Profitwise News and Views

Spring 2003 Issue

• High Profile Predatory Lending Cases
• Research Methodologies Identify Deal Flow Finding the Intersection Between Compliance and New Markets
• FLLIP's "Your Money & Your Life" Financial Education Program Reports High Marks after First Year
• CEDA Community Development Fund ATM Demonstration Project
• Financial Institutions and Participation in Individual Development Account Programs
• From the Editor
• Around the District
• Calendar of Events

Around the District

Illinois
State creates Investment and Development Authority
Illinois is the fourth state to embrace an innovative community development program that joins government and private sector financial institutions to serve low-income communities. On January 7, outgoing Illinois Governor George Ryan signed the law creating the Illinois Investment and Development Authority that will be responsible for establishing a community development financial institution program to work with private sector lenders who will target financial services to under-served markets.

For more information on the Illinois Investment and Development Authority, see the press release.

Indiana
Reality of poor differs from government's perception
According to a recent article in the Hoosier Times, the Indiana Community Action Association, which represents 24 agencies in the state, believes that a reality gap exists between what the U.S. government classifies as poor and the basic dollar figure it takes to subsist.

The article cites a "Basic Family Needs Budget" released by the Indiana Economic Development Council in September 2001. According to the budget, a single parent with two children making the official government poverty threshold income of $14,150 needs to make $27,947 or $13,797 more to meet basic needs.

Iowa
Iowa Bankers Association takes aim at state's title insurance laws.
Iowa is unique in that state law prohibits homebuyers from purchasing title insurance. Iowans are forced to use Iowa Title Guaranty for mortgage lender coverage. The Iowa Bankers Association (IBA) believes Iowa's current real estate process may not be competitive in today's marketplace. Changing current Iowa law is a legislative priority.

For more information on IBA's legislative agenda, contact the IBA at (800) 532-1423.

Michigan
Michigan posts large decrease in unemployment
According to the U.S. Department of Labor's Bureau of Labor Statistics (BLS), Michigan reported the largest year-over-year decrease in initial claims for unemployment insurance benefits of any state-down by 21,899 to 1,203. The most recent report covers the period of November 2001 to November 2002.

To view the BLS report, including a complete breakdown of initial claims and mass layoff notices issued under the Worker Adjustment and Retraining Notification Act, visit the Bureau of Labor Statistics web site.

Wisconsin
State law seen restricting municipal development activities
Twelve Wisconsin cities that have generated more than $1 billion in economic growth through tax increment financing (TIF) are unable to undertake more TIF borrowing under current law. The state's tax increment financing law includes two caps, and if both are exceeded, a city cannot create any new Tax Increment Districts."

The affected cities are: Appleton, Baraboo, Beaver Dam, Beloit, Cudahy, De Pere, Kaukauna, LaCrosse, Marinette, Sheboygan, Wausau, and Whitewater. Economic development professionals and elected officials in these and other cities in Wisconsin are concerned that this provision of state law will handcuff their ability to use this important economic development and job creation tool.

For more on the issue and a breakdown of Wisconsin cities' TIF districts, visit the archives at the Wisconsin Alliance of Cities web site.