PathWays PA Policy Blog

Today I had the opportunity to present materials on paid leave and financial resources at a cancer navigators meeting. We're putting these materials online so more people can access them. Special thanks to PathWays PA (in particular Paula Staton) and Family Values @ Work for their research and support! Laws that help patients and caregivers at work Financial Resources for patients and caregivers Resources for staff and counselors to share Put the FMLA to Work for You (PS- please remember that bit.ly links have to be typed exactly as they are, including capitalization, to work!)

As many parents know, a typical American family spends a lot of money on childcare each year. In Pennsylvania, the cost of childcare is often higher than what a family pays in rent each month. One option that some families consider is having a parent leave the workforce entirely in order to care for a child. But until now, there was little research on the financial impact of making that decision. The Center for American Progress  now has a calculator showing the hidden cost of leaving the workforce to provide childcare. The calculator shows the immediate loss (income not earned) as well as the loss in potential wage growth over a career and lost retirement savings. As PBS NewsHour points out , a 26 year old woman earning $50,000 who leaves the workforce for three years to care for a child loses more than $150,000 in salary - she loses over $500,000 in her lifetime in salary, wage growth, retirement benefits, and Social Security.  To test the calculator, I checked...

Three organizations ( ACCE , NJCU and ISAIAH ) are releasing a report today about women and debt called “ Pinklining: How Wall Street’s Predatory Products are Pillaging Women’s Wealth, Opportunities and Futures .” “Pinklining" refers to aggressive lending by banks and the finance industry disproportionately harming women, and particularly women of color. The report focuses in on payday, student and mortgage lending and is available  here. At the end of the month, another organization will turn its attention to predatory lending as well. On Thursday, June 30 at 2 pm EDT, CFED will host a webinar to explain how the Consumer Financial Protection Bureau’s new proposed regulations aimed at curbing the most abusive practices of the small-dollar lending industry will work and the implications for state-level rule-making. They will also discuss what you can do during the comment period to stay engaged and support the Bureau’s efforts, including engaging with the # ConsumersCantWait ...

The Assets & Opportunity Scorecard enables states to compare their performance to other states and the District of Columbia on measures of financial security and household wealth. When it comes to many measures, Pennsylvania ranks right in the middle - some states are better than us, some states are worse. So what's wrong with status quo? Well, here is the impact if Pennsylvania performed as well as the best state (with thanks to the Assets & Opportunity Initiative  for putting this together):

In partnership with CFED and the Assets and Opportunities Network , PathWays PA is asking for signatures to a sign-on letter regarding an amendment to the Tax Fraud and Identity Theft bill. This amendment would help regulate the tax preparation industry and prevent unscrupulous tax preparers from preying on low- and moderate-income taxpayers’ hope for a large—and quick—refund. Please use this form to read the letter and sign on by Monday, and feel free to share it with your partners.

Last week, a co-sponsorship memo  regarding the legalization of a new loan product, the “Pennsylvania Financial Services Credit Ladder,” began circulating in the State Senate. This product would essentially allow payday lending in Pennsylvania under Consumer Financial Protection Bureau’s (CFPB) proposals. A payday loan is a small, short-term loan typically due on the borrower’s next payday. Instead of specific assets, the borrower is required to provide the lender access to their bank accounts as collateral, forcing repayment to take priority over important living costs such as rent, health or childcare. Interest rates for payday loans are much higher than secured loans, easily shooting up to triple digits (300-400%). The payday lending industry argues that high rates are necessary as conventional interest rates for lower dollar amounts and shorter terms are not profitable. However, there is no definite way of calculating the annual percentage rate (APR) that is used in turn ...

For those of you who haven’t heard, Governor Wolf has stripped the asset test from the SNAP (food stamp) program beginning today, April 27. You can read more about the decision at http://www.post-gazette.com/news/state/2015/04/27/Wolf-scrapping-controversial-assets-test-for-food-stamps/stories/201504270008 . This is a great step forward for all Pennsylvanians, especially those who are working to emerge from poverty. Asset tests such as the one in Pennsylvania prevented families from saving money in order to buy a car to go to work or pay for classes that would improve their career. In addition, Governor Wolf’s administration estimates that $3.5 million will be saved by eliminating the asset test since the Department of Human Services will have less paperwork to process. As we continue to work with Governor Wolf and the legislature to take steps forward for Pennsylvanians, we hope you will join us by joining POP. If your organization wishes to sign on, please email Marianne at mbell...

Statement from Lyn Kugel, Vice President of Workforce Development and Self-Sufficiency at PathWays PA and leader of the Pathways to Opportunities Partnership (POP), on the new Corporation for Enterprise Development (CFED) Assets and Opportunities Scorecard : Despite an improving national economy, far too many Pennsylvania residents are still struggling to achieve financial security. A new report from the Corporation for Enterprise Development (CFED), reveals that Pennsylvania ranks 24th overall for access to financial assets, income, jobs, housing, healthcare and education. We know that well-targeted policies can make a huge difference in the financial security of Pennsylvania families. The Scorecard complied by CFED takes a close look at how Pennsylvania and its families are faring across multiple indices and policies. Financial Assets and Income: Owning assets leads to improved economic stability for families as well as improved economic mobility. When families have financial...