Editorial: Bridge the gap for the working poor

A public-private partnership with Minnesota families.

Last update: October 22, 2007 - 6:13 PM

Print this story

Follow Opinion Exchange on Twitter

IN THE GAP

Nearly one in five Minnesota workers faces economic hardships such as low wages or no health insurance, and many don't qualify for any public aid, according to a new study by the Center for Economic and Policy Research and the Center for Social Policy at the University of Massachusetts.

More from Editorials

Two decades ago, a bipartisan panel of thoughtful Minnesotans appointed by Gov. Rudy Perpich sliced through the thorny politics of welfare reform and proposed a new social compact: Everyone should work, but if you work you shouldn't be poor. Their work extended a venerable Minnesota tradition -- the belief in economic opportunity -- and set the stage for important innovations in welfare-to-work, health care and tax policy.

It turns out the strategy worked. A new study called "Bridging the Gaps" places Minnesota in a national context and finds the state has made great strides in supporting families who work at the economy's lowest rungs. But it also finds that thousands of working Minnesotans remain stuck in a "hardship gap," lacking the resources to raise safe, healthy families.

The backdrop to this report is a sobering picture of today's economy. More than one in five American workers lives near the brink economically -- no health insurance, no pension, and annual earnings in the range of $20,000. "There's been a profound change in the labor market in the last 30 years," says co-author Heather Boushey. "For many people, having a job just isn't enough."

In Minnesota, the picture is somewhat brighter. The state has an unusually good mix of high-paying jobs, and its high rate of health insurance coverage is due mainly to generous employer-paid benefits. But Minnesota also has a set of ingenious public "work supports," including MinnesotaCare health insurance and the Working Family Tax Credit, both of which improve family well-being while increasing the incentive to work.

Nevertheless, Minnesota has not reached the finish line. The authors find that even among "hardship gap" families -- those earning as little as $21,000 per year -- 50 percent are not eligible for subsidized health insurance, and 60 percent are ineligible for help with child-care bills. That's significant because many low-income families are young families with children at risk.

The 2008 Legislature could make a big difference for these families. One change would be to restore funding, cut deeply during the 2003 state budget crisis, for state child-care subsidies. They're carefully targeted toward families in need, and they're a smart investment in early childhood development. A second would be to streamline the paperwork for a broad range of work supports so that low-income parents, juggling erratic work schedules, don't have to fight the bureaucracy every few months just to keep a child-care subsidy or health insurance for their children.

Americans have long assumed that a job is the key to personal dignity and economic security. That's often true. But where it's not, bridging the gap is a good investment in social inclusion and healthy families.

Comment on this story | Be the first to comment | Hide reader comments

New ideas for the public sector

THERE'S NEVER BEEN A BETTER TIME to create a more efficient Minnesota. Facing large budget deficits at the state, county and local levels, Minnesotans are seeing with new clarity that the public sector must adapt to new economic realities. Only the smartest, most strategic reinvention will ensure that our tax dollars are spent on the best programs and services. Read more

About Opinion Exchange

Opinion Exchange is produced by the Editorial Department, which is dedicated to hosting the discussion on a range of issues of interest to Star Tribune readers online and in print. In its new format, it's our hope that Opinion Exhange will create a more dynamic dialogue between Star Tribune readers and the Editorial Board. Many individual posts will be written and signed by members of the Editorial Board and will reflect their own opinions. Daily editorials will continue to represent the institutional voice of the newspaper and be researched and written by the Editorial Department, which is independent of the newsroom.

Subscribe to RSS|Learn more about RSS