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New Data on the Strength of State Policies

By Ethan Geiling on 11/02/2011 @ 10:30 AM

Tags: Assets & Opportunity Initiative

CFED releases new data on the strength of state policies, case studies from the field

Last week we released new data on the strength of state policies that help families build and protect assets. This updated Scorecard policy data and accompanying Resource Guides are now available online.

For each of 12 policies, CFED created a Resource Guide that equips advocates and policymakers with background information on:

• Why the policy matters
• What states have authority to influence
• Elements of a strong policy
• Impact and results of policy change to date
• Examples of successful policy change strategies
• State precedents
• Advice on policy campaigns, as well as where to find additional resources

CFED worked with experts in the field and on the ground to capture detailed stories of some of the most exciting recent policy changes. We wrote up these stories into short case studies. Below are snippets from some of these case studies:

Case Study: A Successful Vote Ballot Initiative to Cap Predatory Lending in Montana

”…After another unsuccessful legislative session in 2009, the Cap the Rate Coalition decided to pursue a completely different strategy – a voter ballot initiative to cap interest rates on payday and car-title loans…Because the opposition understood that I-164 would probably be approved by the voters if it made it to a vote, opponents spent more energy filing complaints against the I-164 campaign than campaigning to deliver a message to the voters. These complaints took two main forms: campaign finance complaints and legal complaints. The Cap the Rate Coalition was able to weather these storms, though the opponents were successful in draining time and resources during a critical time in the campaign...”

Read the full case study in the Protections from Predatory Short-Term Loans Resource Guide.

Case Study: Eliminating the TANF Asset Test in Louisiana

“Agency leadership was instrumental in eliminating the TANF asset test in Louisiana…TANF administrators were particularly influenced by a cost-benefit analysis conducted by an outside contractor earlier that year. The analysis pointed out that the state’s successful TANF-funded Individual Development Account (IDA) program was in direct conflict with the asset test. On the one hand, the state was encouraging families to save and accumulate assets through the IDA program; while on the other hand, families were being penalized for owning assets through the TANF asset test. After a number of design sessions, TANF administrators were convinced that eliminating the asset test would benefit families and streamline program rules...”

Read the full case study in the Lifting Asset Limits in Public Benefit Programs Resource Guide.

Case Study: New York State Banking Department Adopts Groundbreaking Mortgage Services Regulations

“The need for regulation and accountability of mortgage servicers was dramatically illustrated by the ‘robosigning’ scandal in October 2010 and resulting lawsuit from the 50 state attorneys general. That scandal also catalyzed the New York State Banking Department to adopt what is widely regarded as the strongest set of regulations of mortgage servicers in the country…Effective October 1, 2010, these regulations apply to all entities servicing mortgage loans in New York. The extension of these regulations to all servicers in the state was groundbreaking, particularly because servicers from nationally chartered banks typically can dodge regulations that apply to their state servicer counterparts and because most mortgage servicers are from national banks…”

Read the full case study in the Foreclosure Prevention and Protections Resource Guide,

Case Study: A Decade of Advocacy Pays Dividends for Connecticut EITC

“...Realizing that the governor’s resistance to a state EITC was unlikely to change, advocates relaxed legislative efforts until a new, more receptive administration took office. In February 2011, a new Democratic governor included a fully refundable EITC, calculated as 30% of the federal credit, in his budget proposal for a tax system overhaul. While celebrating a positive first step, advocates did not take the governor’s proposal as a done deal, and braced for a debate pitting the new potential $100-million tax expenditure against the state’s $5 billion budget deficit…”

Read the full case study in the Tax Credits for Working Families Resource Guide.