Housing 

Background: Minnesota needs more affordable housing! And the pandemic really highlighted the importance of emergency shelter and the severe lack of funding for these services.

In addition, many Minnesotans had difficulty making rent payments. This raised concerns about evictions once the eviction moratorium is lifted and keeping the housing we have viable - without payments, many landlords would struggle to stay in business.

Changes:

• Bonding - the Housing bill contains funding for debt services on $100 million in bonds for affordable housing.
• Emergency Shelter - $2 million over the biennium for shelter capital.
• Emergency Shelter - Emergency Services Program (ESP) - $12 million over the biennium for the Emergency Services Program that shelters rely on for a wide variety of needs - staffing, hotels, food, transportation and others; the last budget allocated less than $1 million per year.
• These funds are significant commitment to addressing homelessness an the statewide lack of housing.

 

Minnesota Family Investment Program (MFIP) 

Background: Many of you have long-time advocates for MFIP, the program that supports Minnesotan's poorest children and families. Many of these low-wage parents work in retail and hospitality and have been hit hard by the pandemic. For at least 15 years advocates have tried to get a cost of living adjustment (COLA) for these families, guaranteeing the benefit doesn't lose value each year.

Changes:

• One-time $475 emergency cash payment to families accessing MFIP
• Ongoing, annual cost of living adjustment to the cash grant.

 

Child Care Assistance Program (CCAP)

Background: The Child Care Assistance Program (CCAP) provides financial assistance to low-income families so parents can work or pursue education, and children can receive nurturing care in a safe, stable environment. CCAP is the state's largest program serving infants and toddlers. Minnesota currently reimburses providers at the 25th percentile of market rates - the lowest possible level to be in federal compliance. The federal recommendation is the 75th percentile - and Minnesota used to be there. We currently have approximately 2900 families on the waiting list.

Changes:

• Raise provider reimbursements rates for infants and toddlers (the most expensive) to the 40th percentile.
• Increases rates for all other children to the 30th percentile
• Rates will be updated to reflect new market surveys in 2022 and 2025
• Changes in how the waiting list for CCAP is handled, allowing more families to access this important benefit
• $15 million per year over the next four years to move more families off the waiting list and into economic stability.

 

Addressing Fees and Fines for Low Income Minnesotans

Background: The ability to build assets and a financial safety net is key for low-income households to weather challenges ranging from necessary car repairs to a medical crisis. An unexpected fine or fee, thought manageable for some households, can be insurmountable for low-income Minnesotans. Recognizing this burden, courts have the authority to waive, reduce or substitute community service for all or part of a traffic fee or fine in cases of financial hardship.

The state imposes an additional $75 surcharge on all traffic and criminal violations. Currently courts do not have the discretion to address this surcharge.

Change: The Public Safety bill changes this. Judges may now reduce or waive the $75 state surcharge on traffic and criminal violations in cases of financial hardship or offer a community service option.

 

Driver's License Suspension Reform

Background: Under current Minnesota law, when individuals cannot pay a traffic fee or fine, their licenses are suspended. These are not dangerous drivers - they simply don't have the funds needed to pay. In many cases, they are struggling to meet their basic needs. In greater Minnesota, many people cannot travel to work or meet familial obligations without a license.

Changes: The practice of driver's license suspensions for unpaid traffic tickets will end this year. This means the Minnesota Department of Public Safety will issue 144,000 fewer driver's license suspensions next year.