NC Asset Building Policy Task Force

Priority Policy Recommendations

The recommendations of the Task Force fall into three broad areas.  These three areas are initiatives that help families to:

Earn It: Policies that enhance the ability of families to earn an adequate level of income and benefits to allow them to save and build assets;
Keep It: Policies that help consumers to preserve and protect assets; and
Make It Grow: Policies that help families to invest and grow their assets over time.

Earn It:

1. Increase the level of support to working families provided by the NC Earned Income Tax Credit (EITC) by a) increasing the percentage of the federal EITC that would be provided by the state EITC from the current rate of 3.5% in 2008; and b) making the NC EITC a permanent provision of the NC tax code;
   
   
2. Ensure a basic standard of pay and benefits to North Carolina workers by a) indexing the NC minimum wage to inflation to maintain its value over time; and b) ensuring that NC workers receive paid sick leave so that they may care for themselves, their children, and other family members in times of illness;
   
   
3. Continue to expand the availability of affordable childcare by a) increasing the number of subsidized childcare slots; and b) increasing the state’s subsidies to child care providers in order to cover a higher percentage of the market rate for child care;
   
   
4. Improve access to post-secondary education by a) increasing funding for financial aid; b) making improvements to the state’s 529 college savings plan; and c) expanding the categories of students and the types of educational programs eligible for financial aid;
   
   
5. Improve access to affordable health insurance coverage with a special focus on a) children and parents; b) small business owners and their employees; and c) the self-employed.
   
   
   Keep It:
   
   
6. Ensure that all North Carolina school children receive a basic financial education through the public school system;
   
   
7. Assist NC consumers to avoid predatory payday and tax refund anticipation loans through a) consumer education about alternative, non-predatory financial services products;  b) regulating predatory financial products to the full extent possible under the state’s jurisdiction; c) protecting NC consumers from unreasonable account overdraft fees; and d) encouraging the state’s financial institutions to offer affordable, alternative products;
   
   
8. Expand access to justice for low-income clients by a) increasing funding for the state’s system of legal services and b) expanding the allowable uses of state funds for low-income legal services;
   
   
9. Address the state’s high rates of home foreclosures by a) reforming the regulation of home mortgage broker practices; b) increasing the level and scope of the NC Foreclosure Rescue Fund; and c) supporting a comprehensive system of both pre- and post-homeownership counseling across the state;
   
   
10. Increase unemployment insurance payments to 50% of an individual’s previous wages and allow for an extension of benefits beyond the standard maximum of 26 weeks for dislocated workers engaged in workforce training.
    
    Make it Grow:
    
    
11. Expand the current system of Individual Development Account (IDA) programs throughout the state by a) increased funding; and b) expanding allowable uses of IDA funds, in particular to allow inclusion of persons with disabilities;
    
    
12. Create a universal system of child saving accounts for all newborns in North Carolina that can be used for education, home ownership, and entrepreneurship at the age of eighteen; for children with disabilities, ensure that child account assets will not disqualify them for receipt of public benefits and services;
    
    
13. Increase the availability of affordable and accessible housing by a) substantially increasing the amount of funds in the NC Housing Trust Fund; and b) making needed reforms to the maintenance and regulation of the state’s stock of manufactured housing.
    
    
14. Remove or increase the asset ownership limits in public benefit programs (Temporary Aid to Needy Families, Food Stamps, and Medicaid) in order to provide incentives for low- and moderate-income residents and persons with disabilities to save and build assets;
    
    
15. Create a cross-state agency workgroup on asset protection, leveraging, and accumulation for working age adults with disabilities by Governor’s Executive Order that requires a report within six months on policy and funding recommendations to reduce barriers and create incentives to build a better economic future.