Michael Morris¹

Every July, the anniversary of the Americans with Disabilities Act sparks discussion on the impact of this civil rights legislation on the advancement of the personal and economic freedom for working age adults with disabilities. Fourteen years after its passage, economists continue to debate the fiscal repercussions of the ADA upon employment, housing choices, and issues of accommodation. Meanwhile, a new area of inquiry, launched by a unique consortium of organizations, promises to bring hope into the futures of people with disabilities.

True freedom and full community participation for Americans with disabilities will not be achieved until we understand the power of assets and wealth creation. With new funding from the National Institute on Disability and Rehabilitation Research (NIDRR), the Law, Health Policy, and Disability Center (LHPDC) at the University of Iowa College of Law, in collaboration with Southern New Hampshire University School of Community Economic Development, the National Federation of Community Development Credit Unions (NFCDCU), the World Institute on Disability (WID), and the National Cooperative Bank Development Corporation (NCBDC), will be engaged in a series of research studies, demonstration projects, training, and technical assistance activities over the next five years to increase knowledge, understanding, and utilization of alternative asset development strategies to advance the personal and economic freedom for Americans with disabilities. The five partnering organizations bring together for the first time expertise in multiple disciplines - law, economics, community development, finance, disability studies, and public policy with real world experience of persons with disabilities and their families, financial service providers, and community developers.

The passage of the ADA established an environment that focused on removing barriers to participation in the workforce and improving access in education, health care, and community experience. However, very little attention concentrated on barriers in public policy services and programs to advance economic freedom. If recipients of Supplemental Security Income (SSI) are encouraged to enter or return to work but are not allowed to maintain control of assets above $2,000, our public policy is sending conflicting messages. If access to critical health care benefits through Medicaid requires individuals with disabilities to maintain limited assets, then individuals with disabilities face major public policy barriers to improving their economic status.

The challenges to wealth creation for Americans with disabilities are daunting. One out of every three adults with disabilities live in very low-income households as opposed to one of every eight non-disabled adults (NCD 1996 Report). Thirty-nine percent of people with disabilities say that the lack of financial resources is the most serious problem they face. (NOD/Harris Survey 2000). Meanwhile, only 37% of adults with significant disabilities are participating in the nation's workforce. (National Health Interview Survey, 2000). Even when employed, people with disabilities earn substantially less than their non-disabled peers- roughly 72% to the dollar (NCD 1996 Report). Public assistance represents 59% of the total income of people with significant disabilities and only 8% of the total income of people who have no disability. (Harris Survey 2000). Identifying, analyzing, and ultimately rectifying these inequities is the purpose of the Asset Accumulation and Tax Policy Project (AATPP) collaboration.

In its first year, AATPP will review and analyze 30 specific government benefits, tax policies, and legislative initiatives to increase understanding of eligibility requirements that are tied to asset levels, waiver of and exceptions to those limits, and current utilization of these specific benefits by individuals with and without disabilities. The analysis will identify trends in the structure of these benefit options and make recommendations for future policy development.

These findings will be used to design, pilot, and evaluate multiple intervention strategies in six states and ten sites that will seek to improve personal and economic independence for youth and adults with disabilities. The strategies to be tested include:

• Participation in financial education programs
• Waiver of SSI asset limits to remain eligible for Social Security and Medicaid
• Inclusion in community economic development initiatives that create cooperative housing and business ownership
• Access and development of matched savings plans (individual development accounts - IDAs)
• Improved utilization of tax credits and deductions that encourage savings and asset accumulation
• New levels of access to low-cost financial services through community development credit unions

Asset poverty for all Americans is a significant issue. Asset poverty is defined as the ability of an individual or family to live without new income for 90 days. Thirty-three percent of all American households have zero or negative assets. Fifty-four percent of Hispanic households have a similar status. Sixty percent of African American households have no net assets. For persons with disabilities, estimates are as high as 80%.

Despite these challenges, during the past ten years new focus and strategies have been designed and implemented for people at the low end of the economic ladder. One of the more intriguing strategies is the Individual Development Accounts (IDAs). Through federal and state government as well as banks and foundations, there are over 20,000 individuals at low-income levels participating in IDA programs. IDAs are managed by community organizations and the savings accounts are held at local financial institutions. Each participant has a set financial goal, which may be to start a business, purchase a home, or pursue more education. IDA programs match each dollar saved from earned income with matching funds from other public and private sources. Each participant must also complete economic literacy training to improve credit, to create a budget and savings schedule and develop long term management skills. Preliminary results from IDA programs nationwide indicate that participants are saving for the first time, managing a budget and achieving their preferred financial goals with their matched savings plans. However, few individuals with disabilities have participated in IDA programs. In the AATPP, both WID and Southern New Hampshire University will be providing assistance to selected IDA providers to adopt universal design principles to foster effective and meaningful support of individuals with disabilities.

In other demonstration sites, AATPP partners will be collaborating with community development organizations to increase participation of individuals with disabilities in affordable housing and business start up opportunities funded by state and federal tax incentives. During the next five years, AATPP will move the focus of policy research and development from employment outcomes to asset accumulation and economic independence. We will bridge relationships between the asset development and disability community to answer two questions: What policies need to be amended or developed to advance personal and economic freedom for Americans with disabilities? What strategies, supports, and services are effective to advance asset development at an individual level and community level? Assets advance choice and freedom. Assets change self-concept and social status. Join with us in the discovery of new tools, policy, and practices that promote personal and economic independence.

For contact information of AATPP collaborators, please see summary page of the AATPP national collaborative.

1 Michael Morris, J.D. serves as project director of the Asset Accumulation and Tax Policy Project (AATPP). He is the Associate Director of Law, Health Policy & Disability Center at the University of Iowa College of Law and is Director of the National Cooperative Bank and Development Corporation National Disability Institute.