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Celebrating CSA Wins and Support for Low-Income Children and Families in Michigan
Michigan has had several recent state legislative victories on policies to help low-income children and families, along with a proposed dramatic increase in funding to support Children’s Savings Account (CSA) programs. Advocacy efforts on these issues have been led by CEDAM (Community Economic Development Association of Michigan), a member of the Prosperity Now Community.
CEDAM is a leading financial inclusion and community development organization in Michigan, which advocates for the expansion of CSAs, tax credits for vulnerable families, affordable housing and other policies intending to improve financial equity and community development across Michigan. CEDAM also impacts change through tax assistance, financial education, technical assistance, and a widespread commitment to amplifying community voices. We interviewed Brian Rakovitis, CEDAM’s Director of Economic Inclusion, earlier this month about the momentum in the state on CSAs and other policies.
Baby Bonds, Baby Bonds and More Baby Bonds!
Sen. Booker and Rep. Pressley Reintroduce Baby Bonds Legislation
This February, Senator Cory Booker (D-NJ) and Representative Ayanna Pressley (D-MA-7) reintroduced the American Opportunity Accounts Act (AAOA) to the new Congress. The American Opportunity Accounts Act is federal Baby Bonds legislation that would provide all children with an initial $1,000 investment shortly after birth. Children would receive up to an additional $2,000 deposit annually based on household income, with the largest amount going to children from the lowest income families. It will be a tough task to get Baby Bonds through at the federal level due to the divided Congress, but the bill’s reintroduction provides an opportunity to raise awareness about this proposal and garner media attention.
Connecticut Governor Blocks Funding for Baby Bonds
Although the state passed legislation in 2021, the fight for Baby Bonds in Connecticut isn’t over. According to the legislation, the state is supposed to issue a $50 million bond annually to cover the program. However, as recent reporting has shown, Governor Ned Lamont (D) has thwarted efforts to fund and implement the program, despite signing the legislation. Former Treasurer Shawn Wooden, who led the passage of the bill, has since left office, though the new treasurer, Erick Russell (D), is also a strong supporter. Supporters of the bill continue to push for its full funding and implementation.
States Debate Baby Bonds Legislation
As states kick off their 2023 legislative sessions, Baby Bonds are a hot topic from coast to coast. Here’s a quick roundup of activity:
Washington – The Washington Future Fund, proposed by Treasurer Mike Pellicciotti, passed through the House and Senate Human Services committees. However, as of this publication, the House Appropriations and Senate Ways and Means committees have not scheduled hearings on the bill, making it less likely that the bill will pass this session. Read recent coverage in GeekWire.
Massachusetts – After convening a Baby Bonds Task Force last spring, State Treasurer Deb Goldberg proposed a statewide program, and legislators introduced the bill in the House and Senate in January. The focus now is on getting more cosponsors. Massachusetts residents can reach out to their legislators here to urge them to sign on.
Nevada – Spearheaded by State Treasurer Zach Conine, the legislature is discussing a proposal for a state Baby Bonds program. The Assembly Committee on Government Affairs had a hearing on the bill on February 21.
In the News
New York City is Increasing CSAs for the City’s Children
In January, NYC Kids RISE and city officials announced that this school year, over 70,000 new kindergartners and first grade students had been enrolled in the Save for College Program, which creates a CSA with an initial seed investment of $100 for postsecondary education. To go beyond this initial investment, over 1,000 NYC first graders from one of Brooklyn’s most vulnerable school districts are receiving an additional $1,000 in their CSAs through a donation from Bloomberg Philanthropies.
Positive Findings from Boston Saves Program Evaluation
The Center on Assets, Education and Inclusion at the University of Michigan is sharing initial results from the first year of an evaluation of Boston Saves, a CSA Program for Boston Public School students starting in kindergarten. The recently-released executive summary and infographic show that parents of children participating in Boston Saves report increased social-emotional development in their children, are more likely to have a budget or financial plan, and are more likely to believe their children will go to college. A full report is coming soon.
Resources and Publications
Communications Toolkit: The American Opportunity Accounts Act and How to Talk about Baby Bonds | Prosperity Now
Prosperity Now’s Communications Toolkit provides messaging guidance, including sample social media posts, that you can use to raise awareness about and advocate for Baby Bonds in your state and federally, with the reintroduction of the American Opportunity Accounts Act.
To Truly Reward Work, We Must Give People a Fairer Financial Starting Point with Baby Bonds | Prosperity Now
In today’s America, working hard is not enough to secure financial security. This blog discusses how we must give low-income families and their children, who are disproportionately Black, Latinx or Indigenous, opportunities to build wealth, and Baby Bonds can get us there.
Providence Promise 2022 Annual Report
Providence Promise, a CSA program in Providence, Rhode Island, has released its 2022 annual report, highlighting results from the program’s fifth year.
A future-oriented approach to wealth offers new possibilities for wealth creation in the United States | Washington Center for Equitable Growth
This paper makes the case for a future-oriented approach to wealth that may lead to new perspectives on policies that support wealth building.
Events & Opportunities
Save the Date
Webinar: 2022 State of the CSA Field | Prosperity Now | Tuesday April 4, 2023
Information and registration link will be posted on Prosperity Now’s Event page soon.
ICYMI
Webinar Recording: Baby Bonds – Building a Brighter Future in Your State | Prosperity Now | February 16, 2023
