Briefing

Background
In 2004, 35 religious leaders in Minnesota signed A Common Foundation: Shared Principles for Work on Overcoming Poverty. This vision launched the Legislative Commission to End Poverty by 2020, which has been working in earnest for the last 18 months. Their full report, charting a path to ending poverty, will be released on February 6, 2009. The executive summary states, the current economic crisis, while daunting, sharpens our resolve to end poverty in Minnesota by 2020.

Minnesota’s overall poverty rate is about 9.5%, over 480,000 people; the rate among children is higher, about 12%, or about 170,000 kids. Shamefully, our state recently posted the fasted growth rate of people in deep poverty, that is families living with incomes at or below half the poverty guideline. This number will increase as the recession unfolds.

Federal poverty guidelines are defined by money income, not the cost of basic needs. A family of three living on $17,600 (federal poverty guideline for three) is simply not able to secure housing, buy groceries, obtain childcare or other basic necessities, and participate fully in community life.

As more of our neighbors fall into joblessness, bankruptcy, medical debt, and homelessness we must ask the critical question, “Why does our economy fail so many?” Before the recession started, the stories of people in poverty illustrated the weak points in our economy: lack of living wage jobs, unaffordable health care, transportation barriers, unavailable child care, and predatory lending practices. Now as the recession deepens, these faults are exposed for all to see. Thousands are losing jobs, health coverage, childcare, supportive services, and their homes. Ending poverty has become a central, collective concern that is directly tied to an economic recovery agenda.

The Governor’s budget reduces forecasted general fund spending by $2.5 billion; over half, $1.3 billion, is cut from the Health and Human Services budget. This budget reduces nearly all safety net services and will plunge thousands more into poverty at the same time as demand for support is rising.

Legislative Issue
Will the Legislature balance the budget on the backs of the poor, disabled, and vulnerable? Are we a people that care for the well being of our neighbors?

2009 JRLC Position
JRLC supports the repair of the wage floor and an emergency wage-subsidy jobs program. We support increasing household income through tax credits and childcare assistance. We support the adoption of benchmarks by which we can measure progress toward ending poverty.

Bottom-line
• Pass a Minnesota Emergency Jobs Act (Tomassoni, Rukavina), using wage subsidies to spur employment in all job categories.
• Strengthen the safety net during this recession.
• Invest in childcare assistance, Working Family Credit, and Renters Credit so income can go as far as possible in meeting basic needs.
• Create an on-going mechanism in state government to monitor the impact of legislation on poverty and overall progress on ending poverty.