By SCBIZ Daily Staff

Long-term financial security isn’t something many families in South Carolina can look forward to right now, according to a report released by the Corporation for Enterprise Development, a national economic nonprofit organization that gave the state has an overall D grade on its 2007-2008 Assets and Opportunity Scorecard.

The scorecard is a state-level snapshot of how the country is performing in six key areas: financial security, business development, homeownership, health care, education, and tax policy and accountability, according to a broad array of outcome and policy measures used to measure each state’s asset-building and asset-protection capacity.

South Carolina was one of 10 states to receive an overall D. Neighboring states North Carolina and Georgia also fell into the D category. Ten states received A’s, including Vermont, the only state to score an A in each individual category as well. The most common letter grade was C, which was given to 15 states and the District of Columbia. Five states received F’s.

“Family financial security rests upon the ability to invest for the future and having safety nets in place in the event of job loss or emergencies,” said CFED President Andrea Levere. “By making higher education more accessible, promoting homeownership and improving health insurance availability, states can foster an environment of opportunity, inspiring more residents to plan for a more secure future.”

While homeownership garnered the state an A—South Carolina ranks seventh in affordability of homes, sixth in homeownership by income, 18th in mortgage debt and 11th in overall homeownership—the report notes that benefits of homeownership have not been sustained, as the state ranks 45th in foreclosures.

What’s more, the report shows that many South Carolina households have little or no net worth to help weather economic hardships, as the state ranked 42nd nationwide in households with zero net worth.

In addition, opportunities are unevenly distributed across the state. South Carolina ranks 43rd in both asset poverty by gender and household asset inequality by gender. Although many South Carolinians reach college (18th in completion of two years of college), educational attainment is highly inequitable and is concentrated among a privileged few, as South Carolina ranks in the bottom five in college degrees by race (49th), income (47th), and gender (46th).

The report praised South Carolina’s housing trust fund, which has expanded affordable housing and also said the state, “should be lauded for raising the family Medicaid asset limit to $30,000 and for employing categorical eligibility to allow more low-income families to receive Food Stamps.”

However, to improve in the areas where South Carolina falls way behind the rest of the nation, the report suggests that, “the state could address its inequities and shortcomings in educational attainment by targeting education spending to underfinanced schools and by providing incentives to encourage low-income families to save for college.

South Carolina could do more to bolster the wealth creation opportunities for low-income families by enacting a state earned income tax credit and by funding individual development accounts to reward work and encourage savings. Additionally, the state should consider expanding health coverage for families and children, preferably providing coverage to families with incomes up to 200% of the federal poverty level.”

The entire report can be viewed on their Web site.

The Scorecard also provides state‐by‐state information on 38 key policies that can help or hinder
citizens abilities to succeed financially, including detailed information on 12 core policies that have the
potential to leverage maximum benefits.

More on the CFED’s Assets and Opportunities Scorecard, as well as strategies to address the rising
foreclosure rate in the state will be presented during the joint Carolinas Community Economic
Development Conference, co-sponsored by the South Carolina and North Carolinas Associations of
Community Development Corporations, September 25 – 27, 2007 at the Charleston Area Convention
Center, North Charleston, SC. Click here for information on registration.