A New Normal Part II: Reduce the Burden of Government Fines and Fees
Elmer is one of the 54% of California SaverLife members who suffered financial hardship as the result of local and state government fines and fees, according to a recent SaverLife study conducted in partnership with The Financial Justice Project.
In 2019, SaverLife polled our California members to ask what they hoped Governor Gavin Newsom would do to improve their economic situation. Number two on the list? Lowering the cost of local and state fines and fees (a more consistent work schedule was number one). This came as a big surprise. Our members consider lowering fines and fees a bigger financial priority than the cost of childcare (#3) or raising the minimum wage (#6).
We reached out to our partners at The Financial Justice Project to conduct a deep-dive research project into the financial impact of fines and fees on Californians. Over half of Californians surveyed told us that fines and fees had directly caused their family financial hardship, such as causing late fees on credit cards (71%), falling behind on household bills or utilities (48%), or taking a hit on their credit score (43%).
Car related expenses - like registration or license renewal fees - topped the list of concerns, with traffic and parking tickets close behind. When we asked for their proposed solutions, SaverLife members asked for common-sense reforms like discounts for those with lower incomes, monthly payment plans, and payment reminders.
These are the types of solutions The Financial Justice Project fights for every day. They have successfully lowered fines and fees for San Franciscans, leading to better outcomes for individuals and for governments. Their work is influencing local and state governments across the country.
This research was conducted pre-pandemic. As we begin to rebuild economically, we need to enact the common-sense reforms recommended by SaverLife members and ensure that local and state governments don’t instead start to increase fines and fees in a misguided effort to boost revenues.
There are two sides of the ledger when it comes to household financial stability - income and expenses. We cannot give with one hand and take with the other. We need to give families a fighting chance to recover, and lowering fines and fees is a critical step in creating a new normal of economic security for all.
“I think people feel that the system is working against them instead of trying to provide financial stability among one another.”