Business & Tech
A New Coalition Launches in Newark to support Asset Building
Newark Asset Building Coalition aims to promote financial independence through financial education, and access to wealth-building programs
It has been a long time coming, but it would seem as though New Jersey's largest city is finally rising toward its true potential. Newark is presently undergoing a wave of economic development as it begins to bolster its profile. Over the last decade, the city has undertaken a slow but steady transformation into a hub for the arts and higher education, as well as the increasing vibrancy of its bustling neighborhoods. But, despite these positive progressions, it is also a very difficult time for a majority of Newark's residents who are wrestling with the same challenges that has faced many those who have inhabited the once deteriorating city for decades. These challenges include every conceivable urban ill attributed to them: entrenched poverty, violence, joblessness, blighted neighborhoods, and failing schools. Despite Newark’s positive progress and rapid increase of development, there remains a widening disparity between the places where glittering new towers are rising and the portions of the city where opportunity has yet to take place.
According to a recent report by the New Jersey Institute for Social Justice, current research has found that there is widening economic disparity between most of the city's residents and the large corporate workforce that commutes in and out of Newark every day. According to the report:
- About one-in-three Newark residents live below the federal poverty line, and 95 percent of these residents living in poverty did not have a full-time job during the past year.
- Newark residents hold only 18 percent of all jobs in the city.
- Newark's average unemployment rate for 2015 was 8.8 percent, which is approximately 70 percent higher than the 2015 average unemployment rate for the U.S.
- 62 percent of Newark households qualify as "ALICE," meaning that they are asset-limited, income-constrained, and employed.
These crucial issues have prompted The United Way of Essex & West Hudson, along with Mayor's Ras J. Baraka, Prudential Foundation, and a host of cross-sector partners to establish the Newark Asset Building Coalition (NABC). NABC will work to promote financial independence and stability for residents of the City of Newark, and provide them with financial education, access to wealth-building programs, and extended services around personal finance. The Steering Committee is made up of key Newark-based stakeholders including: United Way of Essex & West Hudson, New Jersey Citizen Action, New Jersey Institute for Social Justice, Newark Alliance, La Casa De Don Pedro, Greater Newark LISC, Urban league of Essex County, and New Community Corporation. NABC is funded by The Prudential Foundation and Citibank.
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Recently, United Way joined members of NABC, State Senator M. Teresa Ruiz, Essex County Executive, Joseph D. Vincenzo, and other key stakeholders to announce the expansion of the Volunteer Income Tax Assistance Program (VITA). The expansion includes a total of eleven VITA sites throughout Newark in 2018. Launched by the Internal Revenue Service in 2005, the VITA program provides free tax preparation services to families who earn $54,000 per year or less. VITA helps low- and moderate-income individuals take advantage of all possible tax benefits, such as the Earned Income Tax Credit.
“We are extremely excited to expand our VITA program to 11 additional sites within the City of Newark, as we know that the pathway to financial stability starts with empowering our communities,” said Catherine Wilson, CEO of United Way of Essex and West Hudson. “Many people don’t have access to affordable tax preparation services or are unaware of programs like our VITA program, which could put thousands of dollars back in their hands and ultimately into our local economy.” In 2016 at their six VITA locations, the United Way processed 3,000 tax returns providing Newark residents with close to $5M in refunds, 782 individuals also for the EITC credit totaling savings of $1.5 Million.
Find out what's happening in Newarkfor free with the latest updates from Patch.
“We are deeply committed to building an inclusive economy in Newark that empowers our residents with living-wage jobs and the tools and resources they need to build family wealth over time,” said Mayor Ras A. Baraka, City of Newark. “That is why the City of Newark is an enthusiastic partner in the Newark Asset Building Coalition. Newarkers’ opportunity to start building assets starts now with VITA tax preparation, and the City of Newark is helping to expand these services by opening the doors of Centers of Hope in targeted neighborhoods. Refunds generated from this effort will literally put millions of dollars into the pockets of Newark families to build savings and to spend at Newark’s many wonderful small businesses.
Through the expansion of Newark’s VITA program, the aim is to serve thousands of additional individuals and increase the number of residents who receive EITC refunds by almost 50% while helping to put over $5 million additional refund dollars in the pockets of Newark residents.
“Since our founding more than 140 years ago in Newark, Prudential has been committed to creating pathways for economic mobility, particularly for underserved populations,” said Kimberly Ostrowski, senior director, corporate giving, Prudential Financial. “It is this commitment that led us to support the expansion of the Volunteer Income Tax Assistance program, which provides free tax preparation services to low- and moderate-income families and individuals. We see this partnership as an important step in helping create inclusive economic growth for the City of Newark and its residents.”
Aimed at promoting the financial independence and stability for residents of the City of Newark, NABC, with additional support from Citi Community Development, will provide residents with financial education, access to wealth-building programs, and extended services around personal finance. “For eligible New Jersey workers, free tax preparation and access to the Earned Income Tax Credit can help provide a vital cash infusion,” said Eileen Auld, New York Tri-State Market Manager, Citi Community Development. “Citi’s collaboration with the United Way of Essex and West Hudson on the Newark VITA/EITC expansion program will enable more people to gain access to high quality tax preparation services and receive the full roster of tax credits they have earned.”
