Senators recommend passing asset-building package

The Hawai‘i Senate Ways and Means Committee has moved forward a package of bills aimed at helping less affluent citizens to acquire and build assets. The Hawai‘i Alliance for Community Based Economic Development is tracking and advocating in favor of these bills:

• Splitting of Tax Refunds : SB 2838 SD1 – This bill allows an individual taxpayer to request their state refund be electronically deposited into up to three checking or savings accounts. Tax refund time is often the only time when families have a significant amount of disposable income.  Research shows that allowing the splitting of refunds increases saving, especially those that have never previously saved any of their refunds. The Ways and Means Committee recommended its passage with amendments.
• Adoption of the Self Sufficiency Standard (SSS): SB 2840 SD1 – This bill requires the Department of Business, Economic Development, and Tourism to create the Self Sufficiency Standard and update it every two years. By including housing costs, the SSS is a better measure of what it costs to be self sufficient in Hawaii. WAM recommended its passage with amendments.
• Fund Individual Development Accounts (IDAs): SB 2837 SD1 – This bill provides funding, including TANF utilization, to fund IDA programs. It requires the Department of Human Services or a contracted agency to administer the state IDA program.  IDAs are matched savings accounts, proven to increase savings towards buying a home, starting a business, or higher education costs. The Committee on Human Services and Public Housing amended the bill and WAM recommended its passage without further changes.
• Financial Education and Asset-Building Task Force: SB 2839 SD1 – This bill appropriates funds for the creation of a taskforce and coordinator that would explore and make policy recommendations on: universal, matched children’s savings accounts; statewide standards for financial and economic education for public and private sector employees; and the elimination of asset limits.  The taskforce includes members and leadership from the legislature, representation from various state departments, the University of Hawaii, and a range of public, private, and nonprofit sector organizations involved in financial and economic education. WAM recommended the Senate pass it with amendments,