We at The Women’s Foundation are very excited to announce the release today of a new Request for Proposals under our Stepping Stones Initiative.

We have learned so much during Phase 1 of Stepping Stones (2005-2008) through our Grantee Partners, their clients, other stakeholders and our evaluators.

We hope Phase 2 (2009-2012) will deepen this work, as well as the learning, and build on the initiative’s success in increasing the economic security and financial independence of low-income, women-headed families in our region.

One of the greatest learnings from Phase 1 is the value of partnership and collaboration. That’s part of why Phase 2 and this RFP are so exciting: they seek to strengthen this learning.

Phase 2 is also exciting for us as funders because we are using it as an opportunity to broaden the frame of “place-based” philanthropy, which now concentrates giving in a particular geographic place, usually a neighborhood. Our approach will intentionally focuses instead on supporting organizations and collaborative efforts that reach low-income women where they work, attend school, engage or participate in professional or personal development services, or receive services for their children – not only where they live.

So welcome to the beginning of Phase 2 – we can’t wait to see what it brings!

Gwen Rubinstein is a program officer at The Women’s Foundation overseeing Stepping Stones’ grantmaking in the areas of jobs, early care and education, and strategic opportunity and partnerships.

The Women’s Foundation is proud to announce that the board of directors has recently approved grants totaling $645,500 to be invested in the Washington metropolitan area.  This brings our 2008 grantmaking total to more than $1.1 million.

See where and how we’re investing.

Our grants are made with gifts from people throughout our community who—through The Power of Giving Together—make their charitable investments go further by pooling their dollars to make grants that have a significant impact on local nonprofits that are changing the lives of women and girls.

At The Women’s Foundation, we give more, by giving together.

Join in The Power of Giving Together!

Philanthropist Laurie Emrich, a "woman moving millions," and a founding board member and supporter of The Women’s Foundation, as well as many international women’s funds, describes how her journey from Denver to Africa to Washington, D.C. was an intellectual, spiritual and emotional one leading to her commitment to give back to her community and to "participate in the long-term building of an inclusive, community-based, multi-racial movement for justice."

Read more about Laurie’s journey to social justice and philanthropy in her own words here.

Laurie explains in her piece that she derives inspiration from the words of 1960s rhythm and blues singer-songwriter Wilson Pickett: "Ya gotta shake whatcha brought whicha."

Laurie’s story is one of transforming the gifts and abundance she has received into a true spirit and lifetime of giving back. 

She inspires us all to consider what we all "brought whicha," and how we can use it–whatever our gifts–to better our communities and the world.

As part of our ongoing commitment–in partnership with The Urban Institute–to providing information and resources related to the goals of Stepping Stones, please find below summary of recent research on issues of economic security and financial independence for women and their families.

Financial Education and Wealth Creation News

The Cost of Maintaining Ownership in the Current Crisis: Comparisons in Twenty Cities
By Dean Baker, Danilo Pelletiere and Hye Jin Rho
Center for Economic and Policy Research
April 2008

The collapse of the bubble in the U.S. housing market is creating chaos in financial markets, while throwing the economy into a recession. It is also threatening millions of homeowners and renters with the loss of their homes. This paper compares ownership and rental costs in twenty major metropolitan areas.

Key Findings:

• In many markets, homeownership costs are in line with rental costs. In these areas, it is practical and desirable to focus on policies that keep homeowners in their homes.
• Prices are now falling rapidly in many of these markets; homeowners are unlikely to accumulate equity. In fact, it is likely that many homeowners will end up selling their homes for less than their outstanding mortgage, even if new mortgages are issued with substantial write-downs from the original mortgage.
• In bubble-inflated markets, homeownership is not only a costly and risky proposition, but continuing price declines mean that homeowners will not accrue any equity.
• A policy of ensuring suitable rental options is likely to be more helpful to many current homeowners. This policy can encourage the rapid conversion of vacant and abandoned units to rental properties, as well as policies that facilitate the conversion of ownership units to rental units for the same households.
• Many of the properties facing foreclosure are already rental properties. In these cases, foreclosures often result in the displacement of the current tenants. Congress should recognize this problem and consider policies that provide greater security to tenants in such situations.

Abstract, introduction and key findings
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Jobs and Business Ownership News

Hometown Prosperity: Increasing Opportunity for DC’s Low-Income Working Families
DC Appleseed and DC Fiscal Policy Institute
January 2008 (Released April 14, 2008)

This report describes working poor families with children in the District and the barriers they face to economic advancement, and lays out essential policy changes that could improve their situation.

Key findings and Policy Recommendations:

• Nearly one in three working families in the District was poor in 2005.
• In fact, a higher proportion of working families in the District is poor compared to the proportion of working families in neighboring states or in the nation as a whole.
• Enhance access to community college educational offerings for its residents by encouraging and developing regional partnerships and/or investing in the creation of a local community college as a branch of or separate from the University of DC.
• Make a priority of raising wages in women-dominated sectors and moving women into non-traditional careers.
• Set wage and benefit standards for all economic development programs.
• Implement paid sick leave for all District workers and consider developing a paid disability/family leave program.
• Continue to address the affordable housing crisis in the city, and promote housing for low-income families that takes into account access to transportation, jobs, and educational resources.

Abstract, introduction and key findings
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Human Capital and Women’s Business Ownership
By Darrene Hackler, Ellen Harpel, and Heike Mayer
Small Business Administration- Office of Advocacy
April 2008

This article begins to shed light on the relationship between different elements of human capital and self-employment among women.

Key Findings:

• The study finds that self-employed women have more education and increased their educational attainment at a faster rate compared to other working women.
• The percentage of self-employed women in managerial occupations consistently exceeded the rate for other working women, and self-employed women participated in different industries than other working women.
• More self-employed men hold an advanced degree compared to self-employed women over the study period, but the gap narrowed considerably by 2006.
• Self-employed minorities were slightly more likely than self-employed whites to have a college degree throughout much of the study period.
• Earnings data show that the self-employed were most likely to be either in the first (lowest) or fourth (highest) quartile.
• A lower percentage of self-employed women hold managerial occupations than do self-employed men, and there are lower rates of self-employment in industries where there is less overall female participation (such as communications, transportation, wholesale trade, manufacturing, and construction).

Abstract, introduction and key findings
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Child Care and Early Education News

Planning for Quality Schools: Meeting the Needs of District Families
By David F. Garrison, Marni D. Allen, Margery Austin Turner, Jennifer Comey, Barika X. Williams, Elizabeth Guernsey, Mary Filardo, Nancy Huvendick, and Ping Sung
Brookings Institution, The Urban Institute, and 21st Century School Fund
April 24, 2008

This report is the first phase of a three-part project to help the District of Columbia create a firm analytical basis for planning for quality schools to meet the needs of the city’s families.

Key Findings:

• The District’s population has increased since 2000; the total number of school-age children has declined slightly. Conditions in both the housing market and the public school system contribute to this trend.
• The District’s population is becoming increasingly diverse, with rising numbers of whites and Hispanics and a declining share of blacks. Still, the District remains highly segregated along both racial and income lines. The populations of Wards 7 and 8 are over 90 percent black, while nearly all of the city’s white residents live in Wards 2 and 3. And in 2006, median household income for the city’s white residents was $92,000, almost three times as high as the $34,000 median household income of the city’s blacks.
• Almost half of all white public school students live in Ward 3, and almost none live East of the River. In contrast, more than half of all black public school students live East of the River, while Hispanic students are heavily concentrated in Wards 1 and 4.
• There are 234 public schools and distinct public school programs in the District serving pre-school students through adults without high school diplomas, a significant expansion of supply since 1997.
• In 2006-07, 72, 378 students were enrolled in DCPS and public charter schools, close to the same number as the previous year, but substantially lower than a decade earlier. Since 1997-98, the number of students attending DCPS schools has dropped by almost one-third, while public charter enrollment has grown by over 400 percent.
• In 2006-07, there were 10,857 public special education students in the District, just over 15 percent of all public school students. This is on the high end compared to other high-poverty urban school districts. Special education students, like the general student population, are concentrated East of the River, and a disproportionate share of black public school students are classified as special education students (compared to white and Hispanic public school students).

Abstract, introduction and key findings
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The Impact of the Mortgage Crisis on Children and Their Education
By Julia B. Isaacs and Phillip Lovell
Brookings Institution
April 2008

By examining past research, this article examines the potential impacts of these foreclosures on children are their education, behavior and health.

Key Findings:

• Research shows that children who experience excessive mobility, such as those impacted by the mortgage crisis, will suffer in school.
• The National Assessment of Educational Progress (known as the Nation’s Report Card) has found that students with two or more school changes in the previous year are half as likely to be proficient in reading as their stable peers.
• One study found that frequent movers were 77 percent more likely than children who have not moved to have four or more behavior problems.
• One study found that working families spending more than half of their income on housing have less money available than other families to spend on such crucial items as health care and health insurance
• The mortgage crisis is more than a blow to our economy. It is crippling our children, their education, and as a result, the nation’s future. And while our government is working to alleviate the financial damage caused by this calamity, the impact on the nation’s children is going unnoticed. As economists focus on solving the problem, policy-makers must make an effort to mitigate the damage of this disaster on our young people.

Abstract, introduction and key findings
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Health and Safety News

Medicaid, SCHIP and Economic Downturn: Policy Challenges and Policy Responses
Kaiser Family Foundation
April, 28 2008

Examines the implications of a downturn for health coverage and state programs and projects the impact of one percentage point rise in the national unemployment rate on Medicaid and SCHIP and the number of uninsured individuals.

Key Findings:

• Economic Downturns Increase Medicaid Enrollment and Spending - This analysis shows that a 1 percentage point rise in the national unemployment rate would increase Medicaid and SCHIP enrollment by 1 million (600,000 children and 400,000 non-elderly adults) and cause the number of uninsured to grow by 1.1 million.
• Economic Downturns Reduce State Revenues - Medicaid and SCHIP are also affected by state revenue declines. Recent Urban Institute research shows that a 1 percentage point increase in the unemployment rate causes state General Fund revenue to drop by 3 to 4 percent below expected levels. 
• State Policy Responses Can Worsen Cyclical Downturns - Unlike the federal government, almost all states are legally required to balance their budgets. To meet this requirement in times of economic stress, states may take such steps as tapping reserves, borrowing from trust funds, securitizing future revenue streams, delaying spending from one fiscal year to the next, etc.
• Congress May Consider Options to Better Target Federal Relief - As states enter a new economic downturn, policymakers could consider three basic options for fiscal relief. One approach would, like JGTRRA, provide a uniform increase in Medicaid matching rates to all states, for a specified time. 
• Federal Fiscal Relief Can Prevent Medicaid Cuts During Economic Downturns - As a new economic downturn unfolds, many states appear headed for serious budget shortfalls. The federal government does not have balanced budget requirements, so it has the flexibility to target supplemental funds to states during an economic downturn, preventing harmful and ill-timed cuts in health coverage.

Abstract, introduction and key findings
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Other News and Research

Women in the Wake of the Storm: Examining the Post-Katrina Realities of the Women of New Orleans and the Gulf Coast
By Dr. Avis Jones-DeWeever
Institute for Women’s Policy Research
April 2008

This report tells the stories of women post-Katrina and, in so doing, provides an analysis of women’s increased vulnerability during times of disaster, and discusses how the experiences of women affected by Katrina align with the experiences of women around the world who have experienced other large-scale crises. It also provides a race/class/gendered analysis of women’s post-Katrina experiences, with a special emphasis on what they are doing now to rebuild their lives, reconstruct their homes, restore their families, and reclaim their communities.  It tells the story of Katrina from the eyes of the women who lived through it.

Key findings:

• Most of those with whom the author spoke with seemed relieved that other people wanted to know what they had been through, how they had survived, and what they were doing now to keep on keeping on. Nearly every woman bemoaned the fact that their voices had not been heard and as a result, their stories have been left untold.
• In conversations with women in and around New Orleans, three primary issues remained at the forefront of their concerns: housing, healthcare, and economic well-being. Each of these issues had multiple and often interlocking reverberations on their lives. All of those with whom we spoke expressed a deep commitment to their communities and desire to face any remaining challenges; however, our contacts’ health, sense of security, and for some even that small but persistent kernel of sustaining hope all have been jeopardized by the slow pace of recovery and the prolonged lack of normalcy.

Policy Recommendations:

• Make affordable housing a top priority. The safety of women and girls remain in jeopardy with each day that severe housing shortages go unaddressed.
• Incorporate women in the rebuilding economy through non-traditional training and enforcement of anti-discrimination laws. Women by and large have been shut out of the most lucrative aspects of the rebuilding economy and have suffered as a result.
• Increase the availability and quality of child care and schools. As the population of the region continues to expand, so does the need for child care and educational institutions.
• Address both physical and mental health care needs, especially among the most needy. Health care post-Katrina, for many, has become yet another disaster.

Full text

Getting the Ball Rolling
Thirty years ago, Women & Philanthropy was born out of the desire and outrage of a small cadre of women (and a couple of male allies).  Troubled by the lack of representation of women in positions of leadership in the philanthropic field (a report from the Council on Foundations reported that only 18 percent of foundation trustees and 28 percent of foundation professional staff were women), and the dearth of program funding supporting programs for women, one motivated woman held an impromptu lunch to figure out what could be done.

The lunch was standing room only!

In 1977, when the organization was founded, funding to women and girls was a scant 0.5 percent.  Yes, you are reading that correctly: half of a percent of total foundation giving!

Can you imaging half of a percent for 52 percent of the population!

The new organization set out to address the lack of female representation in the sector, the appalling lack of funding, and the general education of, and communication with, foundations about issues and problems affecting women.

Eight years later (in 1985), the Women’s Funding Network (WFN) was formed as an umbrella organization, bringing together the various women’s funds fueling the burgeoning "women’s funding movement," which was really gaining momentum.

Its mission: "to ensure that women’s funds are recognized as the ‘investment of choice’ for people who value the full participation of women and girls as key to strong, equitable, and sustainable communities and societies."

Women’s funds had been in existence for many years.  The majority of the funds at the time were rooted in the women’s and civil rights movements in the 70s; however, there were a small number with histories stretching back to the late 1800s and early 1900s!

These funds were the result of women’s recognition and desire to be in greater command of financial resources, and in turn to be able to use these resources to support work that served and transformed the lives of women and girls.

In 1985, there were roughly 35 women’s funds in some stage of their development.

While Women & Philanthropy and the Women’s Funding Network employed very different strategic approaches, both organizations worked tirelessly over the subsequent years toward the same ultimate goal: to increase resources to women and girls.

Where are we now?
I think that clearly both groups can claim success on many levels.

Within the field of philanthropy, women now comprise more than 74 percent of program officers, 54 percent of CEOs and 35 percent of trustees.

Today, the Women’s Funding Network celebrates over 125 women’s funds worldwide!  And, collectively, women’s and girls funds have raised over $400 million!

Surely with such achievements under our belts in the women’s funding movement, we can claim victory!

Can’t we?

While it is true that there are many people and institutions that deserve a great deal of appreciation and recognition for the tremendous work they have done in securing resources for women and girls, the unfortunate reality is that we still have miles to go before we’re done.

Show Us the Money!
In the Foundation Center’s 2008 Foundation Giving Trends publication, released last month, the Foundation Center actually reports a decline in giving to women and girls – from 6.4 in 2005 to 5.7 in 2006. 

Yes, it can be said that the movement from the 0.5 percent of 1977 to where we are today mark steps in the right direction, but even at its peak of 7.3 percent (in 2003), I think that we can all agree that the funding levels remain woefully inadequate! 

Further, this downward trend specifically should raise pink–if not red–flags for all of us.

But this is not just a gender issue – the Giving Trends document also notes a decline in funding to “ethnic or racial minorities” as a whole from 8.2 percent in 2005 to 7.4 percent in 2006, with a decline seen for most groups with the exception of Native Americans/American Indians, where there was a 0.2 percent increase.

In Search of Answers
So what is going on?  How is it that we can have more and more women in the sector, and more women in control of directing large financial resources, yet not only have we not reached a level of parity in our funding, but we are actually seeing a decline in this support?

Are our data collection methods flawed?

Perhaps.  Even the best data collection has some margin of error.

The data reported in the 2008 Giving Trends document explores national trends from 2006/2005 – the limitations of data collection mean that there will always be a lag time between data collection, analysis and reporting.  Also, The Foundation Center uses a sampling base which includes grants of $10,000 or more from the largest 1000-ish foundations in the U.S. that report to them, so there is definitely room, for missed funding dollars considering the size of many foundations, including most women’s funds, and the size of many of the grants given to women and girls.

Nevertheless, these numbers are the best we have to-date and they are consistently collected, so while there may ultimately be some funding that may be slipping through the cracks, it is unlikely to drastically change this picture, or the prevailing trends.

Further, it raises concerns about the average size of grants to women and girls, and the scale at which most women’s funds operate compared to the more “mainstream/traditional” foundations.

Maybe grantmakers and donors are investing more in “universal funding,” and not specifically targeting women and girls.

This is also a possibility.

There has long been a debate about the value of “mainstreaming” gender on many levels, including grantmaking.
Unfortunately, increasing evidence has shown that these “generic” or “universal” funding dollars do not ”trickle down” to meet the needs of women and girls.

Are foundations just “over it”?

A continued roadblock for funding to women and girls is the “special interest” stigma.  It becomes a double edged sword.  By segmenting funding and programs for women and girls for particular attention, we may be reinforcing this concept of women and girls as a “special interest,” and therefore optional group, rather than the integral parts of society we are.

We also know that some of society’s most chronic problems – poverty, health care, violence – hit women the hardest. One need only look to our Stepping Stones program to see this in our own region. 

Moreover, as Kofi Annan so eloquently reminds us:  "When women are fully involved, the benefits can be seen immediately; families are healthier; they are better fed; their income, savings and reinvestment go up. And what is true of families is true of communities, and eventually, of whole countries."

So what does this declining investment in women and girls say about our commitment to our communities?

The real answer may lie somewhere in and around all of these hypotheses. Though we may not be able to connect all of the dots to get us from A to Z, what is clear is that these numbers continue to reinforce the significance of the work that we, and other women’s funds, are doing. And support the ongoing argument for a continued and, in fact, increased investment in women and girls, and the continuation of a dialogue around gender.

We have made progress, and we must celebrate those milestones.

However, we can not rest on our laurels.

There is still a long way to go, and those achievements that we have already made must be protected so we don’t lose the precious ground we have gained.

But the next time someone tells you that we don’t need to be talking about women and girls anymore because we’ve “been there, done that,” I hope you remember my little blog, and can set the record straight.

It is in all of our best interests to ensure the continued investment in women and girls.

Let’s keep that needle moving!

Access to quality early childhood education is finding articulate advocates in unusual places, including voices from the Federal Reserve Bank. The economic argument for investing in quality early childhood education has been soundly made by Federal Reserve Bank of Minneapolis researcher Art Rolnick in the working paper, A Proposal for Achieving High Returns on Early Childhood Development.

In addition, on September 24, 2007, the Chairman of the Federal Reserve Bank, Ben Bernanke, talked about the importance of investing in early childhood education in his remarks on education and economic competitiveness in a speech to business leaders at the U.S. Chamber of Commerce. He noted that, “ the payoff from high-quality pre-school and home visitation programs is likely very high, especially for children born into poor or otherwise disadvantaged families.”

On March 5, 2008, Jeffrey M. Lacker, President of the Federal Reserve Bank of Richmond, spoke to Fairfax Futures’ business and foundation partners about the importance of investing in early childhood education.  Lacker noted, “Human capital is critically important to economic growth at the state or metropolitan level. Therefore, the more skilled the workforce, the more rapidly the economy grows.” Lacker went on to say, “The close relationship between skills and growth, combined with compelling evidence that early childhood education leads to better educated, more highly-skilled adults, is what makes the case for early childhood education so strong for me.”

Washington Area Women’s Foundation President Phyllis Caldwell participated in the event.  The Women’s Foundation is a strong supporter of Fairfax Futures’ efforts to engage the business community as advocates on this issue.

Vera Steiner Blore is executive director of Fairfax Futures, a Grantee Partner of The Women’s Foundation.

No not Extra-Sensory Perception, I’m talking about the Economic Stimulus Payments.

Beginning in May, the IRS will send Economic Stimulus Payment checks to over 130 million households.  Intended to spur a slowing economy, these payments represent many millions of dollars flowing into our communities. Just imagine what you could do with that money! How about doing something really novel and taking that payment and saving all or part of it for a rainy day?

It’s not like saving is unheard of, or that people don’t also get the message to save. It’s more that when surrounded by many more messages to “buy this new thing,” or “upgrade to this latest thing,” it’s harder to hear the call to save. And those messages to spend and buy are mostly winning.  Recent survey results released by America Saves and the American Savings Educational Council (ASEC) found that only 53 percent of Americans have adequate savings, with just 28 percent saving the recommended 10 percent of their annual income.

It’s not just a message of cutting out the frills and luxuries, either.  Surveys of taxpayers who file at the DC Earned Income Tax Credit (DC EITC) Campaign’s free tax sites have shown that many of them use their refunds for everyday expenses, including paying bills.  If your income isn’t very high to start with, it’s easy to see why saving can be more difficult.  At CAAB, however, we see every day that anyone can save.

National research and our own experience with our matched savings program participants like Christine Walker has shown that even people with low incomes can put money away now as a down payment on a brighter future.

To help get this message out and to provide motivation, information, and resources to help people take positive financial action, DC Saves was started a year ago this month (Financial Literacy Month, a fitting birthday!) to help Washingtonians reduce debt and increase savings. 

This Saturday, April 5, we’ll host our First Anniversary Financial Literacy Fair at THEARC in Ward 8. In addition to useful information and access to savings products and resources, we’ll also provide free tax preparation services, financial education seminars, credit reports and counseling, and mini-sessions with Certified Financial Planners. It’s free to the public and we hope you’ll join us to learn how you, too, can take that first (or second, or third, etc.) step toward reaching your financial goal.

And what about that ESP?

To help more people claim and keep the economic stimulus payment and any other tax benefits they may be owed, the DC EITC Campaign and Community Tax Aid are hosting Super Stimulus Filing Days alongside our regular tax clinics. Community organizations can help their clients access these services by spreading the word about the programs, or sending their own staff to learn how to complete the necessary tax forms to help their clients receive their economic stimulus payments at one of our training sessions.

And if any of those clients want help to make a commitment to saving, tell them about the Fair on April 5. It’s a free, fun way to share the message that “Anyone can save!”

Donna Ortega is director of development and communications at Capital Area Asset Builders, a Stepping Stones Grantee Partner of The Women’s Foundation.  The Women’s Foundation is a sponsor of the April 5 Financial Literacy Fair. 

Christine Walker came to Washington, D.C. in 2002 from Milwaukee for better professional growth opportunities. Eager to advance her career, she enrolled in public policy courses at George Washington University.

As she accumulated credits toward her degree, unfortunately, she also began accumulating credit card debt.

A lot of it.

Concerned about her financial future, Christine embarked on a journey towards financial literacy. She taught herself everything she could through books. Then she teamed up with Lydia’s House, a Grantee Partner of The Women’s Foundation, and took classes on how to improve her credit and prepare for responsible home ownership.

Lydia’s House set her on a path towards better financial practices, but as a single mom responsible for her four-year old son, Christine still wasn’t earning enough through her job as an executive assistant to save—the true pathway to economic security.

And that’s where The Women’s Foundation’s Stepping Stones initiative came in.

Stepping Stones brought together Lydia’s House and Capital Area Asset Builders (CAAB), providing a grant to CAAB to provide Individual Development Accounts —or IDAs, a special type of savings account—to single mothers in Washington, D.C.’s Ward 8 earning less than $35,000 who completed financial literacy courses at Lydia’s House.

Fueled by the motivation of knowing that she could quadruple her savings, Christine saved $1,000 in six short months. Having completed the required financial education training and met her savings goal, Christine earned a 3-to-1 match on her account from the IDA program–receiving an additional $3,000 from funds provided by The Women’s Foundation and the D.C. government.

The match, she says, made all the difference.

"The match made it seem like it was worthwhile," Christine says. "When you can only save $25 a month, you feel defeated, that you can’t put a dent in your goals. Your only hope is for a better job, or some other fluke. It’s frustrating. With the IDA account, it seemed almost too good to be true. For me, $4,000 is huge. It means not having to use a credit card for school."

Emily Appel, matched savings program director at CAAB, explains that motivation is a significant part of the journey towards saving. “Christine is awesomely motivated, which is what it takes to balance the cost of raising a family in the District and saving for school," Emily says. "We’ve seen time and again that with that motivation to fix one’s finances and start a business, go back to school, or buy a house, even very low-income people can find a way to save and purchase their asset.”

Christine now has $4,000 saved to apply towards her public policy degree. Eventually, she hopes to go to law school. Once she has her undergraduate—and eventually her law school—degrees, her earning potential will significantly increase.

This is the idea behind the IDA accounts, which require that the individual’s savings be put towards an asset that will increase in value over time, such as education, homeownership or small business start-up or expansion.

Programs like these are what make The Women’s Foundation—and its Grantee Partners—so effective. Because we invest in strategies and people, like Christine, that generate an amazing return on investment.

Christine is the first of what will be up to 20 success stories to emerge from the partnership between Lydia’s House and CAAB over the next three years—for a combined savings of up to $80,000, leveraging thousands more in mortgages, scholarships, and student and small business loans.

Stay tuned for even more great results and impact from Stepping Stones—The Women’s Foundation’s long-term initiative focused on helping low-income, single mothers achieve economic security. Evaluation results for the first two and a half years of Stepping Stones will be available in April.

If you are a Grantee Partner and would like to recommend clients for enrollment in the CAAB IDA program, please contact Emily Appel by email or at 202.419.1440 for more information.

We are seeking presenters for the 2008 Stepping Stones Research Briefing to be held the morning of Friday, May 16, 2008 at The Urban Institute in Washington, D.C.

Washington Area Women’s Foundation and The Urban Institute will co-sponsor the 3rd annual Stepping Stones Research Briefing, highlighting research on issues relevant to low-income, women-headed families. We are looking for researchers who would like to present their research and findings at this year’s research briefing.

Stepping Stones is Washington Area Women’s Foundation’s multi-year initiative focused on increasing economic security and financial independence for low-income, women-headed families in the Washington, D.C. metropolitan area. The Stepping Stones Research Briefing provides an opportunity for The Women’s Foundation and its partners to learn about the latest research that can inform their work supporting this population.

The first two research briefings each drew audiences of over 100 people, including representatives from community-based organizations, funders, government agencies, and research institutions.  Information on the 2007 briefing is available here.

Individuals interested in participating in this year’s research briefing should submit an abstract of their research and findings (no more than 1,000 words) to Peter Tatian at The Urban Institute (ptatian@ui.urban.org), by 5:00 pm, Friday, March 7, 2008.

Abstracts should make clear how the research is relevant to issues facing low-income, women-headed families and those who are working to assist these women.

Submissions will be accepted in the following topic areas: financial education and wealth creation; workforce development and business ownership; child care and early education; and, health and safety.

Final selection of presenters will be made by March 21, 2008.

Copies of all presentations, as well as audio recordings of the entire event, will be posted on The Urban Institute and The Women’s Foundation’s Web sites. Presentations from last year’s research briefing can be found here.

Questions about the research briefing should be addressed to Peter Tatian (ptatian@ui.urban.org) at The Urban Institute or Carolee Summers-Sparks at The Women’s Foundation.

Please share this announcement with anyone who may be interested.

For more information on the background of the Stepping Stones Research Briefing, click here.

Peter Tatian is a senior research associate in the Urban Institute’s Center on Metropolitan Housing and Communities.  Peter plays a crucial role in the development and success of the Stepping Stones Research Briefing.

As part of our ongoing commitment–in partnership with The Urban Institute–to providing information and resources related to the goals of Stepping Stones, please find below summary of recent research on issues of economic security and financial independence for women and their families.

This research is summarized and compiled for The Women’s Foundation by Kerstin Gentsch of The Urban Institute, NeighborhoodInfo DC.

Financial Education and Wealth Creation News

The Effects of Welfare and IDA Program Rules on the Asset Holdings of Low-Income Families
By Signe-Mary McKernan, Caroline Ratcliffe, Yunju Nam
Urban Institute
September 2007

Examines the effects of a comprehensive set of 13 welfare, Food Stamp, individual development account (IDA), earned income tax credit (EITC), and minimum wage program rules on the asset holdings of low-education single mothers and families.  This report finds empirical evidence that more lenient asset limits in means-tested programs and more generous IDA program rules may have positive effects on asset holdings of low-education single mothers and families.

Main Findings:

• More generous unrestricted asset limits are not associated with increased liquid asset holdings for either low-education single mothers or families.
• More generous restricted account asset limits are associated with increased liquid asset holdings for low-education single mothers and families.
• More generous Food Stamp vehicle asset limits are associated with increased vehicle asset holdings for low-education single mothers.
• Expanded categorical eligibility in the Food Stamp Program is associated with increased vehicle asset holdings for low-education single mothers and families.
• More generous IDA program rules are associated with increased liquid asset holdings and net worth.
• A more generous state EITC amount is negatively associated with liquid asset holdings but the percentage of the state EITC that is refundable is positively associated with liquid asset holdings.
• A more generous state minimum wage for federally covered categories (i.e., covered by the Fair Labor Standards Act) is associated with increased liquid asset holdings, vehicle asset holdings, and net worth.

Abstract and introduction.
Full paper. 

Assessing Asset Data on Low-Income Households: Current Availability and Options for Improvement
By Caroline Ratcliffe, Henry Chen, Trina R. Williams-Shanks, Yunju Nam, Mark Schreiner, Min Zhan, Michael Sherraden
Urban Institute
September 2007

Identifies the most reliable and informative data sources for understanding low-income households’ assets and liabilities, details their limitations, and provides options for improving asset data sources and collection methods.
The four evaluation criteria—relevancy, representativeness, recurrence, and richness of correlates—serve as a framework for assessing how effectively various data sets can provide an understanding of low-income households’ assets and liabilities.  Of the data sets reviewed, only one receives the highest ranking under all four criteria—the PSID. With these high rankings, the PSID has the potential to provide reliable information on low-income households’ assets and liabilities and is identified as a “primary” data set.

Because our primary research question asks that we identify the most informative and reliable data sources for understanding low-income households’ assets and liabilities, any data set designated a “primary data set” should comprehensively measure assets and liabilities (relevance criterion) and be representative of the overall U.S. low-income population (representativeness criterion).

The only other data sets that receive top ratings in these two criteria are the SIPP and SCF. They perform well enough in the other two criteria to also be deemed “primary” data sets.

Abstract and introduction. 
Full report. 

Jobs and Business Ownership News

Low-Income Workers and Their Employers: Characteristics and Challenges
By Gregory Acs and Austin Nichols
Urban Institute
May 2007

Defines and documents the characteristics of low-wage workers and their employers.  This paper finds that about one in four workers, ages 18 to 61, earned less than $7.73 an hour in 2003. Low-wage workers who reside in low-income families with children are substantially less educated than the average worker, are concentrated in industries with low wages, and have limited prospects for wage growth. Many policies aimed at low-wage workers are not well-targeted at workers in low-income families with children, in part because only one in four low-wage workers reside in such families. Nevertheless, policies targeted at low-wage workers may have broad benefits, including improving the lot of low-income families with children.

Abstract and introduction. 
Full paper. 

Place Matters: Employers, Low-Income Workers, and Regional Economic Development
By Nancy M. Pindus, Brett Theodos, G. Thomas Kingsley
Urban Institute
May 2007

Summarizes factors determining locational decisions of businesses and workers, as well as local economic growth, and suggests how employer needs as well as opportunities for low-income workers might be served by successful policies in the areas of housing, transportation, education and workforce development.

In looking at economic development, employer choices, and opportunities for low wage workers through the lens of place, it is clear that the landscape is shifting and policies must adapt accordingly. Spatial mismatch is more than employers and businesses leaving the urban core and poor urban residents lacking transportation to new job centers. Now, some urban centers are revitalizing, the creative class is growing in cities, and some suburbs (especially older suburbs and some outer-ring suburbs) are increasingly diverse and beginning to experience some of the same challenges as cities. And, there is a growing body of evidence that, in a knowledge-based economy, equity and tolerance are good for business. There is a growing consensus that geography of opportunity has changed, and continues to change.

Opportunities for new initiatives:

• Housing policies that promote “workforce housing” and the deconcentration of poverty by considering the mix of the workforce and matching housing opportunities to that mix.
• Transportation and other infrastructure funding that supports integration of systems and reduces sprawl by concentrating development near rail and bus hubs (“smart growth”).
• Aligning workforce and education with economic development by addressing spatial mismatches between training opportunities and where people live and work; improving coordination between employers, workforce development intermediaries, and community colleges; and facilitating cross-firm career mobility within regional labor markets.

Abstract and introduction. 
Full paper. 

Building Skills and Promoting Job Advancement: The Promise of Employer-Focused Strategies
By Karin Martinson
Urban Institute
May 2007

Discusses what we know about employer-focused training, describes three employer-focused training models, and concludes with some key questions to address to assist in moving forward with this type of skill development strategy.  Three types of promising employer-focused job training:

• Incumbent worker training provided directly at the workplace through employers is a large-scale effort to involve employers in skill building.
• Sectoral training programs focus on providing training to a cluster of employers in one segment of the labor market.
• Career ladders: A subset of sectoral initiatives focuses on developing career pathways that lead to higher-paying jobs.

Main challenges:

• Many sectoral and career ladder initiatives require the involvement of multiple systems, including workforce development, community colleges, the business community, unions, and community groups. It can be difficult to gain the cooperation of all parties needed to enact the type of major changes required by many initiatives.
• Many employer-focused training programs require substantial resources to plan and implement effective initiatives.
• While strides forward have been made, it is a continuing challenge to develop training options that effectively reach low-income workers.

Abstract and introduction. 
Full paper. 

Meeting Responsibilities at Work and Home: Public and Private Supports
By Pamela Winston
Urban Institute
May 2007

Summarizes what we know about families’ access to supports, employers’ experiences, and public and employer efforts to expand them.

Paid parental/family leave:
Time for parents and infants to bond is vital to children’s positive development, and long hours in out-of-home care in early infancy pose risks for children’s development, especially in the low-quality settings to which low-income families often have access. The United States is one of only 5 of 173 nations surveyed for a global index that does not have public policies to provide paid time off for parents to care for and bond with a new infant. Further, while some employers and states provide paid parental leave, low-wage workers are least likely to have access to it.

Paid sick leave/paid time off:
Paid time off that can be used for workers’ short-term illnesses or those of their children, routine medical care, involvement in children’s school meetings or activities, or for other family or personal needs can play an important role in fostering family well-being. Almost half (48 percent) of American private-sector workers are estimated to lack any paid sick leave, amounting to over 54 million employees.

Workplace flexibility:
Flexibility for employees to change start or end times, take time out during work hours for emergencies, request shift changes or exemption from mandatory overtime, or otherwise adjust work hours for family obligations can also help parents fulfill their responsibilities to their employers and their families. 57 percent of workers indicated in 2002 they did not have access to traditional flextime.

Child care:
Access to affordable, consistent, and adequate-quality child care available during work hours can make an important difference to parents’ productivity and reliability on the job, and to children’s well-being. As a rule, the child care market does not provide a sufficient supply of affordable adequate-quality care, which can create particular challenges for low-income families. Public programs can provide financial and other support to many low-income families with low-wage workers, but typically many eligible people do not participate in them.

Abstract and introduction. 
Full paper. 

Maternity Leave in the United States: Paid Parental Leave is still not Standard, even among the Best U.S. Employers
By Vicky Lovell, Elizabeth O’Neill, Skylar Olsen
Institute for Women’s Policy Research
August 2007

Analyzes parental leave policies of Working Mother100 Best Companies.

• Nearly one-quarter (24 percent) of the best employers for working mothers provide four or fewer weeks of paid maternity leave, and half (52 percent) provide six weeks or less.
• Nearly half of the best companies fail to provide any paid leave for paternity or adoption.
• While more than one-quarter of companies (28 percent) provide nine or more weeks of paid maternity leave, many of the winners’ paid parental leave policies fall far short of families’ needs.
• No company provides more than six weeks of paid paternity leave and only 7 of the 100 best companies provide seven weeks or more of paid adoptive leave.

Press release.
Fact sheet. 

Implementation and Sustainability: Emerging Lessons from the Early High Growth Job Training Initiative (HGJTI) Grants
By John Trutko, Carolyn T. O’Brien, Pamela A. Holcomb, and Demetra Smith Nightingale
Urban Institute
April 2007

Summarizes lessons from the early grantees of a major national effort to encourage the development of market-driven strategies addressing business and industry’s workforce challenges.

The discussions revealed insight into four general, interrelated, implementation issues:

1. Establishing and maintaining partnerships

• Bringing the right partnerships together is critical to success.
• Successful collaboration requires regular discussions and agreement regarding respective roles and responsibilities of each organization and the specifics of how staff will collaborate and share information.
• The existence of the HGJTI grants helped partnering organizations to better understand the resources and capabilities of other organizations.
• Employer partnerships are especially important to ensure that the workforce challenges are accurately defined and the strategies selected meet the current and immediate needs of the sector.
• Projects operating across large areas, such as in rural locations, face special issues regarding partnerships.

2. Project start-up, development, and design

• Effective and timely implementation of projects aimed at addressing critical workforce needs depends greatly on recruiting and retaining staff with the necessary occupation-specific skills.
• Effective training programs should have a strong front-end assessment and recruitment and outreach procedures in place.

3. Targeting and reaching trainees

• Grantees found that when serving disadvantaged populations and dislocated workers it is important to incorporate supportive services.
• Recruiting and retaining participants is a major activity for training programs, and a particular challenge when targeting on widely varying populations.
• At the time grantees were contacted, most had reached or were close to reaching their capacity-building and training goals.

4. Management and meeting federal grant requirements

• It is important to begin to focus on post-grant sustainability well before grant funds are exhausted.
• DOL/ETA staff provided various types of technical assistance and guidance to HGJTI grantees, but many needed more federal grants management support.
• Grantees found that they needed a longer grant performance period.

Abstract and introduction.
Full paper. 

Child Care and Early Education News

Vouchers for Housing and Child Care: Common Challenges and Emerging Strategies
By Margery Austin Turner, Gina Adams, Monica Rohacek, Lauren Eyster
Urban Institute
August 2007

Highlights promising strategies for tackling challenges to housing and child care vouchers’ success.  Vouchers play an important role in federal efforts to help low-income families obtain both housing and child care. These programs constitute essential components of the promise of welfare reform to encourage and support work among low-income families. And both types of vouchers have the potential to enhance long-term outcomes for children.

Although federal housing and child care voucher programs differ in important respects, they also face common challenges. First, the success of both programs in helping families access high-quality services depends upon the supply of these services in the private market and the willingness of providers to accept voucher families. If acceptable rental housing units or child care slots are not available where families need them, vouchers are not effective. In addition, low-income families may face challenges in negotiating the private market, gathering information about available child care or housing options, or identifying providers that meet their needs and offer good quality. Finally, both housing and child care voucher programs have to balance requirements to avoid any overpayment of subsidies (either by serving ineligible families or by miscalculating the appropriate subsidy amount) with a mandate to support work and enhance well-being among low-income families.

Abstract and introduction. 
Full paper. 

Pre-Kindergarten to 3rd Grade (PK-3) School-based Resources and Third Grade Outcome
By Brett V. Brown and Kimber Bogard
ChildTrends
August 2007

Examines multiple PK-3 school based resources that tap into children’s experiences of early elementary grade learn to PK-3 school-based resources by key social groups of children defined by poverty status, parental education, and race/ethnicity.

While the majority of children had access to most positive PK-3 school influences, marked inequalities in access were still found. Unequal access to these school resources were observed by parental education and income level, as well as race and Hispanic origin. The most educationally at risk children (i.e., parents have less than a high school education, family income below the poverty level, Black non-Hispanic children) were the least likely groups of children to access high resource elementary schools. This finding clearly indicates that the quality of elementary schools must be considered when examining questions concerning achievement gaps by income and race/ethnicity.

Our preliminary multi-variate analyses point to some core school variables that predict academic and behavior skills necessary for future success and well-being. Of particular interest are the differential relationships between two clearly defined sets of PK- 3 school-based resources reported in kindergarten, and their relationships to academic and behavior outcomes in third grade. Reading and math scores were consistently predicted by strong principal leadership, high academic standards, and teachers collaboratively developing curricular materials. Teacher turnover, which can be considered indicative of instability within a school, was related to lower rates of self-control and school engagement among third grade children. These findings suggest that there may be PK-3 school-based resources that independently predict academic and behavioral outcomes. Though these results are preliminary, we believe they are the strongest research evidence yet that such factors each have influence over levels of school readiness in young children.

Full paper. 

Health and Safety News

Access to Employer-Sponsored Health Insurance among Low-Income Families: Who Has Access and Who Doesn’t?
By Lisa Clemans-Cope, Genevieve M. Kenney, Matthew Pantell, Cynthia Perry
Urban Institute
September 11, 2007

Examines access to employer-sponsored health insurance among low-income families.

• In 2003 and 2004, about one in two children in low-income families did not have access to ESI, despite having one or more employed adults in the family.
• Among low-income working families, families with lower levels of income, families with lower parental education, families where parents work in smaller establishments, and families in which no parent has union representation are all less likely to have access to ESI.
• Public insurance fills a substantial part of the gap in health insurance coverage left by lack of ESI access for children in low-income working families, but parents without an offer of ESI remain uninsured at high rates. In fact, among families without an ESI offer, children are twice as likely—and parents nearly three times as likely—to be uninsured than families with an offer.

Abstract and introduction. 
Full paper. 

Employer-Sponsored Health Insurance and the Low-Income Workforce: Limitations of the System and Strategies for Increasing Coverage
By Linda J. Blumberg
Urban Institute
May 2007

Outlines the problems with employer-sponsored insurance from the perspective of employers, specifically those employing low-income workers, and discusses potential strategies for addressing them.  Problems with employer-sponsored insurance from the perspective of employers:

• When employers competing for the same pool of workers tend to offer health insurance, then the pressure to offer such benefits increases for the other employers in that labor market. Likewise, in markets where ESI is not common, the pressure to offer it is significantly lessened.
• One of the more controversial and complex issues related to the employer decision to offer insurance is whether the incidence of employer premium contributions falls upon the employer or upon the worker. While the best empirical evidence available indicates that, at least in large part, employer payments are passed back to workers via reduced wages, most employers do not believe this is the case.
• Firms employing significant numbers of modest-wage workers will not be able to offer health insurance to their workers. This is because low-income workers will tend to prefer employment that provides additional wages as opposed to health insurance benefits to a significantly greater extent than will high-income workers.
• Another aspect of the price of health insurance to employers is labor turnover. The administrative costs associated with health plan enrollment and disenrollment are higher for employers with high-turnover workforces.

Policy options to address shortcomings of the system:

• Providing government subsidies for insurance coverage.
• Requiring all residents to obtain a minimum level of insurance: individual mandates.
• Requiring employers to participate in the financing of health insurance coverage for their workers: employer mandates.
• Approaches for controlling health care costs.

Abstract and introduction. 
Full paper. 

Other News and Research

The Feminization of Poverty
by Megan Thibos, Danielle Lavin-Loucks, and Marcus Martin
The J. McDonals Williams Institute
May 2007

Examines the evidence for the feminization of poverty and analyzes the factors that contribute to the phenomenon; provides a portrait of feminized poverty at national and local levels; examines the role of public policy in alleviating women’s poverty and proposes policies that could significantly reduce the magnitude of the feminization of poverty.

Two schools of thought on the reasons for the feminization of poverty:

The feminization of poverty exists because of significant changes in the family structure such that households headed by females are not only a larger proportion of households but also are disproportionately impacted by factors contributing to poverty compared with other types of households.

Structural changes in the economy have caused the displacement of many women into occupational sectors that are gender-specific, low-wage, and low-benefit employment opportunities—such as pinkcollar jobs. Moreover, the shift into a knowledge-based economy has meant that those females with the least educational attainment and the least work skills will be least likely to experience work opportunities that can effectively and permanently move them and their families out of poverty.

Our focus is on three broad public policy areas that can have a positive impact on moving female-headed households out of poverty and into the self-sufficiency:

1) Expanding educational opportunities
2) Livable wages
3) Equitable wages and occupational segregation

Full report.

Thanks and see you next month with more research from the Stepping Stones issue areas!