January 2019 City of Saint Paul Minnesota Mayor Melvin Carter Investing in Saint Paul’s Future Contents Executive Summary ........................................................................................................................................... 4 1. Introduction ....................................................................................................................................... 12 1.1. Background on CSA Programs ..................................................................................................... 12 1.2. Why a CSA Program for Saint Paul? ............................................................................................ 14 1.3. Purpose and Contents of this Document ...................................................................................... 16 2. Program Design Process .................................................................................................................. 17 2.1. CSA Task Force ............................................................................................................................ 17 2.2. Grasstops Engagement ................................................................................................................ 18 2.3. Community Engagement ............................................................................................................... 19 2.4. Implementation and Launch Timeline ........................................................................................... 20 3. Program Vision, Outcomes, and Evaluation ..................................................................................... 21 3.1. Vision and Values ......................................................................................................................... 21 3.2. Program Outcomes ....................................................................................................................... 22 3.3. Evaluation ...................................................................................................................................... 23 4. Program Design Recommendations ................................................................................................. 24 4.1. Eligibility......................................................................................................................................... 25 4.2. Enrollment ..................................................................................................................................... 25 4.3. Account Vehicle............................................................................................................................. 28 4.4. Initial Deposit ................................................................................................................................. 30 4.5. Bonuses to Build Account Balances ............................................................................................. 31 4.6. Allowable Uses of CSA Funds ...................................................................................................... 33 5. Program Administration .................................................................................................................... 35 5.1. Management and Staffing ............................................................................................................. 35 5.2. Account Management/Information System ................................................................................... 35 5.3. Communications and Marketing ................................................................................................... 36 5.4. Ongoing Community Input and Engagement................................................................................ 38 6. Family Outreach, Engagement, and Financial Capability Services ................................................. 40 6.1. Enrollment Outreach to Opt-in Participants .................................................................................. 41 6.2. Participant Engagement ................................................................................................................ 43 6.3. Financial Capability Services ........................................................................................................ 44 6.4. College Access Programs ............................................................................................................. 46 2 Investing in Saint Paul’s Future 6.5. Ambassadors and Champions ...................................................................................................... 47 7. Program Budget and Funding ........................................................................................................... 48 7.1. Implementation Year Budget ........................................................................................................ 48 7.2. Program Budget ............................................................................................................................ 48 7.3. Funding the Program .................................................................................................................... 50 8. Conclusion ........................................................................................................................................ 53 Appendices ....................................................................................................................................................... 54 Appendix A. CSA Task Force and Subcommittee Members..................................................................... 55 Appendix B. Attendees at the Community Organization Focus Group ..................................................... 57 Appendix C. Principles of Engagement ..................................................................................................... 58 Appendix D. Scale of Engagement and Community Ownership ............................................................... 59 Appendix E. Engagement Sessions Report .............................................................................................. 60 Appendix F: Implementation Year Work Plan ............................................................................................ 72 Appendix G. Logic Model ........................................................................................................................... 75 Appendix H. Detailed CSA Program Eligibility Rules ................................................................................ 77 Appendix I. CSA Program Enrollment Flowchart....................................................................................... 79 Appendix J. Potential Partners .................................................................................................................. 80 Appendix K. Outreach and Engagement Partnership Levels .................................................................... 82 Appendix L. Ambassador Program Description......................................................................................... 84 Appendix M: Budget Estimates for Bonus Deposits .................................................................................. 85 Appendix N: Glossary of Terms ................................................................................................................. 87 3 Investing in Saint Paul’s Future Executive Summary The recommendations in this report are rooted in a vision for the future of Saint Paul. It is a vision of a city with a thriving economy, shared prosperity, and equity among its diverse communities. It starts with ensuring that all children grow up in financially secure families, with the resources, support, and skills needed to attain postsecondary education and take full advantage of the city’s economic opportunities. The College Savings Account program laid out in this report is a critical part of a citywide effort to make this vision a reality. I. Background and Overview What Are CSAs? College Savings Accounts1 (CSAs)—also known as Children’s Savings Accounts—are long-term savings or investment accounts that help children (from birth to age 18) build savings for the future. CSAs are generally seeded with an initial deposit provided by the CSA program. Account balances grow through bonus deposits provided by the program, such as benchmark bonuses for children and/or their parents completing activities or for accomplishments (e.g., participating in financial coaching or receiving good grades), as well as deposits by families. In most CSA programs, upon reaching adulthood, participants use the funds for postsecondary education. CSA programs combine savings accounts with methods of engaging children and their families through financial education and other wraparound services to build their financial capability. Research shows that even small amounts of college savings can have a big impact on the lives of students from low-income households. One study found that low- and moderate-income children whose families saved $500 or less are three times more likely to attend college and four times more likely to graduate than those whose families have not saved.2 Having money set aside for postsecondary education helps foster a college-bound identity in children, in which they see themselves as someone who will go to college.3 This is particularly important for children from low-income households, since research shows that their expectations can be lower