Title
Authorizing the Office of Financial Services to accept a $250,000 grant from the Minnesota Department of Education focused on CollegeBound Saint Paul for the Office of Financial Empowerment.
Body
WHEREAS, the City of Saint Paul seeks to improve the health, welfare and prosperity of the children and families of Saint Paul by implementing the CollegeBound Saint Paul College Savings Account (CSA) program; and
WHEREAS, the State Legislature appropriated a two-year, $500,000 legislative grant during the 2019 legislative session to the City of Saint Paul to establish a pilot program creating a college savings account for every child born to a resident of the city of St. Paul during the time period for which funds are available, and to perform an analysis of potential establishment of a statewide program or program duplication by other cities; and
WHEREAS, $250,000 of the grant is available in 2019-2020 (the “Grant”) from the Minnesota Department of Education and $250,000 is available in 2020-2021; and
WHEREAS, the Grant will be used to establish and fund the accounts, to provide incentives to current and potential pilot program participants and their families, and to provide outreach and education to current and potential pilot program participants and their families, and no grant funds will be used for the administrative costs of managing and operating the pilot program; and
WHEREAS, College Savings Accounts are long-term savings or investment accounts that help children build savings for the future. Initial seed deposits will fund the CSA accounts. Over time, account balances will grow through bonus deposits, and deposits made by families and community organizations, thereby strengthening the educational prospects, financial health, and economic mobility of members of the Saint Paul community; and
WHEREAS, the CSA program will help address key challenges facing Saint Paul families such as financial insecurity and inequality in educational attainment by prov...
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