Rourke O'Brien: All Publications, Events and Press

The Assets Agenda

Asset Building — Thu, 07 Aug 2008 12:25:00 -0400

The current economic downturn, triggered in part by excessive household debt and deflating housing prices, underscores the central role asset ownership plays in the economic security of American families and the broader economy. Broad asset ownership, whether through savings or investment, has the potential to connect economic opportunity with economic security and ensure that every member of society is afforded a real stake in the commonwealth. Assets are important not only because they can be deployed productively or tapped to help individuals and families weather unexpected events, but because they have behavioral effects that can change the manner in which people think about and plan for the future.

Past efforts… more

Paying City Students Is a Wise Investment

Ron Tang — Fri, 27 Jun 2008 04:59:00 -0400

Summer has arrived in Baltimore, and so has summer school -- bringing with it a chance for students who improve on their High School Assessment exams to pocket something more than academic success. A few months ago, Baltimore schools CEO Andres Alonso unveiled a controversial proposal to improve city schools: Pay students to perform. It's a simple idea that has generated quite a bit of controversy from purists who cringe at the thought of paying students to learn and from realists who believe there simply must be a more effective way to spend $1 million in a failing school system.

Yet… more

Wheels Versus Welfare

Ron Tang — Thu, 19 Jun 2008 02:36:00 -0400

With falling home prices, rising food and fuel costs and an unemployment rate well above the national average, the current economic downturn may push already vulnerable California families to the brink of financial destitution. Thousands of people may turn to welfare for support in the coming months. That's OK -- that's the purpose of temporary assistance. It's not as if this is the money-for-nothing welfare of the early 1990s; these folks are required to start looking for work the second they land on the rolls. Yet to qualify for assistance, many families may be forced to give up the most… more

Golden Dream Accounts

Asset Building — Wed, 14 May 2008 11:11:00 -0400

As the percentage of workers covered by traditional employer pension plans has plummeted in recent years, saving has become the only path to secure retirement income beyond social security. Although a significant proportion of employers now offer their workers a tax advantaged retirement savings product like the 401(k), tens of millions of workers nationwide simply do not have access to an employer sponsored retirement savings plan. In addition, individual retirement accounts (IRAs) and other retirement products offered by private financial institutions have failed to fill the gap in employer coverage, in part due to the high fees and complexity… more

The Assets Report 2008

Asset Building — Wed, 12 Mar 2008 01:03:00 -0400

The purpose of this annual report is to summarize and take stock of the current state of federal policy through an asset-building lens, especially as it affects the asset base of families with lower incomes and fewer resources, which is the focus of our work. The report is divided into three sections. The first is a review of policy developments from the past year related to asset building, highlighting administration action and significant legislation, including assets-related bills introduced in the first year of the 110th Congress; the second is an examination of the President’s budget proposals for Fiscal Year… more

Saving Promises

Asset Building — Wed, 19 Dec 2007 10:14:00 -0500

For the first time since 1952, the absence of incumbents vying for the nomination of each major party has created a wide open race, one where the stakes are remarkably high. This has contributed to an extended campaign process that will last almost two years by the time the presidential election is held in November of 2008. While some lament the length of this campaign cycle, it has generated a great deal of activity in the policy arena as each candidate has sought to articulate their vision for America’s future and proposed policies that will help take us there. … more

Rourke O'Brien in the New York Post on Opportunity NYC

Communications — Tue, 18 Dec 2007 15:08:00 -0500

New America in the News:

More than 1,400 families have collected $740,000 in the first payout from the city's daring two-year experiment that rewards the poor with hard cash for doing good, officials said yesterday.

Another 919 families who enrolled in the "conditional cash transfer" program did not qualify by the first cutoff date, Nov. 15.

But city officials called the initial results of Opportunity NYC a success, noting that the first-in-the-nation initiative had been launched within months of being proposed and is now fully operational. ...

Rourke O'Brien, an asset-building analyst at the New America Foundation, said the complexity of the undertaking made the city's achievement thus far "really impressive."

He said it was especially important that poor people now had access to regular financial services through mandated bank accounts rather than "walking to the check casher down the street." ...

For the complete article, please follow this link.

Technology is Helping Firms Reach Unbanked

Articles — Fri, 16 Nov 2007 11:24:00 -0500

Over a dozen financial institutions have applied to be the issuer of the Treasury Department's Direct Express electronic bank accounts for depositing Social Security and other federal benefits.

The Treasury touts the product as a safer, easier, and more convenient way to receive and access monthly benefits. In part, this is a strategy by the federal government to lower expenses for taxpayers by saving on the issuance of benefit checks. Compared with the 89 cents for sending a check each month, electronic deposits cost a mere 9 cents a transaction — a savings of up to $125 million a… more

Let the Poor Save for Their Future

Articles — Fri, 07 Sep 2007 12:23:00 -0400

In 1990, newspapers around the country profiled the story of Grace Capetillo, a welfare mom from Milwaukee who, after managing to save $3,000 in the bank, was hauled into court by the county Department of Social Services and charged with fraud. Having breached the limit on allowable assets, Ms. Capetillo was found guilty and ordered to pay a fine of $1,000, spend down another $1,000 of the money she had worked hard to save, and promise not to save again if she wanted to stay on assistance.

The country was rightfully outraged; the system was clearly broken. Yet today, 17… more

Restoring the Value of Saving

Articles — Tue, 04 Sep 2007 08:09:00 -0400

The value of saving is finally making a comeback. After years of over consumption and accelerating debt -- and more than two years with a negative personal savings rate -- Americans are finally beginning to fret over their empty coffers and negative balance sheets. As headlines profile subprime borrowers going into default around the country, the average American’s sense of economic security has jumped from unease to panic. As policymakers scramble to develop new policies to bolster working families, echoes calling for the return of the American value of thrift are beginning to grow louder.

Any middle class American will tell… more

To Save, or Not to Save?

Communications — Thu, 26 Jul 2007 05:00:00 -0400

A New America Event
07/26/2007 - 12:00pm

This event is co-hosted by AARP, Center on Budget and Policy Priorities, CFED, National Disability Institute, The Retirement Security Project, Sargent Shriver National Center on Poverty Law, and World Institute on Disabilities.

As more and more Americans are expected to save for their own futures, millions of low-income individuals get conflicting messages from their government: Save, and don't save. Over the last decade a consensus has been emerging among researchers, policymakers, and practitioners about the importance of helping low-income persons save and build wealth. Fortunately, many state and federal programs have emerged to do just that. Yet, with limited exceptions, rules for the nation's public assistance programs aimed at this same group of people - Food Stamps, Medicaid, and TANF, for example - send the exact opposite message: Don't save.

In recent years a number of states - including California, Colorado, Illinois, Ohio and Virginia - have exercised their limited authority to reform asset rules for means-tested programs. At the same time, there has been little action at the federal level - until now. Representative Conyers (D-MI) has proposed legislation that would reform asset limits across several major income-support programs including TANF, SSI and food stamps. Senators Chambliss (R-GA) and Harkin (D-IA) have introduced legislation to liberalize the limit as part of the Farm Bill reauthorization. In his budget proposal earlier this year, President Bush signaled support for asset limit reform in the food stamp program by proposing to exclude retirement savings accounts.

With increasing awareness of the need for asset limit reform - and a real vehicle for improvement in the Farm Bill- the time is right to address the mixed message our government is sending to low-income Americans. Removing the penalty to save will enable more individuals to put themselves on a path to financial independence.

The Congressional Savings and Ownership Caucus is Co-Chaired by Sen. Kent Conrad (D-ND), Rep. Jim Cooper (D-TN), Rep. Phil English (R-PA), Rep. Tom Petri (R-WI) and Rep. Earl Pomeroy (D-ND).

Alan Colmes Interviews Rourke O'Brien on Conditional Cash Transfers

Communications — Tue, 19 Jun 2007 13:41:00 -0400

New America in the News:

ALAN COLMES, HOST: New York City is starting a pilot program to reward poor people for doing good things to break the cycle of poverty. We welcome Rourke O’Brien, policy analyst with the asset building program at the New America Foundation. Rourke, thank you so much for being with us tonight. You’ve written about this new program which is provoking a lot of controversy…

ROURKE O’BRIEN, NEW AMERICA FOUNDATION: Well basically Alan, this program is designed to provide incentives for low income working families to do the basic things that most of us take for granted as being good long term investments. It’s about incentivizing families to take their children to the doctor for regular dental checkups and health visits… you know to incentivize children to study hard in schools, do well on standardized exams…

COLMES: So basically… but it’s taking money now… its not government money as I understand it, yet.

O’BRIEN: Right

COLMES: But it could be. And in fact, I understand Michael Bloomberg who just announced by the way that he is leaving the Republican party…

O’BRIEN: Right

COLMES: That he is actually investing some of his own money in it.

O’BRIEN: Right, yes this is just a two year pilot program and he is trying to try out an innovative idea..

For the complete transcript, please visit the Alan Colmes Show website.

Rourke O'Brien in New York Sun on Conditional Cash Transfers

Communications — Tue, 19 Jun 2007 09:13:00 -0400

New America in the News:

Getting a library card, going to the dentist, and keeping a job will soon yield up to $6,000 a year in bonus cash under a test program that New York City is trying as part of Mayor Bloomberg's anti-poverty initiative.

About 13,000 families will be eligible for the payments, part of a $50 million program whose details were announced yesterday by the deputy mayor for health and human services, Linda Gibbs.

The idea is to offer payments to encourage behaviors that have been shown to reduce poverty. A library card for an elementary or middle school student will bring his parents $50; a preventive dental visit brings $100 for each family member; and a steady full-time job pays $150 extra a month.

Conditional cash transfers have become a popular anti-poverty experiment in the developing world, but New York City's will be the first American attempt...

A policy analyst at the New America Foundation, Rourke O'Brien, said the proposal's unique blend of direct cash transfers and a commitment to personal responsibility could be broadly appealing...

For the complete article, please visit The New York Sun website.

Investing Your Way Out of Poverty

Articles — Sun, 17 Jun 2007 10:54:00 -0400

The mayor of New York’s new antipoverty plan, which is scheduled to begin in the fall, will pay as much as $5,000 a year to poor families to help them meet specific goals like getting regular medical checkups, holding down full-time jobs and attending parent-teacher conferences.

Experience in developing countries shows that such ‘‘conditional cash transfer’’ programs are effective in combating poverty. Those who participate wind up with better education, health and life prospects than those who don’t. Such a program in Mexico -- the initial inspiration for Mayor Michael Bloomberg’s plan -- has had particular success in improving the… more

The Assets Agenda 2007

Asset Building — Wed, 11 Apr 2007 21:48:00 -0400

America’s personal savings rate has been negative for the last two years, a dubious economic feat not achieved since the Great Depression. While many Americans own assets, most of our public policies that support savings and ownership leave out those who own little or nothing. If we are to successfully broaden savings and assets ownership, our policy efforts must be expanded, strengthened, and targeted to those with the greatest need.

The purpose of this issue brief is to summarize a federal public policy agenda to broaden savings and asset ownership opportunities for Americans with lower incomes and fewer resources. It reflects… more

The Assets Report 2007

Asset Building — Thu, 01 Mar 2007 00:29:00 -0500

The purpose of this annual report is to summarize and take stock of the current state of federal policy through an asset-building lens, especially as it affects the asset base of families with lower incomes and fewer resources, which is the focus of our work. The report is divided into three sections. The first is a review of policy developments from the past year related to asset building; the second is an examination of the president’s budget proposals for fiscal year 2008 from an assets perspective; and the third is a forecast of the assets policy issues that may be… more

Eliminating the CalWORKS Asset Limit

Asset Building — Tue, 20 Feb 2007 03:01:00 -0500

For families making the difficult transition from welfare to work, developing assets is critical to achieving true economic independence. In order to prevent a complete backslide to public assistance, low income working families must begin to develop their own safety nets through personal saving for use in the event of an unexpected income shock due to illness or temporary unemployment. As personal saving is essential to achieving self-sufficiency – the stated goal of the CalWORKs program – saving should be encouraged, not penalized, by welfare policy and social service agencies.

To Save, or Not to Save?

Communications — Wed, 15 Nov 2006 21:00:00 -0500

A New America Event
11/15/2006 - 12:00pm

As Americans need to, and are expected to, save more for their futures, millions of low-income Americans are hearing two conflicting messages from their government: Save, and don’t save. Over the last decade a consensus has been emerging among researchers, policymakers, and practitioners around the importance of enabling low-income persons to save and build wealth, and state and federal programs have emerged to do just that. Yet, with limited exceptions, the rules of our nation’s public assistance programs aimed at such persons -- Food Stamps, Medicaid, and TANF, for example -- send the exact opposite message: Don’t save.

The continued use of asset limits in determining eligibility is currently under debate in states across the country. Recent reforms in California, Colorado, Illinois, Ohio, Virginia, and other states demonstrate a real interest to reexamine these rules among both policymakers and welfare administrators. Interest is growing at the federal level as well, in particular around retirement savings and in connection with the Food Stamp program.

Video of this roundtable discussion, which focused on opportunities to work together to reform asset limits at the state and federal levels, is available at right, while an MP3 audio recording can be downloaded below.

Ineligible to Save?

Asset Building — Fri, 15 Sep 2006 19:48:00 -0400

For families making the difficult transition from welfare to work, developing assets is critical to achieving true economic independence. In order to prevent a complete backslide to public assistance, low income working families must begin to develop their own safety net through personal saving for use in the event of an unexpected income shock due to illness or temporary unemployment. As personal saving is essential to achieving self-sufficiency – the stated goal of our national welfare program – one would expect saving to be emphasized and encouraged by social service agencies. This, however, is decidedly not the case. In reality… more

Mixed Messages Inhibit Escape From Welfare

Articles — Thu, 31 Aug 2006 21:50:00 -0400

The recent 10-year anniversary of welfare reform provided an opportunity for both Democrats and Republicans to claim victory. President Clinton recently described how political compromise by both parties led to one of the crowning achievements of his Administration.

There’s one problem with this assessment -- the work’s not done. Despite the lauded overhaul of 1996, Temporary Assistance for Needy Families (TANF) policies are failing to promote the primary goals of welfare reform in two important ways: economic independence and personal responsibility. This is because TANF rules across the country send a series of mixed messages that make it harder for many… more