On March 11, 2021, the American Rescue Plan Act of 2021 was signed into law, including the appropriation of more than $130 billion to the State and Local Fiscal Recovery Fund (“SLFRF”), for making payments to metropolitan cities, counties, and other units of local government to mitigate the fiscal effects stemming from the COVID-19 public health emergency. Hennepin County expects to receive direct payments from the U.S. Treasury totaling more than $220 million, and received the first payment of $122.9 million in May of 2021.

The American Rescue Plan Act provides that money from the State and Local Fiscal Recovery Fund may only be used to cover certain costs incurred between March 3, 2021 and December 31, 2024, including costs to respond to the COVID-19 public health emergency with respect to the Coronavirus Disease 2019 (“COVID–19”) or its negative economic impacts. Under the available guidance from the U.S. Treasury, this category of eligible costs can include mitigating the systemic economic challenges that have contributed to the inequal impact of the COVID-19 public health emergency on certain communities.

Employment strategies benefiting County residents and business were presented as part of the May 20, 2021, Workforce Development Board Briefing, and the July 15, 2021, Disparity Reduction Board Briefing. The strategies include the following:

• Career pathways: The goal of a career pathway is to lead to living wage jobs with advancement potential for the participants by ensuring they have the skills employers are seeking.
• Benefits cliff: A benefits cliff occurs for low-income residents when small increases in earned income result in a reduction or loss of essential public assistance benefits. Due to existing benefits cliffs, people may lose more than they gain when accepting a job or a raise or working overtime. This may weaken or eliminate their safety at the same time, leaving them vulnerable and even trapped in poverty. For employers, it can mean perpetually recruiting, hiring, and training for the same entry-level positions. To the detriment of all, residents do not exit public assistance programs, worker shortages continue, and overall economic growth is blocked. This effort seeks to ensure sufficient income through employment, so residents do not get caught in the space of the benefits cliff effect while engaging in our career pathways programming.
• Develop and implement tools for career seekers, providers and businesses: Tools to gain skills, conduct career exploration, connect with employers, and apply for jobs, as well as tools that help forecast employment trends.
• Workforce Leadership Council ("WLC"): This is the platform the County will use to convene regional public and private sector employers as well as education and non-profit partners for cross-sector sharing of ideas, promising practices, and resources, cultivating strong partnerships to address pandemic-related economic hardships including the disparate impact on BIPOC communities.

The WLC, as an employment strategy that will benefit County residents and business, was presented as part of the May 20, 2021, Workforce Development Board Briefing and the July 15, 2021, Disparity Reduction Board Briefing. The WLC is the platform the County will use to convene regional public and private sector employers as well as education and non-profit partners for cross-sector sharing of ideas, promising practices, and resources, cultivating strong partnerships to address pandemic-related economic hardships including the disparate impact on BIPOC communities.

The U.S. economy officially entered a recession in February 2021 (“pandemic recession”). One of the most concerning aspects of the pandemic recession is that it has exacerbated existing systemic economic challenges and racial disparities. Data from the Minnesota Department of Health suggests that racial and ethnic minority populations in Hennepin County bear a disproportionate burden of illness and death from the COVID-19 public health emergency and because members of these communities are more likely to hold part-time or seasonal/gig work patterns, these workers and their industries of occupation have suffered disproportionate economic impacts as a result of the COVID-19 public health emergency.

The County cannot do this work alone. Community-based organizations, educational institutions, the business community and the public workforce system are all critical partners in creating jobs, facilitating access to jobs that pay a livable wage and are in demand – through career pathways programs and the development and implementation of tools that prepare and connect residents to employers – and working to eliminate disparities.

Through this request, funding will be allocated as follows:

We are investing in these employment strategies for residents and business that have suffered systemic disproportionate economic hardships resulting from the COVID-19 public health emergency in order to achieve workforce and economic success, and reduce systemic and racial disparities in employment, income, education, health, housing, justice and transportation domains.

Current Request: The current request is to authorize use of Federal Pandemic Funds in an amount not to exceed $13 million to be utilized for career pathways programming and the Workforce Leadership Council, add three (3) limited duration FTEs to the 2021 Human Services department budget, delegate authority to the County Administrator, and negotiate agreements for services.