Urban Institute: Poverty and Safety Net

Improving the Efficiency of Primary Care in Safety Net Clinics: San Mateo County's System Redesign

paffairs@urban.org ( Embry M. Howell, Ashley Palmer ) — Wed, 25 Jan 2012 00:00:00 EST

San Mateo County is one of a small number of innovative local jurisdictions that is expanding coverage for uninsured adults and at the same time undertaking a reform of its safety net primary care system. We evaluated the impact of the systems redesign by comparing outcomes for a group of people served at the largest county safety net clinic prior to systems redesign (2006) to those served at the clinic after systems redesign (2009). Use of any preventive care services in a year climbed from 25.9 percent to 33.3 percent. Continuity of care also rose significantly, and emergency room use declined. The county's experience provides an example for other communities to follow as they improve the efficiency of health care services for the most vulnerable members of society.

Opportunity Still Has Racial Hue

paffairs@urban.org ( Margaret Simms ) — Thu, 19 Jan 2012 00:00:00 EST

Children are more likely to succeed if they have a stable home environment, adequate nutrition and the opportunity to get a good education. Unfortunately, nearly 50 years after the march on Washington, opportunity still has a racial dimension, argues Institute fellow Margaret Simms in this commentary for the Atlanta Journal-Constitution.

National- and State-Level Estimates of WIC Eligibles and Program Reach, 2000-2009

Thu, 19 Jan 2012 00:00:00 EST

The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) provides supplemental nutritious foods, nutrition education, and referrals to other health, welfare, and social services. WIC eligibility is restricted to infants, children age 1 through 4, and pregnant and postpartum women who are either income or adjunctively eligible.

This project extends WIC national eligibility estimates to single years of age for children, produces estimates for each State and the District of Columbia, and updates methods for estimating eligibility in the territories. The project also implemented calculation of standard errors of estimate for national, regional, State, and Puerto Rico estimates.

Modeling Income in the Near Term Version 6

Thu, 12 Jan 2012 00:00:00 EST

This report describes the work the Urban Institute performed to generate the Model of Income in the Near Term, Version 6 (MINT6). MINT is a tool developed for the Social Security Administration (SSA) to analyze the distributional consequences of Social Security reform proposals. MINT is a micro-level data file of individuals born between 1926 and 2075. It starts with a rich set of income and demographic characteristics from the 2001 and 2004 Survey of Income and Program Participation (SIPP) data linked to SSA data on earnings and benefits. MINT then projects these characteristics until death or the year 2099.

Reaffirming the Work Requirement for Noncustodial Parents as Part of TANF Reauthorization

paffairs@urban.org ( Elaine Sorensen ) — Thu, 22 Dec 2011 00:00:00 EST

Research shows that work programs for noncustodial parents can increase employment and child support payments.Yet very few state TANF programs provide these work activities even though the estimated cost of implementing a requirement is zero.Congress needs to reaffirm its intent to impose a work requirement on noncustodial parents through the child support program and clearly state that child support funds may be used to fund the work programs.

TANF Recipients' Implicit Tax Rates from Earnings Disregard Policies

paffairs@urban.org ( Austin Nichols, David Kassabian ) — Wed, 21 Dec 2011 00:00:00 EST

An important dimension of AFDC/TANF programs is the disincentives to work recipients face due to the reduction in benefits that comes with an increase in earnings. These disincentives can be represented as average (implicit) tax rates that depend directly on policy variables including the maximum benefit and the disregard policy in states. To help those interested in better understanding these implicit tax rates, we have provided a dataset of relevant summary variables including the maximum benefit, the effective tax rate on the first $500 of earnings (in 2010 dollars), the effective tax rate on a part-time full-month minimum wage job, and how these measures vary across families of different sizes for each state in each year from 1996 to 2010. The dataset and accompanying tables were derived from the Urban Institute's Welfare Rules Database, and are available as a PDF file (with documentation/discussion) or as an Excel file and Stata dataset.

Wealth, Realized Income, and the Measure of Well-Being

paffairs@urban.org ( C. Eugene Steuerle ) — Thu, 08 Dec 2011 00:00:00 EST

Realized income is a widely accepted measure of well-being. This paper examines the relationship between realized income and wealth and economic income, using a national sample of income tax returns matched with estate tax returns to compare the realized property income of individuals with the with the associated amount of wealth that generates that income. The study demonstrates that with respect to those who hold a significant amount of wealth, realized income is an extremely poor measure of well-being. This leads to inequity in tax and welfare programs. Finally, this study illustrates the usefulness of estate-income collation in studying wealth-income relationships.

Revitalizing Distressed Older Suburbs

Wed, 07 Dec 2011 00:00:00 EST

While much has been written about the decline of central cities, very little research has examined the problem in their suburbs. This report focuses on the suburbs of older industrial cities and how best to address the challenges they face. Using census data, literature review, and four in-depth case studies, the authors provide a detailed portrait of the underlying forces shaping distressed suburbs. It highlights a range of best practices used in case study cities for fostering growth and reducing poverty. These lessons can be instructive both to local leaders working to turn their cities around and to the federal policy makers supporting them.

Unemployment Insurance and the Great Recession

paffairs@urban.org ( Wayne Vroman ) — Mon, 28 Nov 2011 00:00:00 EST

This paper examines the unprecedented funding problem of state unemployment insurance (UI) programs. The majority of UI programs (36 of 53) have borrowed, securing record loan amounts to maintain unemployment insurance benefit payments during 2009-2011. It identifies the causes of the funding problem, discusses borrowing options for states and describes policy responses at both the state and federal levels. State actions have included both tax increases and benefit reductions. Federal policy proposals have addressed the low UI taxable wage base in most states and have offered partial debt forgiveness in return for state actions to improve solvency. To date, policy actions have been slow at both the state and federal levels of government.

Evaluation of the San Mateo County Adult Coverage and Systems Redesign Initiative

Wed, 23 Nov 2011 00:00:00 EST

In 2008 San Mateo County, California launched its Adult Coverage Expansion and Systems Redesign Initiative. The initiative expanded coverage for all uninsured adults below 200 percent of the poverty level and redesigned care in county safety net clinics. The program substantially improved access to care for uninsured adults, as well as improved continuity and quality of care for those served by county safety net clinics. However, access remains a problem for new enrollees, due to restrained provider supply and the economic recession. The report provides lessons for other counties as they expand coverage under national health reform.

Improving State TANF Performance Measures

paffairs@urban.org ( Heather Hahn, Pamela J. Loprest ) — Fri, 18 Nov 2011 00:00:00 EST

Performance measurement is a tool government can use to improve program performance and address accountability. The Temporary Assistance for Needy Families (TANF) program, like many federal government programs, requires measurement of program performance to help ensure federal funds are being used to reach stated program goals. Some states have gone beyond federal requirements and added additional performance measures for their state TANF programs, making them useful laboratories for understanding the possibilities and challenges of broader and varied performance measurement in TANF. This study exploits this opportunity by gathering and synthesizing information from a set of states with more innovative performance measurement systems

The Averages Can Be Misleading: Older Americans and Poverty

paffairs@urban.org ( Sheila R. Zedlewski ) — Tue, 15 Nov 2011 00:00:00 EST

In this commentary for New York Times' Room for Debate, Institute fellow Sheila Zedlewski explains that many of the nation's 41 million seniors live in or very near poverty and many have assets mostly tied up in their houses. Policy makers must be ever mindful of that diversity when considering changes in policy that would affect retirement income security.

How Human Services Programs and Their Clients Can Benefit from National Health Reform Legislation

paffairs@urban.org ( Stan Dorn ) — Thu, 10 Nov 2011 00:00:00 EST

Human services programs-the Supplemental Nutrition Assistance Program, Temporary Assistance to Needy Families, subsidized child care, etc.-and their clients can benefit from national health reform. Millions of low-income health coverage applicants can be connected with human services programs, as the latter programs: (a) help health programs efficiently reach eligible consumers; (b) access unprecedented, time-limited federal funding for modernizing eligibility computer systems while limiting risks to current funding; (c) keep social services offices available as an avenue for seeking health coverage; and (d) use a forthcoming Medicaid expansion to accomplish core human services goals related to employment and child development.

Evaluation Design for the Next Phase Evaluation of the Assets for Independence Program, Final Literature Review

Mon, 07 Nov 2011 00:00:00 EST

Based on our review and synthesis of the individual development account (IDA) literature, findings in this report include that IDA accounts (in the short-term, five years after program entry) help low-income families become homeowners, start or expand a business, or pursue secondary education. Studies to date have found no relationship between IDA program participation and net worth. The report reviews empirical evidence on the effect of IDA program participation and project design features on outcomes and highlights remaining gaps in the literature.

Who are Low-Asset Low-Income Families?

paffairs@urban.org ( Mauricio Soto ) — Mon, 07 Nov 2011 00:00:00 EST

More than a quarter of U.S. families are in the bottom 40 percent of both the net worth and the income distributions. For these families, neither assets nor income offers much protection against financial shocks. This fact sheet describes the characteristics of these families. Low-asset low-income families tend to be younger, single, less educated, in poorer health, and minority.

Today's Children, Tomorrow's America: Six Experts Face the Facts

Tue, 25 Oct 2011 00:00:00 EST

Urban Institute scholars from diverse disciplines tackle a simple-to-state, hard-to-answer question: How can solutions to our national and state budget crises fit the facts about children in the United States? In their responses, the contributors wrestle with recent and approaching economic and demographic challenges in different ways and bring very different experiences to bear.

A Comprehensive Review of Immigrant Access to Health and Human Services

paffairs@urban.org ( Karina Fortuny, Ajay Chaudry ) — Wed, 12 Oct 2011 00:00:00 EST

The Immigrant Access to Health and Human Services study maps and describes the policy context that can affect immigrant access to health and human services and the well-being of immigrants and their children. This paper summarizes federal provisions and key aspects of state-level variation related to immigrants' eligibility for TANF, SNAP, Medicaid, and CHIP based on a review of literature and the latest information. It provides a building block for the fieldwork and in-depth assessment of the policy context around immigrant access to health and human services.

Metropolitan Job Growth Patterns in the Great Recession

paffairs@urban.org ( Daniel Kuehn ) — Tue, 11 Oct 2011 00:00:00 EST

The pace of job growth across the country in this recovery has been slow but not uniform. Metropolitan areas have fared differently, with some experiencing substantially lower job loss than others. This paper examines employment changes across industries that pay low, medium, and high-wages on average by metropolitan area to identify which metros are faring better not only in total employment but in different types of jobs.

Workshop on State Poverty Measurement Using the American Community Survey

paffairs@urban.org ( David Betson, Linda Giannarelli, Sheila R. Zedlewski ) — Tue, 13 Sep 2011 00:00:00 EST

This workshop discussed issues surrounding the potential development of a Supplemental Poverty Measure (SPM) at the state level using the American Community Survey (ACS).Academics and researchers from around the country participated, including experts that have implemented the SPM for eight different areas. The discussion summarized recent experiences and challenges in implementing the SPM on the ACS and geographic adjustments to the poverty thresholds. The summary highlights the key issues and ideas for next steps.

Is the Safety Net Catching Unemployed Families?

paffairs@urban.org ( Austin Nichols, Sheila R. Zedlewski ) — Tue, 13 Sep 2011 00:00:00 EST

The vast majority of unemployed families received some help from core safety net programs in 2009.Among those experiencing unemployment, receipt of unemployment benefits doubled between 2005 and 2009. Enrollment in the Supplemental Nutritional Assistance Program (SNAP) also increased.Public Assistance played a limited role in unemployed families' lives.About 15 percent of low-work, unemployed families got no help from the safety net.The American Recovery and Reinvestment Act (ARRA) of 2009 clearly helped to strengthen the safety net.This extra help has mostly ended, leaving many families to contend with high unemployment and a frayed safety net.

How Do States' Safety Net Policies Affect Poverty?

Tue, 13 Sep 2011 00:00:00 EST

Safety net policies can dramatically reduce poverty.A full assessment requires use of a Supplemental Poverty Measure (SPM) that adds near-cash benefits and tax credits to cash income, deducts necessary expenses, and uses up-to-date, geographically-sensitive poverty thresholds.This analysis implements the SPM in Georgia, Illinois, and Massachusetts to examine the effects of the key safety net programs on poverty.The results show that safety net policies in these three states have substantially different effects on poverty, but federal programs narrow the differences across the states.

Poverty in the United States

paffairs@urban.org ( Austin Nichols ) — Tue, 13 Sep 2011 00:00:00 EST

The U.S. Census Bureau has announced that the poverty rate jumped to 15.1 percent in 2010, up from 14.3 percent in 2009 and 13.2 percent in 2008. This 18-year high still understates the dire straits of many Americans today. The devastation of poverty grows more severe over time as individuals exhaust private resources and temporary benefits.

Unemployment and Poverty

paffairs@urban.org ( Austin Nichols, Thomas Callan ) — Tue, 13 Sep 2011 00:00:00 EST

Poverty is higher among the unemployed. In 2010, 30 percent of the long-termunemployed were poor,and 66 percentof single parents unemployed more than 26 weeks were poor.

Dynamics of Being Disconnected from Work and TANF

paffairs@urban.org ( Pamela J. Loprest, Austin Nichols ) — Mon, 12 Sep 2011 00:00:00 EST

This paper analyses the economic well-being of low-income single mothers who "disconnected" that is neither working nor receiving public assistance benefits (Temporary Assistance for Needy Families Program (TANF) or disability benefits). We find that the percentage of disconnected single mothers increased over time. These mothers are extremely poor and are more likely to have challenges that make work more difficult than other single mothers. In addition, many mothers remain in this situation for a year or more. Some are helped by living with other family members or cohabiting and through receipt of public food and housing benefits.

Vulnerability, Risk, and the Transition to Adulthood

paffairs@urban.org ( Daniel Kuehn, Mike Pergamit, Tracy Vericker ) — Mon, 12 Sep 2011 00:00:00 EST

Growing up poor strongly predicts poverty and poor adult outcomes. This study explores two primary reasons poverty may persist across generations: risk behavior in adolescence and dropping out of high school. Results suggest that risk behavior and dropping out help perpetuate poor economic outcomes for children from single-parent families but are less important for children who grow up in low-income families. The findings suggest that policies directed at reducing youth risk behavior and dropping out can improve economic outcomes when targeted to youth from single-parent households.

Is Poverty Incompatible with Asset Accumulation?

Fri, 02 Sep 2011 00:00:00 EST

Is poverty incompatible with asset accumulation? We examine whether the poor can and do save and whether they are able to build up assets over time. Data are presented from household surveys, as well as from programs targeted at helping families accumulate assets. Presenting and evaluating the state of knowledge provides a new lens on whether the current income-based safety net could better serve poor families by having an asset building component. Conventional thinking is that families that are income poor cannot save. This chapter shows that this thinking is inaccurate; poverty does not have to be incompatible with asset accumulation.

Family Policy Scholar Elizabeth Peters Becomes Director of Urban Institute's Center on Labor, Human Services, and Population

paffairs@urban.org ( Urban Institute ) — Fri, 26 Aug 2011 00:00:00 EST

Elizabeth Peters, the founding director of Cornell University's Population Program, has joined the Urban Institute as the director of its Center on Labor, Human Services, and Population.

Welfare Rules Databook: State TANF Policies as of July 2010

Wed, 24 Aug 2011 00:00:00 EST

The Welfare Rules Databook, provides tables containing key Temporary Assistance for Needy Families (TANF) policies for each state as of July 2010, as well as longitudinal tables describing selected state policies from 1996 through 2010. The tables are based on the information in the Welfare Rules Database (WRD), a publicly available, online database tracking state cash assistance policies over time and across the 50 states and the District of Columbia. The Databook summarizes a subset of the information in the WRD. Users interested in a greater level of detail are encouraged to use the full database, available at http://anfdata.urban.org/wrd.

Less-Educated Continue to Lose Jobs in Recovery-Even in Low-Wage Industries

paffairs@urban.org ( Pamela J. Loprest, Austin Nichols ) — Wed, 24 Aug 2011 00:00:00 EST

In the sluggish recovery, less-educated workers, especially those with a high school degree or less, continue to lose jobs at a substantial rate. This factsheet presents employment changes in the recession and recovery by skill level and industry showing that those with less than a high school degree were hit hardest, even in low wage industries. Gains in the recovery have been concentrated among workers with a college education.

Characteristics of Low-Income Single Mothers Disconnected from Work and Public Assistance

paffairs@urban.org ( Pamela J. Loprest, Austin Nichols ) — Wed, 17 Aug 2011 00:00:00 EST

Families headed by low-income single mothers who are not working or receiving public cash benefits ("disconnected families") are among the most vulnerable in our society. This fact sheet shows that the number of families in this situation is increasing over time. It also describes their income, receipt of noncash benefits like housing and food assistance, living arrangements, and characteristics that may impede work.

What Role is Welfare Playing in this Period of High Unemployment?

paffairs@urban.org ( Sheila R. Zedlewski, Pamela J. Loprest, Erika Huber ) — Wed, 17 Aug 2011 00:00:00 EST

Temporary Assistance for Needy Families (TANF), the nation's cash assistance program for poor families with children, has not played much of a countercyclical role during the current recession. As unemployment has risen, TANF caseloads nationally have grown much more slowly and state TANF caseloads have not tracked state unemployment growth. Program rules and financing structures limit the responsiveness of TANF in a downturn. As TANF reauthorization is considered, this brief details some relatively small changes that could improve the program's effectiveness in future recessions.

Informal and Nonstandard Employment in the United States : Implications for Low-Income Working Families

paffairs@urban.org ( Demetra Smith Nightingale, Stephen Wandner ) — Mon, 15 Aug 2011 00:00:00 EST

The informal economy, meaning employment and production that operate outside the regulatory and tax systems, tends to be overlooked in U.S. policy discussions. When it is considered, it is often viewed in terms of black market (i.e., criminal and illegal) activities, undocumented immigrants, or white-collar tax evasion. Beyond these stereotypes, millions of workers are in various informal employment arrangements performing activities not otherwise criminal in nature. This brief presents background information on the informal sector and policy options that could improve economic conditions for low-wage informal workers and their families.

The Effects of the Safety Net on Child Poverty in Three States

Mon, 15 Aug 2011 00:00:00 EST

In 2008, safety net programs cut child poverty in half in Georgia, Illinois, and Massachusetts. Federal programs that provide the same benefit across the country reduce poverty more in lower housing cost states such as Georgia than in higher cost states such as Massachusetts. Massachusetts's generous TANF policy has a greater impact on child poverty than the TANF policies in the other two states. Estimates are produced using the Supplemental Poverty Measure.

Private Transfers, Race, and Wealth

Fri, 12 Aug 2011 00:00:00 EST

How do private transfers differ by race and ethnicity and do such differences explain the racial and ethnic disparity in wealth? Using the Panel Study of Income Dynamics, this study examines private transfers by race and ethnicity and explores a causal relationship between private transfers and wealth. We examine private transfers in the form of financial support received and given from extended families and friends, as well as large gifts and inheritances. Our findings highlight important differences in private transfers by race and ethnicity: African Americans and Hispanics (both immigrant and nonimmigrant) receive less in private transfers than non-Hispanic whites.

Supplemental Nutrition Assistance Counters High Unemployment

paffairs@urban.org ( Sheila R. Zedlewski ) — Thu, 21 Jul 2011 00:00:00 EST

Supplemental Nutrition Assistance (SNAP) provides assistance to millions of families in the US. This fact sheet describes how, as unemployment rates have climbed, so have the rates of SNAP receipt among older families, families with children, and single adults.

Kids' Share 2011

Thu, 21 Jul 2011 00:00:00 EST

Kids' Share 2011: Report on Federal Expenditures on Children through 2010, a fifth annual report, looks comprehensively at trends over the past 50 years in federal spending and tax expenditures on children. Key findings suggest that the size and composition of expenditures on children have changed considerably, but children have not been a budget priority. Federal expenditures on children in 2010, were 11 percent of the federal budget, slightly higher than in 2009.This increase is temporary, however, with the children's share of the budget expected to shrink to less than 8 percent by the end of the next decade.

What to Do about the New Unemployment

paffairs@urban.org ( Pamela J. Loprest ) — Tue, 19 Jul 2011 00:00:00 EST

This brief provides information on what we as a country can do about unemployment by drawing together information presented in three UI forums about ways to jumpstart the job market, how younger and older workers are faring in and after the recession, and how the safety net needs to be retooled in times of high unemployment.

The Effects of Health Reform on Small Businesses and Their Workers

paffairs@urban.org ( Stacey McMorrow, Linda J. Blumberg, Matthew Buettgens ) — Tue, 21 Jun 2011 00:00:00 EST

This brief consolidates the results of several UI studies addressing the effects of the Affordable Care Act (ACA) on small firms.We find generally positive effects of the ACA on small employers and their workers.Employers with fewer than 50 workers will experience substantial savings on health costs; employers with 50 to 100 workers will seea very small cost increase.The smallest firms are expected to have higher offer rates, resulting in a small increase in employer coverage.Small firm workers and their families will reap substantial benefits from the Medicaid expansion and subsidies to low-income families.

Child Care Choices of Low-Income Working Families

Wed, 08 Jun 2011 00:00:00 EST

This research report presents the findings from a qualitative study of the child care choices of low-income working families in two urban communities. Participants included 86 parents with young children, many of whom were immigrants, English language learners, or parents of children with special needs. We discuss the key themes and variations in family experiences, giving particular attention to parental preferences and the factors that influenced their decisions, within the contexts of their employment and the early care and education programs in their communities. We conclude with policy recommendations that can promote parental access to affordable and high quality care.

Savings and Hardship Avoidance Among Households Headed by People with Disabilities: Implications for SSI

paffairs@urban.org ( Gregory B. Mills, Sisi Zhang ) — Fri, 20 May 2011 00:00:00 EST

For households headed by persons with disabilities, savings can provide near-term protection against hardship. Analysis of longitudinal data from the 2001 panel of the Survey of Income and Program Participation indicates that households with $2,000 or more in liquid assets (interest-earning assets held at financial institutions) are better able to avoid subsequent hardships such as forgone doctor visits and missed utility payments, compared to those with smaller (or no) asset holdings. This evidence has implications for possible increases in the resource limits for the Supplemental Security Income (SSI) program, now $2,000 for individuals and $3,000 for couples.

Reports of Unemployment Compensation in the American Community Survey A Data Note

Thu, 31 Mar 2011 00:00:00 EST

Unemployment compensation (UC), a key part of the social safety net, is not individually reported in the American Community Survey (ACS), an issue for data users wishing to estimate the impact of UC on those in need. Using regression techniques, we predict the share of reported "other" income attributable to UC in the 2008 ACS data for Georgia, Illinois and Massachusetts. We review UC underreporting in the ACS data and discuss one possible method of correction using the Transfer Income Model, Version 3 (TRIM3). We demonstrate the effect of the UC underreporting correction on the poverty rate and poverty gap.

How to Evaluate Choice and Promise Neighborhoods

paffairs@urban.org ( Robin E. Smith ) — Fri, 18 Mar 2011 00:00:00 EST

Living in concentrated poverty stifles the life chances of adults and children. Efforts to transform neighborhoods of extreme poverty into places of opportunity must grapple with concentrated disadvantages including distressed housing, failing schools, joblessness, poor health, and violence. Two federal initiatives seeking to address neighborhood deficiencies simultaneously are the Department of Education's Promise Neighborhoods effort and the Department of Housing and Urban Development's Choice Neighborhoods program. Evaluating these efforts presents many methodological challenges. This brief provides a framework for designing evaluations of Choice and Promise Neighborhoods including key research questions, different research approaches, and components of an evaluation strategy.

Nonprofit-Government Contracting in the Nation's Capital: Challenges and Opportunities

paffairs@urban.org ( Erwin de Leon ) — Tue, 15 Mar 2011 00:00:00 EST

Findings from the Center on Nonprofits and Philanthropys National Survey of Nonprofit-Government Contracting and Grants show that a majority of human service organizations in Washington, D.C. are struggling due in part to challenges posed by working with the government in providing programs and services to District residents. At a forum of nonprofit leaders and government representatives, participants confirmed the studys findings, shed light on issues unique to the city, and proposed initial recommendations to address some contracting challenges.

Partnering with Employers to Promote Job Advancement for Low-Skill Individuals

paffairs@urban.org ( Karin Martinson ) — Wed, 02 Mar 2011 00:00:00 EST

This paper explores the reasons why employer partnerships are important for improving economic outcomes for both low-skill workers and businesses. It identifies the factors that have hindered the growth of these partnerships as well as promising approaches-incumbent worker training and sectoral training-to build partnerships. It concludes with a discussion of policy considerations for creating and sustaining partnerships with employers to provide skill development opportunities.

For Working Poor, Tax Season Brings Rush to Use Refund Anticipation Loans and Checks

paffairs@urban.org ( Urban Institute ) — Fri, 25 Feb 2011 00:00:00 EST

Nearly one in five tax filers getting a refund this tax season, many of whom number among the working poor, are expected to use a refund anticipation loan (RAL) or refund anticipation check (RAC), a new Urban Institute study estimates. A related study investigates how state regulations affect consumer use of payday loans, auto title loans, pawnbroker loans, RALs, and rent-to-own transactions.

Assessing the Evidence about Work Support Benefits and Low-Income Families

paffairs@urban.org ( Gregory B. Mills, Jessica F. Compton, Olivia Golden ) — Thu, 24 Feb 2011 00:00:00 EST

For low-income working parents, benefits received through the Supplemental Nutrition Assistance Program, Medicaid, and child care subsidies provide vital work support. Access to these programs has been restricted, however, by barriers relating to federal and state funding, program policy, and administrative process, complicating program enrollment and benefit retention. As a result, many low-income working families do not receive the multi-program benefits for which they are eligible. This paper provides a strong rationale for the Work Support Strategies demonstration, enabling selected states to design, implement, and evaluate modernization strategies to dramatically improve families' access to a package of work support benefits.

Nine States Chosen to be Laboratories Testing Inventive Ways to Streamline Services for Low-Income Working Families

paffairs@urban.org ( Urban Institute ) — Thu, 24 Feb 2011 00:00:00 EST

In a major effort to tap and foster state capital ingenuity, the Urban Institute has selected nine states to receive $250,000 each in planning grants as part of a five-year initiative with lead funding from the Ford Foundation. Colorado, Idaho, Illinois, Kentucky, New Mexico, North Carolina, Oregon, Rhode Island, and South Carolina were chosen for first-year grants to test inventive ways to streamline services for low-income working families.

Who Needs Credit at Tax Time and Why: A Look at Refund Anticipation Loans and Refund Anticipation Checks

Thu, 24 Feb 2011 00:00:00 EST

Refund Anticipation Loans (RALs) and Checks (RACs) are controversial financial products used by one in seven tax filers. This report presents findings on many of the most important individual and geographical characteristics influencing RAL/RAC use, as well as, insights about product use from tax preparers, RAL/RAC lenders, RAL/RAC tax form software developers, low-cost RAL lenders, and Volunteer Income Tax Assistance (VITA) program sites. The results suggest that factors such as lack of interest income, geographic location, EITC receipt, filing as a head-of-household, income, and living in a poor neighborhood, each independently contributes strongly to RAL/RAC use.

Prohibitions, Price Caps, and Disclosures: A Look at State Policies and Alternative Financial Product Use

paffairs@urban.org ( Signe-Mary McKernan, Caroline Ratcliffe, Daniel Kuehn ) — Thu, 24 Feb 2011 00:00:00 EST

Using new nationally representative data from the National Financial Capability State-by-State Survey, this paper examines the relationship between state-level alternative financial service (AFS) policies (prohibitions, price caps, disclosures) and consumer use of five AFS products: payday loans, auto title loans, pawn broker loans, RALs, and RTO transactions. The results suggest that more stringent price caps and prohibitions are associated with lower product use and do not support the hypothesis that prohibitions and price caps on one AFS product lead consumers to use other AFS products.

Summary on Developing a Research Agenda on Small-Dollar Credit and Financial Empowerment

paffairs@urban.org ( Signe-Mary McKernan, Jessica F. Compton ) — Thu, 24 Feb 2011 00:00:00 EST

The U.S. Department of the Treasury gathered 50 foundation representatives and researchers from academia, government, the nonprofit sector, and industry to participate in the convening Developing a Research Agenda on Small-Dollar Credit and Financial Empowerment.This summary provides key insights from the one-day event including discussions on both the demand for and supply of small-dollar credit and what participants identified as research needed to inform policymaking in order to address the challenges related to meeting the small-dollar credit needs of underserved populations, notably low- and moderate-income individuals.