Source. U.S. Census Bureau, American Community Survey

Source. EPI analysis of Current Population Survey

Source. WV Center on Budget and Policy

Source. WV Center on Budget and Policy

Source. New York Federal Reserve, Quarterly Report on Household and Consumer Debt

Source. WV Center on Budget and Policy

Source. Workforce WV

Source. WV Executive Budget 2011

1. Enact a refundable state Earned Income Tax

Credit (SEITC). (Already covered)

2. Modernize state Unemployment Insurance

system to include more workers.

3. Expand opportunities to build assets with

Voluntary Employee Retirement Accounts.

• In 2009, UI pulled 11,000 West Virginians out of poverty

• American Recovery and Reinvestment Act (ARRA) includes $33 million for West Virginia to modernize its Unemployment Insurance (UI) program.

• West Virginia has drawn down one-third ($11M), but needs to make two additional changes by August 2011 or it forfeits remaining $22 million.

• Four options, but we are looking at cheapest two: – Part-Time Workers– Compelling Family Reasons.

• 28 states allow part-time workers to qualify for Unemployment Insurance.

• One in every six (128,000) West Virginia workers work part-time. Two-thirds (85,000) are women.

• Policy Change will directly benefit an estimated 1,850 workers.

• This recognizes that the workplace has changed since 1935. Many states have approved benefits for family-related quits (see numbers in parentheses below).– It would allow people to get UI if they quit their jobs due

to domestic violence (31 states & DC);– They were caring for a sick or disabled member of their

immediate family (24 states); or– They were following their spouse to a job located where

it is impractical to commute (22 states). • All three are required to qualify for federal funds.

Nineteen states have enacted all three of these reforms.

Source. NELP

Source. Workforce WV

$9M Hole!$9M Hole!

• The UI Trust Fund is schedule to be $9 million in the red by March 2011.

• $22 million would prevent the state from increasing taxes or borrowing from the federal government.

• Funds will last 4-7 years and can be received within 30 days.

• Reforms do not have to be enacted until 2012.

• Over half of West Virginia’s workforce (300,000) lacks a job-based pension.

• Lack of retirement assets is one of the leading causes of poverty among the elderly.

• Social Security provides a necessary stable base of income, but workers also need pensions and savings

for true security and comfort in old age.• Pensions coverage and availability of a retirement

account is often based not on need, but where you work. • VERA would provide every worker in the state with

access to retirement account.

Source. WV Center on Budget and Policy

Median Retirement Assets Among Households, Age 55-59

Source. WV Center on Budget and Policy

• Similar to the SMART 529 plan, the State Treasurer’s Office could

oversee the program and contract with a private financial institution to

administer it.

• The plans could offer payroll deduction IRAs and SIMPLE IRAs and

employees could choose their investments from a smaller menu of

options.

• The program would benefit from economies of scale by pooling

investments, thus reducing fees and increasing retirement income.

• $3 million start-up cost, but there would be no net-cost to the state, as

participation would cover the costs over time.

Source. WV Center on Budget and Policy

• Remove Assets Limits from TANF and maximize these funds.

• Refrain for unnecessary budget cuts. • Index and expand the state minimum wage to cover

more workers. • Enact a work-sharing program • Create a job subsidy program to boost labor demand• Create long-term investment in infrastructure.

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