NM Scores Low for Economic Opportunity, But Hope Persists
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October 12, 2009
TRUTH OR CONSEQUENCES, N.M. - A new report card from the Corporation for Enterprise Development looking at economic opportunity in New Mexico gives the state a 'D' overall. Thanks to a successful foreclosure-prevention program, the Land of Enchantment scored high in areas like housing and home ownership. However, New Mexico's overall ranking was dragged down by a failing mark in the area of income and financial assets.
Some bright spots exist, though. Sharon Henderson, deputy director of Community Action New Mexico, which is releasing the report in the state, points to a successful program that offers Individual Development Accounts (IDAs) to match the savings of people trying to start a business. IDAs are having a big effect on revitalizing a few communities, including Truth or Consequences, she says.
"The high ratio of individual development accounts that have opened there really have been able to impact even Main Street. You can see four to five businesses that were opened using this seed money of $5,000."
Henderson says the IDA program has helped to create new jobs and job training opportunities in the small town. IDAs also can be used to save to buy a home or to pay for higher education.
Jessica MacKenzie and her husband participated in the IDA program to raise funds to open their restaurant, Cafe Bellaluca, in Truth or Consequences.
"Gosh, it is a fantastic program - a really great way to get a little bit of extra money and a way to motivate yourself to save money at the same time."
McKenzie says the program matched their $1,000 in savings 4-to-1, giving her and her husband $10,000 to put toward opening the restaurant. In exchange, the IDA program requires participants to save and attend a series of financial literacy workshops.
The report card also gave New Mexico a "C" for access to health insurance and a "D" for access to education and training.
The report card is at http://scorecard.cfed.org/state_data/new_mexico.php.