Representative Eldridge's Amendment ( #123) to Economic Stimulus Bill (H4404)
Creation of Massachusetts Commission on Asset Development

BOSTON – Representative James Eldridge (D-Acton) included an amendment into the House of Representatives’ Economic Stimulus package creating a commission on asset development. This commission will study the development of financial assets as a way to ensure that all people in the state of Massachusetts achieve long-term and sustainable economic security and self-sufficiency and enjoy economic opportunity. This includes a study of Individual development accounts (IDAs). IDAs are accounts opened at financial institutions in which low-income earners can set aside portions of their income for educational, health, housing and other important needs. These personal contributions are then matched or multiplied by non-profit and corporate donors, greatly increasing the assets of the low income earner. “IDAs have been proven to reward the fiscal responsibility of low income families by greatly boosting the assets they have set aside for important education and health needs. This commission will go a long way towards addressing the wealth disparities made so evident to us in recent events that exist in the states.”
            
The Massachusetts  Commission on Asset Development, the formal name of the commission, will examine the success of low-income workers of the Commonwealth in saving money and building assets, and the reasons why some people have had less success than others; assess the impact of current state policies and private sector practices on saving and asset-building; identify strategies that offer a real promise of significantly increasing the numbers of those who save and build assets and the amounts they accumulate; and make recommendations – consistent with the state’s short- and long-term fiscal condition – for state policies and practices, including action in coordination and collaboration with businesses and financial institutions, labor organizations, community- and faith-based organizations, and philanthropic organizations to implement those strategies. This includes exploring the impact of  IDAs on the asset base of  low income families. .

“ Individual Development Accounts have proved to be vital in building the asset base of low-income families in the 29 states that this system is currently in place. IDAs are a great tool in improving peoples’ financial situations and helping them out of poverty and public assistance. This system rewards fiscal responsibility and empowers families to build assets and improve their financial situation,” Eldridge remarked. “ This commission will be the first step in helping Massachsuetts join the rest of the country in rewarding financial planning.”