With the creation of the “Office of Financial Empowerment” New York City Mayor Michael Bloomberg putting words into action in the City’s fight against poverty.
As a result of recommendations made by the Commission for Economic Opportunity, the City is committing $150 million per year to various programs designed to reduce poverty, and improve healthcare and education for the city’s low-income population. The funds will come from federal, state and local government, as well as local businesses.
The Commission for Economic Opportunity was created by the Mayor to address the issue of poverty. Its findings and recommendations were released in a report entitled “Reducing Poverty and Increasing Opportunity in New York,” issued this past September.
An “Innovation Fund,” which will hold $100 million of the $150 million commitment, will operate under a business model more often seen in the private sector. Instead of specific budget lines, the Fund will invest in programs that will be continuously evaluated – and terminated if deemed ineffective.
The Office of Financial Empowerment is the first program to be funded by the new initiative. This program will help low-income residents make the most of their financial resources by educating, empowering, and protecting workers.
Another program will pay a tax credit for child care to lower-income parents with children younger than three years old.