SCACDC Presents Wealth Building Policy Agenda to State Legislature
February 10th, 2007
On February 1, 2007, The S.C. Association of Community Development Corporations (SCACDC) presented our 2007 Public Policy Agenda to Governor Sanford and the S.C. General Assembly in Columbia. The Agenda includes strategies to help working poor families receive tax credit refunds, strategies to increase opportunities for new entrepreneurs to find capital, as well as laws to protect the income and assets of the working poor in South Carolina.
The SCACDC believes that poverty is a result of systemic forces rather than individual lifestyle choices. Thus, our mission is to address not only the symptoms of poverty but also its root causes. We do this by advancing the state community economic development industry. In order to raise the level of economic development in distressed communities in South Carolina, SCACDC seeks to develop systems that support the economic development work of local non-profit development corporations. We also recognize the need for a comprehensive strategy to reduce poverty and grow wealth among cash-poor families and communities.
The S.C. Association of CDCs is building off of a major legislative victory in 2006, when the State Legislature and Governor Sanford appropriated the first $1 million of $5 million promised in the S.C. Community Economic Development Act of 2000. The first offering of grants from the $1 million CED Fund in 2006 drew requests totaling $1.7 million. Additionally, according to data collected from CDCs in South Carolina, the gap in capital to finance community economic development projects exceeds $30 million. To help meet this capital gap, the South Carolina Association of CDCs is seeking an additional $4 million in funding from the S.C. General Assembly to leverage the grants from the CED Fund and provide micro-credit and establish micro-financial institutions (MFIs) to help capitalize meritorious projects in communities.
In addition to the continued funding for CDCs, the SCACDC will advocate for the establishment of a state earned income tax credit (EITC) that rewards work. The South Carolina Earned Income Tax Credit would allow a refundable state individual income tax credit equal to 10% of the federal earned income tax credit and annually increase the amount of the credit in increments of 2-1/2% until the credit equals 20%. In 2005, over 430,000 individuals received the federal EITC, pumping over $500 million into the State’s economy. It is projected that a state EITC will providing working families with an additional $100 million.
“Although tremendous progress has been made in the past few years, to include over 400 units o affordable housing, over 100 jobs created, and over $40 million added to the tax base of local communities, but poverty data reminds us that our dream of the Beloved Community is still unfulfilled. The South Carolina Association of Community Development Corporation (SCACDC) is placing our self in the heart of the economic justice struggle by creating solutions to reduce poverty through empowerment,” says Bernie Mazyck, President and CEO of the South Carolina Association of CDCs.
If you wish to view and download SCACDC’s 2007 Public Policy Agenda, click on the Grassroots tab.