RELEASE
June 29, 2022
Contact:
Kamal Baker
kamal.baker@ci.stpaul.mn.us
763-381-1335
Mayor Carter Announces CollegeBound Boost, Expanding the City of Saint Paul’s Guaranteed Income and College Savings Programs
Funded Through American Rescue Plan and Philanthropic Dollars, CollegeBound Boost Builds on the Success of Saint Paul’s People’s Prosperity Guaranteed Income Pilot and CollegeBound Saint Paul
SAINT PAUL, MN – Today, Mayor Melvin Carter announced CollegeBound Boost, an initiative to expand Saint Paul’s guaranteed income and college savings programs. Led by the Saint Paul Office of Financial Empowerment, this new demonstration project will provide 333 low-income families enrolled in the CollegeBound Saint Paul program with a combination of $500 in guaranteed income payments each month for 2 years and deposits of $1,000 each for their child’s CollegeBound Saint Paul college savings account. Supported by $4 million in American Rescue Plan funds, and $1 million from philanthropy, eligible CollegeBound families will be randomly selected for the CollegeBound Boost program starting summer 2022.
“Direct cash payments are a simple, effective way to help Saint Paul residents achieve economic security,” said Mayor Carter. “CollegeBound Boost is our bold approach to combine these payments with asset-building opportunities, supporting families in building for their future.”
“Residents use direct payments for groceries, medications, birthday gifts, and more everyday necessities that collectively make all the difference,” said Muneer Karcher-Ramos, Director of the Office of Financial Empowerment. “Now, we want to expand on this incredible lifeline with CollegeBound Boost.”
Saint Paul’s Office of Financial Empowerment is partnering with researchers at the University of Michigan under Professor William Elliott, a nation-leading expert on children’s college savings and asset building, to study the impacts of combining guaranteed income and asset building through CollegeBound Boost for Saint Paul families.
“CollegeBound Boost is about tangible hope for Saint Paul families. Guaranteed income helps parents make it through a month. But savings for the future – through savings deposits from the city – gives families tangible hope for their kids’ future,” said Professor William Elliott. “Both sides of the equation are crucial, and families will benefit immensely.”
ABOUT SAINT PAUL’S GUARANTEED INCOME AND COLLEGE SAVINGS PROGRAMS CollegeBound Boost comes following the City of Saint Paul’s People’s Prosperity Guaranteed Income Pilot, which launched in November 2020. This innovative pilot program provided 150 Saint Paul families with $500 per month in guaranteed income for a period of 18 months. The goal of our guaranteed income pilot was simple: get cash to families in our community with no strings attached so they can buy the things they need like food, housing, and other essentials.
The People’s Prosperity Pilot was offered to families participating in CollegeBound Saint Paul, the City’s college savings initiative which is providing every child born to a Saint Paul resident on or after January 1, 2020 with a college savings account and a $50 seed deposit. In an effort to build families’ wealth while supporting their income, their child also received a monthly $10 bonus deposit in their CollegeBound Saint Paul account.
CollegeBound Boost participants will be selected at random from CollegeBound participants, just as they were for the People’s Prosperity Guaranteed Income Pilot Program. Learn more about the Office of Financial Empowerments efforts to support members of our community at Office of Financial Empowerment | Saint Paul Minnesota (stpaul.gov).
###