pathways to employment and out of poverty · the lead center is led by national disability...

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

rsalon@ndi-inc.org

Elizabeth Jennings

National Disability Institute

LEAD Center

ejennings@ndi-inc.org

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