City of Itta Bena, Mississippi

With a population of just 2,200, the City of Itta Bena, Mississippi, is not a place you'd expect would spearhead vibrant and successful financial programs for its citizens. But that is just what Thelma Collins, the town's mayor, has done for her community.

Itta Bena is in the middle of the Mississippi Delta, in an area no stranger to poverty. A lifelong resident, Mayor Collins has seen the impact of that poverty on her community and the way bad financial practices passed on from generation to generation can keep people in a cycle of debt. She has made it her mission to help her citizens break free from poverty and bad financial practices, and start building assets for themselves and their children.

Partnering with MDEZA to Offer Financial Education

When Mayor Collins came into office, she knew she had to do something to help the low-income citizens of her community. Many families had poor credit scores that kept them from achieving their financial scores and breaking out of the cycle of poverty. Four years ago Mayor Collins partnered with the Mid-Delta Empowerment Zone Alliance (MDEZA) to offer financial education classes to the community.

MDEZA now offers a 1-year financial education course to qualifying citizens in Itta Bena. This course has seen great success. Just this year, the city celebrated 4 citizens who graduated from the course—3 have already purchased homes! Another resident currently taking the course has been able to purchase property. She looks forward to building a home for her family on that property with the money she's saved using skills learned in MDEZA’s courses.

Opening a Community VITA Site

Three years ago, while on a trip to San Antonio with the National League of Cities, Mayor Collins was introduced to the Volunteer Income Tax Assistance (VITA) program. Mayor Collins instantly recognized the potential of opening a VITA site in Itta Bena, where even the poorest citizens had, for generations, become accustomed to paying to have their taxes prepared. Mayor Collins had seen the hardship that resulted after paying $200 - $300 to have their taxes prepared, and then taking out Refund Anticipation Loans (RALs).

The City of Itta Bena opened their free tax site in 2007. Mayor Collins felt that helping just 1 person avoid the fees charged by paid preparers would be a huge success. The first year, the city helped 35 people prepare their taxes free of charge. In 2008, that number grew to 50, thanks in part to word of mouth from the previous year and to the economic stimulus package. In a town of only 2,200, the impact of 50 residents visiting a VITA site and saving hundreds of dollars is impressive.

This year, Mayor Collins is hoping to serve even more citizens at her VITA site. Everyone who visited the last year was so excited about the service that they vowed to come back again and to spread the word. Mayor Collins is also so dedicated to the cause that she has been known to personally visit her qualifying residents at home and encourage them to come out to have their taxes prepared.

The Mayor’s Youth Advisory Council

Mayor Collins is always looking for new ways to improve the economic health Itta Bena citizens. In 2009, the city will embark on a new project to teach the town’s youth positive financial habits.

The Mayor’s Youth Advisory Council will work with a local bank to provide financial education and asset building classes to 9th through 12th grade students. A series of speakers, including the president of the bank himself, will make presentations to the students about good financial practices. In addition, representatives from the Foundation for the Mid South will hold asset building sessions with the students.

Making Lifelong Changes

Of all the financial programs started under Mayor Collins’ administration, she is most excited about the potential of the Mayor’s Youth Advisory Council. She has seen that many parents do set an example for their children when it comes to financial habits, but often that example is not positive. Bad money habits pass from one generation to another, keeping families in poverty—and those bad habits are very hard to break. Mayor Collins hopes that, by catching students at an early age, the Mayor’s Youth Advisory Council will make them think about what they do with their money and about how important good financial habits and a good credit record are to their lifelong well-being.

This program, more than any other, has the potential to make a long-term difference in Itta Bena. Teaching teenagers when they are young how to manage their money will make a positive and lasting impact on them. As they become adults, those students will hopefully pass their good financial habits on to their children, causing positive repercussions for generations to come.