The House votes Tuesday on a resolution that would authorize the use of the Capitol’s Emancipation Hall to unveil the statue in June.

Delegate Eleanor Holmes Norton, a Democrat who represents the district in Congress, has pushed for the Douglass statue to be included among statues of notable figures from each of the 50 states. President Barack Obama signed a bill last year authorizing the move.

All states have two statues in the Capitol. The bill gave the district one.

Douglass would become the third African-American honored with a statue in the Capitol.

Norton plans to speak in favor of the resolution Tuesday on the House floor.

Earlier this year, I introduced legislation that I believe will promote corporate diversity and open pathways for minorities, disabled veterans and women. The goal of Assembly Bill 366 is to build upon the Public Utilities – Supplier Diversity Program and encourage companies to open up their boardrooms and executive management teams to minority business leaders.

It is my intention to broaden and include more minority businesses in the PUC Supplier Diversity Program for financial and legal services only. The original legislation that created the program authorized publicly-owned businesses (corporations) to participate if 51% of the stock was owned by minorities, disabled-veterans or women. AB 366 does not change this requirement. As amended May 1, 2013, this bill – and only for corporations offering financial and legal services – would permit corporations to participate if their board of directors and executive management team is diverse; that means 51% of their board and managers must be minorities.

The California Black Chamber of Commerce has signaled its support and the Black Economic Council, while recently critical, has renewed its optimism in the ability of Assembly Bill 366 to usher in a new era of opportunity for African American businesses.

Historically, utility companies have struggled to contract with minority-owned companies that offer financial and legal services. AB 366 is designed to provide more opportunity for minority-owned businesses by adding ‘teeth’ to the language to expand the definition for which publicly traded companies can qualify for these contracts.

In 1986, the Public Utility Commission adopted General Order 156 to promote competition among utility suppliers and encourage greater economic opportunity for minority-owned businesses. Existing law directs PUC to require every electrical, gas, water, wireless telecommunications service provider, and Telephone Corporation with annual gross revenues exceeding $25 million to encourage, recruit, and utilize minority, women and disabled veteran-owned business enterprises in the procurement of contracts.

The intention of AB 366 is not to force smaller businesses to compete with publicly-owned businesses. AB 366 is narrowly tailored to financial and legal services where smaller businesses have been unable to compete.

To prevent fraud and manipulation, the composition of the board of directors must consist of a diverse majority for at least five years prior to the certification of a publicly owned business as a minority business enterprise.

AB 366 also includes a sunset date of five years, in order to provide the opportunity for the legislature to carefully examine the efficiency of the expanded definition. Diversity opens pathways to ownership as corporate board members and executive officers associate in corporate circles of power that offer opportunities for minorities, women, and disabled veterans that are clearly and currently underrepresented in these areas.

As President Obama said in his State of the Union Address, an economy built to last is one where if we all play by the same rules and everyone is given a fair chance, America can succeed. This bill supports the President’s vision by seeking to promote diversity in corporate America through the PUC’s Supplier Diversity Program.

I am delaying action on AB 366 until next year in order to continue good faith discussions with minority business enterprises about how to maximize the bill’s benefits on small businesses.
_____
By Assemblymember Chris Holden
Special to the Los Angeles Sentinel

Disclaimer: The views and opinions expressed in this piece are those of the author(s) and do not necessarily reflect the views or position of SacObserver.com, The Sacramento OBSERVER, Sacramento OBSERVER Media Group, it’s owners or management.

Overall, the congressionally mandated study on credit report accuracy found that one in five consumers had an error on at least one of their three credit reports.

“These are eye-opening numbers for American consumers,” said Howard Shelanski, Director of the FTC’s Bureau of Economics. “The results of this first-of-its-kind study make it clear that consumers should check their credit reports regularly. If they don’t, they are potentially putting their pocketbooks at risk.”

The study, in which participants were encouraged to use the Fair Credit Reporting Act (FCRA) process to resolve any potential credit report errors, also found that:

• One in four consumers identified errors on their credit reports that might affect their credit scores;

• One in five consumers had an error that was corrected by a credit reporting agency (CRA) after it was disputed, on at least one of their three credit reports;

• Four out of five consumers who filed disputes experienced some modification to their credit report;

• Slightly more than one in 10 consumers saw a change in their credit score after the CRAs modified errors on their credit report; and

• Approximately one in 20 consumers had a maximum score change of more than 25 points and only one in 250 consumers had a maximum score change of more than 100 points.

Other study results can be found in the executive summary of the report.

“Your credit report has information about your finances and your bill-paying history, so it’s important to make sure it’s accurate,” said Charles Harwood, Acting Director of the FTC’s Bureau of Consumer Protection. “The good news for consumers is that credit reports are free through annualcreditreport.com, and if you find an error, you can work with the credit reporting company to fix it.”

The FTC report is the first major study that looks at all the primary groups that participate in the credit reporting and scoring process: consumers; lenders/data furnishers (which include creditors, lenders, debt collection agencies, and the court system); the Fair Isaac Corporation, which develops FICO credit scores; and the national credit reporting agencies (CRAs). It is based on work with 1,001 participants who reviewed 2,968 credit reports with a study associate who helped them identify and correct possible errors on their credit reports.

Consumers in the study were selected to match the demographic and credit score information of the general public, and participants were encouraged to dispute errors that could affect their credit standing. Credit reports with potential errors identified by study participants were sent to Fair Isaac (FICO) for rescoring.

After completing the FCRA dispute process, study participants were provided with new credit reports and credit scores. The original reports were then compared with the new reports. If any modifications were made as a result of the disputes, the impact of errors on the consumer’s credit score was determined.

Congress directed the FTC to conduct a study of credit report accuracy and provide interim reports every two years, starting in 2004 and continuing through 2012, with a final report in 2014. The reports are being produced under Section 319 of the Fair and Accurate Credit Transactions Act, or FACT Act.
_____
By William Garth
Special to the NNPA from The Chicago Citizen

It’s now official that team won’t be the Sacramento Kings.

In a long, anticipated vote, the NBA’s Board of Governors, in 22-8 majority, rejected a petition to relocate the Kings to Seattle. The fans of Sacramento will see the Kings take the floor, again, for the 29th season, and hopefully beyond.

“The owners had a very difficult decision,” Sacramento Mayor Kevin Johnson said of the decision. “It was gut-wrenching. We know that. It was painful and difficult. They had been working around the clock and across the board.”

Within 16 minutes of his news conference following the Board of Governors’ vote, NBA Commissioner David Stern put the whole ordeal in perspective for the cities of Sacramento and Seattle. The Kings have been in Sacramento since 1985.

“The edge went to the incumbent,” Stern said. “That was the way it came out.”

The meeting before the voted started off with presentations by both representing cities. Billionaire hedge-fund manager Chris Hansen and Gavin Maloof went before the board with their presentation followed by Sacramento Mayor Kevin Johnson and Silicon Valley billionaire Vivek Ranadive. Ranadive is the lead investor for Sacramento’s ownership group.

With the relocation issued settled, Stern said the NBA would work with the Maloofs to direct their efforts into selling the team to Ranadive. Ranadive and the city of Sacramento have done everything the NBA asked them to do during the process and they never failed on a commitment.

When the league asked that a new sports and entertainment complex be included in the package, the Sacramento City Council voted 7-2 in favor of contributing $258 million to a $450-million facility in the Downtown Plaza. When the Ranadive and the ownership group was asked to put up 50 percent of the asking price in escrow, they did it. When the NBA returned to ask for 100 percent of the amount, Ranadive and the consortium reached in their pockets with conviction.

“I told the mayor (Johnson) that the only thing they haven’t asked me to do was dunk,” Ranadive said when he and Johnson held a news conference after the NBA commissioner. “But if they do ask me (to dunk) I know who has one of the Top 10 dunks of all time.”

The Maloofs had already put together a back-up plan on their own that included selling 20 percent of the team to Hansen and billionaire Steve Ballmer. However, Stern said that’s not the direction the league is going since the vote put Sacramento entirely in the driver’s seat, next to the Maloofs.

“We’ll talk to the Maloofs and seek in the next 24 to 48 hours whether we can help facilitate an agreement to be signed between the Ranadive group and the Maloofs for the sell of the franchise in Sacramento” Stern said. “I won’t say anything but I anticipate that will come and they be open (to sell the team to Sacramento).

The majority decision, Stern said, came down to whether Sacramento could keep the team with a “financially strong ownership group,” support from the community,” and its ability to build a new sports arena. Sacramento met every criteria, realistically since the Maloofs tried to dislodge the team and move it to Anaheim two years ago.

On April 29, the NBA’s relocation committee voted unanimously, 7-0, to prevent the move to Seattle. The surprised vote was a strong indication that the rest of the owners in the league would accept the recommendation.

Despite Stern’s insistence that a bidding war would not affect the outcome of the Board of Governors’ decision, the Seattle group led by Hansen continued to up the ante for the Kings.

On May 10, the Seattle group bumped its offer for 65 percent of the Kings to $625 million from $525 million, what would be a record sell for an NBA franchise. The current standing record is the Golden State Warriors three years ago for $450 million.

The increase would let the Maloofs net $409 million instead $341 million that was first proposed and agreed upon with Hansen in January. Before the relocation committee voted in Sacramento’s favor, the Seattle group had already lifted its offer from $525 million to $550 million.

It was also reported by ESPN.com and a local Sacramento newspaper that the deal included a relocation fee payout of $4 million per team. For 29 teams, excluding the Kings, the total package for the relocation fee would be exactly $116.

Johnson and Vivek Ranadive said they were not surprise that the Seattle group increased its bid for the team. They expected the move, but remained optimistic about Sacramento’s counter offer of $341 million (which equaled Hansen and his group’s primary offer to the Maloofs).

Johnson commended the city of Seattle for its courageous actions and “I hope they get a team at some point and I think they will ,” Johnson said. The mayor also said that it was never a competition between both cities.

“My hat goes off to Seattle,” Johnson said. “It’s a great sports town and great basketball community. For them to come up a little short, especially what happened in 2008, to have lost their team. That’s devastating. That’s why we fought so hard. We didn’t want to lose our team. We know what that feels like.”

_____
By Antonio Harvey
OBSERVER Staff Writer

The event is designed to offer career resources and expose individuals to local businesses with entry level positions. SFBFS’ Adult Education Program offers free classes including computer classes, GED preparation and English as a second language. The career and resource fair is designed to connect these students, along with anyone in the community, with resources to improve their chances of securing employment. Volunteers will lead workshops on resume building, interviewing tips and landing a state job. More than 15 career development agencies along with local businesses will be on hand to share information and interview potential employees.

Participants are urged to bring a resume and dress for success. The career and resource fair will take place at Sacramento Food Bank & Family Services Education & Technology Center, 3308 Third Avenue, Sacramento. For more information, call (916) 456-1980.
_____
By Genoa Barrow
OBSERVER Senior Staff Writer

The Around the Way app, the brainchild of a marketing and technology firm in Washington, D.C., allows the customer access to companies that are at least 51% African-American owned and employed. The U.S. Black Chamber of Commerce last fall endorsed the app as the wave of the future for buying Black, but the local chambers attended an online seminar last month in order to educate their membership on its use and marketing.

Eric Hamilton, Chief Marketing Officer for Around the Way, said that the structure of the service follows the Google model. “When Google first started, they allowed companies to list their service for free, but charged a premium for those who wanted to be located by ratings rather than location,” he said. “All of our registered companies sign up for free, but there is a premium service for $89 per year that allows a company to be the first choice in that category no matter how far away they are from the consumer.”

Since the fall, the Around the Way has registered over 800 companies in Georgia with 200 of that in metro Atlanta. Free to download, the app features a search tool with categories from banks to restaurants to auto shops and more. Users are able to geo-locate and get directions to the closest business via category, but it also allows for some healthy competition.

“Say you’re in Atlanta and you want to find a laundry or dry cleaners,” said Hamilton. “The app will give you the choice to go to the business that is within 5 miles or the higher rated business that may be in Marietta,” he said.

Allison Cross, co-owner of Boxcar Grocer on Peters Street said that her store registered with the Around the Way app about two months ago. “Latinos and Blacks are the most major consumers of shopping though mobile apps,” she said. “I’m excited about the potential to collaborate with other businesses also using the app.”

Boxcar Grocer offers organic and natural foods and baked goods, so they plan to use some of the bakeries, health and beauty manufacturers, and related suppliers listed on Around the Way as suppliers for their store.

Michael T. Hill, founder of the Atlanta Metro Black Chamber of Commerce, said that the Around the Way is an excellent tool to assist the Black consumer in leveraging the $73 billion in buying power that they currently spend in other communities.

“I think it’s a great start in terms of connecting with the African American consumer through technology,” he said. “It’s very similar to the Be Locally tool that one of our members developed on our website www.ambccc.us, where it allows consumers to rate a positive experience that they’ve had with a local company.”

At present, there are over 52,000 African-American owned companies in metro Atlanta. It is hoped that that collaboration with the marketing team of Around the Way and the Black chambers will increase the awareness of those companies in an effort to bring the Black dollar back into the community.

“We’ve looked for solutions in our schools, our churches, and at the government level for saving our community,” said Hill. “Now, it’s time for our business community to step up.”

Hill said that the Atlanta Metro Black Chamber of Commerce plans to officially launch the Around the Way app marketing plan to its 350 members in June during its music, technology, and entertainment roundtable series.
_____
By Bekitembe Eric Taylor
Special to the NNPA from The Atlanta Voice

Al Zaid, far right, will perform with the Sounds of the Platters at the Guild Theater on May 18. Tickets are available at Underground Books. (Photo by Antonio Harvey)

SACRAMENTO – No, Al Zaid is not the silky-smooth lead singer as Tony Williams was for the original Platters. But when Zaid perform here in Sacramento on May 18, concert goers will notice that he is close enough to the guy who sang golden classics from the age of Rock and Roll.

Zaid and the Sounds of the Platters will perform at the Guild Theater to celebrate the 40 Acres Business Complex’s 10th Year Anniversary. The festivities starts at 6:30 p.m. with a VIP reception ($40 including general admission), followed by a show at 8:00 p.m. Plenty tickets are still available and general admission at the door is $25.

Born in Kansas City, Mo., but resides in Elk Grove, Zaid has been singing with the Platters since 1999 when female Zola Taylor (1938-2007), also one of the original members, was leading her version of the singing group that charted 40 singles on Billboard Hot 100.

The Platters, with the original lineup of Williams, Taylor, Paul Robi, David Lynch, and Herb Reed. The Platters were the first Doo-Wop group to be inducted into the Rock and Roll Hall of Fame.

The group was actually created around tenor Williams distinctive and versatile voice, a sound Zaid has taken pride in emulating through classics such as “The Magic Touch,” “If I Didn’t Care,” “Smoke Gets In Your Eyes,” “Twilight Time,” “The Great Pretender,” and “Only You.”

“B.J. Mitchell had taught me the vocal to copy (Williams’) sound,” Zaid told The OBSERVER. “Tony Williams had a wide range and I can sing first and second tenor while most lead singers who sung Platters songs were baritone. Most people would say that I’ve mastered it.”

Zaid has performed tributes and makeovers of such  iconic singers such as Sam Cooke, Al Green, Marvin Gaye, Eddie Kendricks, Curtis Mayfield, George Benson, Issac Hayes, Bobby Womack, Al Jarreau, and Johnny Mathis. There is no limit to Zaid’s ability.

Zaid said performing on the Guilt Theater stage singing Platter hits with the other singers () is an absolutely great way to pay homage to a Black-owned business in Sacramento.

“I think it is historical,” Zaid said. “Especially for an area that deserve more attention than it’s getting. But our performance may raise that for the next 10 years.”

Zaid said the concert should not end with the Sounds of the Platters. He is working on bringing in other artist and singing groups to Oak Park such as the Coasters, Vibrations, and Drifters.

“We can make it a place where people can enjoy to see decent and quality entertainers,” Zaid said.

The Sounds of the Platters will take the stage at the Guild Theater on May 18. The Guild Theater is at 35th and Broadway in Oak Park. For more information, call (916) 737-3333.
_____
By Antonio Harvey
OBSERVER Staff Writer

“Such great wealth disparities help explain why many middle-income blacks and Hispanics haven’t seen much improvement in their relative economic status and, in fact, are at greater risk of sliding backwards,” the report says.

Blacks start out at a disadvantage.

Whites begin with about 3.5-4 times more wealth than their Black and Hispanic counterparts in their “wealth-building years,” defined as 32-40 years old. By age 60, the wealth of Whites increases to seven times the amount of wealth Blacks are able to accrue over the same amount of time.

Levels of homeownership and retirement savings are shown to contribute to the differences in wealth among races. In 2010, less than half of Black families owned homes, while more than three quarters of White families did.

Algernon Austin, director of the program on race, ethnicity, and the economy at the Economic Policy Institute, says that Blacks were more likely to have loss their homes during the recession because they couldn’t keep up with ballooning mortgage payments.

“What we’ve seen recently is a dramatic loss of wealth for African Americans because there has been a dramatic loss of homeownership,” Austin explains. “Blacks were more likely to be given high-priced sub prime loans and were hit much harder by unemployment. Both factors—more loans, losing a job– makes it more difficult to keep up with mortgage payments.”

The recession has had a dire impact on the wealth of all Americans, with Hispanic families reporting their wealth declined by 40 percent between 2007-2010, according to the report. Blacks experienced a 31 percent decline while Whites’ wealth declined by 11 percent.

Austin calls the loss of wealth experienced by the Black community a “symptom of high levels of unemployment and low wages, but particularly unemployment.”

Today, 27 percent of Blacks live in poverty. In March 2013, Blacks experienced an unemployment rate of 13.3 percent, compared to the national rate of 7.6 percent.

“Homeownership is a really important factor in terms of wealth, but so is unemployment,” Austin says. “If you’re going through frequent spells of unemployment, you’re either going to be losing wealth or going into debt.”

He adds, “The issue of jobs and income are important to address. The higher your income, the easier it is for you to build wealth. The government needs to enact policies that allow for Blacks to get greater income and get better job opportunities.”

Blacks represent about 11 percent of the total workforce, but 14 percent of the poverty-wage workforce, according to the Economic Policy Institute.

According to the Urban Institute findings, Black families saw the most dramatic decrease in their retirement assets, experiencing a 35 percent decline in retirement savings between 2007-2010.

“This finding is consistent with research that suggests lower income families are more likely to withdraw money from retirement savings after a job loss or other adverse event,” according to the Urban Institute report. “The high rates of unemployment and other financial needs that took hold with the Great Recession appear to have led to larger declines in retirement savings for black families.”

While the Great Recession can account for much of the loss of wealth, there are other contributing factors to African Americans’ low-wealth, including policies designed to help Americans accrue wealth and policies aimed at low-income families, a large proportion of whom are African American.

“There’s lots that the federal government does that if it was targeted to lower income Americans it could impact the wealth gap, “ Austin adds. “However, unfortunately, it’s a difficult battle because current policies benefit people who have significant political power and influence.”

In 2009, the federal government spent about $384 billion on policies that help families buy homes, start businesses, put their children through college, and retire.

Many of these policies, however, are administered through the tax code and “subsidize wealth building for the wealthiest among us, rewarding them for the size of their homes and investment portfolios,” according to a 2010 report by the Corporation for Enterprise Development titled “Upside Down: The $400 Billion Federal Asset-Building Budget.”

“The federal asset building budget provides a variety of things—opportunities for families to buy homes, start businesses, and prepare for retirement,” says Jermie Greer, the director of government affairs for CFED. “Yet, this $400 billion budget is skewed to benefit the very wealthy.”

According to the report, a middle class family making $50,000 annually receives less than $500 in benefits from federal asset building policies, while families that make $100,000 receive $2,000 in benefits.

Tax payers who make in excess of $1 million, however, can see more than $92,000 in asset building support through mortgage and property tax deductions and investment tax breaks. Over half of the nearly $400 billion in benefits, according to the report, goes to the top 5 percent of tax payers.

“Conversation around tax reform so often focuses on the relationship between revenues for deficit reduction, but missed the mark on what is the social policy we want to address through the tax code,” Greer says.

“They can take some of the tax benefits that go to the very wealthy and bring them back down to people that are trying to build wealth and scratch their way out of poverty,” Greer adds.

Most low and middle-income families use homeownership to build wealth. In fact, homeownership accounts for the largest proportion of wealth among lower and middle-income households.

Yet, homeowners with lower incomes often don’t receive enough of a deduction to make a difference. According to the CFED report, nearly 80 percent of the value of mortgage and property tax deductions went to the top 20 percent of taxpayers.

“Social policy is really focused on income and the income people earn,” Greer says. “While people need jobs and it’s important that people are able to earn income, but that’s not the only piece of puzzle when you think about wealth.”

“We need to think not only about income, but providing benefits and incentives that help people build wealth through starting businesses, buying homes, being protected from predatory lenders.”

For low-income families in particular, federal programs like the Supplemental Nutrition Assistance Program, or SNAP, help ensure families have basic necessities, but don’t assist in helping to develop economically stable households.

“Many safety net programs even discourage saving: families can become ineligible if they have a few thousand dollars in savings,” he Urban Institute report says.

Individuals who receive benefits from assistance programs can only have savings that equal up to $2,000 before risking losing their benefits. States currently have the flexibility to wave these limits, which keep people from accumulating money that can help them start a business or build wealth that can lead them out of poverty.

Thirty-six states currently waive limits to the SNAP and Temporary Assistance to Needed Families programs.

There are also programs, such as the Self-help Homeownership Opportunity Program (SHOP), which helps low- to moderate-income families purchase homes, that can help low income families build wealth through homeownership, but the programs received less funding than low-income rental programs in 2010.

Austin says that through implementing more policies that benefit a wider range of people from varying socioeconomic backgrounds, we could begin to see the wealth gap “start shrinking instead of watching it grow.”

“It’s possible to prevent [the wealth gap] from growing larger and even shrinking it, but none of the policies that will ensure that will happen by themselves,” Austin says. “With all of these things, they aren’t likely to happen overnight.”
_____
By Maya Rhodan
NNPA Washington Correspondent

In this fiscal year 2014 budget, President Obama proposes switching the way benefit programs such as Social Security and civil service retirement adjust for inflation to the chained consumer price index, or chained CPI.

Chained CPI calculates inflation differently from the consumer price index, the current yardstick. The move would save approximately $230 billion, according to the president’s budget.

“The chained CPI significantly reduces the purchasing power of those who rely on benefits issued by the federal government, and especially disadvantages retirees and the long-term disabled because it fails to take into account the higher costs they shoulder as a result of their increased need for health care services and related products,” the report reads.

The Center for Global Policy Solutions report finds that the changes may cause particular harm to older African Americans; many depend on Social Security for the majority of their retirement income.

Nearly half of African American beneficiaries rely on Social Security for 90 percent or more of their income, compared to 35 percent of all beneficiaries. Two out of five Black retirees over 65 depend on Social Security for their entire income.

The report show that 18 percent of Black adults over 65 had an income below the federal poverty level; without Social Security benefits, 53 percent of older African Americans would be living in poverty according to the AARP.

The changes to COLA will also impact the one in five Black children receiving disability benefits. Black children are twice as likely to receive survivor benefits as well.

“Chained CPI is also a poor policy considering that Social Security does not contribute to our annual deficit, and the trust will run a surplus of more than $2.7 trillion until the 2030s,” Rep. John Conyers (D-Mich.) said in a statement. “I am disappointed then that President Obama would consider burdening those who are most in need of our support.”

The changes proposed by the president did not fare well with the constituents they will affect the most. In April, AARP released a poll that showed that 70 percent of older voters are not in favor of using chained CPI for the Social Security cost-of-living adjustment and 78 percent are opposed to using the adjustment for veteran benefits.

“This cut to Social Security would break the promise to seniors and hurt veterans who’ve sacrificed so much for this great country,” AARP executive vice president Nancy LeaMond said in a statement.

According to AARP, those who rely on Social Security for the majority of their income, which includes 47 percent of African American beneficiaries, would experience an 8 percent cut to their income after 30 years using chained CPI.

According to the report, the coming reductions will result in about $3 lost for every $1,000 in benefits. That amounts to a lot for the African Americans over 65 who receive about $13,000 a year in benefits.

Although President Obama has proposed to protect “the most vulnerable Americans,” including those over 76 and beneficiaries who receive benefits for longer periods of time, Mikki Waid, AARP senior strategic policy advisor, says older African Americans won’t reap the benefits of being protected.

“African Americans don’t live as long, so even though the president has proposed these bump ups, an African American male that has made it to 65 is only expected to live to 81, women to 84,” Waid says. “They aren’t going to benefit from the protections.

Waid adds, “The fact that they decided to exempt some individuals makes you wonder if it’s a more accurate cost of living adjustment. Is it really an accurate inflation measure of older Americans?”

The report finds, it isn’t.

A large portion of retirement income goes toward medical expenses, figures that are not considered in the chained CPI adjustment.

The average 65-year-old couple retiring will need $240,000 to cover future medical costs, according to Fidelity Investments, which tracks retiree health care costs. The median annual income for African Americans on Social Security is $14,400.

The report also finds that African Americans will be the most negatively impacted by the switch to chained-CPI because they have much less wealth that could be used to supplement the reduction in Social Security.

“As a result of racial wealth disparities, African Americans will be negatively affected by implementation of the chained CPI regardless of the non-means tested federal program from which they receive their benefits,” said Maya Rockeymoore, president and CEO of the Center for Global Policy Solutions . “With precious few other assets to help meet expenses, African Americans will experience deeper economic pain as a result of the chained CPI.”

In 2010, Whites had six times the wealth of their African American counterparts, according to a new Urban Institute report. Whites who were age 32-40 in 1983 had an average family wealth of $184,000, a figure that rose to $1.1 million in 2010. Blacks, in comparison, had an average family wealth of $54,000 in 1983, which had only grown to $161,000 in 2010, when both groups were nearing retirement age.

Blacks have historically started off with less wealth than their White counterparts, and on average have not reached equal levels of wealth by retirement. Factors such as low wages, high unemployment, and lesser job opportunities have contributed to Blacks inability to accrue enough wealth to keep such large portions of the community from being solely dependent on Social Security into retirement.

The Great Recession, however, also lead to an increased loss of wealth within the African American community, especially in terms of retirement savings. Blacks, according to the Urban Institute report, lost about 35 percent of their retirement assets during the recession, while White families saw an increase.

A major problem, Waid finds, with chained CPI is that the negative impact to benefits will take affect immediately.

“Chained CPI will effect beneficiaries immediately and it will effect all beneficiaries,” Waid says.

She adds that because of this, unfortunately, there is little one can do to prepare.

“It’ll affect them now,” Waid reiterates. “But really what can you do? If you’re an African American 70-year-old woman, I wish I could tell them something they could do, but I just can’t.”
_____
By Maya Rhodan
NNPA Washington Correspondent

thinkThin LLC, the producers of popular weight management bars, will be giving special thanks to moms all over the country this week as part of Whole Foods gifting program in celebration of Mother’s Day. Taking place at participating Whole Foods Markets on Thursday, May 9, the first 50 moms who show up to shop will receive an exclusive gift bag, including thinkThin’s popular 0g sugar 20g protein bars, thinkThin Crunch and its newest bar thinkThin Divine. A personal note from CEO and founder, Lizanne Falsetto, will also be included.

“As a mom of two myself, I know how difficult it can be to eat right while maintaining a busy schedule,” said Falsetto. “thinkThin was created for the active woman like me—a nutritious and delicious way to sustain us throughout the day. We are thrilled to partner with Whole Foods and commemorate moms nationwide.”

thinkThin’s mission is to change the way consumers think about diet by educating on the movement of weight wellness—a state of physical and emotional well-being. Rather than focusing on fitting into a certain size or worrying about a number on the scale, weight wellness is about living active and well—creating a balanced lifestyle that nourishes longevity.

A partner with Whole Foods for over a decade, last month thinkThin pledged full support of the natural grocery chain’s commitment to GMO (genetically modified organism) transparency. With the support and guidance of Whole Foods, thinkThin was able to achieve non-GMO status on its fruit and nut thinkThin Crunch line.

Local Whole Food locations include 4315 Arden Way, Sacramento; 500 First Street, Davis and 1001 Galleria Boulevard in Roseville. For more information, call (916) 488-2800, (530) 750-2266 or (916) 781-5300 or visit thinkproducts.com.
_____
By Genoa Barrow
OBSERVER Senior Staff Writer