OpportunityTexas Building a Strong Middle Class 2011 RAISE Texas Summit Dallas, TX November 2, 2011 Laura Rosen, OpportunityTexas Coordinator Don

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1 OpportunityTexas Building a Strong Middle Class 2011 RAISE Texas Summit Dallas, TX November 2, 2011 Laura Rosen, OpportunityTexas Coordinator Don Baylor, Jr., Senior Policy Analyst, CPPP 1

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3 Opportunity Digest Join us on Facebook 3

4 OT Releases Ready, Steady, Go! Paper on College Financial Preparation Outlines postsecondary financial barriers in Texas, including high unmet need Makes following program & policy recommendations: Make financial aid adequate & accessible Encourage college savings Improve financial education, screening and planning 4

5 Strategies to Enhance Financial Preparation for College FAFSA Completion Financial Screening = EFC/Unmet Need Estimate College Savings Financial Education 5

6 Promoting Savings Tax-time VITA/Community Tax Centers Help More Texas Children Open Savings Accounts Identify, Inventory & Promote Saver-Friendly Accounts Integrate Texas Saver Enrollment with Financial Education Texas Saves Week (February 19-26, 2012) RAISE Texas Save n Smile Media (Social & Traditional) Outreach & Engagement Sign up Savers Distribute Savings Resources to Clients Offer Incentives to Individuals to Open Savings Accounts 6

7 OpportunityTexas Innovation & Investment Fund Making annual grants to support innovative asset building projects and projects with potential to scale 2011 Investments Texas Council on Economic Education - Smarter Texas Catholic Charities Diocese of Fort Worth Expanded VITA sites into two rural counties in North Texas through a mobile VITA site Foundation Communities, United Ways of Texas Incentivized filers to save in 9 communities across the state 7

8 TY 2010 Savings Project Results 265 filers received incentive, generated participant savings of nearly $30,000 74% of incentive recipients said it was their first time to save a portion of their tax refund Take-up Rate range across VITA sites and incentives - < 1% - 8.5% (Avg=2.1%) Education was the most common reported savings purpose, with over 30% of incentive recipients reporting this savings goal 8

9 Tax-time Savings in Texas Saving Increases at Texas VITA Sites Calendar Year Filers that Split Refund Tax Returns Prepared 93, , (31%) - OpportunityTexas Projects 472 (56%) - Save USA OT Releases Tax-Time Savings Guide Percentage of VITA Filers that Split Refund # VITA Sites Where Clients Saved on Tax Return.08%.80% Total VITA Sites % VITA Sites With Filers that Saved on Tax Return 15% 31% Average Tax Return $1,962 $1,935 9

10 OpportunityTexas Innovation & Investment Fund 2012 Tax-time Savings Grants Foundation Communities ($10,000) United Ways of Texas ($10,000) $25 gift card incentive for purchasing Savings Bond with tax refund Promote tax-time savings incentive projects in your communities! 10

11 TX County and Municipal Average debt outstanding for 9 debt categories including: student loans, first mortgage, and credit cards Trades past due Accounts in bankruptcy Credit limit utilization Credit Score distribution Local Data Available Upon Request Credit Score Data 11

12 Credit Scores in Texas: A Snapshot Texas average credit score is 674, well below the national average (700) 41% of Texas consumers fall into the subprime credit score category (credit score below 660) How Texas Compares to Other States 46 th in average credit score 47 th in share of trades past due 47 th in the share of consumers with poor credit scores (below 580) 50 th in high auto finance debt 12

13 13 June 2009 Credit Scores, Credit & Debt in Texas Counties Average Credit Score Lowest in West, East and South Texas

14 Many of Texas Largest Cities Have Credit Scores Below State Average (674) City Average Credit Score Percentage of Residents with Subprime Credit Score (below 660) Laredo % Brownsville % Lubbock % El Paso % Ft. Worth % Houston % San Antonio % Dallas % Corpus Christi % Amarillo % Austin % 14

15 Update on HHSC s Self Service and Community Partner Portals Medicaid TANF SNAP $ MEPD YourTexasBenefits.com Applicants Provide a one-stop shop for HHSC benefits CBOs Online Application Assistance Project Goals Streamline the Eligibility Process Facilitate Application Process for Clients Strengthen Community Partnerships 15

16 Future Enhancements Current Capabilities Self Service and CBO Portal s Online Features 16

17 Project Details & Timeline Community partners will pick level of participation and receive appropriate training & certification (MOU) Pilot of community partner portal (January-April 2012) Soft launch with larger & more diverse groups, including VITA/asset building practitioners that want to provide application assistance (May 2012) 17

18 Texas Regional Opportunity Index Identifies, develops, and compares economic mobility indicators across regions in Texas: County-Based Councils of Government (COG) Three-Tier County Population Groupings Incorporates National (Survey/Census) Data Federal & State Agency Data Proprietary Data Customized Sources & Queries Updated Periodically Beginning in 2012 Final Product: Web-Based Platform with GIS Capability (TROI) 18

19 TROI Landscape Types of County-Level Opportunity Indicators Primary Indicators (50-60): bite-size data points that reflect local outcomes and initiatives to expand economic opportunity. Secondary Indicators (70-80): Background (raw) data on opportunity measures not comparable across counties Widespread Economic Conditions (10-15): macro-level indicators such as poverty and unemployment Opportunity Gap: ways to show demographic disparities for various indicators based upon race/ethnicity; educational attainment, and income, etc. Also Includes Correlations Between Indicators 19

20 60.0% Share of UI Claimants Experiencing Long-Term Unemployment Texas % 59.0% 58.0% 57.0% 56.0% 55.0% 54.0% 53.0% Midland County Permian Basin COG Mid-Major Metro Regions 20

21 Aransas County Income and Financial Stability Indicator Aransas County COG Non-Metro Texas Share of Family Income Spent on Housing and Utilities f 34.8% 31.8% 30.8% 30.5% Share of Total EITC Returns Prepared by Volunteer Agencies 14.6% 5.0% 4.5% 9.6% CHIP Actual Renewal Rate 47.8% 57.6% 56.6% 63.6% Share of Income-Eligible Pop. Receiving SNAP 59% 65.8% 56.8% 51.2% Share of Residents with Food Insecurity 17.0% 17.7% 18.7% 17.1% Share of Low-Income Children (Aged 0-14) Enrolled in CHIP & Medicaid 57.2% 59.7% 53.9% 48.1% 21

22 80% 70% 60% Share of 4 year olds Enrolled in Pre-K 72% Texas 60% 57% 50% 40% 36% 30% 20% 10% 0% Midland Permian Basin COG Mid-Major Metro 22

23 Savings, Assets, & Health Across Counties Indicator Major Metro Mid-Major Metro Non-Metro Texas Bankruptcy Rate Estimated Foreclosure Rate 3.6% 4.1% 4.4% 3.6% % with Sub Prime Credit Score 31.2% 27.6% 33.8% 31.7% Student Debt to Income Ratio 11.8% 12.5% 13.2% 12.6% Credit Card Debt to Total Income 4.8% 5.2% 5.4% 5.2% Share of Mortgages Reported as Subprime 7.6% 8.8% 17.1% 9.1% 23

24 OpportunityTexas Desk Implementation/Rulemaking HB 2615 (Financial Education/HHSC) HB 2594 (Texas Financial Education Endowment) HB 3708 (Save & Match) Texas Saves Week/Tax Time Savings New CPPP Family Budget Estimator HHSC Benefits Access TROI Feedback & Development Innovations in Savings Report Innovation & Investment Fund Announcements 24

25 Laura Rosen OpportunityTexas Coordinator Don Baylor Senior Policy Analyst, CPPP 25

26 Wednesday, November 16 Four Seasons Hotel Keynote Speaker Jim Lehrer 26

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