[Congressional Record (Bound Edition), Volume 147 (2001), Part 8]
[Extensions of Remarks]
[Page 10685]
[From the U.S. Government Publishing Office, www.gpo.gov]



                  THE SAVINGS FOR WORKING FAMILIES ACT

                                 ______
                                 

                          HON. JOSEPH R. PITTS

                            of pennsylvania

                    in the house of representatives

                        Wednesday, June 13, 2001

  Mr. PITTS. Mr. Speaker, the last decade has seen some of the greatest 
prosperity in American history. This has provided new opportunities not 
only for the savvy Wall Street investor, but also for those who are 
gainfully employed for the first time. And while some economic 
indicators are down a bit, we still have a great opportunity to help 
those who once had few opportunities. We have the chance to help them 
find new ways to gain a permanent foothold in the financial mainstream.
  Today, Congressman Charlie Stenholm and 33 other bipartisan 
cosponsors are joining me to re-introduce The Savings For Working 
Families Act. This legislation will provide tax credits to banks 
providing matching funds for Individual Development Account (IDA) 
savings. IDAs are savings accounts that may be used for education, 
housing, or to start a small business.
  IDAs are a proven success in my home state of Pennsylvania. For 
example, Jacqui Fulton, a 66-year-old woman from Philadelphia told the 
Philadelphia Daily News recently that when she used to get depressed 
about her circumstances, she would raid the cookie jar where she kept 
her money and go buy herself a manicure. It made her feel better for a 
short time. But now, she goes to the bank every week and deposits 
another twenty dollars into her IDA account. She now says that she 
``almost skips to the bank''--it makes her feels so good. Jacqui 
started saving in her IDA account in July of 1997. She saved over 12 
hundred dollars and received her saving match of six hundred dollars in 
August of 1999. She used the money to expand a talent search business 
called Direction and Exposure.
  She says, ``This is one of the smart moves I made to have more money 
to invest in my business.'' She feels good about herself, and she's 
saving money to make a dream come true. And she's no longer raiding her 
cookie jar.
  Jacqui's is just one success story among many. This program is 
working in Pennsylvania. Pennsylvania has one of the largest IDA 
programs in the country. The Commonwealth has appropriated $4.5 million 
dollars to the program to date, and another $1.5 million is included in 
this year's budget. Right now, there are 2584 contracted accounts 
divided among 15 financial institutions around the state. At the end of 
last year, IDA investors in Pennsylvania had saved almost three-
quarters of a million dollars.
  IDAs are a proven success in many other states too. But they are 
under utilized. Where they have been made available, they have worked. 
They are meant to be a springboard to continued prosperity. Making 
higher education possible makes prosperity possible. Helping people 
start small businesses makes prosperity possible. But without hopeful 
that will be very soon. I look forward to working with the President, 
House Leadership, and all of the cosponsors of this legislation to make 
this dream come true.

                          ____________________