INNOVATIVE LEGISLATIVE STRATEGIES FOR PROMOTING ECONOMIC

ADVANCEMENT OF PERSONS WITH DISABILITIES IN THE 112TH CONGRESS

August 2, 2011

Michael Morris Director, National Disability Institute

Director, Burton Blatt Institute at Syracuse University

CONSIDERATIONS FOR FISCAL REFORM AGENDA IN THE 112TH CONGRESS

Promoting Economic Self-Sufficiency in the Context of Fiscal Reform

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CHANGING POLITICAL ENVIRONMENT GROWING CHALLENGES

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BUILDING REFORM FROM A COMMON VALUE FRAMEWORK

Equity

Work

Choice

DignityOf Risk

In 2009, 43.6 million people were living in poverty in the US. This is up 3.8 million from 2008 and is the highest number since 1959.

Poverty rate jumped 14.3% in 2009. This number is equal to one in seven

residents. For people with disabilities, the number is

one in three.

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POVERTY BY THE NUMBERS

Higher out-of-pocket health expenditures ($795 vs $256) (Livermore & Hill, 2002).

65% of people experiencing long-term poverty (greater than a year) are persons with disabilities.

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POVERTY BY THE NUMBERS

SOCIAL SECURITY BY THE NUMBERS For the last five years, Social Security has

paid out more in benefits to disabled workers than it has taken in from payroll taxes.

The downturn in the economy has led to record increases in application for Social Security benefits.

About 8.2 million people collected disabled worker benefits totaling $115 billion in 2010.

About one in 21 Americans from ages 25 – 64 receive the benefit.

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SOCIAL SECURITY BY THE NUMBERS

Out of 12.5 million disabled workers and those who receive benefits for the disabled poor, only 13,656 returned to work during 2009 – 2011, with less than a third earning enough to drop benefits altogether.

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The proportion of employed US workers identified as having disabilities declined by 9 percent.

The proportion of workers between ages of 18 – 39 reporting disabilities dropped by 17.5 percent over the same period.

Workers with disabilities are more likely to be in low-skill occupations. However, there is no disproportionate impact of the recession on workers in high-skill and low-skill occupations.

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IMPACT OF 2007 – 2009 RECESSION ON WORKERS WITH DISABILITIES

For millions of working age adults with disabilities, a dependence on public benefits for income, health care, food, and housing becomes a trap that requires staying poor to stay eligible.

LACK OF POLICY ALIGNMENT

DISABILITY AND ECONOMIC ADVANCEMENT

No group in America is more in need and more deserving of economic recovery.

DISABILITY & ECONOMIC ADVANCEMENT

For people with disabilities, there is a new level of focus, energy, and commitment to build a roadmap out of poverty at a national, state, and local level.

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WHERE DO WE BEGIN?

Economic Empowerment

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WHY IS ECONOMIC EMPOWERMENT IMPORTANT?

Economic Empowerment is a series of strategies that will: improve your economic stability; decrease stress and financial crisis in your

life; provide opportunities for you to learn, earn,

save and build; offer savings strategies that will not cause

a loss of public benefit; and put you back in control of your financial life.

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Making the shift requires: New Partnerships New Tools and Strategies New Focus

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NEW PARTNERSHIPS

Mayor’s Offices United Way IRS FDIC IDA Providers EITC Coalitions Financial Institutions Microenterprise

Lenders Home Ownership

and Credit Counseling Programs

DD Council VR Agency Social Security Field

Office WIPA Grantees Peer Support Groups Centers for

Independent Living Community Action

Agencies Family Self-

Sufficiency programs

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NEW TOOLS AND STRATEGIES

Increase access to health care through enrollment in the Medicaid Buy-In.

Increase access and benefit from the Earned Income Tax Credit (EITC) and other favorable tax provisions.

Qualify for an Individual Development Account (IDA) to achieve an asset goal through matched savings.

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NEW TOOLS AND STRATEGIES

Increase use of Social Security Work Incentives.

Benefit from financial education and affordable financial services.

Set savings and asset goals as part of peer-support strategies.

Consider the possibilities of self-employment.

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Local Returns Refunds Tax Prep $Year Cities Partners Prepared Received

Saved2005 11 ---- 7,600 $6.8 m $

1.5 m

2006 30 200 17,223 $15.3 m $ 3.4 m

2007 54 355 36,275 $32.6 m $ 7.2 m

2008 62 555 90,653 $81.0 m $18.1 m

2009 84 634 181,152 $176.6 m $36.2 m

2010 100 710 360,499 $351.5 m $72.0 m

2011 100 >800 397,090 $387.1m $87.4m

TOTAL 1,090,402 $1.05b $ 225.8 m

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REAL ECONOMIC IMPACT TOUR OUTCOMES

Cross agency collaboration to remove policy and program barriers to self-sufficiency.

Increase awareness and understanding of ways social insurance, employment, and asset development programs work together rather than in conflict.

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FOCUS ON ECONOMIC EMPOWERMENT

New Legislative Proposals to reduce disincentives to work, savings, and asset accumulation.

Changes to Tax Policy. Changes to Social Policy

Workforce Investment Act Raising Asset Limits Asset for Independence Act Social Security Reform

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FOCUS ON ECONOMIC EMPOWERMENT

Empower persons with disabilities with new knowledge, choices, and supports.

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FOCUS ON ECONOMIC EMPOWERMENT

BOTTOM LINE

“My American Dream seems simple: to live on my own and be self-sufficient, to live with dignity and independence. I struggle with my finances right now, but I am an optimist – I believe that I can make progress with my job, move forward and become part of the mainstream economy and achieve my goals.”

Cynthia Battles2008 REI Tour Adult Blogging Contest Winner

Rutland, VT

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CONTACT INFORMATION24

Michael MorrisDirector, National Disability Institute

Director, Burton Blatt Institute at Syracuse University

mmorris@ndi-inc.org