"... whatever the limitations associated with particular disabilities, people with disabilities have been saying for years that their major obstacles are not inherent in their disabilities, but arise from barriers imposed that are external and unnecessary."
(National Council on Disability)¹

Why is it important that people with disabilities access IDAs?

People with disabilities are among the poorest in our nation. About 1 in 5 Americans has a disability, and 1 in 10 has a severe disability.² People with severe disabilities have an unemployment rate of 70% and account for only 2.9% of this country's total income.^{4 5} The unemployment rate for people with disabilities is more than twice that of people without disabilities and has remained at that level for many years. This is the poorest rate of participation in the work force and the highest rate of unemployment of any group in American society.

A full one a third (34%) of adults with disabilities live in households with total income of $15,000 or less compared to only 12% of those without disabilities. Among people with disabilities who are working, income levels are well below those without disabilities. Current income maintenance policy raises people to the poverty line, leaving them only one sickness, one accident, or one divorce away from poverty. While providing food, shelter and clothes to low-income families is imperative, this aid alone will not produce viable escapes from poverty.

Escape from poverty is usually the result of people investing in themselves, their children, property, and securities or in enterprise to improve their circumstances.⁶ Use of IDA savings toward housing, employment or post-secondary education, or for other uses, is a very practical tool to help people with disabilities gain economic independence. For those in search of employment, the marriage between IDA savings and new work incentive laws make it a particularly timely program.⁷

People with disabilities gain as much if not more by participating in IDAs than the current configuration of participants. Furthermore, by broadening the landscape of economic development options for people with disabilities, it is good for our nation. In the words of the National Council on Disability in 1986, "The present and future costs of disability to our nation are directly related to the degree of success we attain in reducing existing barriers, both structural and attitudinal, and in providing appropriate services to individuals with disabilities so that they may realize their full potential and become more independent and self-sufficient".

The potential growth of IDAs by allowing access to people with disabilities is profound. The 1999 SSI annual report states, "On average during calendar year 1998, 6.3 million aged, blind or disabled individuals received Federal SSI benefit on a monthly basis."⁸ The report goes on to say, "by 2023, the Federal SSI recipient population is estimated to reach 7.3 million." CFED estimates that there are approximately 250 existing IDA programs nationwide with many more in development.

Ultimately, it is desirable not only to produce an impact, but to 'go to scale' with a policy that affects the lives of millions or tens of millions of people. The purpose of IDAs is to lay the groundwork for a large-scale, progressive, asset-based policy, which is likely to take decades. (Sherradon, Center for Social Development)⁹

As IDAs become commonplace among economic development programs, it is imperative that they grow within reach of people with disabilities or this population will be left behind.

What are the barriers to IDA participation experienced by people disabilities?

A primary barrier exists in the design of the Supplemental Security Income (SSI)¹⁰ program. When an individual beneficiary of SSI exceeds $2,000 in assets or a married couple exceeds $3,000, the SSI benefits are jeopardized. The IDA savings, not including the match, are counted against these resource limits. Social Security reform to exclude IDAs from resource consideration will be essential to open up participation to the broad disability community.

Additional barriers exist in the design of IDAs themselves. Specifically, the limits imposed on how IDA savings may be used, currently only allowing savings to be applied toward business capitalization, post-secondary education and homeownership, greatly restrict a person with a disability who seeks economic independence. People with disabilities have many broader needs then the three aforementioned categories, including but not limited to the purchase of assistive technology, a wheelchair, personal assistance services, or accessible transportation. Research will need to be conducted involving people with disabilities to best determine what savings categories are really needed to support their independent living choices.

Finally, the cornerstone of IDAs is that earned income is necessary as a basic eligibility requirement. Beneficiaries of SSI and recipients of Social Security Disability Insurance (SSDI) who are not working but who would benefit through IDA participation are excluded from participation. For IDAs to be truly accessible there needs to be an allowance in IDA legislation for people with disabilities to apply their SSI or SSDI funds to their savings.

Why is the purchase of an automobile particularly important to a person with a disability?

The purchase of an automobile could play a big role in empowering a person with a disability, especially for those who live in rural areas. The Montana University Affiliated Rural Institute on Disabilities stated that "for people with disabilities, especially those living in rural areas, transportation is frequently a major challenge. Lack of transportation is one of the most frequent, significant, and persistent problems they face".¹¹ The Institute goes on to say that approximately 12.5 million people with disabilities live in rural areas of United States, six million of who have a severe disability.12 By owning a car (especially for people who require adapted equipment), a person with a disability is given more options for participation in the community and ultimately toward increased quality of life and economic independence. Without reliable and accessible transportation, people with disabilities often have to restrict their life choices, including what school to go to, and where or whether to work.

Where can a person with a disability receive Social Security benefit counseling or other disability services?

There are Independent Living Centers (ILCs) across the country. ILCs provide a range of free employment and benefit counseling services for people with disabilities. You can find your local ILC in the yellow pages.

What is the participation rate of people with disabilities in IDAs?

There is no national assessment of how many people with disabilities currently participate in IDA programs. However, for IDA programs that primarily enroll Temporary Assistance for Needy Families (TANF) recipients, estimates for these programs can be made based upon research conducted on the TANF population.

Based upon recent research on TANF recipients with disabilities published by the Center on Budget and Policy Priorities, as few as 12.2% to as many as 80% of TANF recipients have any of a broad range of physical or psychiatric disabilities in various states across the nation.¹³ This same state-by-state national research found that as many as 53.2% of TANF recipients reported having a physical disability. A great many respondents in this research were found to have psychiatric disability including clinical depression, post dramatic stress disorder and general anxiety disorder. Furthermore, in the course of the research as many as 49% were found to have learning disabilities, which in some cases were previously undiagnosed. Physical disabilities that were commonly seen included arthritis, asthma, back injury, obesity, diabetes, thyroid problems and migraines.

What is the Americans with Disabilities Act (ADA)?

The Americans with Disabilities Act gives civil rights protections to individuals with disabilities similar to those provided to individuals on the basis of race, color, sex, national origin, age, and religion. It guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, State and local government services, and telecommunications. (Department of Justice Civil Rights Division, Q&A on the ADA, http://www.usdoj.gov/crt/ada/qandaeng.htm)

How do IDA providers comply with the ADA? (Information on the ADA provided verbatim by the Department of Justice ADA Website)

Are there any limits on the kinds of modifications in policies, practices, and procedures required by the ADA?

Yes. The ADA does not require modifications that would fundamentally alter the nature of the services provided by the public accommodation. For example, it would not be discriminatory for a physician specialist who treats only burn patients to refer a deaf individual to another physician for treatment of a broken limb or respiratory ailment. To require a physician to accept patients outside of his or her specialty would fundamentally alter the nature of the medical practice

What kinds of auxiliary aids and services are required by the ADA to ensure effective communication with individuals with hearing or vision impairments?

Appropriate auxiliary aids and services may include services and devices such as qualified interpreters, assistive listening devices, notetakers, and written materials for individuals with hearing impairments; and qualified readers, taped texts, and Braille or large print materials for individuals with vision impairments.

Are there any limitations on the ADA's auxiliary aids requirements?

Yes. The ADA does not require the provision of any auxiliary aid that would result in an undue burden or in a fundamental alteration in the nature of the goods or services provided by a public accommodation. However, the public accommodation is not relieved from the duty to furnish an alternative auxiliary aid, if available, that would not result in a fundamental alteration or undue burden. Both of these limitations are derived from existing regulations and caselaw under section 504 of the Rehabilitation Act and are to be determined on a case-by-case basis

Are there any limitations on the ADA's barrier removal requirements for existing facilities?

Yes. Barrier removal need be accomplished only when it is "readily achievable" to do so.

What does the term "readily achievable" mean?

It means "easily accomplishable and able to be carried out without much difficulty or expense."

Are businesses entitled to any tax benefit to help pay for the cost of compliance?

As amended in 1990, the Internal Revenue Code allows a deduction of up to $15,000 per year for expenses associated with the removal of qualified architectural and transportation barriers. The 1990 amendment also permits eligible small businesses to receive a tax credit for certain costs of compliance with the ADA. An eligible small business is one whose gross receipts do not exceed $1,000,000 or whose workforce does not consist of more than 30 full-time workers. Qualifying businesses may claim a credit of up to 50 percent of eligible access expenditures that exceed $250 but do not exceed $10,250. Examples of eligible access expenditures include the necessary and reasonable costs of removing architectural, physical, communications, and transportation barriers; providing readers, interpreters, and other auxiliary aids; and acquiring or modifying equipment or devices.

ADA Information Line

US Department of Justice For ADA documents and questions
800-514-0301 (voice)
800-514-0383 (TDD)

How can IDA providers better serve people with disabilities?

The most important aspect of serving people with disabilities is insuring that all services are accessible. Each participant should be asked whether s/he needs accommodations. Offering these services to each participant insures that nobody is left without resources needed to successfully complete the program. Information on what types of accommodations are utilized and how many people with disabilities are participating in your program should be tracked. You may find this information useful for program planning and outreach.

It is also important that IDA providers collaborate with local disability groups. There are scores of organizations nationwide, in addition to Independent Living Centers, serving people with disabilities. Striking up relationships with local groups will provide you with needed advice and resources. By developing these relationships you will also have familiar organizations to refer clients to for help with benefit counseling and other services.

Finally, awareness of disability issues will help you to act appropriately and sensitively to the needs of your clients. We strongly recommend that all IDA providers receive disability awareness training.

If you have comments or other questions you would like to see included in the next edition of this fact sheet, please contact the Access to Assets program.

Notes

2 Census Brief 97-5. Disabilities Affect One-Fifth of All Americans.

3 John M. McNeil. 2000. Employment, Earnings at Disability.

4 United States, Department of Justice; Civil Rights Division; Disability Rights Section. 1993. The Americans with Disabilities Act: Title I Technical Assistance.

5 Sarah Tom. 2000. A Guidebook about Disability for IDA Providers, World Institute on Disability.

6 Sherraden, Michael. 2000. From Research to Policy: Lessons from Individual Development Accounts. St. Louis: Center for Social Development, Washington University.

7 The federal Ticket to Work and Work Incentive Improvement Act of 1999 (TWWIIA) expands services and choices available to Americans with disabilities who work, or are planning to work. The Act begins the redesign of public long-term disability programs so that they keep pace with medical and other technologies, and the changing dynamics of the new workplace. The Act's provisions are voluntary and grounded in the consumer's control of when and what decisions will be made about work.

8 1999 SSI Annual Report

9 Sherraden, Michael. 2000. From Research to Policy: Lessons from Individual Development Accounts. St. Louis: Center for Social Development, Washington University.

10 The SSI program provides monthly income to people who are age 65 or older, or are blind or disabled, and have limited income and financial resources. Effective January 2001, the SSI payment for an eligible individual is $530 per month and $796 per month for an eligible couple. For 2000, the SSI payment for an eligible individual is $512 per month and $769 per month for an eligible couple. If you are married, and only one person is eligible, a portion of your spouse's income may be counted. In addition, your financial resources (savings and assets you own) cannot exceed $2,000 ($3,000 if married). You can be eligible for SSI even if you have never worked in employment covered under Social Security. (Quoted from the SSA website, FAQs "What is SSI", www.ssa.gov.)

11 The Montana University Affiliated Rural Institute on Disabilities, 2000. National Demonstration. (Unpublished)

12 Rural Institute, Demonstration.

13 Sweeney, Eileen. 2000. Recent Studies Make Clear That Many Parents Who Are Current or Former Welfare Recipients Have Disabilities and Other Medical Conditions. Center on Budget and Policy Priorities.