Louisiana Department of Social Services - Asset Building Policies

In recent years - and very prominently in the wake of Hurricanes Katrina and Rita - the state of Louisiana has taken a number of important steps to make asset building a priority. In particular, the Louisiana Department of Social Services (DSS) has embraced the concept of asset building, and is implementing a number of programs to address persistent poverty and offer opportunities for asset building to low- and moderate-income residents. For instance, the state has allocated a total of $3.8 million over three years for Individual Development Accounts. The statewide IDA program - launched in January 2007 and managed by Southern University - has so far enrolled over 880 participants and helped over 120 low-income working families purchase their first home. In 2007, Louisiana was the first Southern state to pass a state-level Earned Income Tax Credit. The state also serves about 300 small business owners a year through its Microenterprise Development entrepreneurial training program.

What makes these programs even more powerful is that they all operate under the rubric of DSS' pioneering Solutions to Poverty (SToP) Initiative, an innovative and comprehensive effort targeted at measurable poverty reduction in Louisiana. SToP came into existence in 2004, and represents an unusually proactive strategy for state government. Through a staff of Community Specialists who serve as community liaisons in each of Louisiana's 64 parishes, the initiative works closely with local citizen groups. SToP informs Louisiana communities about services available to assist working families, solicits feedback from end-users about how existing state programs could work better, and educates residents on actions they can take to advocate for legislation that helps working Louisianans diminish reliance on public benefits and achieve greater self-sufficiency.

In addition, in the 2008 legislative session, Louisiana passed Senate Bill 660, which creates a statewide mandate for a 50% reduction in child poverty over 10 years. The bill—developed with input from DSS—passed with overwhelming support and was signed into law on June 30. Anti-poverty stakeholders in Louisiana's public, private, and nonprofit sectors are optimistic that the Child Poverty Prevention Council created by the legislation will become a vehicle for advancing the state's asset-building policy agenda. This approach will reinforce DSS's priority on demonstrating asset-building outcomes through measurement.

DSS Secretary Ann Silverberg Williamson underscores the state's commitment to asset-focused opportunities, saying, "The Louisiana Department of Social Services appreciates that asset building programs are among the most effective methods available for helping families to move from poverty to self-sufficiency. These solutions result in measurable, positive outcomes for our citizens. Louisiana is pleased to invest in these efforts that have such a valuable return for our families."

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