A hand up — not a handout — is the goal of an anti-poverty bill that won approval from a House division.
Rep. Morrie Lanning (R-Moorhead) sponsors
HF2062, which would establish a “Ladder Out of Poverty Task Force” to help Minnesotans who are struggling economically.
Specifically, the task force would make recommendations to the Legislature on policies that would increase Minnesotans’ financial literacy, ban predatory lending practices and encourage the accumulation of personal wealth. The task force would sunset on June 1, 2012.
According to Lanning, the bill is shaped by the key findings of the Legislative Commission to End Poverty in Minnesota by 2020’s final report. The commission, of which Lanning was a member, studied poverty in the state for more than a year and a half before issuing its findings.
“Let’s not let the commission report sit on the shelf and collect dust and have nothing come of it,” Lanning said.
The bill would leverage the existing Family Assets for Independence in Minnesota program, which helps Minnesotans gain financial self-sufficiency through education and matched savings programs. FAIM is run by local community action partnerships.
Kim Shaff, FAIM program coordinator for Community Action Partnership of Ramsey and Washington Counties, said the FAIM program stresses education and one-on-one coaching to help people address their “financial barriers.”
“This is where they learn how to save, address and reduce debt, understand the importance of fixing and protecting their credit, as well as becoming conscious consumers,” Shaff said.
Patricia Olson, program leader for the University of Minnesota Extension, testified in favor of the bill, emphasizing the importance of financial education. She cited a national study that shows greater financial knowledge leads to better cash flow and credit management for families.
“The complexities of making financial decisions to spend beyond what you make are now the crux of what people are challenged with today,” Olson said.
The House Labor and Consumer Protection Division approved the bill, which now goes to the House Commerce and Labor Committee. Sen. Michael Jungbauer (R-East Bethel) sponsors the companion,
SF1770, which awaits action by the Senate State and Local Government Operations and Oversight Committee.