Tuesday, February 19, 2013

The Issue: The Indiana House of Representatives has proposed a state budget that slashes funding for the successful Individual Development Account (IDA) program in half. Despite tough economic times, until now Indiana has protected this important tool for Hoosier families by providing the minimum $1 million needed to meet the mission of the program. However, the proposed budget would cut that funding by half to $500,000. Compounding the problem, while Indiana currently receives $1 million from the federal Assets to Independence Demonstration Program, continued receipt of this grant requires a dollar-for-dollar match with state funds. In addition to lost state support, Hoosier families would lose access to the federal grant if the state does not do its part to match $1 million in state appropriations for    the IDA program.

IDA programs consist of matched savings accounts that enable low-income families to save, build assets, and enter the financial mainstream. Savers are matched $3 for each $1 of earned income deposited by qualifying individuals, up to $400 matched annually each year, for a maximum of four years. Additional matching beyond the $3 to $1 is provided as resources permit. Currently, IDAs can be used to purchase one of three economic assets including: purchasing or rehabilitating a home, pursuing post-secondary education, or opening a small business. In order to purchase these assets, savers must successfully complete a financial literacy program which teaches skills to successfully manage their asset, and also builds financial skills with benefits that promote economic stability extending far beyond the matching period. Despite the downturn in the national and state economies, over 93 percent of Indiana’s IDA participants fully met their savings requirement in each of the past five years. 

What You Can Do: Ask your state representative to support a 2nd amendment reading amendment to appropriate no less than $1 million a year for the state's IDA program. Call 800-382-9842 or email NOW!

If you do not know who your representative is, look up your representative at www.in.gov/apps/sos/legislator/search/

{ 1 comments... read them below or add one }

  1. You should be protecting them from this:
    Greed - Taking Advantage of the Already Weakened:



Blog Archive

Calculate the living wage for 70 different family types in all 92 counties

Powered by Blogger.

- Copyright © Indiana Institute for Working Families -Metrominimalist- Powered by Blogger - Designed by Johanes Djogan -