1. POVERTY EXPENDITURES FEDERAL GOVERNMENT PROGRAMS ONLY All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

2. SPENDING ON PROGRAMS ON POVERTY 1960-2014 COMPILED JANUARY 2016 HTTP://FEDERALSAFETYNET.COM/POVERTY-AND-SPENDING-OVER-THE-YEARS.HTML All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

3. USA EXPENDITURE PER PERSON IN POVERTY 1960-2014 JANUARY 2016 HTTP://FEDERALSAFETYNET.COM/POVERTY-AND-SPENDING-OVER-THE-YEARS.HTML All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

4. WHAT IS INCLUDED IN THESE NUMBERS? Negative income tax SNAP Housing Assistance SSI PELL grants TANF Child support and family support Child nutrition programs Head Start Job Training WIC Child care Lifeline LIHEAP MEDICAID All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

5. IN RICHMOND2014 RICHMOND POPULATION IS 976,178 RICHMOND MSA IS 1,263,617 21.4% are in poverty. Using 1,000,000 as a round number, that would be 214,000 people 214,000 people times $14,194, equals more than $2,996,000,000. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

6. OVER 3 BILLION DOLLARS ANNUALLY IS SPENT IN RICHMOND TO SUPPORT THOSE IN POVERTY BY THE GOVERNMENT. This does not include the contributions from non-profits, charities, churches, corporations - NOR hidden costs – crime, addiction, unaddressed mental illness, etc. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

7. TO BEGIN MOVING THE NEEDLE IN RICHMOND, Must get critical mass of the resourced individuals (800,000) understanding the reality of being under-resourced. 35% of 800,000 is 320,000 people. 10% of 800,000 is 80,000 people 5% of 800,000 is 40,000 people. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

8. TO BEGIN MOVING THE NEEDLE IN RICHMOND, Must create a critical mass of under-resourced people (214,000) to understand the thinking in the resourced community. 35% of 214,000 is 63,000 individuals. 10% is 21,400 individuals. 5 % is 10,520 individuals. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

9. HOW LONG WILL IT TAKE TO GET TO CRITICAL MASS IN RICHMOND? It will take 5-10 years to reach critical mass. In three years, you can reach 10% of the resourced and 10% of the under- resourced. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

10. HOW MUCH WILL IT COST PER YEAR? A DROP IN THE BUCKET COMPARED TO $3,000,000,000 PER YEAR THAT IS ALREADY BEING SPENT – JUST BY THE GOVERNMENT. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

11. MORE IMPORTANT THAN THE MONEY SAVED ARE THE LIVES THAT ARE CHANGED. MORE STABLE TODAY. MORE POSSIBILITIES FOR TOMORROW AND THE FUTURE. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

12. HOW MUCH WILL IT COST PER YEAR? $500,000 TO $750,000 PER YEAR TO REACH 10% CRITICAL MASS IN THE FIRST THREE YEARS. $500,000 PER YEAR TO BUILD A BRIDGES INFRASTRUCTURE FOR THE NEXT THREE YEARS All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

13. NOTHING CHANGES UNTIL THE THINKING CHANGES. Stanford Social Review indicates the following – poverty approaches that are only technical do not last. Must also be cognitive and relational. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

14. NOTHING CHANGES AS LONG AS POVERTY IS DEFINED STRICTLY BY $ IF POVERTY IS ONLY ABOUT INCOME, THEN THE ONLY SOLUTION IS MORE MONEY. IF POVERTY IS THE EXTENT TO WHICH YOU DO NOT HAVE RESOURCES, THEN MULTIPLE SOLUTIONS EXIST WITH WHICH TO PROBLEM SOLVE. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

31. USING THIS APPROACH, ONE COMMUNITY IN OKLAHOMA LOWERED THEIR POVERTY BY 7% IN 8 YEARS. IF RICHMOND LOWERED THEIR POVERTY RATE BY 7% IN 8 YEARS, THEY WOULD SAVE $240 MILLION A YEAR LESS THE TOTAL COST OF 8 YEARS WHICH IS 6.4 MILLION. IF RICHMOND LOWERED THE POVERTY RATE 3.5%, THEY WOULD SAVE $120 MILLION PER YEAR. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

32. RESULTS - Rural Colorado – Among 165 GA graduates, unemployment dropped from 60% to 42%. - Dubuque, Iowa – In one year, among 119 GA graduates, unemployment dropped from 51% to 25%, full-time employment doubled, and homelessness dropped from 21% to 7%. - Youngstown, Ohio – Among 300 GA graduates, full-time employment increased from 31% to 76%. 58% of graduates pursued postsecondary endeavors. aha! Process, Inc 2016. All rights reserved.32

33. RESULTS - Harford County, Maryland – 20 weeks after graduating from GA, 88% of participants obtained a job and a checking account, and 63% reduced their use of predatory lending and resolved major legal issues (past or present). - October 2015 – Study from Indiana University School of Social Work found statistically significant positive changes in thinking against multiple outcomes. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

34. WHAT IF WE DO NOTHING? The multiplier will be at work. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

35. MULTIPLIER EFFECT (This is not a population growth chart—it identifies the offspring by educational level.) Female with no GED or HS diploma has first child in teens and has an average of 2.5 children Educated female with BA or BS degree has first child at 30.1 years and has 1.1 children In 90 years, that is 5 generations (18 x 5) = 90 In 90 years, that is 3 generations (30 x 3) = 90 TOTAL CHILDREN = 48.6TOTAL CHILDREN = 3.3 Source: “The Cost of Poverty to a Community” by R. K. Payne (2014) Link to article: www.ahaprocess.com/costofpoverty All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

37. A COUPLE OF RULES ARE ALWAYS TRUE. 1. DEMOGRAPHY – NUMBERS – ALWAYS WIN EVENTUALLY. 2. DEATH AND TAXES ARE A SURE THING. All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

38. THE NUMBER IN POVERTY AND THE COST OF POVERTY WILL GROW THE QUESTION IS: WHAT PERCENT OF POVERTY CAN A COMMUNITY AFFORD? All rights reserved. aha! Process, Inc. 2016 www.ahaprocess.com

40. www.ahaprocess.com Bridges Out of Poverty Highlands, TX www.ahaprocess.com Copyright © 2014. All rights reserved. aha! Process, Inc. www.ahaprocess.com