Jobless Texans will have until March 3, 2012 to qualify for emergency unemployment benefits.  Without this extension assistance for 78,000 claimants would have run out in January.
Congress approved the extension last month, before claimants would have endured a gap in their benefits.  Each recipients should continue to request unemployment benefit payments on his scheduled day.
This legislation does not apply to persons whose benefits have already expired, to Emergency Unemployment Compensation, and to Extended Benefits. Current claimants may receive additional information on the legislation at ui.texasworkforce.org or by calling (800) 558-8321 (select second option.)  Claimants need not call the Texas Workforce Commission (TWC) to qualify for the extension unless notified by mail.
Emergency unemployment benefits are exclusively federally funded.  This means Texas employers are not charged for claims paid under this new legislation.
The TWC and 28 local workforce development boards provide unemployed jobless Texans with work search assistance, training and other services.  For thousands of job postings visit WorkInTexas.com.

By Jason Alderman

For the first time since 2009, the IRS has increased the amount people can contribute to their 401(k) and other defined contribution plans.
Effective January 1, 2012, the maximum annual contribution grows by $500 to $17,000, thanks to an increase in the Department of Labor’s Consumer Price Index for Urban Consumers (CPI-U), a common measure of inflation the IRS uses to determine whether or not to increase dozens of tax-related numbers from year to year.

That’s good news for people who want to boost their tax-advantaged retirement savings. Here’s an overview of what will and won’t change in 2012 with the more common retirement savings plans:

Defined contribution plans. In addition to increasing the maximum allowable annual contribution to 401(k), 403(b), 457(b) and federal Thrift Savings plans to $17,000, these additional factors apply:

People over 50 can also make an additional $5,500 in catch-up contributions (unchanged from 2011).
The annual limit for combined employee and employer contributions increased by $1,000 to $50,000.
Because your plan may limit the percentage of pay you can contribute, your maximum contribution may actually be less. (For example, if the maximum contribution is 10 percent of pay and you earn $50,000, you could only contribute $5,000.)
Company-matching contributions do not count toward your maximum contribution.

Individual Retirement Accounts (IRAs). The maximum annual contribution to IRAs remains unchanged at $5,000 (plus an additional $1,000 if 50 or older). Maximum contributions to traditional IRAs are not impacted by personal income, but if your modified adjusted gross income (AGI) exceeds certain limits, the maximum you can contribute to a Roth IRA gradually phases out:

For singles/heads of households the phase-out range is $110,000 to $125,000 (up from $107,000 to $122,000 in 2011). Above $125,000, you cannot contribute to a Roth.
For married couples filing jointly, it’s $173,000 to $183,000 (up from $169,000 to $179,000 in 2011).

Keep in mind these rules for deducting IRA contributions on your federal tax return:

If you’re single, a head of household, a qualifying widow(er) or married and neither spouse is covered by an employer-provided retirement plan you can deduct the full IRA contribution, regardless of income.
If you are covered by an employer plan and are single or a head of household, the tax deduction phases out for AGI between $58,000 and $68,000 (up from $56,000 to $66,000 in 2011); if married and filing jointly, the phase-out range is $92,000 to $112,000 (up from $90,000 to $110,000 in 2011).
If you’re married and aren’t covered by an employer plan but your spouse is, the IRA deduction is phased out if your combined AGI is between $173,000 and $183,000 (up from $169,000 to $179,000 in 2011).
For more details, read IRS Publication 590 at www.irs.gov.

Retirement Saver’ Tax Credit: As an incentive to help low- and moderate-income workers save for retirement through an IRA or company-sponsored plan, many are eligible for a Retirement Savers’ Tax Credit of up to $1,000 ($2,000 if filing jointly). This credit lowers your tax bill, dollar for dollar, in addition to any other tax deduction you already receive for your contribution.

Qualifying income ceiling limits for the Retirement Savers’ Tax Credit increased in 2011 to $57,500 for joint filers, $43,125 for heads of household, and $28,750 for singles or married persons filing separately. Consult IRS Form 8880 for more information.

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Jason Alderman directs Visa’s financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney

By Jason Alderman

College costs are out of control. Total outstanding student loans hover around $1 trillion, second only to home mortgages.
Student loan repayment takes a hefty toll on starting salaries even during good economic times. But with so many recent graduates unable to find a decent job – or any job – repayment can be a nightmare.

You can’t walk away from student loan debt. It’s practically impossible to get it discharged through bankruptcy and there’s no statute of limitations on how long lenders can pursue you through collections. Indeed, the government can withhold tax refunds and garnish wages indefinitely.

The Obama administration recently accelerated improvements to a readily available, yet underused, student loan repayment plan called Income-Based Repayment (IBR) that had been slated to begin in 2014.

IBR is available for many federally guaranteed student loans and can be particularly beneficial for low-income families, the unemployed and people with lower-paying, “public service” jobs in education, government or non-profit organizations.

Under IBR, monthly payments are capped at an affordable level relative to your adjusted gross income, family size and state of residence. For example, if you earn less than 150 percent of the government’s poverty level for your family size, you would pay zero. You still owe the money, but are not required to begin making payments until your income increases. As your income increases, so will your monthly payment – but up to no more than 15 percent of income that exceeds that same 150 percent of poverty level.

In addition, the government will forgive debt still owed after 25 years of consistent repayment. And those with qualifying public service jobs must only repay for 10 years before the balance is discharged.

Under the recent IBR enhancements, for students who took out their first loan during or after 2008 and open at least one additional loan during or after 2012, the cap will drop from 15 to 10 percent and the forgiveness period drop to 20 years. Those with older loans can still benefit from the original IBR terms.

Other IBR features include:

All Stafford, PLUS and Consolidation Loans made under either the Direct Loan program or the Federal Family Education Loan (FFEL) program qualify for IBR, except loans in default, Parent PLUS Loans or Consolidation Loans containing Parent PLUS Loans.
You must submit updated income documentation each year. If your income rises, so will your payment amount, although never above what you’d otherwise pay under a standard 10-year repayment schedule.
Because IBR will likely extend the term of your loan, you’ll probably accrue more interest than under a standard 10-year payoff.
Private student loans don’t qualify for IBR.

Borrowers with two different types of federal loans – at least one each issued under the Direct Loan and FFEL programs – may consolidate their loans under a new Special Direct Consolidations Loans program between January 1, 2012, and June 30, 2012. This will lower FFEL loan rates by 0.25 percent, plus an additional 0.25 percent discount if you sign up for automatic payments. Visit www.studentaid.ed.gov/specialconsolidation for details.

If you expect your financial hardship to be temporary, other loan repayment options, including economic hardship deferment, forbearance and extended repayment, may be better options. For details, visit the Federal Student Aid site, www.studentaid.ed.gov and search “Postponing Repayment.” Other good resources include www.finaid.org and the Project on Student Debt (www.projectonstudentdebt.org).

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Jason Alderman directs Visa’s financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney

By Mary Hunt

OK, my Dear Readers, I have a question for you: Is there a difference between borrowing and financing? Don’t stress. I’ll tell you: There is, and understanding the difference is important to your financial health.
Debt is the result of both borrowing and financing. But think of debt as a rope. You can use it to lift, rescue and tie things together, or you can use it to hang yourself.
I used to think borrowing and financing were the same. I considered myself involved in high finance with my bevy of credit cards. I charged all kinds of clothes, meals, trips and entertainment. We financed the house, the car and countless household appliances. It was the same to me. I could have stuff now and pay later. I considered my juggling acts some kind of advanced high finance, and I had to learn the difference between borrowing and financing the hard way.
Borrowing is the temporary use of a thing or money, while financing implies the management of assets or money. Borrowing creates unsecured debt, while financing creates secured debt.
Borrowing is hazardous to your financial health because it offers no alternatives. No escape routes. You borrowed the money, and you must pay it back from future income. And with the unsecured debt, you’ve eliminated options. Mountains of unsecured debt can tie a person to an undesirable career, squelch opportunities or create heavy burdens that are often unbearable. Depending on future income to pay for today’s purchases is choosing financial bondage. That’s a crazy way to live.
Financing, on the other hand, involves collateral or “security.” The borrower pledges property, either real or personal, and agrees to liquidate that thing of value in the event he runs into repayment difficulty. In a financing situation, provision always exists so the debt can be canceled by virtue of the value of the item financed.
Financing allows a person to use assets to achieve a more useful or productive result. Financing is a safe, realistic and reasonable way to purchase a home, for instance. The value of the home secures the repayment.
Financing does not presume unreasonably on the future. Let’s take a real estate purchase, for example. You decide to buy a home, and that cute three-bedroom in the ‘burbs seems like a great idea. For now. But 10 years from now, you might develop an unrelenting urge to move to Tibet. Even though you still owe $190,000 on the house, it’s no problem. You sell the property, pay off the loan, and head for the hills.
If that $190,000 represented borrowed funds — an unsecured debt — you’d probably be stuck, left to only dream of what mountaintop life might have been had you not so foolishly borrowed away your future.
Learn to recognize the difference between financing and borrowing, then avoid borrowing like the plague. Keep any debt confined to secured, safe debt.
Your future will be filled with options as you learn to say “No!” to debt that could turn into a noose.
Mary Hunt is the founder of www.DebtProofLiving.com and author of 20 books.You can email her at mary@everydaycheapskate.com.

By Andrew Korfhage
During a key scene in the classic holiday film It’s A Wonderful Life, savings-and-loan proprietor George Bailey, played by Jimmy Stewart, memorably explains to the townspeople how his business works – that he’s not sitting on piles of money just because he runs a small, local bank.
“Your money’s not here,” George tells the crowd. “It’s in the Kennedy house and the MacLaren house, and a hundred others. You all put your savings in here and then we make loans to people to buy homes and cars and other things.”
Alas, when you save or invest in big corporate banks in the 21st century, the bank isn’t likely to explain to you, George-Bailey-style, how your money is going to work in the world. Imagine what it would be like if they would.
“Your money’s not here,” the bank might say. “It’s financing fossil-fuel energy projects that are polluting our environment, or helping a corporation move jobs into overseas sweatshop factories. It’s in the CEO bonus, and the CFO bonus, and a hundred others.”
As Occupy Wall Street and related protests grew this fall, anger at the giant banks rightfully swelled as well, with a “Bank Transfer Day” declared for pulling money out of the big banks and moving to smaller local banks and credit unions. But not every news story covering this issue took note of the financial institutions specially designed to play a positive role in local communities.
Community development banks and credit unions — collectively called CDFIs, for “community development financial institutions” — direct their lending toward those who have been overlooked by conventional lenders. Unlike the conventional banks that contributed to the 2008 global economic crisis by lending out billions in unsound and predatory subprime mortgages that their borrowers couldn’t repay, CDFIs take pride in their expertise with lower-income borrowers. They take the time to get to know their clients, determining what homeowners and small-business owners can actually afford.
With more of a community focus, CDFIs pursue reasonable, rather than excessive, rates of return. They target projects that lift up underserved communities, and boost local economies by financing small businesses that perform vital local services. By contrast, the New Rules Project reported in 2010 that the 20 biggest banks “devote only 18 of their commercial loan portfolios to small business,” despite the clear need to spur small-business growth to jump-start our economy.
Where are the big banks directing all their money if they’re not supporting small businesses? For one thing, mega-bank CEOs as a group have seen their pay skyrocket back to 2008 levels and higher. The Financial Times reports that big-bank CEO pay rose 36 percent in 2010, while average workers in private industry saw their pay rise only 2 percent.
If you’d rather see your banking and investment dollars going to improve your own community, rather than lining the pockets of CEOs or financing projects that don’t match your values, there’s an easy solution. When you pull your money out of your mega-bank and start banking with CDFIs, your old bank will hear your voice even louder and clearer than if you were standing on Wall Street with a bullhorn.
And you’ll be joining a growing movement. Funds invested in CDFIs grew from $5 billion in assets to nearly $40 billion over the last decade. You can find lists of banks and credit unions maintained by the Community Development Bankers’ Association (www.cdbanks.org) and the Federation of Community Development Credit Unions (www.cdcu.coop). You can use these resources to find your own local “George Bailey” and make a New Year’s resolution to make your banking part of the solution, rather than part of the problem.
Andrew Korfhage is Green America’s online and special projects editor. www.greenamerica.org

By Jason Alderman

Despite high-profile media attention, the odds of having your credit or debit card number stolen by crooks remains at historically low levels.
That said, it’s always good to know what to do in case lightening does strike and someone fraudulently uses your card. Left unchecked, they might try to run up bills, drain your checking account or worse – steal your identity.
Here are actions to take if this happens to you:
First, contact the bank or credit union that issued your card. You’ll find a toll-free number on the back of your card, on your billing statement or at the company’s website.
Close the compromised account and open a new one with a different account number.
Change related passwords or PIN numbers and notify companies that have automatic payments tied to the closed account to make sure you don’t miss a payment. Also log all calls, letters and emails you have with your card issuer about the fraud – this will be helpful if you need to file a claim or police report.
Contact one of the three major credit bureaus, Equifax (888-766-0008), Experian (888-397-3742) or TransUnion (800-680-7289), and place an Initial Fraud Alert on your credit file if you suspect you have been, or are about to be, a victim of identity theft. Whichever bureau you contact will notify the other two to do the same. If you wish, you can renew these fraud alerts each quarter, free of charge. If you determine that you actually have suffered identity theft, you can also file an Extended Fraud Alert, which will stay on your reports for seven years.
Placing a fraud alert entitles you to one free credit report from each bureau. Although the alert makes it harder for someone to open new credit accounts in your name, it won’t necessarily prevent them from using existing accounts. That’s why it’s important to close compromised accounts and to carefully review your credit reports for errors, fraudulent activity, or suspicious credit inquiries from an unfamiliar source. Also be aware that posting a fraud alert could delay your own ability to obtain new credit.

If you determine someone has stolen from your account or your identity has otherwise been compromised, file an identity theft report with the police. The Federal Trade Commission’s “Defend: Recover From Identity Theft” website contains step-by-step instructions for completing and filing the report with local, state and federal law-enforcement agencies (www.ftc.gov/consumer).

Also send copies of the report – by certified mail, return requested – to the credit bureaus and companies whose accounts were impacted. You can also file a complaint with the FTC, which will enter the information into a secure online database shared by thousands of civil and criminal law-enforcement authorities worldwide (https://www.ftccomplaintassistant.gov).

Most card issuers provide “zero liability” coverage for unauthorized credit and debit card use when you promptly report the loss. Rules vary, so ask your bank or credit union for its policies.

Going forward, carefully monitor your monthly credit card and bank statements for fraudulent charges. To learn other good tips for protecting your personal and account information and preventing fraud, visit:

The National Cyber Security Alliance’s www.StaySafeOnline.org.
The FBI’s “Be Crime Smart” page (www.fbi.gov/scams-safety/be_crime_smart).
Visa Inc.’s VisaSecuritySense (www.visasecuritysense.com), which contains tips on preventing fraud online, in stores and at ATMs, spotting deceptive marketing practices, and more.

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Jason Alderman directs Visa’s financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney

By Commissioner Todd Staples

Christmas always makes me count my blessings and I hope it does the same for you. This time of year, we should all be reminded that giving is more than just wrapping presents for friends and family. Giving is something we can offer our fellow Texans in the form of donations, time and goodwill.
In the spirit of giving this holiday season, I ask you to consider reaching out to others. Take your children to a food bank donation box and teach them the power of giving. Give your time to a shelter and help serve meals to the hungry. Look through your closets and consider donating your gently used clothes to someone who needs them far worse than you.
Small, simple acts of giving can make a profound difference in the lives of others. You, too, will receive the gift of knowing you helped your fellow citizens.
One of my holiday wishes this year is to have the spirit of Christmas last longer than just a few days. Wouldn’t it be wonderful if we allowed the Christmas spirit to dwell within us for the other 364 days each year? It all starts with the desire to help those whose voices are often not heard. Now is your chance to bring joy to those in need.
Merry Christmas, Texas. Please share with me in the glory, the wonder and the miracle of this holiday season. Have a blessed Christmas.

By Jason Alderman

At this time of year, many people overindulge, whether it’s overeating or drinking too much at holiday parties or spending too much on gifts and decorations.

You’ll regret the former the next morning; but with overspending you may not feel the hangover effect until the bills come due in January.

Here are a few tips for managing holiday expenses to avoid a holiday spending hangover:

Budgeting. Before spending a dime on holiday expenses, calculate how much you can afford relative to your overall budget. Many financial planners recommend spending no more than 1.5 percent of annual income on holiday expenses. Consider:
•    Will your savings cover a few months’ expenses in case of a layoff, unexpected medical bills or another financial emergency?
•    Can you pay off all holiday-related bills within a couple of months?
•    Do you already struggle to pay your monthly bills?
•    Would you need to suspend retirement savings to buy gifts?

Scale back. Examine how much you’ve spent in past years and look for areas to trim. Consider: gifts for family, friends and coworkers; decorations; new clothes/accessories; gift wrap and cards; special meals; year-end gratuities; and travel-related expenses. A few tips:
•    Review old credit card and bank statements to jog your memory.
•    Arrange gift lotteries with family, friends and coworkers so you each buy fewer, nicer gifts.
•    Suggest pooling resources to make a sizeable group charitable contribution rather than individual gifts to each other.

Get organized. Once you’ve determined your overall holiday budget, make a list or spreadsheet with columns for:
•    Everyone you need to shop for – relatives, friends, coworkers, service providers, etc.
•    Spending limits and gift alternatives for each person.
•    How much you actually spend on each gift. (Overspending on one present means trimming somewhere else.)
•    What you gave each person – to avoid giving them the same thing next year.
•    What each person gave you. That way, you won’t accidentally “re-gift” something to the same person.
•    Other expenses (decorations, etc.)

Gift cards: If you give gift cards, several changes were made to laws governing these cards. For gift cards sold on or after August 22, 2010, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 requires that:
•    Money loaded on gift cards must not expire for at least five years from date of purchase or after funds were last added.
•    If the card expires but the funds haven’t, you can request a free replacement card.
•    Inactivity and service fees may not be charged until after 12 months of inactivity; after that, only one such fee may be deducted from the balance each month.
•    All fees must be clearly disclosed on the card or its packaging.

A few additional tips:
•    Note return policies for stores and online shopping sites. Watch for deadlines, exclusions for sale or clearance items and restocking charges.
•    Retain receipts. Many retailers will refund the price difference if an item goes on sale within a few weeks after purchase.
•    Check whether your credit card agreement provides free product warranty extensions and/or price protection (i.e., will reimburse the difference if you find an identical item for less).

Jason Alderman directs Visa’s financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney.

The site of the former Pinewood Park Elementary School will be sold to St. Paul Missionary Baptist Church. Board members unanimously approved the sale of the 3 ½ acre West Glenn St. lot for $55,137.01. Under terms set by the board for this transaction, proceeds from the property sale will be earmarked to pay bond debt.
Officials shuttered Pinewood Park and sent students to other area campuses in 2008, as the district underwent rezoning for new campuses under the 2008 bond construction project. The site of the former school did not fit with the district’s long term plans, according to Assistant Superintendent Lynn Marshall.
Two other local groups, Habitat for Humanity and the Deason Financial Group, also placed bids for the property – $50,025 and $37,500, respectively.

Information from the Texas Comptroller indicates that City of Tyler sales tax revenues deposited for the month of December have increased 5.34 percent as compared to December 2010, resulting in a 2.46 percent cumulative year-to-date increase.
The reported revenue of $2,538,703 is comprised of $1,692,468.93 general sales tax revenue and $846,234 half-cent sales tax revenue. The figures represent receipts from October 2011 collections as there is a two-month lag before taxes are reported and remitted back to the City from the State.