ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
March 10, 2022
Paving the Payments Future
Where Does Your State Get Its Money?

Pandemic relief aid increased the portion of state government revenue coming from federal dollars to nearly 36% in fiscal year 2020, the highest level on record. The federal share of revenue hit new highs in most states. Federal funds were the largest source of dollars in 18 states, up from just four states a year earlier. Taxes remained the largest revenue source in the other 32 states and overall, at 45.8% of state revenue.

This infographic displays a breakdown of each state’s revenue by major categories.

Percentage of State Revenue by Source, FY 2020
Select revenue sources below to highlight them and resort the chart:

Note: This analysis uses “general revenue,” which accounts for all state revenue sources except state-owned liquor stores, utilities, and insurance trust funds. Vermont received more federal funds than it collected in tax revenue, although the shares appear equal due to rounding.

Source: U.S. Census Bureau’s 2020 Annual Survey of State Government Finances

Have a tax law question?
Our #IRS Interactive Tax Assistant has answers.
Watch this short video to learn more:
How States Can Direct Economic Development to Places and People in Need

Strategies to strengthen place-based programs, better support distressed areas

Data from an array of sources has shown that Americans who grow up in economically distressed areas experience lower-performing schools, higher crime rates, a variety of health and environmental hazards, and less upward mobility. The consequences of these disadvantages have been on stark display during the coronavirus pandemic as low-income neighborhoods and racial and ethnic minority communities have disproportionately borne the virus’s toll.

To address local disparities and help struggling areas thrive, governments at all levels have spent hundreds of billions of dollars over the past 40 years on a range of geographically targeted, or “place-based,” economic development programs—mostly in the form of financial incentives—designed to boost job creation and business investment, incentivize real estate development, or increase property values in specific places.

The Reasons Why People Use Payday Loans

There are many different reasons why some people turn to the use of payday loans. Whilst some may use it to make a one-off extravagant purchase, such as a luxury holiday, they are also used by those people who find themselves in difficult financial situations. This article will look into some of the reasons in much more detail.

Consolidating debt
Lots of people take out a payday loan in order to cancel out any other debts that they may have. It is therefore used to pay off a loan from another lender or to pay off a credit card. Where it is being used for this purpose, then taking out a payday loan is a good idea, although better options do exist out there.

Paying bills
The most common of all reasons why people take out a payday loan is to pay their bills. This can include household utility bills, such as gas and electricity, car loan payments, or mobile telephone contract bills. One thing that people can do to ensure their bills do not get away from them is by trying to limit how much energy, data, etc. they use on a day-to-day basis.

5 Things Most Americans Don’t Know About Social Security

So you think you know all you need to know about Social Security? If so, congratulations — you are in the minority when it comes to knowledge of the nation’s biggest retirement benefits program.

A new study released by the Nationwide Retirement Institute found that most Americans are sorely lacking in knowledge about the most basic functions of Social Security. The study was based on a survey conducted by The Harris Poll on behalf of the Nationwide Retirement Institute, part of the Nationwide insurance and financial services company.

“It’s indisputable that Americans across all generations need more Social Security education,” Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide, said in a press release. “Unfortunately, failing to close the knowledge gap and correct some of these misconceptions can have costly repercussions. Financial professionals must help their clients understand this bedrock of retirement security in America and plan properly to maximize their Social Security benefit.”

COVID-19 Pandemic Continues To Reshape Work in America: PEW

As more workplaces reopen, most teleworkers say they are working from home by choice rather than necessity

Nearly two years into the COVID-19 pandemic, roughly six-in-ten U.S. workers who say their jobs can mainly be done from home (59%) are working from home all or most of the time. The vast majority of these workers (83%) say they were working from home even before the omicron variant started to spread in the United States, according to a new Pew Research Center survey. This marks a decline from October 2020, when 71% of those with jobs that could be done from home were working from home all or most of the time, but it’s still much higher than the 23% who say they teleworked frequently before the coronavirus outbreak

The impetus for working from home has shifted considerably since 2020. Today, more workers say they are doing this by choice rather than necessity. Among those who have a workplace outside of their home, 61% now say they are choosing not to go into their workplace, 

Judge may rule soon on Wells Fargo commercial real estate 'time bomb'

The bank has moved to dismiss a class-action lawsuit that alleges it improperly inflated underwriting metrics ahead of the pandemic, leaving the company vulnerable to losses in 2020.

A federal judge is poised to rule on Wells Fargo’s motion to dismiss a suit that alleges the bank routinely made risky commercial real estate loans using improperly inflated underwriting metrics in the years leading up to and into the pandemic that left the company and its shareholders vulnerable to losses in 2020.

It also comes as an unrelated civil investigation is proceeding into allegations that the Trump Organization inflated property values to secure favorable terms on loans it was applying for or trying to modify. 

Fed troubleshoots 'master account' issue

The central bank pushed a tiered approach offering stricter reviews for fintechs seeking access to the Fed's payment system. An ethical gray area there has contributed to a stall in Fed nominations.

The Federal Reserve on Tuesday pushed a tiered approach with regard to financial institutions’ requests for access to Fed accounts and payment services. 

Under the proposal, institutions with federal deposit insurance would receive a "more streamlined level of review, those without insurance that are supervised by a federal banking agency would undergo an intermediate level of review, and those without insurance and not supervised by a federal bank regulatory agency would be subject to a stricter level," the central bank said Tuesday.

The move, which builds upon a May 2021 proposal, is meant to bolster transparency and ensure fairness — and stave off ethical gray areas such as one alleged last month by Sen. Cynthia Lummis, R-WY, during a nomination hearing for President Joe Biden’s three most recent Fed candidates.

How Much You Should Have in Your Savings Account at Every Stage of Life

The problem with sizing up how much savings a person should have at 20, 30 or 40 years old is that every 20-, 30- and 40-year-old is different, with different earning capacities, different backgrounds, different expenses and different circumstances.

“Depending on your lifestyle, your financial goals may vary,” said Amanda Sullivan, research analyst at CreditDonkey. “There’s no clear-cut way to save and income may fluctuate at different chapters of life, but there are always ratios and percentages we can trust.”

Sullivan and several other experts spoke with GOBankingRates about those percentages and ratios, and shared insights about realistic savings goals for every stage of life.

Unless you’re an athlete or a rock star, you probably won’t look back on your 20s as the years when you earned all your big money. Entry-level wages collide with turbulent lifestyles for many during this time, while things like first cars and first apartments are cobbled together on shoestring budgets.

ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
Alternative Financial Service Providers Association
757.737.4088
315 Tuscarora St., Lewiston, NY 14092