pathways to employment and out of poverty · the lead center is led by national disability...
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The LEAD Center is led by National Disability Institute and is funded by the Office of Disability
Employment Policy, U.S. Department of Labor, Grant No. #OD-23863-12-75-4-11
Pathways TO Employment
and OUT of Poverty
December 4, 2014
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The National Center on Leadership for the
Employment and Economic Advancement of
People with Disabilities (LEAD) is a collaborative
of disability, workforce and economic empowerment
organizations led by National Disability Institute
with funding from the U.S. Department of Labor’s
Office of Disability Employment Policy, Grant
No. #OD-23863-12-75-4-11.
NATIONAL DISABILITY INSTITUTE
A national research and development
organization with the mission to promote
income preservation and asset
development for persons with disabilities
and to build a better economic future for
Americans with disabilities.
TODAY’S PRESENTERS
Rebecca Salon
LEAD Center Project Director
Elizabeth Jennings
LEAD Center Assistant Project Director
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TODAY’S GOALS
Improve your understanding of:
The importance of economic advancement.
New policies that support economic advancement
Strategies that support economic advancement.
Integrated Service Delivery
How to use these strategies with public benefits
like Social Security Disability benefits and
Medicaid.
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WHY ECONOMIC ADVANCEMENT
People with disabilities live in poverty at a
rate twice that of their non-disabled peers.
(27.8% compared to 12.4%)
Many people with disabilities have never
managed a budget, opened a savings or
checking account, applied for an assistive
technology loan or understood how to build
assets.
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IMPACT OF INCOME DISPARITY
(FINRA FINANCIAL CAPABILITY STUDY)
Respondents with work-related disability report:
Greater difficulty making ends meet
Participating in less financial planning
Poorer management of financial products
Lower financial literacy
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ABILITY TO MAKE ENDS MEET
Greater difficulty covering expenses
Source: FINRA Financial Capability Study: Financial Capability of Adults with Disabilities (July 2014)
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INCOME VS. EXPENSES
More likely to spend more than income
Source: FINRA Financial Capability Study: Financial Capability of Adults with Disabilities (July 2014)
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RAINY DAY FUNDS
Less likely to have rainy day funds
Source: FINRA Financial Capability Study: Financial Capability of Adults with Disabilities (July 2014)
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IMPACT OF SUPPORT
Financial guidance such as benefits planning, savings/investments and tax advice improve positive behavior and reduce negative behavior for low income earners.
The best time to reach an individual and teach them about their money is at a point in time when it’s needed… such as during a job search.
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FEDERAL POLICIES THAT SUPPORT
THE INTEGRATION OF ECONOMIC
ADVANCEMENT SERVICES WITHIN
EMPLOYMENT SERVICES
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CMS – HOME AND COMMUNITY BASED
SERVICES (HCBS FINAL RULE)
Opportunity to Control Personal Resources
Employment or other habilitative services
must offer opportunity to “control personal
resources.”
Consumers may need counseling in
financial competency in order to manage
benefits and finances while earning a
paycheck.
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VOCATIONAL REHABILITATION (VR)
VR can provide support, alone or with
partners, to link people to jobs, job training,
continuing education, and career
advancement support
VR can pay for and should encourage
people to access benefits counseling
VR is also a link to work incentives, Ticket
to Work, and community Employment
Networks (ENs)
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DOL - WIOA FOCUS ON FINANCIAL
EDUCATION IN ADULT PROGRAMS
WIOA provides guidance on the use of state funds to provide services that build customer’s financial education and financial capability.
As a program element for youth and allowable service for adults to support financial literacy, including an individual’s ability to:
create household budgets, initiate savings plans, and make informed financial decisions about education, retirement, home ownership, wealth building, or other savings goals;
manage spending, credit, and debt, including credit card debt, effectively;
Understand the availability and significance of credit reports and credit scores in obtaining credit, including determining their accuracy (and how to correct inaccuracies in the reports and scores), and their effect on credit terms; and
understand, evaluate, and compare financial products, services, and opportunities
Supports activities that address the particular financial literacy needs of non-English speakers.
DOL – WIOA FOCUS ON FINANCIAL
EDUCATION IN YOUTH PROGRAMS
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WIOA ensures youth with disabilities will receive
extensive pre-employment transition services so they can
successfully obtain competitive integrated employment.
Supports disconnected youth, of which youth with disabilities
comprise a high percent, by:
Requiring local areas to increase percentage of youth formula funds
used to serve out of-school youth to 75% (30% under WIA).
Requiring local areas to spend at lest 20% of youth formula funds on
work experience activities.
Providing additional allowable activities including financial
literacy education and entrepreneurial training.
State vocational rehabilitation agencies will set aside at least 15%
of funding to provide transition services to youth with disabilities.
INTEGRATED SERVICE DELIVERY
INTEGRATED SERVICE DELIVERY
The bundling of services to include two or
more core areas to help an individual
improve their financial health.
THE STRATEGIES
Financial Education
Income Production
SSA Work Incentives
Favorable Tax Provisions
Rent Reporting Programs
Assistive Technology Loans
Individual Development Accounts Microenterprise Development
Home Ownership
Post-Secondary Education
Family Self-Sufficiency Program
Pooled Trusts
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WHY IS INTEGRATION IMPORTANT?
For Customers:
Increases likelihood of success because a job is not the only goal
Increases long-term planning
Greater educational attainment
Improves economic stability
For Staff:
Improves employment outcomes
Reduces employer turnover costs
Supports staff in program outcomes
Meets new Federal requirements
THREE IMPLEMENTATION MODEL
*This image was provided by
CFED.
REFER CLIENTS
TO OTHER
ORGANIZATIONS
PARTNER
WITH OTHER
ORGANIZATIONS
TO DELIVER
SERVICES
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BUILD CAPACITY TO DELIVER SERVICES
IN-HOUSE
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PREPARING TO INTEGRATE
Resource Mapping: Identify all resources in your community that provide programs/services in building financial capability.
Consult with Leadership: They likely have partners in the community already, including mandated partners, and will want to be a part of approaching new partners in this arena.
Develop Plan of Approach: Decide with leadership which partners to approach, the level of partnership sought, potential resource exchange and anticipated outcomes.
Formalize Partnerships: Collaborate and coordinate with new partners to integrate asset-building strategies that benefit both partners.
THE PARADIGM SHIFT
Old Paradigm:
One must accept a life of poverty in
exchange for public assistance
New Paradigm:
The full promise of the ADA - equality of
opportunity, full participation, independent
living, and economic self-sufficiency.
NEW CONVERSATION
Discussing a movement from poverty to
economic advancement is a new
conversation that may seem counter-
intuitive at points but is the only way to
ensure equal opportunity and full
participation.
Public benefits in exchange for a life of poverty is a
bad deal for all.
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TALKING ABOUT MONEY
Talking about money is complicated and can make us
feel uncomfortable.
Our own financial situation or hang ups prevent us
from starting the conversation.
We are reticent to ask what financial information and
services the customer needs.
Sometimes this leads us to simplify the situation or to
be judgmental.
It can also lead us to avoid the conversation all
together.
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RE-CONSIDER EMPLOYMENT AS ONE
GOAL NOT THE ONLY GOAL
How do you go about seeking
employment?
Do you consider……
1. your talents and abilities?
2. your budget?
3. the cost of going to work?
4. benefits offered?
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TAKING A BROADER VIEW
Are you making the same considerations for the individuals you serve or are short term needs dominating the process? 1. Staying under SGA 2. Transportation 3. Immediate job opportunity These are valid concerns. But they are short-term decisions. It’s time to take a broader view that looks at an individual’s financial needs and goals to make long-term plans and employment decisions.
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WORK WILL BE THE ANSWER
Frequently there is an assumption that the job is what
matters, not the wage….. because:
Everyone starts somewhere
The job market is tough right now
You can only work part-time if you want to keep SSA and Medicaid
The person doesn’t really understand their money so they don’t
need much money
Wages do matter. We need to help job seekers think about
how much they need to earn to cover their expenses now
and in the future.
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YOU CAN MAKE A DIFFERENCE
Adding a conversation about money to
employment planning will lead to less
financial stress for the individual by:
Improving the likelihood that the job seeker will
secure employment at a wage that will meet their
monthly budget needs.
Identifying and securing connections to needed
financial services.
Increasing the individual’s understanding of their
own needs and a way to meet those needs.
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IDENTIFYING JUST IN TIME MOMENTS
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FINANCIAL GOALS AND CHALLENGES
Is there anything the job seeker wants to save for?
How much money is needed for financial stability?
And what is the job seeker willing to do to achieve that.
When was the last time the job seeker checked his
or her credit report?
Are there any financial issues that will impact the job
seeker working: overpayments, garnishments, AT
needs, etc.?
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INTAKE/PLANS (HCBS/VR/AJC/TTW/ETC.)
Intake forms and service plans could include one or more of the following questions to identify and plan for economic advancement supports and services:
Do you have a financial goal?
Questions related to desired salary.
What are your total monthly expenses?
Do you want information or support to better understand and/or manage your money?
Do you have a bank account? If unbanked – for how long?
Do you know your credit score?
Do you have credit issues you’d like to fix or do you want to build credit?
Do you have debt? How much do you owe?
Do you want information or support to manage your debt?
Do you want more control over your money?
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EMPLOYMENT PLANNING
Discuss Budgets/Money when making employment plans.
What type of wage is needed to cover monthly expenses?
Is it reasonable the person can earn that wage?
If no, what are the strategies? Augment with public benefits? Decrease expenses? Create a plan.
What type of wage would cover monthly expenses and have money left over to meet financial goals (save, pay down debt, go out to dinner, etc.)?
What will the first paycheck pay for?
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BENEFITS PLANNING
Work Incentives to Increase Income Student Earned Income Exclusion
Blind Work Expense
PASS
1619b
Subsidy
Impairment Related Work Expense
Medicaid Buy-In
Work Incentives to Increase Resources PASS
PESS
Medicaid Buy-In
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PRE-EMPLOYMENT/TRAINING SERVICES
Provide financial education curriculums on
resource room computers and have it be a
requirement in between benchmarks or
meetings.
Incorporate financial education as part of Job
Readiness trainings/classes offered.
Incorporate Financial Education Resources into
Independent Living Programs.
BARRIERS TO EMPLOYMENT
Credit, credit scores, credit repair
Transportation
Assistive Technology
Wage garnishments
Community supports
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JOB OFFER - EMPLOYER BENEFITS
Health Insurance. What is the coverage and at what cost?
Paid Time Off. How much time is provided (vacation/sick/holiday)?
Pension plan. How much does the company contribute?
Life insurance. Does the employees contribution come directly out of their paycheck?
Direct deposit. Are paychecks direct deposit?
Pay yourself first. Is there a provision for direct deposit into savings?
Disability coverage. Does the company offer short-term and long-term disability coverage?
Education benefits. Are there educational and training benefits? If so, are they are available for my family, as well as for myself?
Other. What other fringe benefits are offered?
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PAYDAY
Bank Accounts
Direct Deposit
Payroll card accounts
Reporting work to SSA
Work Incentives
Payroll Taxes
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TAX TIME
Importance of Filing
Affordable Filing Options
VITA
www.myfreetaxes.com
Getting Banked
Savings Bonds
IDA’s
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CUSTOMER FLOW
AT THE CUSTOMER’S REQUEST
Dealing with debt
Budgeting
Retirement accounts
Financial education
classes
Community supports
Banking products
Low interest loans
Services allow for participants to ask questions, identify needs and seek resources.
Participants identify and address issues at their pace.
Staff are equipped to refer, inform, or serve from crisis to long-term.
Where will the job seeker get the needed information?
What partnerships do you need to form?
Staff have equal access to the range of services available.
CONSIDERATIONS
THE IMPORTANT ROLE OF
FRONTLINE STAFF
BELIEF IS CRITICAL
It is essential that you believe that every
individual has the potential to achieve some
level of financial capability.
Few people become part of the financial mainstream
without someone believing they can do it.
You might be the first person in a long time that
believes the job seeker can be financially better off.
Your encouragement is very powerful and
creates a relationship that allows for tough
conversations.
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CREATE NEW EXPECTATIONS
Assume all consumers can achieve a level of employment and economic advancement.
Engage consumers and their supports in the conversation.
Provide simplified opportunities for individuals to improve their understanding of and control over their finances.
Acknowledge the limited financial literacy of all Americans including those with disabilities.
All of us need additional information and support.
Just as you assume competence, assume the desire to live beyond poverty.
Expect the systems to adjust to support this movement.
START THE CONVERSATION
Start the conversation. Don’t assume that another touch point is discussing financial literacy, budgeting or thinking about a financial future with your client.
Fear is a bad decision maker. It is important to encourage individuals to get the right information about their benefits before making limiting decisions.
Don’t let your own insecurity about your finances deter you from making connections for those you serve.
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DON’T UNDERESTIMATE YOUR POWER TO
CREATE CHANGE THROUGH
ENCOURAGEMENT.
QUESTIONS
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CONSUMER FINANCIAL PROTECTION
BUREAU (CFPB)
Ask CFPB: http://www.consumerfinance.gov/askcfpb/
Complaints: http://www.consumerfinance.gov/complaint/
Tell Your Story:
http://help.consumerfinance.gov/app/tellyourstory
CFPB Twitter: @CFPB
CFPB Facebook: http://www.facebook.com/CFPB
Go to ConsumerFinance.gov to sign up for our newsletter
Weigh in on rulemakings: http://www.consumerfinance.gov/notice-and-
comment/
CFPB Blog: http://www.consumerfinance.gov/blog/
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CONNECT WITH THE LEAD CENTER
Sign up for LEAD Center News here or go to
www.leadcenter.org
Follow the LEAD Center on… Facebook: www.facebook.com/LEADCtr
Twitter: @LEADCtr
LinkedIn: linkedin.com/groups/LEAD-Center-4828089
YouTube: https://www.youtube.com/user/LEADCtr
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NDI’S REAL ECONOMIC IMPACT
NETWORK An alliance of more than 4,000 organizations & individuals, across the US, dedicated to advancing the economic empowerment of people with disabilities.
All partners join forces to embrace, promote & pursue access to & inclusion of people with disabilities in the economic mainstream.
Free monthly benefits of membership include:
REI Network E-newsletter
Monthly Webinar Series
One-on-one technical assistance
Access to valuable NDI tools
Partnership opportunities
Join for Free: http://www.realeconomicimpact.org/REI-Network.aspx
THANK YOU
Rebecca Salon
National Disability Institute
LEAD Center
Elizabeth Jennings
National Disability Institute
LEAD Center
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