12:23 AM
Julio Barreto
The debate surrounding passage of health care reform illustrated how intense the partisan divide is in Washington, DC and underscores the growing importance of the November mid-term election. The level of the disagreement reminds many political veterans of the events leading up to the passage of the Civil Rights Act of 1964. The epithets, death threats, spitting incidents and threats of violence against individuals and the Federal government who supported the legislation have dominated the media in the past few weeks.
Opponents of President Barack Obama’s health care plan, particularly those who are part of the Tea Party movement, have vowed to take their fight to the ballot box this November. They promised to punish Democrats who voted for Obama’s health care plan. Tea Party groups and others are targeting those Democrats elected in Congressional districts won by Sen. John McCain in his failed 2008 presidential bid.
The fervor surrounding the health care debate should be a wake up call to housing and community development advocates leading into, and going beyond, the fall election. A number of issues are going to influence the election results to varying degrees. They include:
1. The typical mid-year losses that the party of a new president endures;
2. The economy; an economic upswing bodes well for Democrats if an economic upswing occurs. The jury is still out whether the economy will really pick up in time to make a difference in November.;
3. The various constituency groups with a point to make this fall;
4. Cash; more specifically the Supreme Court decision on corporate and union spending on elections; and,
5. The anger associated with the passage of health care legislation;
Each of these influences are pieces to a broader puzzle to determine how much and what type of Federal resources will be available to low-income households. How the puzzle is put together will determine the level of financial assistance to individuals, families and the agencies serving this population and the kind of initiatives to help these families achieve economic self-sufficiency.
What do the political changes mean for those administering local housing and community development programs? Are there action steps local advocates and administrators can take to position themselves favorably regardless of the results of November’s elections?
In the coming weeks A View from DC will look at some of the factors affecting November’s election and offer our recommendations on the steps needed by advocates in 2011 and beyond. Here is an outline of our recommendations:
1. Job creation is not the only measurement of a growing economy and should be viewed with caution by local communities. Local groups should also take the time to more fully understand the internet’s impact on the economy and on the future earning potential of low income individuals and households.
2. The census. Working with the Census Bureau is going to be critical to ensure as many individuals in low-income communities are counted particularly immigrants from Asia, Africa and Latin America.
3. National membership organizations need to develop regional strategies to meet the needs of their constituents. Redistricting will create winners and losers which will result in the need for different political strategies to address the implications these changes will bring to localities. A broad national approach to accommodate the resulting changes will be insufficient.
4. It is important to learn the key lesson from the Tea Party movement - it all begins with the grassroots. Greater emphasis needs to be placed on local organizing efforts.
5. There appears to be a consensus among political experts that Republicans will make significant gains in November. It is important to develop a strategy now to work with elected officials before they become entrenched in Washington politics.
6. Advocates need to revise their message and take advantage of the anti-Washington sentiment in the country. Advocates who are members of national organizations need to be more judicious in using their political capital.
7. Traditional job training programs and skill development for low-income individuals need to be reevaluated and other forms of training need to be explored.
8. Local groups, particularly housing authorities, need to better utilize the Community Reinvestment Act (CRA) and other financial tools to generate additional resources for themselves and their residents.
9. Without an element of teaching financial literacy and wealth creation to low-income households, any future progress will be short-lived.
More than 30 million US Households Receive Inadequate Banking Services
The Federal Deposit Insurance Corporation (FDIC) released data this winter which documented that more than 30 million households in the United States are either unbanked or underbanked. According to the data, 25.6 percent of the population does not receive adequate financial services. It is estimated that the total number of adults in these households is 60 million.
Included in the findings:
1. The Southern Region has the highest incidences of underbanked households.
2. A large percentage of black, American Indian/Alaskan and Hispanic households are unbanked or underbanked.
3. Approximately five million households which are banked may be underbanked as well.
The survey, FDIC National Survey of Unbanked and Underbanked Households, collected a variety of data by sponsoring a supplemental survey to the Current Population Survey (CPS) administered by the US Bureau of the Census. The survey sought to identify more reliable data number and types of households in the United States which are unbanked or underbanked.
For purposes of the survey, unbanked households did not have anyone with a checking or savings account. Underbanked households contain an adult with either a checking or savings account but who also uses other financial services like check cashing establishments, non-bank money orders, payday loans, or pawn shops at least once or twice a year.
The data revealed the following characteristics of unbanked households:
1. They are more likely to be single-head of household with women comprising a higher percentage of these households versus men. Women comprised 20 percent of this population while men comprised 14.9 percent of the population.
2. Blacks, American Indians/ Alaskans and Hispanics are more likely to be unbanked than Asians and whites.
3. More low-income households are unbanked with those earning less than $30,000 comprising the overwhelming majority (71 percent) of low-income, unbanked households.
4. As age and education increases, the unbanked percentage decreases.
5. Over 40 percent do not believe they will open a bank account in the future.
6. Two-thirds of this population uses alternative financial services such check cashing establishments.
The underbanked share many of the characteristics of the unbanked population:
1. This population is more likely to be single head of household; however, the difference between females and males is only one percent. Approximately 28 percent of female headed households are underbanked versus 27 percent for male head of household.
2. Blacks, American Indians/Alaskans and Hispanics are also more likely to be underbanked versus Asians and whites.
3. Money orders and check cashing services are the two most popular alternative financial services used by this population. Convenience is the principal reason given for utilizing these services.
4. The underbanked rates decline as education and age increases but the rates are similar in the $30,000 to $50,000 range as it is for those earning less than $30,000.
The report concludes there is an opportunity for the government and the financial industry to provide a service to a significant portion of the US population. It does not offer recommendation on how to provide that service.
Hispanic Coalition Issues Interim Immigration Report Card
A coalition of Hispanic organizations released an interim report which is critical of the lack of support for “progressive immigration” reform as reflected in their votes on related matters.
The National Latino Congreso (NLC) issued the Immigrant Justice Report Card Interim Progress Report Card which looked at how Members voted and/or supported immigration-related legislation in the 110th and 111th Congress. The report looked at 15 Senate votes, four Senate bills, seven House votes and 10 House bills.
The report concluded that in spite of strong national support for “progressive immigration reform”, most members of the House of Representatives have records which favor
anti-immigrant measure” while Senators are slightly more inclined to support “pro-immigrant” reform. NLC says 53 percent of House members are pro-immigration reform while 67 percent of the Senators have similar views.
According to the organization’s tally, approximately 41 percent of House members with a large number of immigrants in their district tend to support what NLC calls “anti-immigrant” measure. In the Senate, approximately 26 percent of the senators support similar measures.
Congressional action on immigration reform is expected to be a major factor in determining the level of support candidates running for office this fall will receive from Hispanic voters. Many of the organizations represented by NLC have called for action on immigration reform this year and have stated they will not be satisfied unless legislation is passed.
The National Latino Congreso has brought together Latinos from all walks of life- from grassroots community members to national elected officials- to create a united Latino agenda on a variety of issues. The National Latino Congreso is convened by the Hispanic Federation (HF), League of United Latin American Citizens (LULAC), the Mexican American Legal Defense and Educational Fund (MALDEF), the Mexican American Political Association (MAPA), the National Alliance of Latin American and Caribbean Communities (NALACC), the National Day Labor Organizing Network (NDLON), the National Hispanic Environmental Council (NHEC), Southwest Voter Registration Education Project (SVREP), and the William C. Velasquez Institute (WCVI).
Interesting Read
Politics
RNC chairman defends stewardship of party affairs
The Associated Press
RNC Chief of Staff Ken McKay resigns
By Philip Rucker and Chris Cillizza
The Washington Post
GOP chairman Michael Steele is out front, attracting detractors
By Philip Rucker and Amy Gardner
The Washington Post
Democrats pull in more cash for campaigns than GOP
By R. Jeffrey Smith
The Washington Post
Quarter of Republicans Think Obama May Be the Anti-Christ
Live Science
Assessing John Thune's 2012 chances
By Chris Cillizza
The Washington Post
5 Reasons Why Romney's Political Career Isn't Dead
By Marc Ambinder
The Atlantic
Hamstrung by Health Care
Two Ways to Lose a House Majority
Rhodes Cook,
Crystal Ball
Parties Scrap for Governors’ Seats to Gain Handle on Redistricting
By Bob Benenson
Congressional Quarterly
GOP Senate contest heats up in Arizona
By George F. Will
The Washington Post
Housing and Community Development
Americans rebuild for the 'new urban century'
By John Blake
CNN
Foreclosure fund gets $600 million to help residents of 5 more states save homes
By Renae Merle
The Washington Post
Obama administration announces effort to slash mortgages for unemployed borrowers
By Renae Merle and Dina ElBoghdady
The Washington Post
Census caught in anger toward Washington
Officials worry low response rate is a form of protest
By Richard S. Dunham and Meredith Simons
The Houston Chronicle
Opponents of President Barack Obama’s health care plan, particularly those who are part of the Tea Party movement, have vowed to take their fight to the ballot box this November. They promised to punish Democrats who voted for Obama’s health care plan. Tea Party groups and others are targeting those Democrats elected in Congressional districts won by Sen. John McCain in his failed 2008 presidential bid.
The fervor surrounding the health care debate should be a wake up call to housing and community development advocates leading into, and going beyond, the fall election. A number of issues are going to influence the election results to varying degrees. They include:
1. The typical mid-year losses that the party of a new president endures;
2. The economy; an economic upswing bodes well for Democrats if an economic upswing occurs. The jury is still out whether the economy will really pick up in time to make a difference in November.;
3. The various constituency groups with a point to make this fall;
4. Cash; more specifically the Supreme Court decision on corporate and union spending on elections; and,
5. The anger associated with the passage of health care legislation;
Each of these influences are pieces to a broader puzzle to determine how much and what type of Federal resources will be available to low-income households. How the puzzle is put together will determine the level of financial assistance to individuals, families and the agencies serving this population and the kind of initiatives to help these families achieve economic self-sufficiency.
What do the political changes mean for those administering local housing and community development programs? Are there action steps local advocates and administrators can take to position themselves favorably regardless of the results of November’s elections?
In the coming weeks A View from DC will look at some of the factors affecting November’s election and offer our recommendations on the steps needed by advocates in 2011 and beyond. Here is an outline of our recommendations:
1. Job creation is not the only measurement of a growing economy and should be viewed with caution by local communities. Local groups should also take the time to more fully understand the internet’s impact on the economy and on the future earning potential of low income individuals and households.
2. The census. Working with the Census Bureau is going to be critical to ensure as many individuals in low-income communities are counted particularly immigrants from Asia, Africa and Latin America.
3. National membership organizations need to develop regional strategies to meet the needs of their constituents. Redistricting will create winners and losers which will result in the need for different political strategies to address the implications these changes will bring to localities. A broad national approach to accommodate the resulting changes will be insufficient.
4. It is important to learn the key lesson from the Tea Party movement - it all begins with the grassroots. Greater emphasis needs to be placed on local organizing efforts.
5. There appears to be a consensus among political experts that Republicans will make significant gains in November. It is important to develop a strategy now to work with elected officials before they become entrenched in Washington politics.
6. Advocates need to revise their message and take advantage of the anti-Washington sentiment in the country. Advocates who are members of national organizations need to be more judicious in using their political capital.
7. Traditional job training programs and skill development for low-income individuals need to be reevaluated and other forms of training need to be explored.
8. Local groups, particularly housing authorities, need to better utilize the Community Reinvestment Act (CRA) and other financial tools to generate additional resources for themselves and their residents.
9. Without an element of teaching financial literacy and wealth creation to low-income households, any future progress will be short-lived.
More than 30 million US Households Receive Inadequate Banking Services
The Federal Deposit Insurance Corporation (FDIC) released data this winter which documented that more than 30 million households in the United States are either unbanked or underbanked. According to the data, 25.6 percent of the population does not receive adequate financial services. It is estimated that the total number of adults in these households is 60 million.
Included in the findings:
1. The Southern Region has the highest incidences of underbanked households.
2. A large percentage of black, American Indian/Alaskan and Hispanic households are unbanked or underbanked.
3. Approximately five million households which are banked may be underbanked as well.
The survey, FDIC National Survey of Unbanked and Underbanked Households, collected a variety of data by sponsoring a supplemental survey to the Current Population Survey (CPS) administered by the US Bureau of the Census. The survey sought to identify more reliable data number and types of households in the United States which are unbanked or underbanked.
For purposes of the survey, unbanked households did not have anyone with a checking or savings account. Underbanked households contain an adult with either a checking or savings account but who also uses other financial services like check cashing establishments, non-bank money orders, payday loans, or pawn shops at least once or twice a year.
The data revealed the following characteristics of unbanked households:
1. They are more likely to be single-head of household with women comprising a higher percentage of these households versus men. Women comprised 20 percent of this population while men comprised 14.9 percent of the population.
2. Blacks, American Indians/ Alaskans and Hispanics are more likely to be unbanked than Asians and whites.
3. More low-income households are unbanked with those earning less than $30,000 comprising the overwhelming majority (71 percent) of low-income, unbanked households.
4. As age and education increases, the unbanked percentage decreases.
5. Over 40 percent do not believe they will open a bank account in the future.
6. Two-thirds of this population uses alternative financial services such check cashing establishments.
The underbanked share many of the characteristics of the unbanked population:
1. This population is more likely to be single head of household; however, the difference between females and males is only one percent. Approximately 28 percent of female headed households are underbanked versus 27 percent for male head of household.
2. Blacks, American Indians/Alaskans and Hispanics are also more likely to be underbanked versus Asians and whites.
3. Money orders and check cashing services are the two most popular alternative financial services used by this population. Convenience is the principal reason given for utilizing these services.
4. The underbanked rates decline as education and age increases but the rates are similar in the $30,000 to $50,000 range as it is for those earning less than $30,000.
The report concludes there is an opportunity for the government and the financial industry to provide a service to a significant portion of the US population. It does not offer recommendation on how to provide that service.
Hispanic Coalition Issues Interim Immigration Report Card
A coalition of Hispanic organizations released an interim report which is critical of the lack of support for “progressive immigration” reform as reflected in their votes on related matters.
The National Latino Congreso (NLC) issued the Immigrant Justice Report Card Interim Progress Report Card which looked at how Members voted and/or supported immigration-related legislation in the 110th and 111th Congress. The report looked at 15 Senate votes, four Senate bills, seven House votes and 10 House bills.
The report concluded that in spite of strong national support for “progressive immigration reform”, most members of the House of Representatives have records which favor
anti-immigrant measure” while Senators are slightly more inclined to support “pro-immigrant” reform. NLC says 53 percent of House members are pro-immigration reform while 67 percent of the Senators have similar views.
According to the organization’s tally, approximately 41 percent of House members with a large number of immigrants in their district tend to support what NLC calls “anti-immigrant” measure. In the Senate, approximately 26 percent of the senators support similar measures.
Congressional action on immigration reform is expected to be a major factor in determining the level of support candidates running for office this fall will receive from Hispanic voters. Many of the organizations represented by NLC have called for action on immigration reform this year and have stated they will not be satisfied unless legislation is passed.
The National Latino Congreso has brought together Latinos from all walks of life- from grassroots community members to national elected officials- to create a united Latino agenda on a variety of issues. The National Latino Congreso is convened by the Hispanic Federation (HF), League of United Latin American Citizens (LULAC), the Mexican American Legal Defense and Educational Fund (MALDEF), the Mexican American Political Association (MAPA), the National Alliance of Latin American and Caribbean Communities (NALACC), the National Day Labor Organizing Network (NDLON), the National Hispanic Environmental Council (NHEC), Southwest Voter Registration Education Project (SVREP), and the William C. Velasquez Institute (WCVI).
Interesting Read
Politics
RNC chairman defends stewardship of party affairs
The Associated Press
RNC Chief of Staff Ken McKay resigns
By Philip Rucker and Chris Cillizza
The Washington Post
GOP chairman Michael Steele is out front, attracting detractors
By Philip Rucker and Amy Gardner
The Washington Post
Democrats pull in more cash for campaigns than GOP
By R. Jeffrey Smith
The Washington Post
Quarter of Republicans Think Obama May Be the Anti-Christ
Live Science
Assessing John Thune's 2012 chances
By Chris Cillizza
The Washington Post
5 Reasons Why Romney's Political Career Isn't Dead
By Marc Ambinder
The Atlantic
Hamstrung by Health Care
Two Ways to Lose a House Majority
Rhodes Cook,
Crystal Ball
Parties Scrap for Governors’ Seats to Gain Handle on Redistricting
By Bob Benenson
Congressional Quarterly
GOP Senate contest heats up in Arizona
By George F. Will
The Washington Post
Housing and Community Development
Americans rebuild for the 'new urban century'
By John Blake
CNN
Foreclosure fund gets $600 million to help residents of 5 more states save homes
By Renae Merle
The Washington Post
Obama administration announces effort to slash mortgages for unemployed borrowers
By Renae Merle and Dina ElBoghdady
The Washington Post
Census caught in anger toward Washington
Officials worry low response rate is a form of protest
By Richard S. Dunham and Meredith Simons
The Houston Chronicle
