steering Committee Member

PRESS RELEASE

HomesteadCS announced today that since 2008, with the help of the Indiana Foreclosure Prevention Network, they have saved over $100 million dollars’ worth of homes from foreclosure and have just received over $800,000 in funding from JPMorgan Chase & Co to develop a new consumer loan program to further their efforts to help families maintain affordable housing. With matching funds, this will bring 1.3 million dollars into our community. The JPMorgan Chase award is part of a $5.1 million grant to the Community Loan Center Coalition of Texas and Indiana. The coalition is one of 5 in the nation that received the Chase PRO Neighborhoods (Partnerships for Raising Opportunity in Neighborhoods) award.

HomesteadCS’ Executive Director, Marie Morse stated, “We are so pleased to have helped save over $100 million dollars’ worth of homes from foreclosure, but we have been concerned about our families’ ability to quickly recover from the economic hardships that put their homes in danger. This very generous grant from Chase allows us to develop one solution to this concern.”

The purpose of the PRO Neighborhood grant is to invest in an employer-based, small dollar loan program that will provide an alternative to payday lending. In Indiana, payday lenders cost consumer over $70 million in in fees annually. On an average 14-day loan, payday lenders charge 365% APR. About 7% of low-income families utilize payday lenders regularly. But it is not just low-income households who are using these services. According to the Consumer Financial Protection Bureau, the median income of payday borrowers is $22,476, but 25% of all borrowers make $33,876 or more.

“The challenges facing our communities require solutions tailored to their specific needs,” said Steven Loy, Vice President, Business Bank, JPMorgan Chase. “HomesteadCS is developing innovative strategies for the needs of Lafayette area families that will connect them to greater economic opportunities and prosperity.”

The Community Loan Center was developed in Texas and is now expanding into Indiana. Prosperity Indiana will act as the statewide coordinator for the Community Loan Center franchise in Indiana. HomesteadCS will serve the Greater Lafayette Market, and Brightpoint in Fort Wayne will serve northeast Indiana.

Community Loan Centers offer affordable loans to consumers while allowing employers an opportunity to offer a valuable employee benefit. Employers pay no direct cost to provide this benefit to their employees and it can increase productivity by reducing employee financial stress and increasing workplace morale.

Several advantages of this loan product is a much lower interest rate, longer term, reporting to credit bureaus to help families increase their credit scores, and access to Homestead’s many financial education programs, including budgeting, credit counseling, tenant and pre-purchase counseling and Bank On Tippecanoe education (which helps families learn how to open and maintain checking accounts).

"We strive to create a community of strong neighborhoods where home ownership and independence are possible for everyone.” said Mayor Tony Roswarski, Mayor City of Lafayette. “The Chase PRO Neighborhoods small leading program will have a significant, local impact by helping a lot of people realize an affordable, sustainable alternative to traditional payday loans. We are excited to partner with Homestead in bringing this opportunity to Lafayette."

About HomesteadCS

HomesteadCS is a 501(c)(3) non-profit organization serving 10 counties in Indiana. For over 30 years we have helped families in these communities achieve affordable housing solutions by providing personal financial education as well as assistance in accessing private, state, and federal resources for their specific housing issues. Thanks to grants and charitable contributions, nearly all of our programs are free. More information is available at www.HomesteadCS.org.

About JPMorgan Chase & Co. in Indiana

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.4 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. In Indiana, JPMorgan Chase & Co. serves many of the states’ most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. It also serves over 1.6 million consumers and small businesses in the state through 185 branches and nearly 470 ATMs, while providing more than $2.3 million to Indiana charities. The firm uses its global resources, expertise, insights and scale to address some of the most urgent challenges facing communities around the world including the need for increased economic opportunity. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

About Indiana Foreclosure Prevention Network

The Indiana Foreclosure Prevention Network is a coalition of community service and housing-related organizations, government agencies, lenders, realtors, and trade associations that are actively addressing Indiana’s foreclosure crisis through a variety of methods. For further information on IFPN or the Hardest Hit Fund, visit www.877GetHope.org.

About Prosperity Indiana

Prosperity Indiana is a statewide organization that supports a network of organizations building vital communities and resilient families. It advocates for public policies and assists members and community partners in developing solutions that engage local leaders in rebuilding and revitalizing Indiana communities and neighborhoods. Prosperity Indiana's more than 200 member organizations rebuild distressed communities in rural, small city, and urban areas in Indiana. Members' lines of business include housing rehabilitation and construction, employment-generating activities, commercial development, housing counseling, industrial and small business development, and human services. Learn more at www.prosperityindiana.org.

For more details:

Marie Morse Executive Director HomesteadCS 765-423-1284 marie@homesteadcs.org

Christine Holevas JPMorgan Chase 312-732-6206 Chrstine.Holevas@jpmchase.com

Website: http://homesteadcs.org

Facebook: www.facebook.com/HomesteadCS

Twitter: www.twitter.com/HomesteadCS

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The Indiana Assets & Opportunity Network's steering committee member Kathleen Taylor, the Convener and Policy Director for Prosperity Indiana provided testimony yesterday at the Indiana State House during the Interim Study Committee on Fiscal Policy on state tax incentives. Included in the testimony was a one-page fact sheet concerning the long-term benefits and impacts of Children's Savings Accounts, as well as support for Indiana Development Account tax credit, Low-Income Housing Exemption, and the Neighborhood Assistance tax credit.

Why Did They Meet? 

The Legislative Services Agency (LSA) authored this thorough tax incentive evaluation following 2014 legislation (HB 1020) mandated the creation of process by which a bipartisan Commission on State Tax and Financing Policy to review and evaluate state and local tax incentives awarded by the state, counties, cities, and towns to encourage economic development or to reward or subsidize a particular action by businesses or other entities receiving incentives.

Below is the full testimony.

October 13, 2015

Dear Chairman Hershman, Vice Chair Brown, and Members of the Committee,

Thank you for the opportunity to respond to the 2015 Indiana Tax Incentive Evaluation.   My name is Kathleen Taylor, and I am the Policy Director and Convener for Prosperity Indiana, a network of 200 non-profit organizations, units of local government, private companies and institutions dedicated to building vibrant communities and resilient families.

On behalf our members, I am here today to share context and feedback on the report’s findings pertaining to tax credits that are critical to community development efforts.  First, Prosperity Indiana would like to commend the Legislative Services Agency for a thorough and balanced approach to evaluating these tax incentives.   While our testimony will offer some critiques of certain assessments within the report, we concur with many of the report’s findings with regards to the effectiveness our state’s tax incentives and agree that these programs should be comprehensively evaluated based on their legislative purpose and outcomes.

At a fragile time in our economic recovery where demand for supportive services for housing stability remains high and asset-building options for low-income families remain limited throughout urban, suburban, and rural Indiana communities, organizations throughout the state continue to rely on flexible resources to help Hoosiers access affordable housing and economic opportunity.  With that in mind, I would like to focus my testimony on three critical areas of focus for our membership: attracting investment in critical community programs, expanding access to affordable housing and promoting asset-building opportunities for low-wealth Hoosiers.

Attracting Investment in Critical Community Programs

Neighborhood Assistance Tax Credit

Prosperity Indiana supports the report’s findings with regards to the effectiveness of the Neighborhood Assistance Program in providing crucial incentives that stimulate charitable giving and leveraging more contributions from individuals and businesses for neighborhood-based programs and projects to improve economically disadvantaged areas and households.

Expanding Access to Affordable Housing

The Low-Income Housing Exemption

While Prosperity Indiana members utilize many programs to help individuals and families find safe, affordable housing such as the HOME Investment Partnerships Program, Section 8 Projec-ased enta ssistance and Section 8 Housing Choice Vouchers, by in large, the largest resources for expanding affordable housing stock are through the Low-ncome Housing Tax Credit (LIHTC) program.  LIHTC is a federal income tax credit that is allocated by the Indiana Housing and Community Development Authority to property owners who agree to restrict occupancy of units to individuals or families with incomes at or below 60% of the area median income (AMI) and to restrict rents (including utilities) to 30% of tenant income.  While the housing market shows signs of improvement for certain areas and households, Indiana is a state that still sorely needs these affordable rental housing options for low- and moderate-income households.

According to the National Low-Income Housing Coalition’s 2014 Out-of-Reach report, an Indiana household must earn $14 dollars an hour or $29,172 annually in order to pay the fair market rate of $729 for a two-bedroom apartment.  Households comprised of minimum- and low-wage earners not at that income level are subsequently left with a deficit of affordable housing options.  As the report states, Indiana leverages the approximately $15 million per year it receives from the Internal Revenue Services with the almost $4 million in savings from the Low-Income Housing Exemption to expand the impact of the federal investment.  In 2014 alone, combined federal investments and the state exemption helped fund nearly 850 housing units and leveraged up to $109 million in private development capital to move forward on new construction, rehabilitation, and adaptive-reuse developments in communities throughout Indiana.

Beyond the report’s findings regarding the financial importance of the exemption’s impact are the implications for spurring additional investment due to its ease of implementation.  For example, the complexity of these financing sources, including rent restrictions on multifamily development with the Section 42 Low Income Housing Tax Credit, means that Prosperity Indiana members often find themselves appealing assessments based on the income capitalization method (IC 6-1.1-4-41).

As the report states, the Low-Income Housing Exemption, which requires the property owner to provide a Payment in Lieu of Taxes (PILOT), represents modest property tax savings, dependin on the county.  For many of our members and for assessors, however, the exemption represents more than a tax savings opportunity.  The exemption is easier to implement and relieves administrative burdens associated with the income capitalization method.

Many Prosperity Indiana members leverage LIHTC resources to develop real estate, both residential and commercial, which grows the local tax base and spurs revitalization in communities across Indiana.  We urge committee members to keep this information in mind when evaluating this exemption’s effectiveness.

Promoting Asset-Building Opportunities for Low-Wealth Hoosiers

The IDA Tax Credit

The Individual Development Account Tax Credit is a unique, innovative program to help low-income Hoosiers build assets, attain self-sufficiency, learn personal financial skills and invest in improving their quality of life.  Specifically, participants receive case management support for financial literacy and empowerment as they save in a matched savings account that can be used to start a business, attain higher education, or buy a home.

Over the past two years, Prosperity Indiana has convened working groups for our members and partners who administer IDA programs.  Those discussions have largely revolved around significant, recent changes to the federal guidelines for IDA funds administered through the Office of Community Services under the Assets for Independence (AFI) program that are detrimental to our members, such as a reduction in the administrative cost reimbursement rate from 20 percent to 15 percent and no longer including homeowner occupied rehabilitation.

Some organizations noted that they could not continue operating the program at these reimbursement levels because of its lack of financial viability due to the investment of intense staff time required for case work and reporting, such as asset goal-specific education, credit repair education, monthly check-ins with clients, and review of purchase plan estimates from participants.

Since Indiana receives a match from AFI for our state funded IDA grant program, we must comply with those changes.  With those policies now in place, the IDA tax credit is now the only avenue that still allows administering organizations the flexibility to receive the 20 percent administrative reimbursement to help clients pursue homeowner occupied rehabilitation. Indiana Housing and Community Development Authority (IHCDA) has reported that, following these federal changes, the tax credits have already become more competitive.

Prosperity Indiana agrees with the report’s findings that, traditionally, low credit usage could be attributed to a lack of awareness of the IDA credit or the program itself.  We have been working this past year with IHCDA to improve marketing and awareness around this opportunity.  We disagree with the report’s findings, however, that low usage may be attributed to the complexity of the tax credit program.  The report’s earlier references to the successes of the Neighborhood Assistance Program (NAP) do not mention any barriers to participation due to complexity; and our member agencies confirm that the IDA program is operated the same way, administered and coordinated by the same staff member at IHCDA.

While we will agree it has not been utilized as much as other tax credits in the past, more Indiana non-profits are turning to alternative options like the IDA tax credit to help eligible, low-income Hoosiers create a path to a more secure financial future.  We support the report’s findings that the credit could induce additional contributions that would not otherwise have occurred.  In addition, several Prosperity Indiana members are able to layer direct state and federal resources, in addition to IDA tax credits, to maximize impact in their communities.

At LaCasa, Inc., the Elkhart County Community Housing Development Organization based in Goshen, Indiana, more than $280,000 in IDA funds were invested by their clients from Elkhart, St. Joseph, Kosciusko, Marshall, Noble and LaGrange Counties by layering all three of those resources.  We urge the Committee to reconsider eliminating this tax credit during this time of policy transition when more community organizations may rely on this resource to help Hoosiers.

The 529 College Savings Program

Included in our written testimony is a fact sheet from the Indiana Assets and Opportunity Network on the impact Child Savings Accounts have in expanding educational and economic opportunity for low- and moderate-income families.  The Assets and Opportunity Network is a program co-led by Prosperity Indiana, the Local Initiatives Support Corporation, and the Indiana Institute for Working Families.  It was formed to help support programs and policies that increase asset acquisition for low-wealth Hoosiers and strengthen local economies.  The Network supports the report’s findings regarding the Indiana 529 College Savings Account Contribution Credit.

Prosperity Indiana believes the tax credits and exemptions specifically addressed in this testimony represent strong community building programs across the state.  Prosperity Indiana can attest to the effectiveness of these investment tools in addressing local needs, enhancing the quality of life in our communities and leveraging financial returns for economic development.

Thank you for your time today. Children’s Savings Accounts (CSA)

Children’s Savings Accounts (CSAs) have shown to expand educational and economic opportunity for low- and moderate-income families. Most CSA programs actively engage young children to think about their aspirations after high school by discussing future career choices, incorporating financial education, and involving family and community in the college bound conversation.

Children with $500 or less saved for college are three times more likely to enroll and four times more likely to graduate college. [I]

Children who are provided a CSA at birth score better on socio-emotional development indicators than their counterparts who did not receive a CSA. These positive effects occur regardless of the amount or frequency of deposits made by parents into the child’s account. [II]

After receiving five hours of classroom-based financial education, students demonstrated greater knowledge of financial concepts, and these knowledge gains persisted one year later. Attitudes towards saving and financial institutions also improved. [III]

Promise Indiana, a CSA initiative, has received national recognition for its innovative efforts in changing the cultural mindset about continuing education.

●      During school enrollment, students K-3 opened CollegeChoice 529 Direct Savings Accounts with a $25.00 seed deposit from the enrollment sponsor Parkview Health.

●      Over 2,200 accounts have been opened so far.

●      Strategically aligned with a regional aim to increase the percentage of the overall population completing college to 60% by 2025 [IV]

●      Almost one quarter of low-income families report saving for college in 529s [V]

●      U.S. Student loan debt topped $1.2 trillion, with 63 percent of Indiana’s graduates carrying an average of $27,500 in debt per borrower. [VI]

[I] Assets and Education, 2013 [II] Huang et al., Effects of Child Development Accounts on early social-emotional development: An experimental test, 2014 [III] Wiedrich et al., Financial Education & Account Access Among Elementary Students, 2014 [IV] Seaman, E., Wabash County Promise becomes pilot program for three Northeast Indiana counties, 2014 [V] Jones-Layman, A., Community counts: Activating all families to save for higher education, 2015 [VI] Institute for College Success, Student Debt and the Class of 2011, 2011

FOR IMMEDIATE RELEASE: September 23, 2015

CONTACT:

Andy Fraizer, Executive Director, Prosperity Indiana, 317.454.8535, afraizer@prosperityindiana.org

Kelsey Clayton, Manager, Indiana A&O Network, 317.454.8540, kclayton@prosperityindiana.org

Prosperity Indiana announced today that it has been awarded a $60,000 grant from the JPMorgan Chase Foundation to support the Indiana Assets & Opportunity Network (Indiana A&O Network), a statewide coalition co-led by Prosperity Indiana, the Indiana Institute for Working Families (IIWF) and the Local Initiatives Support Corporation (LISC).

The Indiana A&O Network aims to increase asset acquisition for low-wealth Hoosiers and to strengthen local economies through policy advocacy and capacity building, in partnership with local organizations and coalitions.

The JPMorgan Chase Foundation’s support will help the Indiana A&O Network continue to address the need for expanded asset-based strategies throughout the state. “Our goal is simple - be the catalyst to meaningful, positive and sustainable change within high need communities,” said Al Smith, chairman of JPMorgan Chase Indiana. “This partnership is an investment in quality of life for these communities.”

The efforts made by the Indiana A&O Network will focus on creating and maintaining financial capability programming, innovative solutions to asset-barriers, and hosting thoughtful facilitations with coalition partners around systemic issues that plague communities.

The Indiana A&O Network has also identified three 2016 policy priorities among its complete list of strategic priorities, which reflect statewide opinion based on a survey conducted at the end of 2014. The priorities include preserving and expanding Earned Income Tax Credits (EITC), eliminating asset limits, and reforming payday lending. The Indiana A&O Network advocates against systems that limit opportunity for success to change the dialogue that negatively impacts self-sufficiency.

Executive Director of Homestead Consulting, Marie Morse said, “As a member of the Indiana A&O Network’s steering committee, we work to find ways to increase assets for low-wealth families. As we helped families work through the past housing and economic crisis, it became increasingly obvious that more needs to be done to help all Hoosier families financially prepare for the future in order to ensure a strong Indiana.”

There are several ways to play an active role in supporting, advocating, and helping to expand asset-based strategies in Indiana: become a Network partner, sign-up for Earn, Save, Invest the Network’s monthly e-newsletter and visit indianaopportunity.net.

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This month, I am celebrating my one-year anniversary at United Way of Central Indiana as Director of Income. What an awesome year it has been! This was a newly created position at UWCI that came about as a result of our transition to become more focused, aligned, and intentional around four areas of community impact – Education, Income, Health, and Basic Needs. While UWCI has always been a partner, ally, and convener in asset-building work, we’ve really taken a “deep dive” into this field over the last year. Professionally, this has been my busiest year yet. UWCI is working closely with our partners, the Local Initiatives Support Corporation (LISC) and Central Indiana Community Foundation (CICF), to transition management and oversight of the local Center for Working Families network to UWCI. We’ve hired new staff and have, for the first time, applied to administer the IRS grant for the Volunteer Income Tax Assistance program in Marion County. In the spring, we piloted our first VITA site in Hendricks County and have plans to expand VITA into Morgan County in 2016. UWCI is also playing a more active role in the work of the Marion County Re-entry Coalition, and we’ll launch our fifth cohort of the Indianapolis Case Management Institute in January.

This flurry of activity over the past year is an indication to me that progress is being made toward our goals for the community. However, 31.4 percent of Central Indiana families are still financially unstable – meaning they are spending more than 30 percent of their monthly income on housing costs. There is more work to be done.

The Indiana Assets & Opportunity Network is relying on you to help us move the needle on financial stability – not only in Central Indiana, but across the entire state. As this Network grows and matures, I am excited to see the partnerships that we will continue to form with one another and the impact that we will have on Indiana communities. On my one-year anniversary in this position, I am taking time to pause and reflect on all that has been accomplished. I invite you to reflect on your year as well. But more importantly, consider how you will spend the next year helping the Indiana Assets & Opportunity Network ensure that all Hoosiers have economic security. You are a critical component to our success!

-Michelle Beer, Steering Committee Member

on the road

Join us at the John H. Boner Community Center on September 15, from 3:30pm-8pm to learn the tools to make an effective car buying decision. There also will be attorneys on site to answer any financial legal concerns you have.

Learn which car is right for you

Discover how to ensure the car is healthy

Prepare for if there are issues after you buy your car

Click the image to the left to learn how to register!

This event is sponsored by the Consumer Advocacy Project.

SEE YOU THERE!

promise indiana

Promise Indiana, a Child Savings Account (CSA) initiative, has received national recognition for its innovative efforts in changing the cultural mindset about continuing education. Promise Indiana began as Wabash County Promise, pioneered by CEO Clint Kugler of the Wabash County YMCA and dedicated allies who saw a need to encourage economic mobility for children in their community.  During school enrollment, students K-3 opened CollegeChoice 529 Direct Savings Accounts with a $25.00 seed deposit from the enrollment sponsor Parkview Health. Over 2,200 accounts have been opened so far.

New America’s Asset Building Program and the Center for Assets, Education and Inclusion (AEDI) at the University of Kansas (KU) recently launched a study on a variety 529s and CSAs around the nation.  Promise Indiana was one of the pilots highlighted in their research. Dr. Elliott, founder and Director of AEDI at KU stated, "We wrote this paper to share the value we see in Promise Indiana's efforts, to more fully articulate the dimensions of a CSA that distinguish it from the 529 instrument." Read the press release here.

The success of the program relies heavily on community champions to help encourage and support students. Watch this short video to learn about the experience students have during each program year to help lift their confidence in the ability to pursue a college education.

The Indiana Assets & Opportunity Network hopes to continue celebrating Promise Indiana as they continue to expand to six more counties in 2016 with the generous support from the Lilly Endowment, Inc. We believe this is an important solution to help children expand opportunities by building financial assets.

If you'd like to learn more, please email me, kclayton@prosperityindiana.org.