June 2, 2011
Alan J. Auerbach, Robert D. Burch Professor of Economics and Law, University of California, Berkeley
William G. Gale, Senior Fellow, Economic Studies
We present new estimates of the budget outlook, based on the latest projections from the Congressional Budget Office and the Medicare and Social Security Trustee reports. The medium-term and long-term budget outlook have not changed appreciably since last year. Under reasonable assumptions, the federal government is likely to face deficits in excess of 6 percent of GDP by late in the decade, even with a strong economy, with the debt-GDP ratio reaching 98 percent by 2021. The long-term budget outlook is sensitive to assumptions about how health care spending will respond to recent legislation. However, even under the most optimistic assumptions regarding health care spending, the most likely estimate suggests a long-term fiscal gap of between 6 and 7 percent of GDP. Policy makers and the public will eventually be forced to address these issues, but addressing them sooner rather than waiting until a full-blown crisis hits would allow for more reasonable and gradual adjustments.
Download report here.
Learn more about the Brookings Institution http://www.brookings.edu/
Homeownership and Individual Development Accounts: An Assessment of Recent Research
New America Foundation
Individual Development Accounts are designed to support savings for the purchase of specific assets, such as buying a home, pursuing post-secondary education, or capitalizing a small business, by matching the deposits of program participants. The concept of matched savings has been promoted as a means to broaden asset ownership among populations missed by current policy. Recently, a study was released evaluating the ten-year impacts of a specific Individual Development Accounts program in Tulsa, Oklahoma focused on increasing homeownership. This paper provides commentary on the findings of this new research, raises questions about the state of homeownership as a means of achieving economic security, and critiques the existing policy tools for supporting low-income families to climb up the economic ladder.
Read full paper here.
More about New America Foundation at http://www.newamerica.net/
Paying More for the America Dream V: The Persistence and Evolution of the Dual Mortgage Market
Joint report by:
California Reinvestment Coalition
Community Reinvestment Association of North Carolina
Empire Justice Center
Massachusetts Affordable Housing Alliance
Neighborhood Economic Development Advocacy Project
Ohio Fair Lending Coalition
Paying More for the American Dream V: The Persistence and Evolution of the Dual Mortgage Market, examines changes in conventional refinance lending between 2008 and 2009 in seven metropolitan areas: Boston, Charlotte, Chicago, Cleveland, Los Angeles, New York City and Rochester, NY. It also compares 2009 loan denial rates across neighborhoods. In all seven cities analyzed, lenders denied loan applications at significantly higher rates in communities of color than in predominantly white neighborhoods.
Download full report here.
Diverging Pathways: How Wealth
Shapes Opportunity for Children
Insight Center for Community Economic Development
Racial disparities in households with young children are dramatic
- In 2007, 32% of white households were income-poor and 14.2% had no assets. In sharp contrast, 69% of Latino and 71% of blacks were income-poor and 40% had no assets.
Racial disparities in child outcomes start early and grow over time
- At nine months, all children start out with fairly similar scores on a standard child development test, but by two years of age, racial disparities emerge.
The wealth gap widened for households with children
- Between 1994 and 2007, the wealth gap between white and black households with children increased by $22,000 - almost doubling from $25,000 to $47,000.
- In 2007, black households with children held only 4% of the wealth of white households.
- From 2005 to 2007, black households living with zero or negative net worth (debt) grew from 35% to 39% while it stayed constant at 15% for white households.
Download full report.
To learn more visit www.insightcced.org and www.racialwealthgap.org ____________________________________________
Taking Stock of Ten Years of Researchon the Relationship between Assets and
Children's Educational Outcomes:
Implications for Theory, Policy and Intervention
Center for Social Development at Washington University in St. Louis
Working Papers 2011
William Elliott III, University of Pittsburgh, School of Social Work
Mesmin Destin, Northwestern University, Social Psychology Department,
Terri Friedline, University of Pittsburgh, School of Social Work
This paper has two main goals. First, we provide a review of 38 studies on the relationship between assets and children's educational attainment. Second, we discuss implications for Child Development Accounts (CDAs) policies. CDAs have been proposed as a potentially novel and promising asset approach for helping to finance college. More specifically, we propose that CDAs should be designed so that, in addition to promoting savings, they include aspects that help make children's college-bound identity salient, congruent with children's group identity, and that help children develop strategies for overcoming difficulties.
Download full report here.
Find out more about the Center for Social Development
Building Economic Security in America's Cities: New Municipal Strategies for Asset Building and Financial Empowerment
CFED's latest report, Building Economic Security in America's Cities: New Municipal Strategies for Asset Building and Financial Empowerment, highlights the work cities across the country are doing to educate, empower and protect residents in the financial marketplace. This report represents a comprehensive effort to document the range of municipal policies and programs that are being used to enhance the financial security of low-income families during a time of deep recession. The event included a briefing and panel discussion on the new policies cities are adopting to help their residents achieve economic security.
Read executive summary or full report here.
To learn more about CFED, visit http://cfed.org
The Basic Economic Security Tables for the United States 2010
Wider Opportunities for Women and
Center for Social Development at Washington University in St. Louis,
What does it take for a family in the US to not merely get by, but to have long-term economic security and ongoing opportunities? This was the question that inspired the creation of the Basic Economic Security Tables Index (BEST) and accompanying Report, a joint effort of Wider Opportunities for Women (WOW) and the Center for Social Development (CSD) at Washington University's Brown School. CSD's work on the BEST is part of its Livable Lives Initiative , which investigates social conditions and policy supports that can help make life with a low or moderate income stable, secure, satisfying, and successful. WOW organized and led the development of the BEST, and CSD provided expertise on the saving components.
Read full report.
Learn more about Wider Opportunities for Women
Learn more about the Center for Social Development
The Assets Agenda 2011: Policy Options to Promote Savings and Asset Development
New America Foundation
Reid Cramer, Alejandra Lopez-Fernandini,
Lindsay Guge, Justin King, and Jamie Zimmerman
The purpose of this report is to outline a public policy agenda to broaden savings and asset ownership opportunities for people who have limited resources at their disposal. In developing our thinking on the subject, we have drawn on the research and expert analysis of many others in the field. The agenda we present here includes calls for new structures and policies at the federal level, as well as changes to existing tax systems, government programs, and financial products. Some of these policies
are well developed, others need more seasoning, but all of them have the potential to contribute to the economic well-being of millions of American families. If we are to successfully broaden savings and asset ownership, our policy efforts must be expanded, strengthened, and directed toward those with the greatest need.
Download report here.
More about the New America Foundation at http://newamerica.net/.
Funding opportunities for rural communities, CDFIs and CDCs
Federal grant application periods open now!
Grant application periods are open now for the funding opportunities detailed below.
USDA Rural Development Agency has funding available for the Rural Economic Development Loan and Grant program (REDLG). REDLG supports rural small businesses that create or retain jobs. The deadline to apply is June 30, 2011. Detailed information and the application forms are available through the Federal Register.
The CDFI Fund has opened applications for the annual Bank Enterprise Award (BEA). BEA provides financial awards to FDIC-insured banks for increasing their investments in Community Development Financial Institutions (CDFIs) and/or community and economic development lending activities. The deadline to apply is June 23, 2011. Detailed information and application forms are available through the Federal Register and the CDFI Fund website.
The Department of Health and Human Services (HHS) Administration for Children and Families (ACF) is accepting applications for grants through discretionary funds for Community Economic Development (CED). Funds will be awarded to Community Development Corporations that engage in job creation and business development activities targeting low- and moderate-income individuals. This year, funding will be prioritized for organizations that are participating in the Healthy Foods Financing Initiative. The deadline to apply is July 11, 2011. Detailed information and application materials are available through the HHS website.Or find information on CFED's website
Assets for Independence Announces Grant Application Upcoming Deadline - Jan 2012
The Assets for Independence (AFI) Resource Center invites all non-profit organizations, qualified state and local governments, community development credit unions, community development financial institutions, and other community-based organizations to apply for AFI grants. The upcoming grant application deadline is January 25th, 2012.
The AFI program provides funding to eligible organizations to provide Individual Development Accounts (IDAs) and related supportive services for qualified individuals in their area. Each participant opens an account and receives matched funding from the federal government and another source. The funds can be used for furthering education, purchasing a home, or starting a business. To date, nearly 80,000 families participating in AFI-funded projects across the nation have used their IDA savings to acquire a long-term asset and are on their way to long-term economic success. In addition to the IDAs, typical grantees also provide participants with money management training, assistance resolving credit and debit issues, and other supports.
The AFI Resource Center will host a spring webinar series for prospective grantees and project partners in March through May 2011. The series include several webinars featuring an overview of the AFI program and application process; suggestions for developing strong projects; and strategies for building partnerships with community organizations for bigger impact. You will also have the opportunity to participate in interactive question and answer calls to receive answers regarding your specific project design questions.
To register and learn more about the webinar series visit the AFI Calendar of Events online: http://idaresources.org/Calendar
. Contact the AFI Resource Center for technical support with your application at: email@example.com
or 1-866-778-6037. Visit the Resource Center website at: www.idaresources.org
for more information on the Assets for Independence program, Individual Development Accounts, and other asset building strategies.
AFI Resource Center | Office of Community Serviceswww.acf.hhs.gov/assetbuilding
1-866-778-6037 | firstname.lastname@example.org