Accessible Assets: Asset Development Strategies for People with Disabilities
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People with disabilities have lower employment levels, report lower levels of savings, and are more likely to experience poverty than those without disabilities. The inextricable connection between disability and poverty requires special attention to developing policies and programs to give people the ability to save, acquire assets, and permanently escape poverty.
An important part of understanding the link between disability and poverty is looking at employment issues. Among working-age people with a disability, just under half reported being employed at some time in 2005. Employment drops as the severity of the disability increases.
Lack of employment and underemployment mean that people with disabilities are more likely to experience income poverty. In “Long-Term Poverty and Disability Among Working-Age Adults,” Peiyun She and Gina A. Livermore report that almost half of adults living below the poverty line have a disability. People with disabilities account for a larger share of those experiencing income poverty than people in any single minority or ethnic group, or all of those groups combined. Of course, people of all racial and ethnic groups experience disability; the point is that disparities between those with disabilities and those without deserve the same kind of attention as other forms of inequality, especially in antipoverty advocacy.
One of the most common and effective asset building programs is Individual Development Accounts (or IDAs). An IDA is a matched savings account that allows low income families to save and build assets. IDAs that are federally funded through the Assets for Independence Program (AFI) can be used to save for a home, education or start a small business. Though funded by the government, AFI IDAs are administered by local nonprofits who partner with financial institutions to actually deliver the program. These IDAs are a powerful tool for people with disabilities because people who receive Supplemental Security Income (SSI) can participate in IDA programs without losing their benefits.
It should be noted, however, that AFI IDAs have their limitations. For example, often times IDA programs have an “earned” income requirement from employment. So a person whose only income is from SSI could not save into an IDA since they would not meet the earned income requirement. Another limitation of AFI IDAs is that assistive technology purchases are not considered a “qualified” purpose.
In order to address these shortcomings, the Assets for Independence Reauthorization Act of 2010 (H.R. 6354) was introduced last year. This legislation proposed reauthorizing the Assets for Independence Act to provide for operating new programs and renewing existing programs, and enhancing program flexibility. In addition to raising the authorization limit from $25 million to $75 million, it aimed to expand eligible education costs to include costs of preparatory courses for professional licensing or education examination, and room and board and transportation costs including commuting expenses, necessary to enable attendance. It also proposed reforming the adjusted gross income test by expanding eligibility standards to include 80% of the median area income.
Despite the failure to pass H.R. 6354, advocates are developing various methods to create a better environment for people with disabilities to build assets and achieve self-sufficiency. In November 2009, the Shriver Center hosted its first webinar on bringing together the disability and asset-building communities. Moreover, the Shriver Center published an article by Karen K. Harris and Hannah Weinberger-Divack in Clearinghouse Review, Accessible Assets: Bringing Together the Disability and Asset-Building Communities, that examines the barriers and reformative measures necessary to improve asset building for people with disabilities.
On February 17, 2011, the Shriver Center and the Abilities Fund will host a free follow-up webinar on recent asset development strategies for people with disabilities. Register here to learn about asset development strategies and innovative new programs for people with disabilities.
This article was coauthored by Ji Won Kim.
