In Baltimore City today, 20% of households live in poverty, but more than half of the

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1 Building Economic Opportunity in Baltimore: A Data Profile Baltimore Highlights In Baltimore City today, 20% of households live in poverty, but more than half of the city s population 55% is financially vulnerable or liquid asset poor, which means these households do not have enough savings to live above the poverty level for three months if they suffer an income disruption such as a job loss or medical crisis. This exceeds the average percentage of people who are liquid asset poor in the state of Maryland (35%). Communities of color tend to be disproportionally liquid asset poor roughly two in three African-American and Hispanic households in Baltimore City are liquid asset poor. Too many of Baltimore s working families are living in a state of persistent financial insecurity, one emergency away from falling into debt or losing a home. Of households earning less than $25,000 per year, nearly 85% are liquid asset poor. More than 60% of households earning between $25,000 and $50,000 per year are liquid asset poor. The inability to bounce back from financial pitfalls not only hurts Baltimore s families it stifles the city s long-term economic growth. These findings are part of a new data analysis from Family Assets Count, a project of CFED (Corporation for Enterprise Development) and the Assets & Opportunity Initiative in collaboration with Citi Community Development and the Baltimore CASH Campaign. Through cutting-edge data, tools and resources, Family Assets Count leverages the power of cities to improve financial stability for families. The analysis spotlights a range of challenges confronting Baltimore s vulnerable families: Liquid asset poverty is greater in households led by someone with no education above a high school diploma. Seventy percent of households headed by someone with only a high school degree are liquid asset poor, as opposed to 29% of households headed by a person with a Bachelor s degree. 78% of single-parent households and 65% of households with children live in liquid asset poverty. Almost 40% of Baltimore households are identified as unbanked or underbanked. 52% of households have subprime credit, meaning they do not have a high enough credit score to borrow money at affordable rates. Almost 30% of Baltimore s population receives the federal Earned Income Tax Credit (EITC), but less than four percent utilize free tax preparation services to receive their refund. Through cutting-edge data, tools and resources, Family Assets Count leverages the power of cities to improve financial stability for families and advances programs and policies that reduce barriers and encourage families to save and build assets. For more information and data, visit FamilyAssetsCount.org. LIQUID ASSET POVERTY 55% of households don t have enough savings to live above the poverty line for three months ASSET POVERTY 37% of households don t have enough net worth to live above the poverty line for three months CREDIT 23% of adults don t have a credit file and credit score SUBPRIME CREDIT 52% of credit users have subprime credit scores

2 MEASURING FINANCIAL INSTABILITY The concept of asset poverty serves to broaden our definition of financial instability to include not only what a family earns, but also what it saves and owns. Rates of liquid asset and asset poverty are typically far higher than income poverty, demonstrating the pervasiveness of the issue. A family of four in 2016 is... INCOME POOR LIQUID ASSET POOR ASSET POOR Don t earn income above the federal poverty level Don t have 3 months of savings to live above poverty level (money in bank accounts, stocks, mutual funds and retirement accounts) Don t have 3 months of net worth to live above poverty level (total assets total liabilities) IF WHAT THEY EARN IF WHAT THEY SAVE IF WHAT THEY OWN is below $2,021/mo is below $6,063 is below $6,063 ECONOMIC OPPORTUNITY AGENDA FOR Helping families out of liquid asset poverty can help ensure they can get ahead, not just get by. The Baltimore CASH Campaign, Citi Community Development and CFED are working to create opportunities for individuals and families in Baltimore to build financial security, enabling communities to prosper. Strategies to create these opportunities include: Working with the next Baltimore Mayor to make financial inclusion, including the establishment of clear benchmarks for tracking progress, a top priority for their administration. Identifying leadership within the Mayor s office to oversee and champion programs and policies that promote financial inclusion. Building and investing in programs that help families build their savings and assets. Identifying programs such as workforce training, housing and others into which financial capability services can be integrated. Expanding Volunteer Income Tax Assistance (VITA) sites, which provide free tax preparation services to financially vulnerable Baltimoreans and connect them with the tools and supports they need to take full advantage of tax credits like the Earned Income Tax Credit, which puts more money back in the pockets of hard-working families. 2 PUBLISHED MARCH 2016 For more information and data, visit FamilyAssetsCount.org.

3 WHO IS LIQUID ASSET POOR IN? Liquid asset poverty means there is no slack in a family s budget. If a liquid asset poor family faces an unforeseen expense, such as a car repair or medical bill, they may have to borrow to cover the tab. Liquid asset poverty also means deferring future financial security whether that is saving for retirement or investing in a home or college education. HOUSEHOLDS IN LIQUID ASSET POVERTY 55% On nearly every measure of household financial security, Baltimore ranks below the state and national averages. Fifty-five percent of Baltimore households are liquid asset poor, and those most likely to be affected are households of color, low-income households, households headed by single parents and those without a college degree. 3 85% 62% Below $25k White BY RACE & ETHNICITY 32% 67% of of Black or African-American BY HOUSEHOLD INCOME 65% Hispanic or Latino 42% 26% 13% $25k-50k $50-75k $75k-100k Above $100K of Advanced Degree BY EDUCATION 20% 29% Bachelor s Degree Associate s Degree or Some College Only High School Degree Only BY POVERTY STATUS 46% Households above the poverty line 2011 POVERTY LINE (family of 4): $23,850 88% Households below the poverty line 56% 70% BY HOUSING 38% of Homeowners 70% of Renters BY AGE OF HOUSEHOLDER 55% 53% < 35 years old years old 56% 52% years old years old BY FAMILY STATUS Married households Households with Children Single-parent households 36% 65% 78% Note: Estimates not published by the FDIC or CFED s Assets & Opportunity Scorecard are derived from a statistical model to create geographic estimates at the local level and are not meant to directly reflect the FDIC or SIPP data. Caution should be used in interpreting the local estimates as the statistical model is based on national surveys of fewer than 50,000 households. For more information and data, visit FamilyAssetsCount.org. PUBLISHED MARCH

4 POPULATION AND DEMOGRAPHICS Total Population 621,836 5,884, ,861,723 White 175,028 3,157, ,212,409 Black or African American 388,942 1,709,404 38,418,235 Asian 15, ,348 15,416,646 Hispanic or Latino 27, ,485 52,952,497 Total Households 242,243 2,149, ,731,304 White 79,105 1,262,481 80,761,578 Black or African American 145, ,433 13,977,892 Asian 6, ,963 4,839,422 Hispanic or Latino 7, ,364 13,945,351 Population with Disability 15.8% 10.4% 12.3% U.S. Citizenship Rate 95.4% 92.5% 92.9% Speak English Less Than "Very Well" 3.4% 6.3% 8.6% HOUSEHOLD FINANCES Asset Poverty 37.3% 23.0% 25.4% Liquid Asset Poverty 54.8% 34.8% 43.5% Households with Zero Net Worth 25.8% 16.2% 17.0% Median Household Income $40,798 $72,345 $52,176 White $60,113 $81,926 $57,431 Black or African American $32,528 $57,012 $34,560 Asian $45,852 $91,394 $71,580 Hispanic or Latino $45,422 $60,750 $41,107 Income Poverty Rate 19.8% 7.2% 11.7% White 9.0% 4.2% 7.3% Black or African American 24.4% 12.3% 23.9% Asian 12.3% 6.4% 9.6% Hispanic or Latino 21.4% 11.7% 22.8% Unbanked Households 14.5% 4.8% 7.7% Underbanked Households 25.4% 23.9% 20.0% Adults with Credit File and Score 77.0% 93.8% 92.5% Consumers with Subprime Credit 52.3% 34.2% 34.2% On-Time Payers 69.2% 78.8% 79.2% - indicates that no data is available 4 PUBLISHED MARCH 2016 For more information and data, visit FamilyAssetsCount.org.

5 USE OF SERVICES Households Receiving SNAP 25.2% 10.7% 13.4% Households Receiving Public Assistance 6.7% 2.7% 2.9% Households Receiving SSI 9.8% 4.3% 5.3% Total Tax Filers Receiving EITC 29.4% 15.8% 20.2% Average EITC Received $2,566 $1,107 $943 EITC Returns Prepared By Volunteer 3.6% 2.4% 2.8% EITC Returns Prepared by Paid Preparer 52.4% 51.9% 55.2% EITC Refunds Received through Direct Deposit 88.3% 82.0% 83.4% EMPLOYMENT AND BUSINESS OWNERSHIP Labor Force Participation Rate 62.3% 68.8% 63.8% White 66.0% 66.5% 63.3% Black or African American 59.6% 69.1% 62.1% Asian 70.4% 69.4% 65.3% Hispanic or Latino 73.3% 78.2% 67.4% Unemployment Rate 11.8% 7.2% 7.2% White 5.7% 5.1% 5.8% Black or African American 18.1% 11.1% 13.2% 5 Asian 3.6% 5.3% 5.6% Hispanic or Latino - 7.6% 8.4% Average Annual Pay $59,924 $55,391 $51,361 Microenterprise Ownership Rate 16.1% 16.2% 16.6% Self-Employed Workers 5.4% 8.2% 9.7% Vehicle Non-Availability by Working Household 19.2% 5.4% 5.2% HOUSING AND HOMEOWNERSHIP Homeownership Rate 47.1% 66.8% 64.0% White 59.2% 76.4% 71.5% Black or African American 42.7% 51.1% 42.7% Asian 29.1% 67.1% 57.5% Hispanic or Latino 27.8% 49.0% 45.8% Cost Burdened Renters 55.7% 51.8% 52.3% Cost Burdened Owners 39.3% 34.1% 34.2% Affordability of Homes indicates that no data is available For more information and data, visit FamilyAssetsCount.org. PUBLISHED MARCH

6 EDUCATIONAL ATTAINMENT Less than High School 19.1% 11.0% 13.7% High School Degree or Higher 80.9% 89.0% 86.3% White 86.9% 92.6% 91.4% Black or African American 78.2% 88.1% 83.1% Asian 91.0% 89.6% 85.7% Hispanic or Latino 61.3% 62.9% 64.0% Associate's Degree or Some College 24.1% 26.1% 29.1% Bachelor's Degree or Higher 27.5% 37.1% 29.1% White 50.0% 41.9% 32.5% Black or African American 13.8% 26.3% 18.8% Asian 67.9% 60.9% 50.7% Hispanic or Latino 24.8% 20.9% 13.7% Graduate or Professional Degree 12.9% 16.8% 10.9% ASSET POVERTY Asset Poverty Rate 37.3% 23.0% 25.4% Renter 62.2% 51.2% 54.3% Homeowner 9.1% 6.0% 6.3% White 20.3% 12.9% 16.7% Black or African American 45.6% 34.9% 43.5% American Indian and Alaska Native 45.2% 30.1% 35.4% Asian 32.9% 13.8% 18.6% Hispanic or Latino 45.8% 34.7% 40.8% Less than High School 55.5% 40.9% 41.6% High School Diploma 44.6% 26.7% 26.7% Some College 37.0% 23.3% 24.4% Bachelor's Degree 22.3% 12.6% 13.4% Advanced Degree 17.1% 9.1% 9.7% Age < % 38.2% 42.1% 35 <= Age <= % 24.3% 27.1% 45 <= Age <= % 17.6% 20.1% 55 <= Age <= % 12.9% 14.7% Married 19.3% 10.8% 13.4% w/kids 45.6% 24.5% 28.4% Single Parent 57.3% 41.4% 45.3% HH Income < $25k 60.3% 48.2% 45.9% $25k <= HH Income < $50k 37.9% 30.5% 27.2% $50k <= HH Income < $75k 27.2% 22.2% 19.0% $75k <= HH Income < $100k 16.9% 13.6% 11.7% HH Income > $100k 8.8% 6.1% 5.7% In Poverty 68.0% 57.0% 55.0% Above Poverty Line 29.2% 17.6% 18.8% - indicates that no data is available 6 PUBLISHED MARCH 2016 For more information and data, visit FamilyAssetsCount.org.

7 LIQUID ASSET POVERTY Liquid Asset Poverty 54.8% 34.8% 43.5% Renter 70.2% 58.3% 64.1% Homeowner 37.8% 23.2% 27.8% White 31.6% 24.0% 31.7% Black or African American 67.4% 52.5% 64.9% American Indian and Alaska Native 58.6% 42.4% 53.0% Asian 43.4% 27.1% 34.9% Hispanic or Latino 65.1% 59.8% 68.5% Less than High School 82.3% 71.5% 75.3% High School Diploma 70.0% 49.3% 51.5% Some College 56.0% 37.6% 40.5% Bachelor's Degree 29.2% 18.3% 20.2% Advanced Degree 20.0% 12.8% 14.0% Age < % 45.0% 52.5% 35 <= Age <= % 34.8% 41.1% 45 <= Age <= % 30.5% 36.3% 55 <= Age <= % 28.5% 33.7% Married 35.6% 21.9% 28.0% w/kids 64.7% 39.0% 46.1% 7 Single Parent 78.4% 61.8% 68.6% HH Income < $25k 84.6% 77.4% 76.5% $25k <= HH Income < $50k 62.0% 53.8% 51.3% $50k <= HH Income < $75k 42.3% 36.8% 33.9% $75k <= HH Income < $100k 25.6% 21.8% 19.7% HH Income > $100k 13.1% 10.9% 10.1% In Poverty 88.4% 83.5% 83.3% Above Poverty Line 46.4% 30.4% 34.7% For more information and data, visit FamilyAssetsCount.org. PUBLISHED MARCH

8 BUILDING A PLATFORM FOR FINANCIAL SECURITY IN Municipalities across the country have begun to recognize the necessity of implementing citywide financial inclusion efforts. Evidence from other cities shows that programs that aim to revitalize neighborhoods, help people get jobs, reduce crime and improve education are more effective when coupled with a municipal strategy that develops long-term financial security. While there are a variety of nonprofit and government programs working to address poverty in Baltimore, a citywide platform that supports the integration and growth of financial security efforts is needed. Leaders from all sectors in Baltimore can learn from what others around the country are doing to promote and integrate financial security into their revitalization efforts. A recent study from the National League of Cities identified the following four common elements of the most successful municipal strategies: 1. A local elected official serving as a champion for financial inclusion 2. A structural anchor or home for financial inclusion strategies, such as a dedicated office or city staff 3. A cluster of financial inclusion efforts that provide pillars upon which new and more innovative programs can be built 4. A diverse group of partners and stakeholders that include city offices, community organizations, financial institutions and funders working in coordination The Baltimore CASH Campaign agrees that these are the core elements needed in Baltimore to give families a firm financial footing. In the coming months, Baltimore CASH will convene its coalition partners, interested stakeholders and city leaders to learn about what is working in other municipalities to promote financial security. Through these convenings, participants will be asked to identify a set of recommendations and priorities that would move a financial inclusion agenda forward in Baltimore. Enabling these recommendations at the municipal and state levels will become central to Baltimore CASH Campaign and its coalition moving forward. The Baltimore CASH Creating Assets Savings and Hope Campaign was formed in the fall of 2001 with a mission to increase the financial security of low-income individuals and families by providing direct services and leading a coalition of partners. The coalition partners include foundations, nonprofits, community-based organizations, Baltimore City government, the Internal Revenue Service and hundreds of volunteers. Since inception, Baltimore CASH has served over 190,000 families through its free tax preparation and financial education programs, resulting in over $200 million in refunds and tax credits all of which gets invested back in the local economy. To get involved please contact Sara Johnson at Baltimore CASH (sara@baltimorecash.org). 8 PUBLISHED MARCH 2016 For more information and data, visit FamilyAssetsCount.org.

9 DATA MEASURES & SOURCES Data Measure Measure Description Source Population Demographics Total Households Total Population Population with Disability U.S. Citizenship Rate Speak English Less Than "Very Well" Total number of households Total population Percentage of population living with a disability Percentage of population that are U.S. citizens Percentage of population that speaks English less than "very well" Median Household Income Median household income in the past 12 months Income Poverty Rate Percentage of all families with income in the past 12 months below the federal poverty threshold Household Finances Unbanked Households 9 Underbanked Households Adults with Credit File and Score Percentage of households lacking both a checking and savings account Percentage of households that have a checking or savings account but have used non-bank money orders, non-bank check-cashing services, payday loans, rent-to-own agreements, or pawn shops at least once or twice a year or refund anticipation loans at least once in the past five years Percent of adult Census population with a credit file and a credit score in FDIC National of Unbanked and Underbanked Households, for US, States, DC and 71 largest MSAs. Local Estimates: Estimates at smaller geographies are derived from CFED s statistical modeling process using the FDIC and American Community data. The figures are geographic estimates and are not meant to directly reflect the FDIC data. Source: 2013 FDIC National of Unbanked and Underbanked Households, for US, States, DC and 69 largest MSAs. Local Estimates: Estimates at smaller geographies are derived from CFED s statistical modeling process using the 2013 FDIC and American Community data. The figures are geographic estimates and are not meant to directly reflect the FDIC data. Community Credit: A New Perspective on America s Communities. Source: The New York Fed Consumer Credit Panel/Equifax. New York: Federal Reserve Bank of New York, Consumers with Subprime Credit On-Time Payers Percent of the credit economy with an Equifax Risk Score of less than 660. Percent of the credit economy with a payment history that is current on all credit obligations for each of the past four quarters. Community Credit: A New Perspective on America s Communities. Source: The New York Fed Consumer Credit Panel/Equifax. New York: Federal Reserve Bank of New York, Community Credit: A New Perspective on America s Communities. Source: The New York Fed Consumer Credit Panel/Equifax. New York: Federal Reserve Bank of New York, Households Receiving SNAP Benefits Percentage of households that have received SNAP (Supplemental Nutrition Assistance Program) benefits in the past 12 months Use of Services Households Receiving Public Assistance Households Receiving SSI Total Tax Filers Receiving EITC Percentage of households that have received Public Assistance income in the past 12 months Percentage of households that have received SSI (Supplemental Security Income) in the past 12 months Percentage of tax filers that received an EITC (Earned Income Tax Credit) Brookings Institute analysis of 2013 tax filing data Average EITC Received Average credit received, in dollars, by tax filers who received an EITC Brookings Institute analysis of 2013 tax filing data EITC Returns Prepared By Volunteer EITC Returns Prepared by Paid Preparer EITC Refunds Received through Direct Deposit Percentage of tax returns that received an EITC that were prepared by a volunteer Percentage of tax returns that received an EITC that were prepared by a paid preparer Percentage of EITC refunds received through direct deposit Brookings Institute analysis of 2013 tax filing data Brookings Institute analysis of 2013 tax filing data Brookings Institute analysis of 2013 tax filing data For more information and data, visit FamilyAssetsCount.org. PUBLISHED MARCH

10 DATA MEASURES & SOURCES Data Measure Measure Description Source Employment & Business Ownership Labor Force Participation Rate Unemployment Rate Average Annual Pay Self-Employed Workers Microenterprise Ownership Rate Vehicle Non-Availability by Working Household Percentage of civilian labor force who are employed or unemployed but actively searching for employment Percentage of civilian labor force who are unemployed but actively searching for employment Average annual pay for all workers covered by unemployment insurance Percentage of workers 16 years and over who are self-employed Number of firms with 0-4 employees (non-employer firms plus establishments with 1-4 employees), per 100 people in the labor force Percentage of households (with at least one worker) lacking access to a vehicle U.S. Census Bureau, 2014 American Community U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (2014) CFED calculation based on U.S. Census Bureau, Nonemployer Statistics (2013), County Business Patterns (2008), and Current Population (2013); U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics (2013) Housing & Homeownership Homeownership Rate Cost Burdened Renters Cost Burdened Owners Affordability of Homes Percentage of occupied housing units that are owner occupied Percentage of renter-occupied units spending 30% or more of household income on rent and utilities Percentage of mortgaged owners spending 30% or more of household income on selected monthly owner costs Median housing value divided by median household income CFED calculation based on U.S. Census Bureau, American Community data Educational Attainment Less than High School High School Degree Associate's Degree Bachelor's Degree Graduate or Professional Degree Percentage of population 25 and older who have not completed high school Percentage of population 25 and older who have a high school degree, GED or alternative degree only Percentage of population 25 and older who have an associate's (2 year college) degree or some college Percentage of population 25 and older who have at least a bachelor's (4 year college) degree Percentage of population 25 and older who have a graduate or professional degree Asset Poverty Asset Poverty by Demographic Characteristics Liquid Asset Poverty by Demographic Characteristics Percentage of households without sufficient net worth to subsist at the poverty level for three months in the absence of income Percentage of households without sufficient liquid assets to subsist at the poverty level for three months in the absence of income Estimates calculated by Marin Economic Consulting, based on U.S. Census Bureau's 2008 of Income and Program Participation, Wave 10 (2011) and American Community Estimates calculated by Marin Economic Consulting, based on U.S. Census Bureau's 2008 of Income and Program Participation, Wave 10 (2011) and American Community Family Assets Count is a national project of CFED and Citi Community Development, empowering decision-makers and advocates expanding financial security for vulnerable families in major cities across the US. By providing local data tools and convening key stakeholders, Family Assets Count helps promote the public dialogue and partnerships necessary to advance data-driven municipal solutions to household economic security. 10 PUBLISHED MARCH 2016 For more information and data, visit FamilyAssetsCount.org.