The state assesses your assets

By Stephanie Ganias

del.ico.us | digg it! | reddit!

print | email | 3 Comments

Several state legislators have put their foot down to help low- to moderate-income families take control of their finances instead of taking on the unwanted title of "poor," after the Massachusetts Asset Development Commission, a 26-member board created in 2006, released a final report last Thursday, June 25th, mapping out ways for families to build assets and become financially independent.

What the hell qualifies as "assets"? The commission mapped out three major ones: maintaining a savings, purchasing a house or car, and improving vocational and educational skills. Restrictive limitations on state income and asset holdings prevent families from developing these advantages.

"Financial stability, being able to consistently afford a place to live, food to eat, health care when sick and other simple necessities, is a dream that is currently out of the reach for hundreds of thousands of Massachusetts families," said Sen. Jamie Eldridge, D-Acton, co-chair of the commission. "The Commonwealth can, and should, do more to help these families get ahead rather than putting barriers in the way."

At the age of 18, Diane Sullivan of Medford, found herself in a sticky situation: pregnant and single, with no money. Before receiving her associate degree and her job as a policy advocate with Homes for Families, Sullivan received numerous benefits: cash assistance, food stamps and health care benefits.

As a single mother, Taree King of Everett received benefits. But, she testified at the hearing, upon pursuing her bachelor's degree at Springfield College and taking on a job, she lost her benefits one by one. This only placed greater financial obligations into her hands. "I dreaded getting ahead because [now] my bills increased," said King. "The more I excelled, the more I struggled."

Both women were pleased to see the state working so hard to help others get back on their feet financially. "It's the policies in place that need to change, not the people being put into this place by the policies," said Sullivan. "This is not something to sweep under the rug and pretend it doesn't exist."

The final report came with a string of recommendations: Supporting financial education in public schools, expanding college savings plans, protecting assets like houses or savings, and restructuring benefits programs so that someone receiving public assistance doesn't lose benefits all at once after a slight income increase.

Gov. Deval Patrick spoke of how he grew up to think that assets had nothing to do with him, emphasizing the importance of educating people at an early age. He shared some advice his grandmother told him as a young boy. "She said, 'Don't say you're poor. Say you're broke, because broke is temporary.' She knew how to look up and look forward," said Patrick. "It's all about optimism. Build your assets and build your dreams, and I am confident that there are good days ahead."