California Asset Building: Publications, Events and More

CA Event: Expanding Savings and Retirement Security

Communications — Thu, 22 May 2008 10:00:00 -0400

A New America Event
05/22/2008 - 12:00pm

Every day, six million Californians, or roughly 43 percent of workers in the state, go to work for an employer that does not provide any type of retirement pension or savings plan. This lack of retirement savings opportunities puts California working families at risk. On Thursday, May 22, Mark Iwry of the Brookings Institution will present on the current retirement savings crisis in America -- its causes and the continuing effect it will have on the financial security of working families as well as the state and national economy. Mr. Iwry will also discuss state and national policy options to significantly encourage retirement savings and the accumulation of assets by lower- and middle-income workers.

Mark Iwry is former benefits tax counsel for the Treasury Department. He is an expert on employee benefits, pensions, retirement, savings, and health care, and frequently advises and testifies before Congress on these issues. At Treasury, where he oversaw national policy on tax-qualified pension and 401(k) plans, as well as other employee benefits, Mr. Iwry played a key role in developing many important reforms to the nation's pension system. Mr. Iwry is one of the originators of the concept of state portable retirement savings account for private sector workers.

This event is co-hosted by the New America Foundation, the Assets Policy Initiative of California and the California Research Bureau, in association with Assemblymembers Kevin De Leon (D-Los Angeles) and Joel Anderson (R-La Mesa).

If you have questions, call or email Claudie Kiti Bustamante at (916) 448-5189 or bustamante@newamerica.net.

CA Pension Bill in Sacramento Bee | Plan to Open Up CalPERS Reflects Worry About Inadequate Saving for Retirement

Communications — Fri, 25 Apr 2008 11:58:00 -0400

New America in the News:

Sacramento Bee | Plan to Open Up CalPERS Reflects Worry About Inadequate Saving for Retirement

Investing for retirement is the financial equivalent of eating your vegetables: It's good for you, but sometimes downright distasteful.

Now a proposal making its way through the California Legislature has people talking about whether the state can make putting aside retirement money more palatable.

The plan would let private businesses and workers funnel direct payroll deposits into a retirement investment account. The California Public Employees' Retirement System would administer the pooled money.

No one knows how many of California's 6 million workers without retirement plans would sign up. Many struggle in jobs that leave them with little money at the end of the month. The arcane language of finance can paralyze the uninitiated. And let's face it: We love buying stuff, even when we can't afford it.

"We want everything now," said Lynn Wigginton, a Sacramento certified financial planner. "All the bells and whistles, the newest car. It's a real obstacle to saving for retirement."

The savings plan could change that by making individual retirement investing as close to set-it-and-forget-it as possible.

*Assembly Bill 2940 would let private-sector workers without an employer-sponsored retirement plan sign up for IRAs watched over by CalPERS. The same apparatus used to take taxes out of paychecks would channel direct deposits into the accounts, which could be carried from job to job.

The plan's supporters, including Gov. Arnold Schwarzenegger and author Assemblyman Kevin de León, D-Los Angeles, believe CalPERS is up to the task. It's already the nation's largest public pension fund, managing $250 billion in assets for 1.5 million state and local government workers.

CalPERS hasn't yet commented on the idea. The fund's staff is analyzing the proposal and should make a recommendation to the CalPERS board at its mid-May meeting. . . Please click here to go to the Sacramento Bee website for the full article.

*Background on the pension bill: Advised by New America's Asset Building Program, Assembly Member Kevin De Leon (D-Los Angeles), introduced AB 2940 to establish the California Employees Savings Program. CalESP will provide voluntary and portable retirement savings accounts that workers can freely take with them from job to job. New America’s Asset Building Program has long called for the creation of a portable retirement account that will enable all workers the opportunity to build wealth and achieve financial security.

Financial Literacy: Need, Strategies, Opportunity

Asset Building — Thu, 17 Apr 2008 08:37:00 -0400

CA Event: Financial Literacy - Need, Strategy, Opportunity

Communications — Thu, 17 Apr 2008 08:00:00 -0400

A New America Event
04/17/2008 - 12:00pm

Families across America face a growing array of financial decisions in an increasingly complex financial environment. Consumers are expected to navigate an increasinly complex financial services market in order to save for retirement, higher education and homeownership. Those with low-incomes -- who disproportionately lack both financial know-how and relationships with financial institutions -- are especially vulnerable to being shut out of the financial marketplace.

On Thursday, April 17th, Ellen Seidman, Director of New America's Financial Services and Education Project, presented on the importance of financial literacy for both individual households and the broader macroeconomy and discussed:

Expanding access to wealth-building financial services especially for low- and moderate-income families,
Effective strategies to improve financial education such as the California's Statewide Financial Literacy Initiative
Forging a new responsibility framework for consumer financial services in the 21st century and,
Helping Americans to better manage their debt and make wise financial decisions.

CA Retirement Saving Proposal in Sacramento Bee | California Assembly Panel Passes State-run IRA Proposal

Communications — Thu, 10 Apr 2008 13:15:00 -0400

New America in the News:

Sacramento Bee | California Assembly Panel Passes State-run IRA Proposal

A proposal to open California's retirement system to private sector workers prompted questions Wednesday about government competing with investment firms and the pension system's ability to handle the unique program.

"We just don't know if it's going to work yet," Assemblyman Kevin Jeffries, R-Lake Elsinore, said of the proposal to have the California Public Employees' Retirement System offer IRA accounts to workers whose employers don't offer retirement savings plans.

But Sacramento carpenter Lou Delgado said he would be interested in a CalPERS retirement account.

"I'm 40 years old and don't have anything in a real retirement plan, just some savings of my own," Delgado said. "I've worked for a lot of (companies) and never had something like that, so, yeah, I'd be interested in anything that could put away a few dollars a week at this stage of my life."

*The proposal, Assembly Bill 2940 by Assemblyman Kevin De León, D-Los Angeles, passed its first test Wednesday when a committee that deals with retirement issues approved it on a 4-1 vote, with Jeffries abstaining and another Republican, Joel Anderson of Alpine, voting against it.

Supporters said the idea has been percolating for years, both on the federal level and in statehouses. It's being pushed by think tanks as a way to get low- and middle-income Americans to start saving for retirement to supplement Social Security payouts.

"We're trying to create a new model to get people on board," said Mark Paul, senior scholar at the New America Foundation, a nonprofit, nonpartisan institute . . .

As it is, about 6 million Californians work for businesses that do not offer retirement savings plans such as 401(k)s. Gov. Arnold Schwarzenegger said Tuesday that he likes the idea. . . Please click here to go to the Sacramento Bee website for the full article.

New America Foundation Praises New, Universal, Portable Retirement Savings Proposal

Communications — Tue, 08 Apr 2008 07:34:00 -0400

Today, Governor Arnold Schwarzenegger and Assembly Member Kevin De Leon (D-Los Angeles) unveiled a proposal to give California workers access to a low-cost, professionally managed retirement account.

“We applaud Governor Schwarzenegger and Assembly Member De Leon’s bipartisan leadership” said Olivia Calderon, California Legislative Director of New America’s Asset Building Program. “Too many hardworking Californians don’t have access to a work based retirement savings plan. This is an incredible opportunity for California to show the rest of the nation how to use existing tools to help workers build their savings for retirement and other family needs so that they… more

New America Foundation Commends California State Controller John Chiang's Financial Literacy Initiative

Communications — Wed, 02 Apr 2008 11:47:00 -0400

(Sacramento, California, 04/02/08)-- Today, at his First Annual Financial Literacy Fair, California State Controller John Chiang joined by Assembly Members Ted Lieu (D-Carson), Ted Gaines (R-Roseville), Martin Garrick (R-Carlsbad), Roger Niello (R-Sacramento), reinforced his commitment to advance a statewide financial literacy initiative that promotes access to economic opportunity amongst all Californian consumers.

"We commend the Controller's attention to what is a very important and often unaddressed need, consumer financial education," said Olivia Calderon, California Legislative Director of New America's Asset Building Program. "The Controller's engagement on this issue could go a long way to raise awareness and bring together… more

Financial Services Corps

Asset Building — Wed, 02 Apr 2008 09:06:00 -0400

Today’s complex financial marketplace makes it increasingly difficult for individuals to understand and navigate the array of products and services available from a variety of financial service providers. For low to middle income individuals who have fewer financial resources to begin with, a solid grounding in personal finance and a clear understanding of the options and implications of one’s financial decisions are all the more critical.

While there is a wide range of financial education curricula available, there is a dearth of financial advisors and educators to help low and middle-income families understand the complexities of the financial services sector, access… more

CA Event: Banking the Unbanked

Communications — Wed, 26 Mar 2008 06:00:00 -0400

A New America Event
03/26/2008 - 12:00pm

Currently, too many Californians are disconnected from the financial mainstream. While national estimates show that 10 percent of households, including nearly one-quarter of the minority population, are "un-banked," meaning they lack a basic checking or savings account, 28 percent of California's adults do not have a checking or savings account. Recent market research indicates that Fresno and Los Angeles have the highest and third highest percentages of un-banked residents in the country respectively. Compounding the situation is the nearly 60 percent of California's lower income neighborhoods that do not have a bank or a credit union, according to analyses done by the Brookings Institution. Others may have bank branches that lack products and services that meet local consumers' needs.

On Tuesday, March 26th, Anne Stuhldreher, a senior policy advisor in the Office of Governor Arnold Schwarzenegger will discuss what it means to be "un-banked" and why it is a problem for California in particular. She will also provide an overview of Bank on California, which is modeled after Bank on San Francisco, headed by San Francisco City Treasurer José Cisneros. Cisneros will describe the ground-breaking initiative that successfully brought tens of thousands of local un-banked residents into the financial mainstream.

Inspired by the success in San Francisco, Governor Arnold Schwarzenegger recently announced he would launch a Bank on California initiative to connect lower income un-banked Californians with the financial products and services they need to begin climbing up the economic ladder.

This event is co-hosted by the New America Foundation, the Assets Policy Initiative of California, the California Research Bureau, and in association with Assemblymember Ted Lieu (D-Torrance).

If you have questions, call or email Claudie Kiti Bustamante at (916) 448-5189 or bustamante@newamerica.net.

California Event: The Savings Crisis

Communications — Thu, 14 Feb 2008 12:00:00 -0500

A New America Event
02/14/2008 - 12:00pm

Personal savings rates have plummeted in the past decade to an all-time historic low. Many Americans aren't saving enough money for retirement, households are increasingly living day to day on high-interest credit cards, and millions are one medical emergency or layoff away from financial crisis. Moreover, poor savings rates mean that there is less money for domestic investment and to finance our government's debt.

As more and more Californians are expected to save for their own futures, millions of individuals get conflicting messages from government: Save, and don’t save. Over the last decade there has been an emerging consensus among researchers, policymakers, and practitioners about the importance of helping people save and build wealth by removing the barriers to save so that they can put themselves on a path to financial independence.

On Thursday, February 14th, Dory Rand, Senior Counsel to the National Shriver Center on Poverty Law will present on the importance of helping people save and build wealth by removing the barriers to save so that they can put themselves on a path to financial independence.

This event is co-hosted by the New America Foundation, the Assets Policy Initiative of California, and the California Research Bureau, in association with Assemblymember Ted Lieu (D-Torrance).

The California Assets and Transaction Account

Asset Building — Wed, 06 Feb 2008 11:43:00 -0500

In support of state-wide efforts to bring more Californians into the financial mainstream, the State of California could deliver a pre-paid account through the state’s tax filing process. The Assets and Transaction Account, or ATA, would expedite tax filers’ access to their tax refunds and serve as a safe, affordable, and convenient financial tool for lower-income Californians to conduct routine financial transactions and build saving throughout the year.

The state tax filing process presents a unique opportunity to reach and deliver a valuable financial product to millions of under-banked Californians, while also saving the state government millions… more

California's California

Communications — Thu, 31 Jan 2008 12:00:00 -0500

A New America Event
01/31/2008 - 12:00pm

Carol Whiteside, President of The Great Valley Center, presented on the challenges that families in California face in building savings and assets for education, retirement, homeownership, entrepreneurship, and security against economic crisis. While this is an issue throughout California, it is particularly so in the San Joaquin Valley. Capitol staff were briefed on the Valley's economy as it relates to family incomes and asset accumulation and how those factors relate to Valley residents' ability to pay for college education and/or job training, start small businesses, and sustain a decent standard of living in retirement.

This event was co-hosted by the New America Foundation, the Asset Policy Initiative of California, and the California Research Bureau, in association with Assemblymembers Ted Lieu (D-Torrance) and Ted Gaines (R-Roseville).

New America Foundation Commends San Francisco Mayor Gavin Newsom’s Baby Savings Bond Proposal

Communications — Thu, 10 Jan 2008 14:26:00 -0500

Today, the New America Foundation Asset Building Program commended San Francisco Mayor Gavin Newsom’s innovative proposal to endow every child born in the city with a $500 Baby Savings Bond. The money, which would earn interest over time, would be available when the student graduates from high school, to be used for college costs or towards a first home.

“We applaud this bold, forward-looking proposal. Now that San Francisco has set the stage, we look to California and the rest of the country to offer young Americans the chance to realize their potential and to achieve their dreams,”… more

New America Foundation Praises Governor Arnold Schwarzenegger’s Leadership in Responding to Sub-prime Mortgage Loan Crisis

Communications — Tue, 20 Nov 2007 18:02:00 -0500

Today, California Governor Arnold Schwarzenegger announced an agreement with four large servicers of sub-prime mortgage loans to “fast-track” modifications to those loans so that homeowners who have been current, but are facing unaffordable loan payment resets, will be able to stay in their homes over the long term. The program builds on a proposal by FDIC Chair Sheila Bair that servicers freeze interest rates at current rates for homeowners who have been making timely payments on sub-prime loans with interest rates scheduled to reset.

California is the nation’s single largest state in terms of mortgages outstanding, and in September, had the… more

California Event: The Mortgage Crisis in California

Communications — Mon, 19 Nov 2007 12:00:00 -0500

A New America Event
11/19/2007 - 12:00pm

The New America Foundation and the Asset Policy Initiative of California, in association with Assemblymembers Ted Lieu (D-Torrance) and Ted Gaines (R-Roseville), cordially invite you to join us Monday, November 19th, for the third in a series of policy forum discussions in Sacramento designed to inform policymakers, legislative staffers, and advocates about asset-building research, data, and policies.

Our featured speaker, Paul Leonard, will discuss the current subprime mortgage crisis — its causes, the continuing effect it will have on homeownership, wealth, and the California economy, and possible solutions. Paul directs the California operations of the Center for Responsible Lending. The Center is a non-profit, non-partisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation's largest community development financial institutions.

California Event: Asset Policy 101

Communications — Wed, 29 Aug 2007 02:00:00 -0400

A New America Event
08/29/2007 - 12:00pm

In association with Assemblymembers Ted Lieu (D-Torrance) and Ted Gaines (R-Roseville), New America in California hosted this dynamic policy discussion on how public policy can encourage saving and wealth building for all Californians.

Heather McCulloch, a leader on asset-building policy issues, provided an overview on the history and evolution of policy ideas, in the United States and aboard, for expanding saving by families and individuals. Ms. McCulloch is the founder of Asset Building Strategies, a nationally recognized consulting group that provides invaluable insights in building state and local support for such policies. An MP3 audio recording of the event is available below.

The Asset Policy Initiative of California (APIC) is a statewide network of stakeholders from the public, private and nonprofit sectors who are committed to increasing asset building opportunities for California’s working families. www.assetpolicy.org

American Banker Quotes Olivia Calderon on Bank Development Districts

Communications — Thu, 24 May 2007 08:15:00 -0400

New America in the News:

Two states are considering duplicating a program in New York that rewards banks with government deposits for opening branches in neighborhoods with little or no banking services.

Lawmakers in California and Texas have introduced bills that would create "bank development districts," specially designated low-income areas that are underserved by banks...

The bills are modeled after a nine-year-old New York law that offers banks select state and municipal deposits for two years, partial property tax breaks for 10 years, and other perks for opening branches in specially designated districts...

California could use a similar program - more than a fourth of adults there are unbanked, said Olivia Calderon, a policy representative in the Sacramento office of the New America Foundation. The nonprofit public policy institute helped draft Assembly Bill 1502, from Rep. Ted W. Lieu, D-El Segundo.

"Too many people are living outside the financial mainstream, vulnerable to burglaries or alternative outlets that charge them ridiculous rates to do something as simple as cash their paycheck," Ms. Calderon said. "If banks build branches in their communities and then reach out to them, people will come..."

For the complete article, please visit the American Banker website.

American Banker Reports on Kids Savings Accounts

Communications — Mon, 16 Apr 2007 14:51:00 -0400

New America in the News:

Newborns typically are mailed birth certificates and Social Security cards within weeks of leaving the hospital. In at least two states they could soon be receiving other important documents: savings account statements.

A bill being considered in the California Legislature would create savings accounts for every child born in the state after Jan. 1, 2008. Each account would be seeded with $500 in state funds, and the money could be used only for specific purposes, such as college or technical education or buying a first home...

All states and the District of Columbia offer 529 college savings programs, and at least eight states offer financial incentives, such as matching deposits, to encourage families to save...

But the program being considered in California would be the first in which a state would set up accounts for all newborns - regardless of family income - and make the initial deposit.

The April 25 hearing is to be held in the Senate Revenue and Taxation committee. Jim Evans, spokesman for Sen. Darrell Steinberg, D-Sacramento, said the senator authored bill on behalf of the New America Foundation, a Washington nonprofit that promotes asset-building programs for the poor.

"There's a crisis - not enough people are savings and building assets in today's society," Mr. Evans said. "We think if you seed accounts with $500 in state money, that will encourage families to put additional funds into these accounts to buttress the original investment..."

For the complete article, please visit the American Banker website.

Daniel Weintraub Writes on Immigration and Kids Savings Accounts

Communications — Tue, 06 Mar 2007 19:45:00 -0500

New America in the News:

Two seemingly unrelated developments last week tell us a lot about immigration and the public's attitude toward it.

One was the conservative reaction to a bill introduced in the Legislature that would give a $500 savings account to every child born in California.

The other was a study by the Public Policy Institute of California concluding that immigration -- legal and illegal -- tends to increase wages for everyone except earlier immigrants.

The savings bill was introduced by two state senators, Democrat Darrell Steinberg of Sacramento and Republican Bob Dutton of Rancho Cucamonga.

It was a pale imitation of an idea first advanced by authors Bruce Ackerman and Anne Alstott in their book, "The Stakeholder Society." Ackerman and Alstott propose that all Americans receive $80,000 from the government on their 21st birthday so that they can buy property, start a business or pay their way through college.

The notion has been kicking around think tank circles for years and has attracted some support from across the ideological spectrum. The idea is to give every American a stake in society, to ensure that even those children born to poor parents and raised in disadvantaged neighborhoods have an opportunity to move into the middle class.

The California version introduced by Steinberg and Dutton was inspired by the New America Foundation, which promotes bipartisan solutions to difficult problems. The $500 grant the bill proposes would be deposited in a state account in each child's name, and friends and relatives would be encouraged to add to the stake over time. Upon turning 18, the recipient could withdraw the money and spend it for a house, education, vocational training or to put into a retirement account...

For the complete article, please visit The Sacramento Bee website.

David Lesher Discusses Kids' Accounts on Sacramento's KXTV

Communications — Fri, 02 Mar 2007 21:15:00 -0500

New America in the News:

California lawmakers are considering giving $500 to every single baby born in the state. The bipartisan bill aims to give babies a financial head start with a savings account.

"Anything we can do to encourage savings and investment and to provide a young adult -- especially young adults from lower income families, families of modest means -- to be able to have a small nest egg to go to college to learn a career, down payment on the house, would be a good thing," said Sen. Darrell Steinberg, D-Sacramento.

At age 18, each child would repay the original $500 gift, but they can keep any interest and additional deposits tax free.

"We're at a point where our middle class needs to grow," said David Lesher from the New America Foundation, a group that invests in non-traditional policy ideas. "We have an income gap with too many rich, too many poor and we don't have enough in the middle class..."

For the complete story, please visit the KXTV, Sacramento website.