Upload
onawa
View
27
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Strengthening Rural Families: An Action-Learning Institute for Washington Horizons Communities November 1 - 4, 2009. Driving out of Poverty in Fuel Efficient Cars the Jump Start ™ Program and. A little context…. With this mission: - PowerPoint PPT Presentation
Citation preview
Strengthening Rural Families: An Action-Learning Strengthening Rural Families: An Action-Learning InstituteInstitute
for Washington Horizons Communities for Washington Horizons CommunitiesNovember 1 - 4, 2009November 1 - 4, 2009
Driving out of Poverty in Driving out of Poverty in
Fuel Efficient CarsFuel Efficient Cars
the Jumpthe JumpStartStart™™ ProgramProgramandand
A little context….A little context….
With this mission:With this mission:
……..to take action against poverty by to take action against poverty by developing the social and developing the social and economic assets of low-income economic assets of low-income families and their communities families and their communities and by working to create a and by working to create a more just and sustainable societymore just and sustainable society
no lessno less
With Programming in :With Programming in :
►Housing PreservationHousing Preservation
►Housing DevelopmentHousing Development
►Homelessness PreventionHomelessness Prevention
►LMI Homebuyer Assistance LMI Homebuyer Assistance
►Regional Economic Development Regional Economic Development
►Nutrition and Local FoodNutrition and Local Food
►Low Income TransportationLow Income Transportation
We Serve Seven Rural WI Counties:We Serve Seven Rural WI Counties:
►5,200 square miles5,200 square miles
►No communities over 15,000 populationNo communities over 15,000 population
►Two of WI wealthiest and fastest growing Two of WI wealthiest and fastest growing counties in Wisconsincounties in Wisconsin
►Great diversity of wealth and income – 4.7% to Great diversity of wealth and income – 4.7% to 12% county poverty rates before the recession12% county poverty rates before the recession
And this view of our future:And this view of our future:
We must help our low-income We must help our low-income households and our households and our
communities do three communities do three things:things:
1.1. Dramatically reduce our Dramatically reduce our consumption of fossil fuel and consumption of fossil fuel and non-renewable resources.non-renewable resources.
2.2. Build the capacity of our local Build the capacity of our local and regional economies to meet and regional economies to meet our needs.our needs.
3.3. Foster local communities based Foster local communities based on mutual assistance and on mutual assistance and cooperation.cooperation.
And the answer is ………..And the answer is ………..
75%75%
the Jumpthe JumpStartStart™™ ProgramProgram
the Jumpthe JumpStartStart™™ ProgramProgram
A program that helps TANF moms buy late model economy cars
1997: West CAP Creates 1997: West CAP Creates JumpStartJumpStart
- - Work not Welfare Pilot
- Talked to everybody
- “Becky Gets to Work”
- Otto Bremer Foundation
- WETAP (TANF)
The Ten RequirementsThe Ten Requirements Safety Reliability Flexibility Manageability Affordability Consistent, predictable Expenses Sustainability Rural and Urban Applicability Reasonable Public Cost Environmental Responsibility
JumpStart meets JumpStart meets ALLALL ten Requirements ten Requirements!!
MinimumMinimum
RequirementsRequirementsPublicPublicTransitTransit
VolunteerVolunteerDriversDrivers
CommercialCommercialServiceService(Taxis)(Taxis)
Old Old "Beaters""Beaters"
Van orVan orCarCar
PoolsPools
JumpStartJumpStart
SafetySafety YesYes ?? ?? NoNo ?? YesYes
ReliabilityReliability YesYes ?? ?? NoNo YesYes YesYes
FlexibilityFlexibility NoNo NoNo NoNo YesYes NoNo YesYes
ManageabilityManageability NoNo NoNo NoNo ?? NoNo YesYes
AffordabilityAffordability YesYes YesYes NoNo ?? YesYes YesYes
Consistent CostsConsistent Costs YesYes YesYes NoNo NoNo YesYes YesYes
SustainabilitySustainability YesYes NoNo YesYes NoNo ?? YesYes
Urban and RuralUrban and Rural NoNo ?? NoNo YesYes YesYes YesYes
Acceptable Public Acceptable Public CostCost
?? YesYes NoNo ?? YesYes YesYes
Environmental Environmental ResponsibilityResponsibility
YesYes ?? NoNo NoNo YesYes YesYes
enter…enter…
West CAP’s nonprofitcar dealership
Follow the MoneyFollow the Money► Car: 2-3 Year old econ (4 cyl) - 31,000 miles on Car: 2-3 Year old econ (4 cyl) - 31,000 miles on
odometerodometer$9,975 Average Retail Price$9,975 Average Retail Price
______________________________________________________________________________________________________________________________________________
► Base Program Price Base Program Price $8,479 (Incl. fees, transport, $8,479 (Incl. fees, transport, inspection, repairs)inspection, repairs)
► Sales TaxesSales Taxes 466 466► RegistrationRegistration 9898 == 564 564► Total Price + taxes & reg.Total Price + taxes & reg. 9,043 9,043
► Participation FeeParticipation Fee 400 (Major Repair Assurance) 400 (Major Repair Assurance)
► Total Price to Client Total Price to Client $9,443 $9,443 ► Less DownpaymentLess Downpayment (1,500)(1,500) (Forgivable loan) (Forgivable loan)
Client Loan Amount $7,943Client Loan Amount $7,943
► Monthly Loan Payment 159Monthly Loan Payment 159 (5 years/7.75%) (5 years/7.75%)► Escrow Repair FundEscrow Repair Fund 20 20 (Held in escrow) (Held in escrow)
Monthly PaymentMonthly Payment $ 179 $ 179
So……….What Happens if you meet all of the 10 Requirements for the “Beckys” of the world,
(or of Wisconsin at least, and probably the rest of
rural America)?
In three separate surveys, In three separate surveys, from 2001 to 2004, from 2001 to 2004,
JumpStart customers reported JumpStart customers reported significantsignificant (over 20%) (over 20%)
to to dramaticdramatic (over 80%) (over 80%) improvement in these areas:improvement in these areas:
- - Increased incomeIncreased income
- Changed to better jobs- Changed to better jobs
- Moved to better housing- Moved to better housing
- Went from renters to homeowners- Went from renters to homeowners
- Advanced their formal / technical - Advanced their formal / technical educationeducation
- Improved the quality of their child care- Improved the quality of their child care
- Improved overall financial security- Improved overall financial security
- Increased credit scores- Increased credit scores
- Reductions in public assistance- Reductions in public assistance
- Greater social and community involvement- Greater social and community involvement
- Better overall quality of life- Better overall quality of life
In fact, we found these In fact, we found these significant to dramatic results significant to dramatic results in in everyevery area we measured. area we measured.
soso
We believe good, economical cars We believe good, economical cars are a are a lynchpinlynchpin connecting connecting
low-wage workers to other low-wage workers to other assetsassets
Why Does JumpStart Work?Why Does JumpStart Work? Born in the fieldBorn in the field
Carefully researched; lowest cost per mile for Carefully researched; lowest cost per mile for safe, reliable, affordable transportationsafe, reliable, affordable transportation
Holistic approachHolistic approach►Connects meaningfully to the whole life of the Connects meaningfully to the whole life of the
customer over time; meets all their transportation customer over time; meets all their transportation needs; exit strategyneeds; exit strategy
►The customer is an active, invested partner in the The customer is an active, invested partner in the program program and and Loves the Car and has a powerful Loves the Car and has a powerful incentive to do what it takes to keep itincentive to do what it takes to keep it
►Works for everybody else too; funders, lenders, Works for everybody else too; funders, lenders, service providers, partners, sponsoring agencyservice providers, partners, sponsoring agency
Combination of flexibility and a commitment to Combination of flexibility and a commitment to successsuccess
Why Does JumpStart Work?Why Does JumpStart Work?
Major emphasis on the machine itselfMajor emphasis on the machine itself►Minimum EPA hwy rating of 32 mpgMinimum EPA hwy rating of 32 mpg
►Late model – low mileageLate model – low mileage
►Vehicle models with proven reliability & good repair Vehicle models with proven reliability & good repair ratingsratings
►Thorough inspection and repairThorough inspection and repair
►Synthetic oil and transmission fluidSynthetic oil and transmission fluid
►Maintenance training and ongoing maintenance requiredMaintenance training and ongoing maintenance required
Ideal Auto dealership servicesIdeal Auto dealership services
A willingness to take managed risksA willingness to take managed risks
Lessons LearnedLessons Learned
- With precious few exceptions, With precious few exceptions, working families in rural America working families in rural America must rely on cars for must rely on cars for viableviable transportationtransportation
- Owning a reliable, economical car Owning a reliable, economical car can bring a host of other can bring a host of other opportunities into reach for low-opportunities into reach for low-income families (a reality vastly income families (a reality vastly under-appreciated in the social under-appreciated in the social policy world)policy world)
Lessons LearnedLessons Learned
- The opportunity to own a good late The opportunity to own a good late model car can have a profound model car can have a profound psychological impact on a low-income psychological impact on a low-income person and provide a powerful, person and provide a powerful, immediate incentive for positive immediate incentive for positive behavioral changebehavioral change
- Careful selection, inspection and Careful selection, inspection and maintenance of a car can greatly impact maintenance of a car can greatly impact the incidence of repair, the useful the incidence of repair, the useful service life of the vehicle and its value service life of the vehicle and its value as an assetas an asset
-- Lenders love to have their collateral Lenders love to have their collateral guaranteedguaranteed
If this is suchIf this is such
aa HOT HOT idea…. idea….
why isn’t why isn’t
everybody everybody doing it?doing it?
JumpStart™: ChallengesJumpStart™: Challenges
►Stubborn existing paradigm meets counter-Stubborn existing paradigm meets counter-intuitive modelintuitive model
►Almost Almost allall Federal funding of low-income Federal funding of low-income transportations is for mass and group transit transportations is for mass and group transit and specifically excludes car ownershipand specifically excludes car ownership
►Math – “The Big Story Problem” = about 1 in Math – “The Big Story Problem” = about 1 in 8 qualify8 qualify
►The Price of Gas; now The Price of Gas; now EveryoneEveryone wants “our” wants “our” carscars
►95% of Americans favor mass transit for 95% of Americans favor mass transit for othersothers
►Peak OilPeak Oil
We Don’t We Don’t Care, Care,
we Want to do it we Want to do it
Anyway!Anyway!
coolcool
JumpStart has been JumpStart has been ReplicatedReplicated
►Three were/are very successfulThree were/are very successful►One was, er, mixedOne was, er, mixed►Two floppedTwo flopped
So we have learned a few things So we have learned a few things about replicating JumpStartabout replicating JumpStart
JumpStart Replication JumpStart Replication Option #1Option #1
► Identify an organization willing and able to Identify an organization willing and able to set it up and run it – CAP Agency?set it up and run it – CAP Agency?
►Find a funder, or fundersFind a funder, or funders
►Set up a car dealershipSet up a car dealership
►Find a lender, or lendersFind a lender, or lenders
►Do a lot of legal work around car ownershipDo a lot of legal work around car ownership
►Locate low-income customers who fit the Locate low-income customers who fit the programprogram
JumpStart Replication JumpStart Replication Option #2Option #2
►Call Peter Kilde at 715-265-4271, ext, Call Peter Kilde at 715-265-4271, ext, 328, Monday thru Friday generally 328, Monday thru Friday generally after 9:00 am. after 9:00 am.
-- since I am a night owl and more -- since I am a night owl and more likely to work late than come in early.likely to work late than come in early.
A Few Reflections on A Few Reflections on The Rocky Road AheadThe Rocky Road Ahead
AndAnd
West CAP’s West CAP’s Community Jitney ProgramCommunity Jitney Program
The catalystThe catalyst……
The Automobile ProblemThe Automobile Problem
► Economy car (32 mpg) drops Btu/mi to 2662Economy car (32 mpg) drops Btu/mi to 2662►Hybrids drop btu/mi to 1893Hybrids drop btu/mi to 1893►Vanpools come in at 1294 Btu/miVanpools come in at 1294 Btu/mi► 1.3 million hybrids in a world with 800 million 1.3 million hybrids in a world with 800 million
carscars
..and a Jitney ..and a Jitney Demonstration: Demonstration:
Fuller Cars = Fewer Cars = Less Fuller Cars = Fewer Cars = Less Oil NeededOil Needed►Driver only @25 mpg = 25 pmpg*Driver only @25 mpg = 25 pmpg*
►Driver plus one @25 mpg = 50 pmpg!Driver plus one @25 mpg = 50 pmpg!
►Driver plus two @ 25 mpg = 75 pmpg!!Driver plus two @ 25 mpg = 75 pmpg!!
►Driver plus three @ 25 mpg = 100 pmpg!!!Driver plus three @ 25 mpg = 100 pmpg!!!
►Driver plus four @ 25 mpg = 125 pmpg!!!!Driver plus four @ 25 mpg = 125 pmpg!!!!
* pmpg = People Miles Per Gallon* pmpg = People Miles Per Gallon
The “Smart Jitney” OptionThe “Smart Jitney” OptionIntermediate solution that uses Intermediate solution that uses existing vehiclesexisting vehicles
Jitney can be defined as a Jitney can be defined as a small bus or car that carries small bus or car that carries passengers. Also, as an passengers. Also, as an informal “taxi.”informal “taxi.”
Basically, a form of mass Basically, a form of mass transit using cars and vans, transit using cars and vans, not buses, that are not not buses, that are not required to follow a fixed required to follow a fixed scheduleschedule
A traditional system, but using A traditional system, but using technology to adapted to US technology to adapted to US todaytoday
► Set up as formal system, with appropriate regulation
► Utilize new technology to match riders with “jitney cars
► Increase occupancy from 1.5 persons per trip to 4-6.
► Minivan that gets 20 mpg with one passenger, gets 120 mpg with six passengers
► Reduce cars, save gas, save money, provide enterprise
““Smart Smart Jitney”Jitney”
West CAP OptionWest CAP Option
Ride SharingRide Sharing Community Wheels Community Wheels Co-opCo-opBarron Somali Community Barron Somali Community Association purchased 2008 Association purchased 2008 Dodge Grand Caravan through Dodge Grand Caravan through Ideal AutoIdeal Auto
Hired a part-time driver Hired a part-time driver @$350/wk @$350/wk
Workforce Development Workforce Development contracts to pay for shared contracts to pay for shared rides for jobs and education.rides for jobs and education.
Weekend trips to Minneapolis: Weekend trips to Minneapolis: 160 miles - $25 per rider. 160 miles - $25 per rider.
Rich history going all the way Rich history going all the way back to June 1, 2009back to June 1, 2009
Considering hybrid car Considering hybrid car purchase for expansionpurchase for expansion
Other ideas: The Tesla Other ideas: The Tesla RoadsterRoadster
► 100% electric► 244 miles per charge► 0 – 60 in 3.9 seconds► $180,000 price tag may strain low income
budgets► Worth a look anyway