A State Fiscal Analysis Initiative (SFAI) group in North Dakota uncovered a startling disparity: Workers in the bottom one-fifth of the income range are paying 9.4 percent state income tax, while top wage earners pay less than half that. The North Dakota Economic Policy Project, an SFAI affiliate launched with Foundation grants, conducts research and analysis on ways to improve policies that impact low- and moderate-income families.
“We have been able to expose public information that can be difficult for ordinary citizens to access. This gives advocates the facts needed to make their case to lawmakers and counteract any misinformation,” said April Fairfield, senior policy analyst, North Dakota Economic Policy Project.
The group’s top priority is passing a state Earned Income Tax Credit (EITC) to make tax policies fairer. Designated for low-income working families, EITC often puts additional money in their tax refunds. The National Center for Children in Poverty calls it one of the most effective ways to lift families out of poverty. The state proposal is modeled after the federal EITC, which, with bipartisan support, is designed to ensure low-wage workers don’t pay a higher percentage of their income than others do.
“We tried to pass a state EITC in 2009, but weren’t successful. We didn’t have a well-developed research report or an organized advocacy coalition to support it,” explained Fairfield.
In 2010, however, advocates armed with SFAI research showed policymakers that 44,000 North Dakotans would benefit from an EITC. It could help bridge the gap for workers such as cashiers, home health care assistants or retail sales associates. With the help of additional facts, The EITC passed its first hurdle in the 2011 North Dakota legislature with no public opposition. Although the proposal did not make it through the full legislature, supporters feel the work of the SFAI has helped build a strong argument for eventually passing it.
“The SFAI allows for pure evidence-based analysis and research to be done that is independent of anyone or anything. It’s not beholden to any arm of government. It’s the kind of independent entity that will make a difference for people who are struggling to make ends meet,” said Rose Stoller, executive director of the Consensus Council, fiscal sponsor of the SFAI.
The North Dakota Economic Policy Project has targeted other priorities, including expanding eligibility for the Children’s Health Insurance Program and increasing Temporary Assistance for Needy Families childcare subsidies for parents completing a four-year degree. SFAI research, together with a strong advocacy and lawmaker network, gives new hope for advancing policies that benefit low-income families.
