Another Victory for the Paperless Payday
By Lauren Stebbins on 10/26/2010 @ 11:26 AM
In late September, the City Council for Austin, Texas unanimously passed a resolution to increase the percentage of city employees receiving their salary through electronic fund transfers or pre-paid debit cards to 98% by September 30, 2011. The resolution was introduced by Council Member Bill Spelman and cosponsored by Council Member Sheryl Cole. Over the next year, city managers will be working with city employees receiving their salary through paper checks to identify barriers preventing them from choosing electronic payment, develop procedures encouraging them to opt for electronic payment, and promote accessible bank accounts and other financial services. To carry out this project, the resolution directs the City to work with Bank On Central Texas, an initiative of United Way Capital Area and PeopleFund to provide un- and under-banked Texans access to mainstream financial products and services.
A paperless payday is a critical strategy for bringing people into the financial mainstream by connecting them with bank accounts and financial services that are not easily accessible for them. Access to these products and services helps them avoid the costly fees that come with money orders and check cashing institutions and build their assets.
Austin’s efforts are informed and inspired by the innovative work of the San Francisco Office of Financial Empowerment and their efforts to be the first city in the country to implement a plan to move all employees in the city of San Francisco – not only city employees but all workers employed in the private sector as well – to a paperless payday. More details about San Francisco’s efforts can be found on CFED’s Innovation Profile page highlighting the work of José Cisneros, Treasurer for the City and County of San Francisco; Leigh Phillips, Program Manager for San Francisco’s Office of Financial Empowerment; and Eugénie FitzGerald. Research from the design phase of San Francisco’s paperless payday initiative will be disseminated to leaders in other cities who are considering this type of strategy.
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