City Releases Plan, Launches New Program for Financial Empowerment
The City unveiled a Financial Empowerment
Roadmap that includes startling findings about the state of financial
security of Columbus women and families. Alongside the new research, performed
by the Kirwan Institute for the Study of Race and Ethnicity, the City’s Roadmap
outlines strategies and future work to support residents’ financial
empowerment, a key ingredient for helping them achieve long-term stability and
wellbeing.
“The global pandemic exposed the depth of the racial divide
in our community, and we know that we will only recover if we do so equitably,”
said Mayor Andrew J. Ginther. “Which is why this Financial Empowerment Roadmap
is so critically important at this time and why I am committed to moving this
work forward.”
The City developed its Roadmap with a $20,000 grant from
Cities for Financial Empowerment (CFE) Fund in July 2019, and in doing so,
joined a growing national movement of municipalities spearheading
resident-centered financial empowerment efforts. Generated through a
partnership between the Columbus Women’s Commission and City Council President
Pro Tempore Elizabeth Brown, the Roadmap focuses specifically on women and
their families and was motivated by the fact that women and woman-headed
families—particularly women of color—experience the greatest financial
vulnerability of all Columbus residents.
“This roadmap and the work it outlines are crucial steps
that help level the playing field for women as they strive to achieve financial
security,” said President Pro Tem Elizabeth Brown. “Our goal is to support the
success of every family in Columbus for the long haul. And these resources are
needed now more than ever due to the disproportionate impact the COVID-19
pandemic continues to have on women and especially women of color.”
The Roadmap describes alarming findings of financial
insecurity among residents:
- Thirty-three percent of Black and 31 percent of
Hispanic households have zero net wealth, nearly double that of White
households at 17 percent.
- Nearly 40 percent of Black workers earn $15,000
or less yearly, compared to 14 percent of White workers.
- Black women are more likely than any other group
to have attended some college or obtained an Associate’s degree but are still
the most likely to live in poverty, representing 24 percent of all Columbus
residents who do.
- Fifty-seven percent of communities of color
within Franklin County have some form of delinquent debt compared to 29 percent
of predominantly White communities; the overall rate is 36 percent with a
median delinquent debt of $1,376.
Alongside the release of the Roadmap, the City announced the
launch of the first objective outlined in the report: the launch of a Financial
Navigator pilot program that ensures lack of knowledge about available resources
doesn’t stand between residents and the help they need.
“The COVID-19 pandemic has underscored the role that local
leaders can play in building the financial stability of their most vulnerable
residents,” said Amelia Erwitt, Managing Director of the Cities for Financial
Empowerment Fund. “We were thrilled to partner with the City of Columbus on
their Financial Empowerment Roadmap. With the launch of their Financial
Navigators initiative, the first objective in their roadmap, they join a
movement of dozens of cities across the country who are helping residents
grapple with the financial impact of the pandemic.”
Through a partnership with LSS 211 Central Ohio and the
Legal Aid Society of Columbus, residents will be able to speak to trained
financial “Navigators” and receive structured guidance over the phone to help
them plan immediate action steps and make connections to supports for issues
ranging from gaps in income to financial management, including information
about a multitude of newly available COVID-19-related resources.
“LSS 211 Central Ohio is excited to partner with the City to
pilot this much-needed program designed to support local families facing
financial hardship,” said Courtney Walker, Executive Director of LSS 221
Central Ohio. “By guiding them through some basic budgeting decisions and
connecting them to the right financial planning resources, we will help
families gain financial stability and understand the resources available to
assist them.”
Over the next several years, the City will work to embed
financial empowerment opportunities in a variety of existing services that
serve women and families while working to better coordinate financial
empowerment services citywide.
About the Cities for Financial Empowerment Fund (CFE Fund)
The CFE Fund supports municipal efforts to improve the
financial stability of households by leveraging opportunities unique to local
government. By translating cutting edge experience with large scale programs,
research, and policy in cities of all sizes, the CFE Fund assists mayors and
other local leaders in over 100 cities to identify, develop, fund, implement,
and research pilots and programs that help families build assets and make the
most of their financial resources. For more information, please visit www.cfefund.org or follow on Twitter at
@CFEFund.
About LSS 211 Central Ohio
LSS 211 Central Ohio is the leader in providing valuable
information, resource referrals, and community data that support the growth and
vitality of Columbus. The organization is best known for its 211-referral line,
which is part of a nationwide referral service for low-income families and
individuals.