California Asset Building: Latest Articles

The People’s IPO

Articles — Tue, 02 Jan 2007 04:22:00 -0500

“Every time I go to Market Creek with my kids now, they say ‘We own this,’” says Bevelynn Bravo, a mother of four who lives in a struggling San Diego neighborhood known as the Diamond. Bravo recently took part in a first-of-its-kind initial public offering (IPO), purchasing 25 shares in the Market Creek shopping center at $10 per share. Market Creek Plaza’s developer, the Jacobs Center for Neighborhood Innovation (a foundation), had previously partnered with teams of residents to conceive, design, and plan the new shopping center. Now the foundation is pioneering what it calls a “community development IPO”… more

Can California Import a British Plan?

Articles — Tue, 01 Aug 2006 00:56:00 -0400

Prime Minister Tony Blair swings through California next week to enjoy some down time with Governor Schwarzenegger and First Lady Maria Shriver. No doubt he’ll want to take a break from a string of bad press in the U.K. Let’s hope he and the Governor find time to talk about one of his quiet but groundbreaking successes that holds great promise for California -- Blair’s new program to give every child a stake in Great Britain’s economic future.

Each British baby born after September 1st, 2002 receives a "Child Trust Fund" of 250 pounds (about $460) with the poorest one-third of… more

Presto! Tax Return Becomes a Nest Egg

Articles — Fri, 14 Apr 2006 03:00:00 -0400

Americans can't save. They rank it right up there with -- oh, cleaning out the closet. Recent research confirms that the national savings rate in the United States dipped below zero percent in 2005 and stayed there for the better part of the year. The last time that happened was during the Great Depression.

For most of us to save money, someone else needs to do it for us. That's why so many of us have our employers deduct money from our paychecks to send to a 401k account. Saving needs to be easy and automatic for it to stand… more

California Should Improve Awareness of EITC Refund

Articles — Thu, 13 Apr 2006 03:00:00 -0400

New research reveals that California is dead last in bringing home the country's largest resource for working-poor families. By April 17, hundreds of thousands of Californians will miss out on applying for the Earned Income Tax Credit (EITC), a source of sizeable refunds that give a financial boost to those at the low end of the pay scale. Golden State residents leave almost $1 billion in federal funds unapplied for. California families pay a big price when they leave these dollars sitting in Washington, D.C. People who earn up to $37,263 can claim EITC refunds that average $1700, but can… more

A New Way to Help California's Poor

Articles — Fri, 03 Feb 2006 08:00:00 -0500

California first lady Maria Shriver, John Edwards and other political luminaries have converged on Los Angeles for a summit on California poverty. The organizers asked speakers to present ways to help California's poor that are "innovative, practical and achievable."

That's a tall order, but it's a timely one. California is at a crossroads in how it assists its less fortunate residents. We can limit ourselves to the old tools and policies. Or California can lead the country in the democratization of financial assets -- which could prove to be the Homestead Act of the 21st century.

In the former, the focus… more

California Schemin'

Articles — Sun, 08 Jan 2006 04:00:00 -0500

In each era of modern American history, California has been at the forefront. It emerged from the Depression and World War II as the nation's archetype of the suburban middle class. It marked the end of government expansion with Ronald Reagan and Proposition 13. And it ushered in the age of technology, as the birthplace of Apple, Intel and Hewlett-Packard.

Californians are still willing to push the envelope, as they demonstrated with the unprecedented recall of a governor in 2003 and the passage of an ambitious but untested stem-cell initiative the following year. But the creativity and risk-taking in the… more

The Un-Banked

Articles — Sun, 02 Oct 2005 03:00:00 -0400

The working poor face a huge disadvantage because they lack a basic financial tool -- a bank account. Anne Stuhldreher comments. (more)

Joining the 'Ownership Society'

Articles — Sun, 10 Apr 2005 03:00:00 -0400

The bad news first. California now ranks last nationally in home ownership. It also has the fourth worst "asset poverty" rate in the nation, meaning that nearly a third of the state's households are on such a financial brink that they'd fall below the poverty level within three months after an unexpected hardship like a job loss or medical emergency.

California's future economy depends on more people gaining access to home ownership and higher education. But it's difficult enough to survive without savings or assets, let alone thrive. Living from month to month makes it impossible to send kids to… more

IRS Should Help Us Bank Our Refunds

Articles — Wed, 30 Mar 2005 04:00:00 -0500

Cesilia Bueso, a San Francisco teacher and single mother, won't attend the public hearing in San Francisco Thursday on reforming the tax code to make it "simpler, fairer, and more pro-growth." But the panelists have much to learn from her -- and from a San Francisco effort to help low-income people receive larger tax refunds and then save some.

Tax refunds provide most Americans with their best shot to save. By April 15, more than 100 million Americans will have filed for tax refunds that average $2,000. Even people with modest incomes like Bueso, who earn less than $36,000 a… more

Polishing Up the Diamond

Articles — Thu, 24 Mar 2005 04:00:00 -0500

The word "foundation" usually evokes the same stereotypes.

Swanky offices on the upper floors of downtown buildings. And power-suited program officers who write checks to organizations that "serve" people the foundation staff will never meet, but are neatly categorized as "underprivileged," "homeless," or "teen mothers."

But the Jacobs Family Foundation, a $21 million family fund created to revitalize a southeastern San Diego neighborhood called "The Diamond," wanted to turn that model upside down. Frustrated by the limited results they achieved by providing grants and technical assistance to nonprofits, President and CEO Jennifer Vanica the Jacobs family -- Dr. Joe, Vi, and… more

Working Poor Deserve a Tax Break

Articles — Wed, 09 Feb 2005 00:00:00 -0500

We can all agree $1.3 billion is a lot of money. Divide it among 750,000 working poor Californians and it's still a lot -- about $1,700 per family. That's how much the IRS estimates eligible Californians missed out on last year from our country's largest resource for low-income people -- the Earned Income Tax Credit. With Gov. Arnold Schwarzenegger's proposed budget threatening significant cuts in social programs, California should do much more to let people know about this critical resource. It can -- without spending a lot of money.

The credit is easy to apply for: Eligible people -- those… more

Building Assets: What Should California Do Now?

Articles — Sun, 02 Jan 2005 00:00:00 -0500

Even in this era of dwindling public resources, California can take significant steps to encourage its residents to save and invest in themselves. The following are a sampling of cost-effective, asset-building policies. Most are from other states, which are ahead of California in this emerging policy area. These recommendations would bolster the economic security of the state and its 35 million residents.

Create a system of voluntary retirement accounts for businesses and individuals. Only 39 percent of California workers participate in an employment-sponsored retirement plan. Social Security payments alone -- which average $901 per month in California -- will not sustain… more

Building Assets: Creating a Culture of Savers and Investors

Articles — Sat, 01 Jan 2005 08:00:00 -0500

California's leaders need to cut a new deal with struggling families: If you're willing to work and save, we'll help you own a private investment account, accumulate wealth and control your own economic future. And to California's kids, leaders should say: We'll get you started on a path of saving and investment from the day you are born, make sure your school teaches you how this economy works, but it's up to you to make smart investments in your future when you turn 18.

Is that a deal worth making? If so, what holds the deal together is a new… more

Sticking Together

Articles — Tue, 21 Dec 2004 04:00:00 -0500

Veteran antipoverty activist Maurice Lim Miller had never met Oakland Mayor Jerry Brown. So when Miller's home phone rang late one night in 2000, he was surprised to find one of America's best-known municipal leaders on the line.

Brown was fuming. Oakland's programs to help its poor become more economically self-sufficient weren't working. A recent city department request for $10 million looked to him like "poverty pimping," creating 125 jobs for City Hall bureaucrats but barely benefiting the youth it was supposed to help. Frustrated, Brown dialed information to find Miller, the longtime executive director of Asian Neighborhood Design (AND),… more