CAASNM received a grant from the W.K. Kellogg Foundation to explore the feasibility of scaling asset building in rural Doña Ana County. After over a year of work from the amazing CAASNM Kellogg Team, the study was submitted to the Foundation on October 31, 2012. CAASNM found several relevant factors during our research.
The target population, Doña Ana County, has a demonstrated need for asset building. The state of New Mexico is considered an economically-depressed area by virtually all national standards. The large number of people on CAASNM's IDA program waiting list and a low 15.7% attrition rate show that its client base wants and can save for asset ownership and will thus support IDA and CDA programs. The feedback gathered from phone interviews and a focus group session among former and new participants confirms that CAASNM's clients built strong saving habits and developed the capacity for long term saving. Approximately 66% of former participants surveyed are still saving on a regular basis and close to 90% keep a monthly budget. Eight-seven (87) percent of respondents have not missed any utility or mortgage payments, 100% of savers who bought a home are still living there and 93% of businesses started under the IDA program are still in business. The tangible social and economic impact of CAASNM's IDA program, strong advocacy for IDAs and the support of the community and partners also attest to this.
From 2007 to 2011 there were 216 participants enrolled in the program. During that time period, 34 of the participants either dropped out of the program or were dropped by CAASNM. Fifty-six of the participants are still enrolled and 126 have cashed out. Of the 126 participants who have cashed out of the program, 50 purchased a new home, 43 either expanded or started a new business and 33 extended their education. CAASNM worked with the Arrowhead Center to conduct an Economic Impact Study. Here are the highlights:
• Home purchases by IDA participants from 2008-2011 generated a total employment of 28.9 jobs, labor income of over $975,000, and value added of more than $1.5 million.
• Educational expenditures by IDA participants generated a total 5 jobs, labor income of over $239,000 and value added of almost $300,000.
• From 2007 to 2011, 43 individuals created IDA's for the purpose of starting a new business or expanding an existing business. The majority of participants were female (54.8%), 87.1% were between the ages of 24 and 54, 46.9% were either single or a single parent, 32.6% had a high school diploma (or GED) or less education, and 57.1% declared their ethnicity as Hispanic.
• Participants used their IDA funds for the expansion of 19 businesses and the creation of 13 new businesses.
We have a new cohort of teen IDA participants ready to go for Fall and, pending funding, will start a pilot program in the very near future for children.
Please help us expand this amazing program to more families in Doña Ana County by clicking the Donate Now button in the left hand navigation.
