May 9, 2007

ELDRIDGE IDA AMENDMENT PASSAGE

Representative Eldridge Helps Secure More Money to Fight Poverty Across Massachusetts

BOSTON – The House voted this week to increase spending on an anti-poverty program started by Representative James Eldridge (D-Acton) last year.  

Eldridge helped secure $600,000 – an increase of $100,000 – in the state budget to continue funding the first statewide Individual Development Account program, which helps low-income workers save money to invest in “life assets,” such as buying a home, starting a business or paying for a college education.  

“What’s unique about this program is it teaches people how to better handle their finances and use those lessons to improve their lives,” Eldridge said. “This is a different approach from welfare reform, where the government says you’re on your own. This program is a bridge that brings the poor into the middle class.”  

More than a thousand people have developed personal savings accounts, which are matched dollar-for-dollar by state and federal money, under the MIDAS Collaborative – a group of anti-poverty, non-profit organizations in Massachusetts , including Lawrence Community Works.  

MIDAS Director Margaret Miley said the additional state money would help pay for financial education for hundreds more people – building on the more than 700 families who have already purchased equity-building, “life-changing” assets. 

“We could not have done this without Jamie Eldridge,” Miley said. “He committed to working on it, and he delivered.”  

Speaker of the House Sal DiMasi also appointed Eldridge to the Commonwealth’s new Assets Development Commission to continue to look for ways to lift people out of poverty.  

Eldridge said the federal government could follow Massachusetts ’ lead, and invest in similar programs, along with workforce training and preventing big lenders to take advantage of undereducated, low-income people to avoid foreclosures.  

“My criticism of the Democratic Party is that it has abandoned the poor,” Eldridge said. “We need to get back to federal funding for affordable housing and low-interest loans for people to become homeowners, while increasing oversight of banks and mortgage companies to prevent predatory lending.”

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