$1.4M financial wellness grant program for public organizations yields success

Two years into the pandemic and it’s still trending daily on media websites and in office conversations around the watercooler—even if they’re digital these days. As a new year begins, it’s beginning to feel cyclical: Walk into a supermarket and the shelves are once again bare due to supply chain issues; local school districts are adapting as case counts rise.  

Between the uncertainty of childcare and the economy, the financial toll that so many have borne since 2020 is profound. Government workers aren’t immune. Recognizing this, a collaboration between the MissionSquare Research Insititute, the International Public Management Association For Human Resources and the National Association of State Treasurers Foundation, with funding from the Wells Fargo Foundation, distributed $1.4 million in grants for public employee wellness programs to 24 jurisdictions nationwide. From online workshops offered by community colleges to increases in HSA contributions, MissionSquare Research Institute on Wednesday published a list of programs started over the last year through those grants, highlighting challenges, successes and key takeaways. 

“Well-designed financial wellness programs are a win-win for employees and employers, especially at a time when governments are struggling to recruit and retain workers,” said Rivka Liss-Levinson, Ph. D., a senior research manager at MissionSquare Research Institute and the report’s lead author. “It is encouraging to see the wide variety of innovative programs implemented under the grant program to improve the financial well-being of the public workforce.” 

In Elizabeth City, N.C., for example, administrators implemented a digital personal financial wellness platform, along with webinars, engaging nearly half the municipality’s 320 employees. The initiative cost a little more than $20,000. Elsewhere, Washington, D.C., hosted 20 financial events and conducted “852 one-on-one sessions … within a 10-week period,” the report says, noting enrollment in the municipality’s 457(b) plan as a result of the initiative “increased by more than 1,300 participants.” 

Peoria, Ariz., held four interactive hour-long financial consultation boot camps (each for different stages of life). And Augusta, Maine, invested $25,000 toward expanding existing financial programs and providing in-house will and estate sharing that included “a cost-sharing incentive to help defray the cost to employees.” According to the report, “27 of 28 employees made progress on at least one of their primary financial goals, with 23 of 28 fully meeting their primary financial goal. Nineteen employees achieved their financial goals with minimal opportunity costs.” 

Beyond each individual initiative, the report highlights key takeaways useful to municipalities everywhere. A notable lesson learned through the project in Washington, D.C., was the value of “inclusive decision making and authority sharing. Each of the agencies involved could have tried to implement a program alone; however, it would not be as rich in content or as responsive to employees’ needs.” 

The financial wellness program’s success is attributed to the expertise of each partner organization. The benefits are sweeping. 

“We know financial wellness can result in more productive and engaged employees, improve morale, lower absenteeism, alleviate burnout and reduce health care costs,” said Liss-Levinson, noting that research from the Institute indicates the vast majority of state and local employees are worried about their personal finances and financial decisions—and they are experiencing burnout.  

Research also finds few public employers currently offer financial wellness programs, yet employees want these programs and believe they are important. 

The following public sector employers participated in the grant program: Central Carolina Community College, N.C.; Allen, Texas; Cleveland and Columbus, Ohio; Elizabeth City, N.C.; Moreno Valley, Calif.; Peoria, Ariz.; Ridgefield, Wash.; Roanoke, Va.; West Columbia, S.C.; Economic Empowerment Trust Fund, Office of the Massachusetts State Treasurer; Finance Authority of Maine; Government of the District of Columbia; Iowa Insurance Division; Lewis and Clark County, Mont.; Milwaukee County Transit System, Wisc.; Montgomery County Intermediate Unit, Pa.; Nebraska State Treasurer’s Office; Office of the Illinois State Treasurer; Pennsylvania Treasury; San Diego County Water Authority, Calif.; State of Wisconsin Employee Trust Funds and the Department of Financial Institutions; Town of Victor, N.Y.; and University of the Virgin Islands. 

A statement about the grant program notes the partnership included the development of a financial wellness toolkit. These resources include: a series of reference materials and guides on hosting virtual and in-person financial wellness conferences/meetings; a customizable speaker’s financial wellness toolkit; and a census of existing state financial wellness and education programs. All of those materials are available on MissionSquare Research Institute’s website, slge.org.