Community Dividend

Minneapolis Fed releases two new Community Affairs reports

Published April 1, 2010  | April 2010 issue

The Federal Reserve Bank of Minneapolis has added two new titles to its Community Affairs report series. In the first of the new reports, Minnesota's Earned Income Credit Program: Utilization by Current and Former Welfare Households and the Impact of Policy Parameters, Minneapolis Fed Community Affairs Economist Donald P. Hirasuna and University of Minnesota Professor of Applied Economics Thomas F. Stinson examine the utilization of a state earned income credit by current and former welfare recipients. The authors use two measures to analyze utilization: receipt of the earned income credit among all current and former welfare recipients and receipt among only those eligible for the credit. They also examine how receipt varies by demographic group, household earnings, and other factors. A version of the report originally appeared in the June 2009 National Tax Journal.

In the second report, Gaining a Better Understanding of the Costs of Homeownership Programs: A Case Study and Recommendations for Minnesota's Home Ownership Center, Minneapolis Fed Vice President Richard M. Todd and Bethel University Professor of Business Leo T. Gabriel share results of their analysis of the Minnesota Home Ownership Center's program costs. The authors examine the total costs of the Center's three primary programs—homeownership classes, pre-purchase homebuyer counseling, and foreclosure counseling—and offer recommendations for improving cost accounting to promote program efficiency. (The authors' analysis of the Center's foreclosure counseling services is the subject of the article "Minnesota Home Ownership Center case study illuminates costs of foreclosure counseling" in this issue.)

Both of the new reports are available at