HJ0051 95TH GENERAL ASSEMBLY

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HOUSE JOINT RESOLUTION

WHEREAS, For the second year in a row, the national personal savings rate remains below zero; and

WHEREAS, A negative savings rate in the United States has not occurred since the Great Depression; and

WHEREAS, Nationally, one in five families have a negative net worth; about one-third of low-income households and more than one-tenth of moderate-income households report having no financial assets at all; and

WHEREAS, The United States Congress has reintroduced legislation in the 110th Congress creating the Savings for Working Families Act that would ensure that our nation's savings and ownership policies assist working-poor families by enabling them to save, build wealth, and enter the financial mainstream through the use of Individual Development Accounts; and

WHEREAS, Individual Development Accounts help low-income families build assets for buying a first home, receiving post-secondary education, or starting or expanding a small business; and

WHEREAS, The President of the United States included funding for 900,000 Individual Development Accounts in his 2007 budget request, and, meanwhile, the Congress, in a bi-partisan effort, gathered 68 co-sponsors (35 Democrats and 33 Republicans) on the bill; and

WHEREAS, The Savings for Working Families Act creates a tax credit for financial institutions that match the savings of the working poor through Individual Development Accounts; and

WHEREAS, Financial institutions offering Individual Development Accounts will be reimbursed through a federal tax credit for all matching funds, up to $500 per year for four years, and receive a tax credit of $50 per account per year for account management; and

WHEREAS, Those who save in an Individual Development Account must complete financial education from a nonprofit organization prior to the asset purchase; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING HEREIN, that the Illinois General Assembly urges the members of the Illinois delegation to the United States Congress to give full consideration to the passage of the Savings for Working Families Act as represented in House Resolution 1514; and be it further

RESOLVED, That a suitable copy of this resolution be sent to each member of the Illinois congressional delegation.