by Stephanie Casey Pierce

Through creative asset-building efforts, cities are now creating ways in which families can use their Earned Income Tax Credit (EITC) dollars to save for and invest in the future.

The EITC is one of the most effective anti-poverty programs in the country, providing up to $4,400 per family. However, thousands of eligible families fail to claim the credit each year. Those who do take advantage of the EITC often use their refunds to pay debts and purchase necessities.

This past spring, cities nationwide worked to make sure eligible low- and moderate-income families claimed the EITC.

Through a number of highly visible EITC outreach campaigns, numerous municipal leaders helped put millions of dollars back into the pockets of working families and into their own local economies, simply by encouraging eligible families to claim the credit.

The following examples offer a snapshot of municipal efforts to connect EITC filers with local asset-building programs.

Hartford, Conn.
The City of Hartford helped its low- and moderate-income residents receive $7.8 million through EITC refunds in 2005. Through a partnership with the  Hartford Credit Union, 65 residents opened their first bank accounts.

Seattle
Mayor Greg Nickles of Seattle helped launch his city?s 4th Annual EITC Campaign in February to connect low- and moderate-income families with the tax credit and to link families to other important benefits such as food stamps and childcare subsidies.

Recently, Seattle?s Human Services Department and the Public Health - Seattle & King County department launched ?PeoplePoint: Bridge to Benefits,? a one-stop service that provides residents access to multiple benefits.

Lafayette and West Lafayette, Ind.
This marks the first year in which the Cities of Lafayette and West Lafayette worked together to host a free tax preparation site. Lafayette Mayor Tony Roswarski and West Lafayette Mayor Jan H. Mills championed outreach efforts and, as a result, 300 returns were filed at the site.

Through a partnership with Lafayette Savings Bank, the cities helped 50 people open bank accounts. The local news station boosted these outreach efforts by publishing a series of stories on local families affected by the EITC.

EITC Campaigns
A wealth of information on launching an EITC campaign is available through NLC?s online resource, ?Maximizing the Earned Income Tax Credit in Your Community: A Toolkit for Municipal Leaders.?  The tool kit is located at www.nlc.org/nlctoolkit/html/.

On Thursday, Oct. 19, NLC?s Institute for Youth, Education, and Families (YEF Institute) will host a free audioconference titled, ?Strengthen Working Families and Local Economies: How to Mount a Successful EITC Outreach Campaign,? at 12:30 p.m. EDT.

Details: To learn more about EITC outreach or launching a campaign, contact Heidi Goldberg at (202) 626-3069 or goldberg@nlc.org. To learn more about the YEF Institute audioconference, visit www.nlc.org/iyef.

The YEF Institute is interested in hearing how cities are connecting families to the EITC and other federal, state and local benefits. To share a story, e-mail Stephanie Casey Pierce at pierce@nlc.org.