Call for Action: State and Federal Recommendations

In order for low-income working families to improve their quality of life and achieve economic success, solutions are needed at both the state and federal level. Unfortunately, federal policy has not adequately addressed the array of issues critical to these families and too few states have focused on the needs of working families or quality of jobs.

But there are some bright spots on the horizon. Some states have taken actions that provide direction for other states to follow.

STATES ARE DEVELOPING INNOVATIVE POLICIES

State governments are strengthening policies that affect low-income working families in two key ways: 1) investing in programs to advance the skills of adult workers; and 2) helping to meet the basic household needs of working families.

States are investing in adult workers primarily by improving education and skill-development policies that help workers compete in the new economy. This includes working with employers to raise the basic education and literacy levels of workers and allocating financial aid to adults seeking to attend community colleges.

National efforts, including the National Governors’ Association Pathways to Advancement, C.S. Mott Foundation’s State Sector Strategies, Ford Foundation’s Bridges to Opportunity and the Joyce Foundation’s Shifting Gears initiatives, have supported comprehensive policy reform at the highest levels of state government.

To meet the needs of working families, states are strengthening policies related to pay and benefits. Half of the states now maintain a minimum wage above the federal wage standard, and some states are doing more to provide paid parental leave for family and medical needs and to lower tax rates on the working poor. A number of states have recently created commissions to identify better policies to reduce family poverty.⁹

IMPLICATIONS FOR FEDERAL POLICY

State actions are only part of the answer. The federal government has a role and responsibility to ensure that all hard-working families have a true opportunity for economic advancement and success. It also has a responsibility to help keep American businesses competitive by investing in a higher-skilled labor force.

The nation requires a federal commitment to honor and support the efforts of all working families. That commitment should focus on four key goals:

1. Increase the number of working adults enrolled in and successfully completing education and skills-development programs.

2. Improve wages, benefits and supports for low-income working families and increase the number of good jobs.

3. Regularly assess the challenges of America’s working families and government policies on their behalf.

4. Focus the nation’s attention on increasing economic opportunities for low-income working families.

The nation cannot afford to ignore the declining conditions of working families. To renew the promise of the American Dream, federal and state governments must strengthen policies to better prepare working families for the economic challenges of the 21st Century. The time to act is now.

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