Dayton launches SOAR to Savings pilot to pair EITC tax filing with four-week financial-education stipend
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Summary
City officials introduced a pilot SOAR to Savings program that links VITA tax-filing work with a four-class financial education series and a $1,500 stipend intended to support low- and moderate-income residents receiving the Earned Income Tax Credit.
Lamont Hall, executive director of the Human Relations Council, told the Dayton City Commission that the city is launching a SOAR to Savings pilot tied to the Dayton Recovery Plan to help Earned Income Tax Credit-eligible residents build financial literacy and banking access.
The program will require participants to be City of Dayton residents, use the VITA (Volunteer Income Tax Assistance) tax service and qualify for the Earned Income Tax Credit, Hall said. Participants who complete four Thursday classes – covering budgeting, banking basics and credit – will be eligible for a $1,500 payment, though Hall said “the $1,500 is not our focus. It's really the financial education.”
Hall identified two banking partners: Fifth Third Bank (represented at the meeting by staff identified as Maria and Kelly) and First Financial Bank (represented by Josh Rowe and Michael Klein; Carice Drake was named as an additional First Financial partner who could not attend). Classes will be held at the Dayton Metro Library, Hall said.
Commissioners asked about sustainability and start date. Hall said the pilot has been in development for “a little over 2 years,” that the program had been modeled in part on Philadelphia’s Rock Your Refund program, and that the program intends to begin classes “next week.” He said some potential banking partners were unable to participate because of rules about accepting city funds. Commissioners and bank representatives discussed possibilities for ongoing funding and local bank commitment; a Fifth Third Bank representative said the bank “will be committed to continue.”
Staff numbers from the city’s VITA program were included in the presentation: the city completed 5,271 tax returns for 2023, returning “just over $7,000,000 back into the community,” Hall said, and that 94 volunteers donated 8,069 hours to the effort. Hall said the pilot aims to reach low- and moderate-income families who qualify for EITC and that one condition of the stipend is opening an account with a participating financial institution so funds may be deposited.
City staff and commissioners discussed funding sources for continuation beyond the pilot. Hall and partners mentioned possible reallocation of existing program funds, banking community support, CRA-related funding and other philanthropic options; Hall said the pilot is initially ARPA-funded.
Why it matters: city leaders framed the pilot as a way to boost financial capability for households receiving federal tax credits and to leverage local VITA capacity and bank partnerships to increase bank account ownership and financial literacy.
