Kentucky Asset Success Initiative

February, 2008

Andrea Langefeld knows personally the importance of the Kentucky Asset Success Initiative (KASI) of Frankfort, Kentucky. Andrea left her abusive husband in 2003, and with her three children moved into her mother’s basement. She was unemployed, living on food stamps and other public assistance, and her number one goal was to become self-sufficient. She soon found a job as a server in a restaurant, and moved into her own apartment using a Section 8 voucher. With the help of Becky Mishos from Women’s Crisis Center in Covington, a KASI partner, Andrea opened an Individual Development Account, attended financial education classes and, with her case worker’s guidance, began to clean up her credit history and raise her credit score. She saved money by getting her taxes done at a VITA location.

Less than two years after leaving her husband, Andrea was able to buy a home using the money she had put in her IDA along with down payment assistance from Kentucky Housing Corporation, a partner of KASI. Andrea says that she could not have achieved her current financial security without the help of KASI, its IDA program, and the caseworker who helped her raise her credit score and apply for a mortgage. Andrea has realized her dream of homeownership and has taken the steps needed to ensure her continued financial security.

 

Kentucky Asset Success Initiative client Andrea Langefeld with her three children in front of the home she purchased with the help of KASI's IDA program

 

The Kentucky Asset Success Initiative began its work in 2004 with help from the Annie E. Casey Foundation. KASI opened 12 free tax-preparation sites and began enrolling participants in its IDA program. In those days most IDA account holders came from domestic violence programs funded by KDVA, KASI’s fiscal agent. Today, KASI is comprised of eight collaborations that run 74 sites across the state. About 200 people from KASI partner programs are enrolled in the IDA program.

Last year, KASI served more than 3,900 low-income tax filers at 26 free tax-preparation sites in rural Kentucky communities. Volunteer tax preparers helped families claim $5.5 million in refunds, and KASI estimates those refunds generated $7.3 million in economic activity in those rural areas. More than 1,200 of KASI’s clients claimed the EITC, resulting in $1.9 million for those families. KASI also estimates that their free tax preparation services saved their clients at least $900,000 in tax preparation fees and refund anticipation loans.

This year KASI sites will serve many more families. Two collaborations – the Central Kentucky Economic Empowerment Project in Lexington and the Northern Kentucky Asset-Building Coalition – have joined and KASI’s existing collaborations are opening 12 new sites. The two new collaborations and new sites should enable KASI to serve at least 6,000 families this tax season. With these new additions, KASI will be able to increase its impact in one of the country’s poorest states: According to IRS data, one in five Kentucky taxpayers claims the EITC; one third of those who claim the EITC also obtained a refund anticipation loan.

Mary O’Doherty, Project Director at Kentucky Asset Success Initiative, feels that the success of any given tax site is dependent on the partner organization that runs that site. She has found that the drive, determination, dedication, and capacity of KASI’s partners are what drives the success of the program as a whole. As KASI’s current partners continue to build on their successes, and as KASI forms more partnerships with organizations who are committed to helping low-income workers, the Kentucky Asset Success Initiative will be able to increase its impact on rural communities in Kentucky. This will translate to more success stories like that of Andrea Langefeld, who has achieved financial stability and a safe environment for her children.