For Minnesota to make big gains in reducing poverty, its safety net needs to be more robust, according to a new report highlighting disparities residents around the state are experiencing while elevating themselves from hardship.
Minnesota's official poverty rate is 8.7 %, which is below the national average.
Angie Fertig, social policy research scientist at the University of Minnesota, said when you dig deeper, there are broad levels of unevenness. The state is known for its racial disparities, and Fertig confirmed BIPOC residents have much higher poverty rates than white residents, and existing support systems only help meet basic needs.
"A lot of people believe that Minnesota is a very generous state in terms of its safety net," Fertig acknowledged. "And that's generally true. However, there are lots of things that we could do better."
The report calls for state action, such as expanding eligibility for SNAP benefits, to help all families prosper. Despite a large budget surplus, it is unclear if boosting various forms of assistance will happen under a divided Legislature. The poverty rate for Black residents is 21%, while 29% of Native Americans fall into the same category.
Fertig pointed out there is also variation when looking at poverty through a geographic lens, with higher rates in certain urban centers, including Duluth and the Twin Cities, and some rural regions as well. Her report calculated separate poverty rates when factoring in federal benefit programs and found it was not much better than the official rate.
"What the report reveals is that current policies and programs just aren't enough to eliminate poverty," Fertig asserted. "They exactly balance out with the higher costs that living (and) covering your basic needs entail."
Bill Grant, executive director of the Minnesota Community Action Partnership, which supported the report, said it is good to have a more accurate measure so organizations such as his know where to ask for legislative support to make them stronger.
"While a number of people have benefited from these programs, they aren't accomplishing the primary objective, which is to lift people out of poverty," Grant stressed.
The new report looked at 2019 data and called for a statewide Commission to End Poverty. Those involved hoped to issue annual findings to track how marginalized residents are faring, especially in light of the pandemic.
Disclosure: Minnesota Community Action Association Resource Fund contributes to our fund for reporting on Early Childhood Education, Health Issues, Housing/Homelessness, and Poverty Issues. If you would like to help support news in the public interest,
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Some Missouri nonprofit groups have teamed up to help those in need in the rural southeastern part of the state.
Many households in these communities struggle to pay their electric bills, as poverty rates are 10% higher than the state average. The local electric utility provider has been criticized for not doing more to help alleviate the financial burden. In response, Renew Missouri is partnering with churches and other nonprofits to help people get signed up for state and federal energy assistance programs.
Jessica Polk Sentell, eastern director for Renew Missouri, works with the Ministerial Alliance at its food banks.
"I have been there with some literature and educational materials," Polk Sentell explained. "To help bring some education and some visibility and some outreach, to these programs that help people pay their energy bills."
She pointed out Renew Missouri's mission is to advance renewable energy and energy efficiency in the state. To be eligible for assistance, you must be a Missouri resident, a U.S. citizen or legal permanent resident. You must have no more than $3,000 in bank or retirement accounts, or investments and meet the income guidelines for your household size.
Brian Abbott, pastor of Trinity United Methodist Church in Piedmont, also serves as president of the local Ministerial Alliance. He said there are many people coming in for help and while they do their best with food banks and food trucks, it is a growing challenge.
"We don't have the resources, coming out of COVID and a lot of other things that have gone on in the last five years or so in the economy," Abbott emphasized. "It's really left a gap there for us, you know. We're telling a lot of people, 'We understand you may have a shut-off notice, but we just don't have the funds to help with that.'"
The Renew Missouri initiative is also bringing relief to under-resourced Community Action Agencies, which often struggle to connect households with resources to help pay their energy bills.
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A Legislature-backed Commission on Poverty in Massachusetts aims to address the state's historic wealth gap.
The commission will study demographic disparities and existing programs to reduce poverty over the next decade, and has been holding public hearings to gather feedback.
State Sen. Sal DiDomenico - D-Everett - said Massachusetts has the highest median wage for workers in the nation, but one of the greatest gaps between wealthy and low-income individuals.
"So we know we have much work to be done in this commission," said DiDomenico, "to bring more equity to the table when it comes to residents across the Commonwealth."
DiDomenico said it's unacceptable that roughly 70,000 Massachusetts children live in what's considered "deep poverty" - or 50% below the federal poverty level.
He said efforts to undo those numbers should be a top legislative priority.
Sixty years after the launch of President Lyndon Johnson's "War on Poverty," community action agencies in Massachusetts say data reveal which policies are most effective.
Expanded tax credits and stimulus payments were shown to help cut childhood poverty in half during the pandemic, and efforts continue to grow guaranteed basic income programs.
Laura Meisenhelter is board president of the Massachusetts Association for Community Action (MASSCAP), a coalition of more than twenty community action agencies.
She said they're responding to local needs while working for systemic change.
"We confirmed," said Meisenhelter, "both large and small changes to public policy and programs and practices can have an enormous impact."
Meisenhelter said agency staff visit clients at nursing homes, aid parents in buying Christmas gifts, and help ensure that people's basic needs such as food, clothing and diapers are met.
She said that need is increasing as the poverty line set decades ago has not kept pace with the increasing standard of living.
The Commission on Poverty's next public hearing will take place later this year in the Fall River and New Bedford area.
Disclosure: Massachusetts Association for Community Action contributes to our fund for reporting on Housing/Homelessness, Hunger/Food/Nutrition, Poverty Issues, Social Justice. If you would like to help support news in the public interest,
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The City of Little Rock is part of a national grant program designed to improve the financial status of Black communities.
The Cities for Financial Empowerment Fund's CityStart initiative works with local governments to create programs to help families become more financially stable.
James Owen, policy adviser and special project manager for the mayor's office, said they are being advised by Bloomberg Philanthropies' Greenwood Initiative, which has a mission to address systemic underinvestment in Black communities.
"This CityStart grant is an opportunity for us to mitigate and improve upon some of the policy failures of the past that have really led to some disparity when it comes to wealth and income in different parts of Little Rock," Owen explained.
Grant recipients receive $75,000 to address the issues. Other cities winning grants included Chicago, Philadelphia, Indianapolis and Buffalo.
This is the third grant the City of Little Rock has received from the Cities for Financial Empowerment Fund. All of them have addressed financial and wealth disparities. Owen noted the funding will allow them to hear from the people.
"We don't necessarily think that us sitting up at City Hall, that we have the answers," Owen acknowledged. "We want to hear from the residents, what are their financial pain points? And so we want to do that heavy community engagement work and talk to our residents so that we can address those directly."
Forty municipal governments have participated in the CityStart program in the past. Owen added Little Rock will study what other cities have done to see if similar programs might work there.
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