Paramount Theatre
Prop 7 Surprise
RECEIVED Fri., Oct. 27, 2017
Dear Editor,
It was a total surprise to me and many of my progressive friends that The Austin Chronicle was “No” on Proposition 7 ["Chronicle Endorsements," News, Oct. 27]. I know my colleagues at the Center for Public Policy Priorities (CPPP) sent information to the Chronicle. It provided information on why CPPP, RAISE Texas, and many other local and state groups believe that “prize-linked savings” is an important tool to help many low-income Texans become more financially secure.
We have been working on ways to increase savings for emergencies (so people don’t have to go to payday lenders) and to reach short- and long-term goals. One of the problems this program would help solve is that 46% of Americans do not have enough money to cover a $400 expense.
In 2015, working with Rep. Johnson from Dallas, we were successful with the Texas Legislature approving legislation allowing financial institutions to offer prize-linked savings accounts. Unfortunately, it was vetoed by Governor Abbott saying that it would require a change to the Texas Constitution, which generally prohibits the Legislature from authorizing lotteries.
Again in 2017 a similar bill passed through the Legislature with strong bipartisan support (all Austin legislators voted yes). The bill supporting a constitutional amendment allowing prize-linked savings also passed the Legislature. Both bills were approved by the governor leading to Proposition 7 on the ballot.
It is terribly disappointing that the Chronicle is against Proposition 7 based on simply not wanting to change the constitution. We did not have any other option to make this product available for Texans.
Nationally as of 2017, 25 states allow prize-linked savings. From 2009-2016, over 75,000 accountholders saved over $175 million, and over 80% of accountholders are financially vulnerable.
I would have expected The Austin Chronicle to better understand the need for this important policy change.
It was a total surprise to me and many of my progressive friends that The Austin Chronicle was “No” on Proposition 7 ["Chronicle Endorsements," News, Oct. 27]. I know my colleagues at the Center for Public Policy Priorities (CPPP) sent information to the Chronicle. It provided information on why CPPP, RAISE Texas, and many other local and state groups believe that “prize-linked savings” is an important tool to help many low-income Texans become more financially secure.
We have been working on ways to increase savings for emergencies (so people don’t have to go to payday lenders) and to reach short- and long-term goals. One of the problems this program would help solve is that 46% of Americans do not have enough money to cover a $400 expense.
In 2015, working with Rep. Johnson from Dallas, we were successful with the Texas Legislature approving legislation allowing financial institutions to offer prize-linked savings accounts. Unfortunately, it was vetoed by Governor Abbott saying that it would require a change to the Texas Constitution, which generally prohibits the Legislature from authorizing lotteries.
Again in 2017 a similar bill passed through the Legislature with strong bipartisan support (all Austin legislators voted yes). The bill supporting a constitutional amendment allowing prize-linked savings also passed the Legislature. Both bills were approved by the governor leading to Proposition 7 on the ballot.
It is terribly disappointing that the Chronicle is against Proposition 7 based on simply not wanting to change the constitution. We did not have any other option to make this product available for Texans.
Nationally as of 2017, 25 states allow prize-linked savings. From 2009-2016, over 75,000 accountholders saved over $175 million, and over 80% of accountholders are financially vulnerable.
I would have expected The Austin Chronicle to better understand the need for this important policy change.
Woody Widrow
