Nebraska Prepares to Open ABLE Accounts to Residents of Other States

By Debra Miller

A new federal law allows persons with disabilities to save for their futures through tax-advantaged  savings accounts set up by states. These accounts — called ABLE — are much like 529 college savings plan. 

On February 23, Nebraska Treasurer Don Stenburg announced plans to make his state’s plan available nationwide.

Nebraska is one of 34 states that have passed legislation to implement the December 2014 ABLE law. (See this February 2016 CSG Research Brief for more on ABLE accounts.) The federal law allows persons with disabilities to save for their futures through tax-advantaged  savings accounts set up by states. These ABLE accounts are much like 529 college savings plan.

With a recent change in federal policy, persons are not required to use an account in their home state, but instead can shop around.  

Nebraska’s Enable plan is expected to be one of the first plans on the market under the new federal law, according to the Lincoln Journal Star. The state has reason to be optimistic that the account will be successful. The state’s 529 college savings plan has 243,000 accounts, only 70,000 of which are held by Nebraskans.

Top 5 Issues for 2016: Workforce Development

By Elizabeth Whitehouse

CSG Director of Education Policy Elizabeth Whitehouse outlines the top five issues in workforce development policy for 2016, including Workforce Innovation and Opportunity Act implementation, employment issues for people with criminal records, engaging people with disabilities in the workforce, veterans’ employment issues, and career pathways for students.

Continue reading “Top 5 Issues for 2016: Workforce Development”

Achieving a Better Life Experience Act

By CSG Committee on Suggested State Legislation

Achieving a Better Life Experience Act

The Act establishes ABLE savings trust accounts to be administered by the Virginia College Savings Plan to facilitate the saving of private funds for paying the qualified disability expenses of certain disabled individuals. Under the federal Achieving a Better Life Experience Act of 2014, Congress authorized states to establish ABLE savings trust accounts to assist individuals and families in saving and paying for the education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, and other expenses of individuals who were disabled or blind prior to the age of 26. Earnings on contributions to ABLE savings trust accounts are exempt from federal income tax.  Because Virginia conforms to the federal income tax laws, earnings on contributions to ABLE savings trust accounts will also be excluded from Virginia taxable income. 

Submitted as:

Virginia
HB 2306
Status: Signed into law on March 17, 2015.

Achieving a Better Life Experience Act

In Wisconsin, new programs aim to help students with disabilities transition out of high school

By Katelyn Tye-Skowronski

A year after they have left high school, 58 percent of Wisconsin students with disabilities report that they have not yet worked, participated in a job-training program or taken a postsecondary course. Rep. Robert Brooks, a first-year legislator in the state Assembly, believes the state and its schools can do better for this population.

His plan, introduced at least initially as a budget resolution, calls for new pay-for- performance incentives for school districts to improve their career- and college-readiness programs for students with disabilities.

Districts would be rewarded with a $1,000 payment for each student with an Individualized Education Plan who graduates and, the following year, is either employed or enrolled in a postsecondary school. (School districts and the state already collect this data.)

Schools would use these payments to expand their programs — for example, providing students with transportation to jobs, paying for specialized staff training, or developing college-prep courses for students with disabilities.

“The initiative was something [disability rights groups] already had on the table,” Brooks says. “I decided to get going on it.”

If the plan isn’t adopted with the budget, Brooks plans to then introduce it as a stand-alone bill in the fall. The Department of Public Instruction estimates the program would need $5.8 million in its initial year.

Brooks says his new approach complements existing state programs, including Gov. Scott Walker’s Better Bottom Line plan, which seeks to improve the job market for people with disabilities. Wisconsin is also home to the Let’s Get to Work initiative, a federally funded project overseen by the state’s Board for People with Developmental Disabilities. The program aims to improve employment outcomes for students with disabilities as they transition out of high school.

Each of the project’s 12 pilot schools has developed and implemented recommendations to improve services and outcomes. One strategy, for example, has been to provide access to courses that relate to the students’ interests and career goals.

In the project’s first year, the number of students with disabilities who had paid jobs tripled. After three years, more than 60 percent of the students from these pilot schools were working.

Stateline Midwest May 2015

Jobless numbers are falling, but so are rates of labor participation

By Tim Anderson

In 2014, year-over-year unemployment rates fell in all 50 states. That hadn’t happened since 1984, and the news was greeted as another positive sign of economic recovery. But there is another trend getting more attention from economists and state policymakers: the continuing decline in rates of labor participation.

Close to six years after the official end of the Great Recession, these rates continue to fall. The labor force includes people who have jobs and those who are actively seeking work (the unemployed). Four states in the Midwest (North Dakota, Nebraska, Iowa and Minnesota) have the highest labor-participation rates in the country. But with the exception of North Dakota, every state in this region has been following the national trend: declines in participation since 2000 (see table).

For state policymakers, the causes for this drop can serve as an indicator of a state’s economic health — for example, more people are long-term unemployed, become discouraged about finding work and drop out of the labor market. That has contributed to the decline in participation rates, but there are other factors as well, notes Eugene Steuerle, a fellow at the Urban Institute.

People are retiring earlier and living longer, he says, and state populations are aging. More people, too, simply aren’t entering the labor force, and are instead staying in school longer or raising children, a 2013 Urban Institute study notes.

And while labor-participation rates fall, the number of people on federal disability rolls is on the rise — a 77.3 percent increase between 2000 and 2013. In comparison, the U.S. population has increased by 12.0 percent over that time.

Earlier this year, Express Employment Professionals (a provider of staffing for businesses) released a report examining state-by-state increases in the number of people on federal disability. Between 2008 and 2013, two Midwestern states had the largest increases in the nation: Michigan (29.1 percent) and Ohio (28.2 percent). North Dakota had the Midwest’s lowest rate of increase, 12.8 percent (fifth-lowest among the 50 states.)

Stateline Midwest April 2015

Disabled, and able to work: With legislation and executive actions, states are doing more to improve job prospects of people with disabilities

By Laura Tomaka

For nearly 40 years, South Dakota Rep. Fred Romkema has run a jobs training center for a segment of his state’s population that he says is too often forgotten. About 140 people with disabilities are currently served at the Northern Hills Training Center, and 108 of them are earning a regular paycheck.

Continue reading “Disabled, and able to work: With legislation and executive actions, states are doing more to improve job prospects of people with disabilities”

Six states awarded grants to improve employment opportunities for people with disabilities

By Jennifer Burnett

The Department of Labor has awarded $14,837,785 in grants to six states – California, Illinois, Kansas, Massachusetts, Minnesota and South Dakota – to improve employment opportunities for adults and youth with disabilities as part of the Disability Employment Initiative. The initiative awards grants to help increase the participation of adults and youth with disabilities in existing career pathway systems and other programs that bring together educational institutions, the private sector and disability advocates. 

“Breaking down barriers to employment for people with disabilities is important in order for our country to field a full team and ensure that no worker is left behind,” said U.S. Secretary of Labor Thomas E. Perez in a press release. “The federal grants we’re awarding today will help open many more doors to opportunities, providing people with disabilities with skills they need to achieve economic self-sufficiency.”

In particular, those awarded grants will use the funding to: 

  • hire or designate a Disability Resource Coordinator, an expert in workforce and disability issues, to achieve program goals;
  • foster partnerships and collaboration at the state and local levels;
  • integrate resources and services; and
  • ensure that local American Job Centers comply with physical, programmatic and communications accessibility requirements.  

This is the fifth round of grants through the initiative, which has funded 37 projects across 26 states.

To learn more about this initiative, visit the U.S. Department of Labor.

Minnesota governor issues executive order to boost state’s hiring of disabled

By Tim Anderson

Concerned about a steady decline in the proportion of state workers who are disabled, Minnesota Gov. Mark Dayton is ordering agency heads to do more. His executive order also includes a workforce goal — that by 2018, 7 percent of the people employed by Minnesota’s state agencies be individuals with disabilities.

In 2013, about 3 percent of the state workers in Minnesota were disabled. In his August announcement, Dayton pointed to neighboring states that have higher rates — 5.8 percent and 4.4 percent in Wisconsin and Iowa, respectively. State agencies will get guidance on how to recruit and hire people with disabilities. They must also promote employment opportunities for this population and, four times a year, report progress on meeting the state’s new goals.

Minnesota is not alone in establishing new initiatives to expand work opportunities for the disabled. Michigan, for example, issued a “Better Off Working” plan in August that identifies policy changes to help individuals with disabilities find work. One of the recommendations is to improve the state’s own hiring process. In 2012, Ohio Gov. John Kasich launched the Employment First Initiative, the goal of which is to deliver “meaningful employment opportunities for people with disabilities.”

Stateline Midwest September 2014

North Dakota, South Dakota join forces to help disabled children; Wisconsin receives stand-alone grant

By Tim Anderson

Through a partnership with the federal government, and with each other in some cases, three states in the Midwest have launched initiatives to improve the educational and employment outcomes of young people with disabilities. These programs will establish new interventions for youths receiving Supplemental Security Income, or SSI.

North Dakota and South Dakota are part of a six-state consortium that received a U.S. Department of Education grant of $32.5 million. Those six states will enroll 2,000 low- income individuals between the ages of 14 and 16. Recruitment efforts will focus in part on rural and tribal areas. Enrollees will receive benefits counseling, financial training, work-based learning experiences and other intervention services. Wisconsin has received a stand-alone federal grant of $32.5 million.

One goal of these new programs is to reduce recipients’ long-term reliance on SSI. In the Midwest, SSI beneficiaries with disabilities account for between 2.5 percent of the state population (in Michigan, highest rate in the region) and 1.1 percent (North Dakota, lowest rate in the Midwest). The U.S. average is 2.2 percent, according to the Kaiser Family Foundation. With the exception of Michigan and Ohio, states in the region fall below the U.S. rate.

Stateline Midwest February 2014

Question of the Month: Do states in the Midwest provide property tax exemptions or credits to disabled veterans?

By Tim Anderson

Stateline Midwest ~ June 2013

Every Midwestern state offers property tax breaks to certain disabled veterans, though the scope and amount of these credits and exemptions vary.

In two Midwestern states, the exemption is not specific to veterans with a disability. Iowa reduces the assessed value of a home (for property tax purposes) by $1,852 for all veterans. In Ohio, an exemption is available for all permanently and totally disabled homeowners; it applies to the first $25,000 of a home’s market value.

Legislation introduced this year in Ohio (SB 27) would provide a total tax exemption for properties owned by veterans who are 100 percent disabled due to an injury or illness that was incurred or aggravated during active military service. This disability rating is determined by the U.S. Department of Veterans Affairs.

Disabled veterans in Michigan qualify for the state’s Homestead Property Tax Credit. Also, homes that have been adapted to meet the needs of a veteran with a 100 percent service-connected disability are totally exempt from property taxes.

Illinois, Indiana and Minnesota offer broader exemptions, giving veterans tax breaks on a sliding scale based on their level of service-connected disability.

An Illinois veteran with a disability of between 50 percent and 69 percent qualifies for a $2,500 reduction in equalized assessed valuation. The reduction is $5,000 for someone with a disability of 70 percent or higher.

Indiana has different categories of property tax exemptions that may apply to disabled veterans. For veterans who served during wartime and have a disability of 10 percent or more, the maximum deduction is $24,960. It rises to $37,440 for veterans who have a disability of 100 percent or who are 62 or older with a disability of 10 percent or more. (Deduction levels are as of 2012.)

In Minnesota, the value of a home (for property tax purposes) is reduced by as much as $300,000 for individuals with a disability of 100 percent. It is cut by $150,000 for a veteran who is not totally or permanently disabled, but who has a disability of 70 percent or higher.

Nebraska uses a sliding income scale to determine the amount of each individual homestead exemption, which is only available to veterans with a 100 percent service-connected disability. Such veterans with incomes of less than $29,801 receive a full exemption. The percentage decreases as income levels rise; no tax relief is provided when income exceeds $36,700.

Like Nebraska, the property tax exemption in South Dakota extends only to those individuals with a 100 percent service-connected disability. The first $100,000 of a home’s value is exempt. 

There is no limit to the amount that can be claimed in Wisconsin, where disabled veterans qualify for an exemption if they meet one of two federal criteria: 100 percent service-connected disabled, or a total inability to maintain gainful employment.

Kansas and North Dakota provide tax relief for veterans with a service-connected disability of 50 percent or more. Kansas offers a maximum tax refund of $300 to individuals with annual incomes of $32,400 or less. North Dakota’s property tax credit for disabled veterans applies to the first $120,000 of a home’s value; the amount varies depending on disability rating.