Minnesota is two years away from enacting its new paid leave law and while the debate over costs has resurfaced, some in the small business community are not worried.
The law was adopted in the most recent legislative session with plenty of fanfare, following debate over the potential effects on businesses. It allows up to 12 weeks of paid family leave or 12 weeks of medical leave. It's capped at 20 weeks for those needing both, and will be funded through payroll premiums split between employers and employees.
A new state-commissioned analysis suggested the expected rates should be slightly higher to cover costs.
Dan Swenson-Klatt, owner of the Butter Bakery Café in Minneapolis and member of Main Street Alliance, still backs the law.
"It's still about 10 times less than I pay when I'm paying out of pocket to be able to pay that kind of premium level," Swenson-Klatt explained.
Organizations such as the Chamber of Commerce, as well as Republican lawmakers, said the new findings underscore their concerns about the law being a costly endeavor. But Democratic sponsors welcomed the new analysis, saying the new projections are still in line with what they had envisioned when pushing through the plan.
In trying to compete with larger chains and other big businesses, Swenson-Klatt argued the new law gives smaller operations a recruiting resource they lack.
"I'll be able to have money that I'm not spending out of my pocket to do other things for my business and have a benefit that's valuable to my staff," Swenson-Klatt pointed out.
He also disagreed with fears workers will take advantage of the law by consistently maxing out the benefit. While some smaller businesses are unfazed by the latest projections, the National Federation of Independent Business called on Minnesota lawmakers to revisit the issue next year and implement caps and reductions to reduce costs.
The analysis showed overall program cost increases could exceed $600 million.
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Georgia lawmakers are mapping out the state's future in artificial intelligence.
This week, the Senate Study Committee on Artificial Intelligence wrapped up months of work, approving a 185-page report filled with recommendations. The plan outlines how Georgia can embrace AI to grow industries, prepare its workforce and address challenges such as data privacy and fairness.
The committee chair, Sen. John Albers, R-Roswell, said examining AI's impact is critical for the state's progress and workforce.
"It's going to grow, it's going to change some jobs," he said, "but it's an important part of what we do and also making sure we're educating the workforce to be able to work in those manufacturing plants, because we want more of that right here in our state of Georgia."
The report emphasizes collaboration, with input from experts and communities to balance AI's opportunities with its challenges. Lawmakers are also looking at defining AI in legal terms to ensure its responsible use.
The report explores the possibility of creating a state AI board, monitoring its use in government agencies and fostering innovation across industries. Other options include developing grant proposals to help small farmers adopt AI for smarter crop management, and incentives for Georgia's entertainment industry to embrace AI-powered projects.
Albers is conviced that legislation will be key to striking the right balance.
"We also believe that we need to adopt state legislation to support AI regulation without stifling innovation, as we've talked about several times now," he said. "That includes a comprehensive data privacy bill, an updated 'deep fake' law."
He added that includes transparency in how the state is adopting AI. The committee also suggested further studies, noting how rapidly AI is evolving.
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By Wesley Brown for the Arkansas Delta Informer.
Broadcast version by Freda Ross for Arkansas News Service reporting for The Arkansas Delta Informer-Winthrop Rockefeller Foundation-Public News Service Collaboration.
Although the COVID-19 pandemic is well in the rearview mirror in Arkansas, the number of working-class families on the brink of financial calamity has steadily climbed over the past two years.
New data from the ALICE in the Crosscurrents: An Update on Financial Hardship in Arkansas report shows nearly 11,000 more Arkansas households are struggling to make ends meet in 2022 compared to the previous year. That news comes even as wages for the lowest-paid jobs have risen nationwide at the fastest rate in four decades.
This brings the total number of households living paycheck to paycheck across Arkansas to 562,879, representing 47% of the state's population, according to the latest update from ALICE in Arkansas, in partnership with United For ALICE.
This includes 195,972 Arkansas households in poverty and another 366,907 defined as ALICE (Asset Limited, Income Constrained, Employed), earning above the federal poverty level but less than what's needed to survive in the current economy. ALICE workers include childcare providers, home health aides, and cashiers-those working low-wage jobs with little or no savings and one emergency from poverty.
"ALICE is the families that we all know and love," said Sherece West-Scantlebury, CEO of Winthrop Rockefeller Foundation.
The new ALICE report was shared at a press conference at the Delta Dental of Arkansas Foundation office in Sherwood. In addition to Winthrop Foundation, the report's sponsors include Delta Dental of Arkansas Foundation, Entergy Arkansas, Baptist Health, Arkansas Blue Cross Blue Shield, and Heart of Arkansas United Way.
The original ALICE in Arkansas report in 2020, unveiled just weeks before COVID-19 was declared a global pandemic, indicated that 41% of Arkansas households were either below the federal poverty level or had incomes that struggled to afford housing, childcare, food, transportation, and healthcare.
At the time, the federal poverty line for a family of four was $24,600 or 17% of Arkansas households, while ALICE households were between that amount and $46,812, or about 24%. Between 2021 and 2022, the number of impoverished households in Arkansas increased by 6,141 (remaining at 16% of all households).
During the same period, the number of ALICE households increased by 4,813 (remaining at 31% of all households), continuing a more than decade-long trend in the growth of this population. In 2022, of the 1,201,499 households in Arkansas, 562,879 - 47% - were below the ALICE threshold. This brings the total number of households living paycheck to paycheck to 562,879-representing 47% of the state's population, according to the latest update from ALICE in Arkansas, in partnership with United For ALICE.
The reports show that while wages were increasing, so were costs. For a family of four with an infant and a preschooler, the basic costs to live and work in Arkansas, excluding tax credits, rose from $54,948 in 2021 to $71,052 a year later. Compounding the issue in 2022 was the loss of up to $15,000 in federal child tax credits and stimulus payments that families had access to in 2021.
"There is no doubt, bigger paychecks helped, but inflation and the loss of pandemic support converged to keep ALICE trapped," said Delta Dental of Arkansas Foundation Executive Director Sharon Lanier. "This latest data is a reminder that while we have made some progress, we must continue to work together to address the challenges ALICE face."
In 2022, the Bureau of Labor Statistics (BLS) reported that 70% of Arkansas's 20 most common occupations were still paid less than $20 per hour. Of the workers in these 20 most common occupations, 31% lived below the ALICE survival budget in 2022.
"As we gather to share this critical report and announce steps that our Arkansas banks and financial institutions are taking, we urge community leaders, businesses, and nonprofits to join us in addressing the pressing issues of child care, debt, and housing-the three primary budget busters impacting ALICE families," stated Mollie Palmer, vice president of communication and engagement for the Heart of Arkansas United Way. "Together, we can make a meaningful difference in the lives of those who are essential to our local communities and state economy."
In response to these challenges, Encore Bank, Southern Bancorp, and Diamond Lakes Federal Credit Union have officially joined the ALICE@Work initiative to support struggling ALICE employees and families. This effort exemplifies how employers across Arkansas can invest in ALICE workers and foster impactful partnerships within the community.
ALICE@Work is part of the broader ALICE in Arkansas initiative led by the Arkansas Asset Funders Network-a regional grantmaker chapter focused on improving opportunities for low- and middle-income families to build economic well-being. The initiative includes a variety of methods, such as individualized data reports, extensive course curricula, and self-guided action plans, to help businesses understand their employees' daily challenges and then take action for change.
"We are proud to participate in the inaugural ALICE@Work cohort," said Phillip Jett, CEO of Encore Bank. "By investing in the financial health of ALICE employees, we're not only empowering individuals but also strengthening the resilience and vitality of our communities."
The ALICE in Arkansas initiative encourages community leaders, business owners, and nonprofit organizations to engage with ALICE, highlighting the critical issues of childcare, debt, and housing-the three primary budget busters affecting ALICE families. Legislators are also urged to address these pain points in their budgets, ensuring comprehensive support for those in need.
For more information on ALICE and the ALICE@Work initiative, please visit aliceinar.org.
Wesley Brown wrote this article for the Arkansas Delta Informer.
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