National Release of the 2014 Assets & Opportunity Scorecard January 30, 2014

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


Most states adopted ¼ to ½ of policies


7 states adopted fewer than one-quarter of

policies

}


}

14 policies have been adopted by more than half

of states


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


Even with strong policies, income

inequality, high cost of living,

demographic diversity make

improving outcomes more difficult


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


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Reflections on the Scorecard from Andrea Levere, President, CFED (@alevere)





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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

Documents

National Release of the 2014 Assets & Opportunity Scorecard January 30, 2014