CSP Whole Family Financial Well-Being Strategy

City of Saint Paul Whole Family Financial WellBeing Strategy

Increase cashflow with guaranteed income (GI)

Increase assets with college savings account (CSA)

College-Bound Saint Paul

*All families participating were part of College-Bound Savings Plans, and a random sample of College-Bound families were selected for Guaranteed Income Pilots, People’s Prosperity Pilot and College-Bound Boost.

College-Bound Boost

People’s Prosperity Pilot

January 1, 2020 - ongoing

October 2022 - present

October 2020 – April 2022

1000 randomly selected low-income Collegebound families who experienced negative impacts from the COVID-19 pandemic. Randomized into three equal groups

Random selection of 150 low-income CollegeBound families who experienced negative impacts from the COVID-19 pandemic

Open to every child in Saint Paul born on or after January 1, 2020

PARTICIPANTS

• Group 1 - Received an additional $1000 to CSA account.
• Group 2 - Group2: received an additional $1000 savings to CSA +$500/month for 24 months
• Group 3 - Maintained CSA account

• Higher education savings account opened for every child
• $50 seed deposit
• Opportunities to receive bonus deposits for financial health & early childhood dev activities

• $10/month additional savings to CSA account
• + $500/month for 18 months

PROGRAMS

• So far, $2,516,000 cash to families
• $765,750 saved in accounts

• $1,350,000 cash to families
• $27,000 saved to college savings accounts

• 12,000 accounts created
• $2,394,009 saved to accounts

DIRECT IMPACTS2

• Low utilization of benefit cliff counseling (DHS 21-11-02 helpful)
• Partner with University of Michigan in randomized trial design. Initial evaluation published 20233

• High proportion of birth records not public.
• Outreach most effective with programs focused on infants/children
• Outreach needed for bonus take-up (not automatic)

• Documented no loss of benefits due to GI
• University of Pennsylvania report published 20231

LEARNING

• Exemption from Social Security Admin for SSI (CStP sought and received)
• Introduced legislation (2024) to establish Minnesota-wide GI program? (MN Basic Income coalition)
• Bulletin #23-04-01 Unearned Income Policy for Public Assistance Programs

• University of Pennsylvania report published 2023 (add footnote and include the following link as the footnote: CGIR Final Report_Saint Paul PPP_2023.pdf)
• Shared how-to documentation with other municipalities

• Hosted public screening of “It’s Basic” with address from Mayor Carter

• Upen report published 2023
• Established "Hold Harmless" fund to insure against benefit cliffs - not used due to benefit counseling and DHS Bulletin 21-11-02)
• GI Community of Practice Webinar series

• Introduced legislation to release not-public birth records (not passed).
• Used TANF funds to build assets.

ACTIONS & STATE LEVEL POLICY

1 CGIR Final Report_Saint Paul PPP_2023.pdf

Footnotes:

2 Data as of July 2024

3 https://www.scirp.org/journal/paperinformation?paperid=128652