RICHMOND, Va. – Working families in Virginia are having a hard time building up even a small financial cushion.

But the authors of a new policy brief say simple steps could make a huge difference.

Beadsie Woo, a senior associate with the Annie E. Casey Foundation, says the foundation found families, especially families of color, are having trouble maintaining savings.

But she says minor policy shifts could make long lasting changes, especially for the children.

"Saving, both for short-term emergencies such as a car repair, but it's also saving for long-term aspirations like post-secondary education or chances that will change their kids' lives," she explains.

According to the brief, small changes, such as letting families keep more savings without losing government benefits, can help build financial stability and reduce the need for government help.

Critics charge that more generous rules could lead to more folks becoming dependent.

But according to Woo, when Virginia raised the savings limit for Temporary Assistance for Needy Families, the number of families receiving benefits actually declined over time.

Woo says the Casey Foundation looks to the state's congressional delegation to press for some small, specific changes in national policies.

She says the foundation found enrolling more folks in a currently little used federal housing program could lead to big changes in home ownership.

Woo recommends bringing more people into the federal starter retirement account MyRA. And she says universal savings accounts started with small deposits at birth can cut the racial wealth gap by half.

"The racial wealth gap is growing, and that's putting children of color at a huge disadvantage,” she maintains. “Policies that make it easier for families to save can go a long way toward helping children have better futures."

Woo says even a very small amount of savings can make a lot of difference, keeping families from getting stuck on the debt treadmill of high-interest payday loans.

"The typical amount borrowed from a payday lender is about $500,” she points out. “It is, in lots of ways, a very thin margin between what can keep a family from going into debt and being stable."



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Advocates for low-income workers in the Commonwealth said today is a reminder of the need to continue to advance Dr. Martin Luther King Jr.'s dream of economic justice for all, including an increase to the minimum wage and more affordable housing.

The Poor People's Campaign was mobilized by Dr. King in 1967 and helped low income workers in cities like Boston to demand better wages, unemployment insurance and education.

Shailly Gupta-Barnes, policy director at the Kairos Center and the Poor People's Campaign, said Massachusetts has seen decades of little progress, and still has a long way to go.

"People are living in the state of almost constant, precarious insecurity, and that's about two-and-a-half million people in the state of Massachusetts," Gupta-Barnes pointed out.

Gupta-Barnes argued lawmakers need to renew the successful pandemic-related programs that led to a dramatic decline in poverty in the Commonwealth, including the expanded Child Tax Credit.

In his 1964 Nobel Peace Prize acceptance speech, King said, "There is nothing new about poverty. What is new is that we have the resources to get rid of it."

Gupta-Barnes sees last year's passage of the Fair Share Amendment, which created a new tax on million-dollar incomes to pay for public education and transportation, as one example of those resources, and the organizing efforts it took to make it happen.

"Building up the power and organizing, and the leadership of poor and low-income people, and becoming the kind of force - what he called a 'new and unsettling force' - to wake this nation up," Gupta-Barnes urged.

Gupta-Barnes added Dr. King was ahead of his time in uniting various communities to work for economic justice and equity, and today the Poor People's Campaign works to continue his legacy.

Community service agencies say many low- and moderate-income homes in the Commonwealth are unprepared for the winter cold and could benefit from a number of free weatherization and heating services, including window sealing, attic insulation, new appliances and repairing or replacing home heating systems.

Eva Haynes, who lives in Brockton, said she is grateful for the help she received two years ago, when her furnace stopped working, and she spent nine days at home alone in the cold.

"I had googled, 'How to keep your house warm when you have no heat,' " Haynes recounted. "I mean, people didn't know what I was going through. I just was ashamed."

Homeowners like Haynes, as well as renters who are eligible for heating assistance, are also automatically eligible for the energy audits and can find out more heatinghelpma.org.

The website is run by the Massachusetts Association for Community Action, a coalition of more than 20 agencies throughout the Commonwealth, which are reporting unprecedented requests for home heating assistance, and have found many people are unaware of the free home energy audits.

Jonathan Carlson, CEO of Self Help, which serves communities in southeastern Massachusetts, said both the audits and the savings are extensive.

"You know when we leave, that house is about as efficient as it can get, as far as holding in heat," Carlson asserted.

Carlson pointed out it also keeps homes cool in the summer, adding up to even more savings over time. The average single-family, weatherized home saves at least $283 a year on energy costs.

The benefits of weatherizing a home go beyond the pocketbook. Improving the energy efficiency of older homes in low-income neighborhoods means more jobs and a cleaner environment.

Research indicates for every dollar invested in weatherization programs, nearly three go back into the community.

Liz Berube, executive director of Citizens for Citizens, serving the greater Fall River and Taunton area, said agencies statewide have jobs to offer.

"Electricians, plumbers, there's a lot of money in energy efficiency," Berube noted.

Berube added weatherizing older homes means people, especially seniors, can stay in their homes longer and communities stay intact. In addition to federal funding, the group has requested an additional $50 million from the state to ensure people have access to energy-saving programs.

Community service agencies say requests for home heating assistance were increasing even before National Grid - the power company that serves many in the area - announced energy prices could jump nearly 60% by November 1.

Requests for help with the cost of delivered fuels like home heating oil are also unusually high, with prices expected to jump 30% in the next few months.

Mary Knittle is director of energy resources at Worcester Community Action Council, which serves western and central Massachusetts.

She said on top of the thousands of applications already processed, the number of first-time applicants asking for help with delivered fuel costs compared to last year is up more than 200%.

"It's palpable, really, how anxious people in the community are about it," said Knittle. "And probably a lot of folks who maybe never really thought they would need the help are going to apply for the first time."

But Knittle said she wants people to know the income eligibility to participate in the fuel assistance program is quite high. A family of four can earn up to $81,000 and still receive a benefit.

She encouraged people to call their local service agency, or to apply at 'HeatingHelpMA.org.'

The federal government has allocated an additional $37 million to Massachusetts for energy assistance, but those who field calls from working parents and retired seniors looking for help predict they'll need more.

Joe Diamond is the executive director of Massachusetts Association for Community Action (MASSCAP), a coalition of more than 20 Community Action Agencies.

He said MASSCAP has requested the state tag on an additional $50 million to the Low Income Home Energy Assistance Program to help people stay warm through the winter.

"We don't ask them every year, but in years when there is a crisis, we do," said Diamond. "And the legislature and the governor have been so responsive."

Diamond said his agency is streamlining the application process for heating help through 'HeatingHelpMA.org,' working to ensure that anyone who qualifies for public benefits automatically becomes eligible for heating assistance.