Maryland Comptroller Brooke E. Lierman hosted a panel of national experts to examine the potential of baby bonds as a means of closing the racial wealth gap.
“Expanding Opportunity to Build Wealth: A Discussion of Baby Bonds in Maryland” took place on Wednesday at the Louis L. Goldstein Treasury Building following the release of the state’s first report on the feasibility of implementing a baby bonds program. State leaders, national policy experts, and community experts gathered to discuss the potential such a program had to address the racial wealth gap and to increase economic opportunity.
The difference between baby bonds and other types is that baby bonds are “publicly-funded trust funds administered by governments for babies born into low-wealth households,” according to the report. Beneficiaries get the initial contributions plus earnings when they become young adults. The funds are for wealth-building, like home-ownership, business or retirement investments, job training, or similar uses.
“Investing in children from the very start means helping their families build a strong foundation for their future — one that opens doors to education, homeownership, entrepreneurship, and the creation of generational wealth,” Lierman said. “Early access to capital empowers individuals with a baby bond to achieve stability and prosperity that may have seemed unattainable to previous generations. My hope is that this report will serve as a clear guide for the Maryland General Assembly as they consider future legislation.”
Lierman was joined in conversation by New Mexico State Treasurer Laura Montoya and David Radcliffe, director of state and local policy at The New School’s Institute on Race, Power, and Political Economy. They talked about the increased momentum behind baby bonds, and how Maryland can lead the way with innovative policies that help future generations build and keep wealth.
“An investment in our children is an investment back into our respective states,” Montoya said. “Baby Bonds build a future where every child, no matter what circumstances they’re born into, has the opportunity to reach their fullest potential and build our economy.”
“We applaud Comptroller Lierman and Maryland leaders who are willing to take a hard look at what keeps many Marylanders economically stuck – the lack of access to capital for wealth building activities,” Radcliffe said. “Baby Bonds is a powerful, people-focused investment, good for both young people and the state’s economy.”
Lierman released the comptroller’s office’s first official report on the feasibility and design of a statewide baby bonds program, which had been requested by the Maryland General Assembly. The report explores how such bonds would be implemented, funded, and sustained in such a way that the program would be aligned with both fiscal and broader policy goals of the administration. The core purpose of the bonds is to help children born into poverty build wealth and achieve long-term financial security.
Other panelists included Darius Graham, managing director of Community Investment for the Greater Washington Community Foundation; Tonaeya Moore, director of policy for the CASH Campaign of Maryland; and Madeline Brown, senior policy associate with The Urban Institute.
This is the most ridiculous absurd thing in the entire world. We already pay an arm and a leg in taxes. Why should I have to pay for somebody else having a child? I raise my child I’m not paid for her college on my own. I’ve served on active duty for 21 years and subsequently 20 years in civil service. No one ever gave me a dime to help my daughter go to college or anything else I worked for it and so should everyone else