January 2015 Newsletter
RAISE Texas News
Happy New Year!
RAISE Texas would like to wish everyone a Happy New Year as we continue to empower families to become more financially successful in 2015. We are excited about all the great work that is going on throughout Texas in the asset-building field. Several pilot projects are underway, a field study, and many discussions about how to help Texans get ahead this year. RAISE Texas will be sure to update our network about all of our work this year, and we hope to hear feedback from YOU about the great work going on in your communities!
RAISE Texas Board Member to be Part of Inaugural Class of the Presidential Leadership Scholars
We would like to congratulate RAISE Texas Board Member, Roy Lopez for being selected for the 2015 Inaugural class of the Presidential Leadership Scholars. He will have the opportunity to participate in approximately 100 hours of informative sessions and case studies that cover expansive approaches to leadership theory, drawing upon examples from recent presidents including President George W. Bush and President Bill Clinton.
Upcoming Trainings Hosted by TSAHC and RAISE Texas
The Texas State Affordable Housing Corporation (TSAHC) is offering several rounds of trainings through the Texas Statewide Homebuyer Education Program. In fact, registration is open for the first round of trainings to be held on February 9-13, 2015 in Austin. The deadline to register for this first training is January 16, so register today!
RAISE Texas is partnering with TSAHC to host an advanced financial coaching training on June 1-3, 2015 in San Antonio. Please mark your calendars to take part in this training!
We Say Goodbye to a Community Leader
RAISE Texas was notified of the passing of our friend and community leader, Elton Payne, on December 17, 2014. Elton was one of the asset-building leaders in the Golden Triangle Area of Texas, and his work and support made RAISE Texas stronger. Elton was the Program Manager for Community Outreach at Lamar University, Beaumont, Texas for over 16 years. He worked diligently with organizations such as the Community Housing Development Organization, the Department of Housing and Urban Development, Entergy Texas, Catholic Charities, the Port Arthur Housing Authority, the Internal Revenue Service (IRS) and over 12 Community Development Corporations (CDCs) to improve neighborhoods and communities throughout Beaumont, Port Arthur, Nome, Liberty, Orange, Winnie and Jasper. Elton partnered with the IRS to bring VITA (Volunteer Income Tax Assistance) sites to the Beaumont area. He received numerous awards during his career, including the Volunteer Service Award given by the President of the United States Council on Community Service. We were thrilled to have the opportunity to work with him on our Community Leadership Team. Our thoughts and prayers go out to his family and the entire Beaumont community. Elton will be missed, but we are thankful for all that he did in his community.
Texas News
Texas Comptroller Released Report on Rising Cost of College and Student Debt
The Texas Comptroller released a report, “Footing the Bill: Rising College Costs, Deepening Debt,” showing that college graduates face years of student debt which will negatively impact the Texas economy. According to the new report, the cost of a college education in Texas is growing at three times the rate of inflation. The higher cost of a college education has resulted in higher student loan debt and higher default rates. In 2012, Texas had a student loan delinquency rate of 20.5% that were more than 90 days delinquent, which was the 10th highest rate in the nation. Click here for more information and to read the policy recommendations for the 84th Legislative session beginning on January 13, 2015.
Texas Appleseed Files Complaint Against Payday Lenders for Breaking Texas Law
Texas Appleseed filed a complaint with the Consumer Financial Protection Bureau, the Texas Attorney General’s Office, the Federal Trade Commission and the Texas Office of Consumer Credit Commissioner. Based on new research, the complaint asks state and federal authorities to investigate and take enforcement action against lenders abusing the law and their customers. Texas Appleseed released new research in December showing more than 1,500 criminal complaints of bad check and theft by check allegations were filed by payday loan companies in Texas between 2012 and 2014. In fact, the research found 13 payday loan companies pursuing criminal charges in eight different counties in Texas. A number of these complaints led to fines, arrest warrants and jail time. However, the Texas Constitution states, “No person shall ever be imprisoned for debt.” Texas Appleseed complains that the payday lenders have been breaking Texas law by pursuing, or even threatening criminal charges against payday and auto title borrowers. Click here to read the press release. Click here to read the complaint.
Best Practices to be Featured at the 2015 FOCUS Summit Financial Education Conference
The Cornerstone Credit Union Foundation (The Foundation) is hosting its annual FOCUS Summit Financial Education Conference in Dallas on February 5-6, 2015. For the first time, the Summit will offer an expo highlighting financial education best practices. The Foundation welcomes attendees to share their financial education curriculum, games, programs, camps, and more with their Arkansas, Oklahoma, and Texas peers who have like passions for teaching financial education. This is a free opportunity to exhibit your best practices! Please notify Staci Zale at szale@cscuf.coop or Cassandra Krumme at ckrumme@cscuf.coop if you wish to participate in the Expo. Tables will be provided on site. Visit www.cscuf.coop/focus_summit.html for more information about the Summit or to register online.
BEWARE- Payday Lending Survey Shows Misleading Results
RAISE Texas and many organizations in our network have been fighting the unfair practices of payday lenders in Texas for years now. It has been brought to our attention that Kennesaw State University put out new research commissioned by the Consumer Credit Research Foundation that finds that “borrowers experienced a net positive financial welfare impact when they faced fewer regulatory restrictions on rollovers.” The study has been picked up by several small papers, including the Atlantic Business Journal that published this story. Keep your eyes open for articles on this study and other misleading information about payday loans.
National News
New 2015 Assets & Opportunity Scorecard to be Released on January 29
As the State Lead Partner in CFED’s Assets & Opportunity Network, RAISE Texas will be releasing and promoting the new 2015 Scorecard for Texas on January 29, 2015. CFED’s scorecards provide detailed information on how each state is doing in the areas of Financial Assets & Income, Businesses & Jobs, Housing & Homeownership, Health Care, and Education. The ratings given to Texas in the upcoming scorecard will be important to our policy work this legislative session as we educate policymakers and other key staff about issues that affect Texas families and it also helps us direct our work in the asset-building field to make the most impact on the financial well-being of Texans. Keep your eyes out for our release on January 29, 2015.
New Children’s Savings Accounts Program Launched in Rhode Island
Newly-elected Rhode Island Governor Gina M. Raimondo, former Treasurer, recently announced a policy change to make college savings more accessible for newborn children in the state. Starting in January, new parents in Rhode Island will have the opportunity to check a box on the birth certificate form to automatically enroll their newborn in the CollegeBoundbaby program and they will receive $100 in the state’s 529 college savings program. Rhode Island is the third state to set up an automatic enrollment program in their 529 programs for young children, joining Maine and Nevada. The Center for Social Development (CSD) advises state officials on making their 529 plans inclusive, and Margaret Clancy, policy director at CSD, recommended that Rhode Island streamline enrollment in the at-birth program. Click here for more information on Rhode Island’s new program.
Congress Passed the ABLE Act
Last month Congress passed the Achieving a Better Life Experience (ABLE) Act of 2014. The ABLE Act allows people with disabilities (with an age of onset up to 26 years old) and their families the opportunity to create a tax-exempt savings account that can be used for maintaining health, independence and quality of life. This is the first time that the federal government has passed legislation that recognizes the added costs associated to living with a disability. Click here to read the announcement from the National Disability Institute, and a breakdown of the ABLE Act.
New Data Analysis Shows Widened Wealth Inequality along Racial and Ethnic Lines
The Pew Research Center released its analysis of data from the Federal Reserve’s Survey of Consumer Finances, and revealed that despite the economic recovery to date, not all households have benefited alike. According to the analysis, the wealth of white households was 13 times that of black households in 2013, which increased from eight times the wealth in 2010. The same increase happened between white households and Hispanic households, as the wealth of white households is more than 10 times that of Hispanic households in 2013 which has increased from nine times the wealth in 2010. The analysis also shows the inequality of wealth by the changes in median wealth of white, black and Hispanic households. From 2010 to 2013, the median wealth of white households increased by 2.4%, while the median wealth of black households decreased by 33.7% and that of Hispanic households decreased by 14.3%. Click here to read the entire analysis.
2013 Financially Underserved Market Size Study Released
CFSI and Core Innovation Capital released the 2013 Financially Underserved Market Size report for download. “The study reveals that financially underserved consumers spent $103 billion in fees and interest revenue in 2013, generated from a volume of $1.3 trillion in financial activity.” The report examines five key trends and provides insights on how to develop high-quality, affordable financial solutions for underserved consumers. Click here to watch the webinar or download the report.
