State Asset Development Report Card

The State Asset Development Report Card is a groundbreaking tool that captures the most up-to-date data available on asset distribution and policy for each of the 50 states.

The Report Card provides rich new data that has never before been available on a state-by-state basis. It considers 68 socioeconomic and policy measures http://sadrc.cfed.org/rationaledata.php to compare states on how assets are accumulated, distributed, and protected among their citizens.

Key findings of the State Asset Development Report Card include the following:

* In all but one state, asset poverty is greater than income poverty. http://sadrc.cfed.org/statebystate.php

* Asset poverty varies significantly by race, gender, and geography. http://sadrc.cfed.org/findings.php#duo

* No state can yet claim the right blend of policies at sufficient scope scope and scale to eliminate asset poverty. http://sadrc.cfed.org/findings.php#tria

Given the increasing importance and power of states, the time is right to examine asset-based policies and to encourage bold action that will lead to strong asset outcomes for low-income people.

States face a unique opportunity to serve as leaders for a policy shift that could redefine poverty alleviation strategies in America. For the most part, policies designed to fight poverty focus solely on income.

A growing body of evidence suggests that public policies must balance the importance of both income and assets to meaningfully address issues associated with poverty and self-sufficiency.

The Report Card is a call to attention, further inquiry, and action.

Montana

Asset Outcomes

ASSET OUTCOMES

RANK 29

GRADE C

ASSET
POLICY

RANK 41

GRADE D

Falling just below average, Montana ranks 29th and earns a C in Asset Outcomes. The mean net worth of state residents is $97,647, ranking 35th, and the state ranks 36th in asset poverty, which means it is average in the proportion of the population of households without sufficient net worth to subsist at the poverty level for three months.

Most notably, Montana has the highest small business ownership rate, at almost 20%, and the 4th-highest women’s business ownership rate. However, the value of these women-owned firms is relatively low (a mean of $9,139), ranking 47th.

Investments in human capital are also apparent, especially for children. Basic educational proficiency is good (the state ranks 3rd in reading and 12th in math), and Head Start coverage is 15th in the nation.

While overall college attainment is below average (30th), women and those of lower income have higher college attainment rates (12th and 8th, respectively) than many other states, indicating that colleges in the state are accessible to all residents. The percentage of adults with associate’s degrees is relatively low, though (5%, ranking 45th).

One area of particular concern is health insurance. The state ranks near the bottom in all such measures. The percentage of uninsured low-income children (27%) is 41st, and 34% of low-income parents are also uninsured (34th). Meanwhile, employer-provided health insurance ranks 49th.

Asset Policy

Montana is weak in Asset Policy, coming in 41st and receiving a D in the Index. The state has mediocre financial asset-building strategies, with a decent Individual Development Account policy leading the pack.

Some housing policies are also in force through property tax circuit breakers and a state housing trust fund. Measures of human capital are somewhat lacking here. Spending on public schools across the state is relatively unequal (45th), and need-based financial aid for undergraduates is 42nd.

Moreover policies are absent for supplementary funds for Head Start, state-funded prekindergarten, and college savings plans with matching funds.

Business capital is also failing here. Investments in small businesses are sparse (small business investment company investments rank 48th).

Key policies to help these entrepreneurs are also missing. Neither a state microenterprise policy, a capital access program, nor a state community development financial institution exists here, although these programs could possibly help build business assets among Montanans.

On a positive note, state legislators support employee ownership and some initiatives for asset-poor farmers. Asset protection measures are virtually nonexistent here. The only asset-protection policy is partial support for family leave benefits.

Tax Policy and Accountability

Accountability and transparency in the state are relatively good. The state produces a tax expenditure report, revealing how it spends taxpayer dollars, and makes this report easily available on the web.

It has also developed a limited capacity to analyze the impact that changes in the tax code will have on all residents before it passes new tax laws.

http://sadrc.cfed.org/index.php