ST. PAUL, Minn. - The number of Minnesotans living in poverty spiked to more than a half-million in 2009 and racial disparities grew wider, according to a report released this week by the U.S. Census Bureau.

While the overall poverty rate in Minnesota rose to 11 percent, poverty among black and American Indian communities rose to 35 percent; in the Latino community, to 26 percent. Christina Wessel, deputy director of the Minnesota Budget Project, says the data depicts a "tale of two Minnesotas."

"There was an increase in poverty among white Minnesotans, but it's still a whole other world, where poverty rates there are eight percent and the median income among white Minnesotans is still above the national average – whereas when you look at Latinos, blacks, and American Indians, it's just a completely different story."

Wessel believes a decade of significant cuts to the state's safety net has contributed to the rise in poverty; as a result, she says, Minnesotans have been unable to receive assistance when they need it the most.

Brian Rusche, executive director of the Joint Religious Legislative Coalition, agrees. He says the state cannot afford to back off from public efforts to address poverty.

"The cost of not acting is that we increase social costs. We don't address the learning gap, we see poorer health outcomes, and more and more people feel like they don't have a stake in their communities. That's just extremely damaging for everybody."

Both Rusche and Wessel acknowledge that state policymakers face tough decisions in the next legislative session, but they also see simple, short-term measures that can go a long way toward stemming the poverty rates.

Emergency assistance was one of the programs cut several years ago, says Wessel. She cites the example of a family with a costly car repair, facing a decision between paying the rent or fixing the car to provide transportation to work.

"Emergency assistance would give them a one-time benefit, just to help them cover those expenses so that they could maintain their car, maintain their employment, maintain their housing, maintain their health insurance. Just simple, one-time help kept these people from falling into crisis."

In its 2009 report, the State Commission to End Poverty by 2020 detailed strategies for addressing the issue. Wage subsidies are one short-term solution that merits consideration, says Rusche.

"Give incentives to businesses and nonprofits who are otherwise agonizing whether they should do one more hire or not. They're just not sure how the economy is going, and so they're very reluctant to make that choice. If we can push them into the positive with a wage subsidy, we will accelerate the recovery."



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The election is less than six weeks away and Washingtonians will be deciding on a slate of initiatives, including one measure affecting funding in support of children.

If passed, Initiative 2109 would repeal a 7% tax on capital gains for assets worth more than $262,000. The repeal has support from hedge fund manager Brian Heywood, who said it is a slippery slope toward a state income tax, which the state does not have.

Gabriela Quintana, senior policy associate for the Economic Opportunity Institute, said fewer than 4,000 people in the state pay the tax.

"It's a very privileged move to be able to fund these initiatives for your own needs and to not think about the impact this will have on a huge majority in Washington state," Quintana contended.

Last year, the tax pulled in about $786 million. The first $500 million collected from it goes toward schools, early learning and child care. Any additional money collected goes toward school construction.

Justin Fox-Bailey, president of the Snohomish Education Association, said the vast majority of Washingtonians who do not pay the capital gains tax will be affected if Initiative 2109 passes, especially kids.

"They're going to feel it in their communities when we give a tax cut to these millionaires and billionaires and you don't have the same access to child care, your kid's school isn't getting updated, public services are being cut or reduced," Fox-Bailey pointed out.

Washington has historically had one of the most regressive tax systems in the country and a recent report found the lowest-income 20% pay more than three times as much of their income as the top 1%.

Quintana argued the capital gains tax is vital for the state.

"We all need to play a role, including the wealthy individuals," Quintana asserted. "Repealing it will only really hurt families and children."

Ballots start going out on Oct. 18.

Congress has one week from today to reauthorize a sweeping policy playing a big role in shaping the nation's food production system, and Wisconsin agricultural voices are paying close attention.

The Farm Bill is supposed to be renegotiated every five years. A temporary extension was approved one year ago, amid big differences about where to prioritize aid, including subsidies typically helping industrial-level farms.

Chuck Anderas, associate policy director at the Wisconsin-based Michael Fields Agricultural Institute, said as the issues get sorted out, organizations like his hope lawmakers do not lose sight of the need to adequately fund conservation programs to benefit small farms.

"To neglect that is basically just picking winners and losers within the agricultural economy," Anderas contended.

Advocates are concerned about proposed language which would essentially spread conservation funding to "climate-smart" practices skeptics say only benefit big farms. The Farm Bill also covers the Supplemental Nutrition Assistance Program. House Republicans have proposed formula changes hunger-relief advocates say would amount to a $30 billion cut. GOP leaders dispute the claim, saying they would lower costs without cutting anyone's benefits.

According to the National Centers for Environmental Information, Wisconsin has seen more than 20 weather-related disasters -- each resulting in at least one-billion dollars in damage -- in the past five years, four times the totals from the 1980s and 90s.

Anderas argued stronger and effective climate resiliency aid in the Farm Bill means participating producers can mitigate some of the damage.

"Even if you are skeptical about climate change, these practices infiltrate more water and hold more water in the soil and make a huge difference on the amount of water coming off of farm fields," Anderas outlined.

He added it protects natural resources, as well as infrastructure in farming communities, with local governments not having to spend as much on fixing washed-out roads and bridges.

With the current focus on the November election, analysts said it is likely Congress will approve another temporary extension of the current Farm Bill, rather than agree on a new one.

Even in a stable economy, consumers in Wisconsin and elsewhere still express pessimism and advocates said a key federal agency working on issues like unfair business practices cannot risk losing resources needed to help consumers.

To avoid a government shutdown, Congress has to approve a new federal budget by month's end. Over the summer, House Republicans floated cuts in certain areas, including a 27% funding cut for the Federal Trade Commission.

Erin Witte, director of consumer protection for the Consumer Federation of America, said the timing could not be worse for such a move.

"We've seen people talk a lot about feeling like their costs are increased in lots of ways," Witte pointed out. "The FTC's work is really aimed at trying to lower a lot of those costs, to bring some fairness back to the process."

Last month, the agency co-hosted the first meeting of a task force about whether companies are price-gouging and the effect on consumers. GOP leaders on the Appropriations Committee said they want a financial services bill prioritizing combating terrorism-money activity, maintaining the integrity of financial markets and spurring small business growth.

Witte contends the FTC has made progress in standing up for consumers with great efficiency. She pointed to the proposed "click to cancel" rule, which would remove barriers for people worried about recurring charges for an unwanted subscription for a service or product.

"That would make it as easy for someone to cancel a subscription as it is to sign up for it," Witte explained. "That proposal has gotten thousands of comments from consumers about how much time they are wasting on things like unnecessary subscriptions."

The state-level organization Opportunity Wisconsin has also cited concerns about consumer protections being gutted. It called on Congress to pass clean funding bills without extreme provisions it said would "hurt Wisconsin families." It is unclear if any of the budget ideas floated over the past several months will find their way into a final spending plan.