Minnesota lawmakers mull basic income pilot program sending $500 monthly payments to low-income families
Minnesota lawmakers mull basic income pilot program sending $500 monthly payments to low-income families CBS Minnesota
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Minnesota Democrats Consider Basic Income Pilot Program
Minnesota Democrats are considering launching a basic income pilot program that would send $500 monthly payments to low-income families — no strings attached.
Project in St. Paul Shows Positive Results
The pilot program mirrors a project in the city of St. Paul during the pandemic that gave $500 monthly payments to 150 randomly selected families with income at or below 300% of the federal poverty line. A study by researchers at the University of Pennsylvania found that participants in the program improved their financial stability and savings, and the number of employed people increased by 14% even after the payments expired.
“This program would serve as a demonstration project that unconditional cash payments made directly to families can work in every corner of the state,” said Rep. Athena Hollins, DFL-St. Paul, who authored the legislation.
Grant Program for Local Governments and Nonprofits
The bill would establish a grant program where local and tribal governments and nonprofits could administer the $500 monthly payments for at least 18 months. It’s defined as a stipend, not as income, so it doesn’t impact enrollment in other state assistance.
Support from St. Paul Mayor
St. Paul Mayor Melvin Carter testified in support of the bill during a House committee meeting, calling the city’s program “groundbreaking.” He noted that participants reported a decrease in anxiety and depression, as well as increased feelings of hope. The unconditional cash payments helped families pay rent, buy groceries, obtain childcare, and get out of debt. Several families were even able to put money into savings for the first time.
Proposal Funding and Concerns
The proposal earmarks $100 million in one-time funds to make the pilot a reality. However, Republicans are concerned about the price tag, citing the latest budget forecast that estimates state spending will exceed revenues in future years. The projected state surplus for this two-year budget ending next June is $3.7 billion, and any spending this year means less money for the next biennium.
Success Stories and Fraud Concerns
After the initial guaranteed income pilot in St. Paul expired, the city launched a new initiative that included a $1,000 investment in a college savings account for children born after Jan. 1, 2020. One participant, LeAndra Estis, shared how the program helped her afford medical appointments, medications, college visits, and overdue childcare bills. However, Rep. Spencer Igo expressed concerns about a provision prohibiting administrators from asking for proof of residency or citizenship, citing potential fraud.
Similar Programs in Other Cities
Other cities across the country have implemented similar basic income benefits for their residents, including California’s statewide program.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty
- SDG 3: Good Health and Well-being
- SDG 8: Decent Work and Economic Growth
- SDG 10: Reduced Inequalities
The article discusses a basic income pilot program that aims to address poverty and inequality by providing $500 monthly payments to low-income families. The program’s positive impact on financial stability, employment, and mental health aligns with the goals of SDG 1, SDG 3, SDG 8, and SDG 10.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.
- Target 3.4: By 2030, reduce by one-third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being.
- Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
- Target 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.
The article’s focus on providing social protection measures through the basic income pilot program aligns with Target 1.3. The positive impact on mental health and well-being mentioned in the article relates to Target 3.4. The program’s aim to improve financial stability and increase employment supports Target 8.5. Lastly, the program’s goal of reducing poverty and inequality is in line with Target 10.4.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Indicator 1.3.1: Proportion of the population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims, and the poor and vulnerable.
- Indicator 3.4.1: Mortality rate attributed to cardiovascular disease, cancer, diabetes, or chronic respiratory disease.
- Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities.
- Indicator 10.4.1: Income growth of the bottom 40% of the population.
The article does not explicitly mention these indicators, but they can be used to measure progress towards the identified targets. For example, Indicator 1.3.1 can measure the proportion of the population covered by the basic income program. Indicator 3.4.1 can assess the impact of the program on reducing premature mortality from non-communicable diseases. Indicator 8.5.1 can track the impact of the program on equal pay and decent work. Indicator 10.4.1 can measure the income growth of the bottom 40% of the population.
SDGs, Targets, and Indicators Table
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable. | Indicator 1.3.1: Proportion of the population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims, and the poor and vulnerable. |
| SDG 3: Good Health and Well-being | Target 3.4: By 2030, reduce by one-third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being. | Indicator 3.4.1: Mortality rate attributed to cardiovascular disease, cancer, diabetes, or chronic respiratory disease. |
| SDG 8: Decent Work and Economic Growth | Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. | Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities. |
| SDG 10: Reduced Inequalities | Target 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality. | Indicator 10.4.1: Income growth of the bottom 40% of the population. |
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Source: cbsnews.com
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