Bridging the Child Care Gap
High-quality childcare and early education are costly but essential, yet families bear the financial burden. Despite providers charging minimal fees, childcare teachers receive low wages, often relying on partners for support. Public funding is crucial to make childcare accessible, ensure quality, and sustain teacher careers. While recent legislative funding efforts have been made, more is needed to achieve these goals. In 2024, there's an opportunity to advance childcare affordability, prioritizing proposals that offer transparent benefits, minimize burdens, and are quickly implementable, aligning with previous recommendations and scholarship frameworks.
The Problem
High-quality childcare and early education is expensive to provide, just like high-quality K-12 education. Unlike K-12, however, families shoulder the burden of paying for it. Infant care in Minnesota costs more than tuition at the University of Minnesota.
Yet childcare providers are charging families the bare minimum they can to survive. Wages for childcare and early learning teachers are among the lowest of any profession. Many childcare teachers rely on partners with higher incomes to afford their lives.
The Solution
To meet the goals of the Great Start for All Children Task Force to make childcare affordable and accessible for all families, high quality for all children, and a sustainable career for teachers, we need public funding.
In 2023’s legislative session, the legislature passed significant funding to address childcare needs, but the reality is that we need much, much more to reach the goals of affordable and accessible childcare and early learning for all families, high quality for children, and equitable wages and compensation for teachers.
In 2024, we have an opportunity to take a big step in childcare affordability for families. In our push to make progress, we will place the highest value on affordability proposals that:
Provide a transparent, progressive benefit to families prioritizing those closest to the existing benefits cliff.
Are as minimally burdensome as possible for providers and families, contributing to their short and long-term strength and stability.
Are quickly and easily implementable, prioritizing getting benefits to families in the fall of 2024.
Build toward the Great Start recommendations and the associated Great Start Scholarship framework that passed in 2023.
Ending Junk Fees
Have you ever noticed how some of the wealthiest corporations seem to prioritize their profits over the well-being of working people? Take a closer look at their latest tactic: sneaking in non-negotiable surprise fees during checkout. It means the price you're initially shown isn't the final one you end up paying. This practice isn't just unfair—it's harmful to all of us. It undermines the trust we place in businesses that operate with transparency and integrity. It's time to address this issue because it not only hurts consumers but also puts responsible businesses at a disadvantage in the market.
Corporations in Minnesota are increasingly capitalizing on rising costs, leaving families struggling to cover basic expenses. Junk fees, amounting to over $3,000 annually per family, are pervasive across various industries, inflating prices without offering tangible benefits
Corporate profits surged by 75 percent from 2020 to 2022, surpassing inflation by fivefold and driving inflationary trends, according to Federal Reserve research. These profits accounted for all inflation in 2020-2021 and a substantial 41 percent from 2020-2022.
Beyond straightforward price increases, corporations employ tactics such as "junk fees" to extract additional revenue. These sneaky charges, hidden until the last minute, contribute to consumer frustration and financial strain.
Junk fees permeate various sectors, including cable, banking, and rentals, with 85 percent of Minnesotans encountering unexpected charges. These fees not only deceive consumers but also disadvantage businesses that transparently disclose pricing.
Consider a Minnesota mother shopping online for a winter coat. Despite finding a seemingly affordable option for $50, hidden fees at checkout inflate the total cost. In contrast, retailers like Mom and Pop Shop offer transparent pricing, sparing consumers from surprise charges.
While some companies, like StubHub, have attempted to eliminate fees for upfront pricing, they faced challenges from competitors, perpetuating the cycle of deception.
The economic impact of junk fees is significant, with potential annual savings of up to $252 million on event tickets and $980 million on hotel stays, as estimated by the Federal Trade Commission.
Mandating transparent pricing would empower consumers and promote fair competition among businesses. By requiring upfront disclosure of all fees in advertised prices, Minnesota can protect families from exploitation and uphold fairness in the economy.
Fulfilling the Promise of a College Education
Today we find two distinct Americas: one tailored for the affluent and another for the rest of us. In this affluent America, prestigious private colleges stand as bastions of privilege, offering the assurance that ambitious dreams for their children can be realized. The other America is where students are saddled with mounting student debt that holds them back their entire lives from owning homes, starting families and achieving their own version of the American Dream. Throughout our countries history education has been the gateway to a brighter future, yet over the past two decades, millions of Minnesotans have shouldered the weight of crippling student debt creating an American nightmare.
A transformative shift is on the horizon this year, as the Minnesota legislature introduces the North Star Promise program. This initiative ensures that attending any Minnesota public college or university is within reach for families with an income below $80,000, marking a departure from the financial shackles of the past.
As we navigate an economy where three out of four jobs demand post-high school education, it becomes imperative to address the barriers hindering Minnesotans progress. The North Star Promise will pave the way for students to embark on their college journeys unburdened by the specter of overwhelming debt. Our commitment is clear: every Minnesotan deserves the opportunity to reap the rewards of a college education, dismantling the exclusivity that has favored only the privileged few. It is our collective responsibility to empower all our children to pursue higher education without the stifling weight of debt holding them back.
Our Solution
North Star Promise
For many, a college degree marks the initial stride toward realizing their aspirations. However, over the past two decades, this crucial step has often been accompanied by the weight of burdensome education debt, hindering individuals from simply getting by, let alone progressing or saving for the future. While the journey to success was never promised to be effortless, the oppressive weight of student loan debt has unnecessarily compounded the challenges faced by many young Minnesotans
In response to this pressing issue, Minnesota Democrats took action last year by enacting the North Star Promise. This transformative program aims to alleviate the burden of student loan debt, restoring the possibility for individuals to work their way through college once more. By easing the financial strain on students, the North Star Promise paves a smoother path for them to diligently pursue their dreams and attain both financial security and peace of mind.
We want your help in making sure every Minnesotans can get the education and training they need. Join us as we promote the North Star Promise.
Universal FAFSA
Did you know that the Free Application for Federal Student Aid (FAFSA) opens doors to Pell Grants, State Grants, Work-Study opportunities, and other vital financial aid, along with federal student loans? Despite these invaluable resources, in Minnesota, only about 45% of graduating high school seniors complete the FAFSA each year. Shockingly, Minnesota ranked 39th nationally for FAFSA completions last year
Completing the FAFSA isn't just another bureaucratic task; it's a crucial step toward accessing education beyond high school and preparing for the workforce. It's time to ensure every student understands the importance of this pathway to financial assistance and future success
Proposing FAFSA completion as a high school graduation prerequisite, coupled with a straightforward opt-out process, could revolutionize access to financial aid in Minnesota, unlocking millions of dollars in Pell Grants and other crucial resources for students pursuing higher education.
Under this initiative, high school seniors would be mandated to complete a FAFSA, or an application for state financial aid if federal aid isn't applicable, to qualify for graduation.
To ensure flexibility, students could easily opt out by submitting a simple form with a parent or guardian's signature, or independently if they're 18 years old. Moreover, high school principals would have the discretion to grant hardship waivers for students facing extraordinary circumstances that prevent compliance with the requirement.
By enacting this policy, Minnesota would empower students to access the financial support needed to pursue their academic aspirations, fostering a more equitable and inclusive educational landscape statewide.
