St Paul, MN – A legislative package increasing the state’s minimum wage to $16/hr, raise the Minnesota Family Investment Program Grant, fully fund the Child Care Assistance Program, and double the Working Family Tax Credit were introduced by Senator John Marty (DFL-Roseville) and Representative Carlos Mariani (DFL-St. Paul).
The legislation, SF 622, is in response to the 10-year anniversary of the final report from the Legislative Commission on Ending Poverty by 2020. Unfortunately, Minnesota has failed to act, and is no closer to reaching that goal than when the Commission began its work in 2007.
“In the 10 years since the commission report we have failed to take the steps needed to lift people out of poverty,” said Senator Marty. “It is unacceptable to have working people who cannot afford to feed their families; we cannot afford further delay. These proposals recognize that all Minnesotans deserve a life of dignity.”
“We came together as a state 10 years ago to prioritize a real path to ending poverty in our state, and yet we are falling short for thousands of Minnesotans,” said Representative Mariani. “Now is the time to once again come together – but with real action that can deliver on the promise of the goals of this report, with real solutions that can give people the tools and resources necessary to succeed.”
The legislative package invests in four existing programs that are proven to be effective in reducing poverty. They are:
- Establishing a $16/hour minimum wage
- Doubling Minnesota’s Working Family Tax Credit
- Eliminating the waiting list for the sliding fee Child Care Assistance Program
- Providing a $300/month increase in the MN Family Investment Program
Representative Kaohly Her (DFL – St. Paul) is carrying the bill increasing the minimum wage gradually to $16 an hour by August of 2023.
“It is not acceptable that in the wealthiest country in the world a parent or student working full-time doesn’t have enough money to care for their family, put themselves through college, or simply go to the doctor,” said Representative Kaohly Her. “The average CEO makes more than 300 times the average worker. By gradually raising the minimum wage we can improve the lives of working families and create a brighter future for Minnesotans.”
Representative Ami Wazlawik (DFL – White Bear Township) is carrying the legislation that is more-than-doubling the Working Family Credit, by setting it at 75% of the federal Earned Income Tax Credit.
“The Working Family Tax Credit is one of the most direct and effective measures we have in providing increased economic power for working families,” said Representative Wazlawik. “With this legislation, working families would see an average increase of between $1000 and $3000 annually – providing real stability in their lives.”
Representative Ruth Richardson (DFL-Mendota Heights) is chief author of legislation for the Child Care Assistance Program, eliminating eliminate the waiting list and fund child care expenses up to the 75th percentile for local providers, to ensure reliable, quality child care for all Minnesotans.
"Early childhood is one of the most important times in the development of our children,” said Representative Richardson. “Yet, for too many families access to affordable and high-quality child care remains out of reach. I know firsthand the barriers these families can face. This bill will help parents gain access to high-quality child care options, giving children the great start in life they deserve."
Representative Alice Hausman (DFL-St. Paul) is the chief author of legislation to increase the MN Family Investment Program (MFIP) grants by $300/month.
“The MN Family Investment Program grants provide an economic lifeline that thousands of Minnesotans rely on, and yet we have not raised their rate since 1986,” said RepresentativeHausman. “The working families who depend on these grants cannot afford another session without action, it’s time for us to make this a priority.”
These investments in Minnesota families would be funded by closing the loophole in which high income earners are exempt from some federal social security taxes. Currently, the federal government collects 6.2% of earned income on all wages up to $132,900/ year, but nothing on incomes above that level. This law would continue to collect 6.2% of earned income above that threshold so high-income earners would pay the same percentage of their income that every other Minnesota worker pays.