Frequently Asked Questions s37

An Act Related to Pathways to Family Success FREQUENTLY ASKED QUESTIONS

What is Pathways to Family Success? . Pathways to Family Success is a proposed pilot program that would equip low-income families for long-term economic stability and self-support. The pilot program would be administered by the Commonwealth Corporation under agreement with the Department of Transitional Assistance.

. Pathways to Family Success would enable low-income adults with dependent children to attain education and/or skills training leading to jobs in high-demand occupations. Participants would also receive the necessary assessments, pre-employment training, remedial education, college navigation and support, opportunity for work-study jobs, internships or on-the-job training and/or case management support to insure successful job placement and retention.

Why does the Commonwealth need the Pathways to Family Success pilot program? . Massachusetts workers with only a high school diploma are unemployed at rates 2.5 times higher than those workers with college (or higher) degrees.1 Workers with only a high school diploma earn only half of what those with a college degree or higher earn ($42,863 per year vs. $80,611 per year).2

. Between 2008 and 2018, almost 30 million new job openings—nearly two-thirds of all job openings—will be filled by workers who have at least some postsecondary education and training, whether that is an occupational certificate, diploma or degree.3

What is the Commonwealth’s track record in helping low-income head of families gain skills and/or training leading to job placement and retention? . Massachusetts ranks 44th in the country for TAFDC (Transitional Assistance for Families with Children) participants enrolled in education or training. Only 6 states have fewer TAFDC participants enrolled in education or training.4

. Massachusetts spends only 1% of its state and federal welfare funds for work-related activities for TAFDC recipients.5 This ranks the Commonwealth in the bottom quarter of states based on investment in work-related activities for TAFDC recipients. 85% of TAFDC participants have a HS Diploma or less.6

. Massachusetts’ investment in education and training for TAFDC participants has declined from a high of $36.2M in FY 2002 to $7.9M in FY 2013.7

. TAFDC participants secure low wage jobs that don’t pay enough to support a family, averaging $10 per hour, after participating in the available state funded job readiness programs.8

. 122,000 adults and children received TAFDC cash assistance in May 2012 at an annual cost of approximately $325M. Depending on family size, they live off a monthly benefit of $300-$500. They also qualify for food stamps.9

What would the Pathways to Family Success pilot program look like? . The Commonwealth Corporation would issue a request for proposals to vendors including community-based non-profits, community colleges, public vocational technical schools, career centers, and workforce investment boards to create pilot programs to meet regional needs.

. Funded pilot programs would include the following services: academic and work-readiness assessment, pre-employment training, case managers or college navigators to help participants enrolled in education or training to address impediments to participation and to access services and supports, funding for work study jobs for community college students and for work experience for those in skills training, funding to assist participants with emergency financial needs, remedial skills training, job search skills, job placement assistance and post-placement career development, support, and coaching.

What are the benefits of this approach? Massachusetts has a strong history of supporting its most vulnerable families with programs such as cash assistance (TAFDC), food stamps (Supplemental Nutrition Assistance Program) and Mass Health. With increased state coordination and enhanced investment in education and training, low-income families can leverage the support from these critical programs to move out of poverty; making a better life for themselves and their children and strengthening the state’s economy by increasing tax revenues and consumer spending.

What successful models exist in Massachusetts? JVS (Jewish Vocational Services) offers vocational English and employment services for refugees and new immigrants. Program evaluations have shown positive results in economic stabilization through vocational English (“English for Employment”), short-term job readiness training (typically, several weeks of computer and customer service training, resume development and job search), and job placement followed by post-placement retention and advancement services. At an annual cost of approximately $2,300, participants experience a wage increase of $1.64 per hour in the first year after program completion, and $6.20 per hour in five years after completing the program.

What have other states done to help low-income families find and retain jobs? . Arkansas invests approximately $12M of its federal Temporary Assistance for Needy Families (TANF) block to help low-income parents earn credentials at two-year colleges. The Arkansas Career Pathways Initiative provides a network of campus-based case managers who assist low- income parents to succeed in their studies. TANF funds also provide other types of urgent student support such as child care and transportation.

 Kentucky’s $10.8 M program, Ready to Work, helps TANF succeed in community college and at the same times helps the state meet its federal work participation rate. The program places coordinators at 16 colleges and helps students earn income and gain work experience through TANF funded work-study. About $7.7M of the appropriation is earmarked for the work study program.

. In 2009-2010, thirty-nine states, excluding Massachusetts, used TANF emergency funds to create subsidized jobs programs to help low-income workers access employment, supports and increased earning while decreasing unemployment and increasing employment tax revenue.

For more information contact Ruthie Liberman at Crittenton Women’s Union at [email protected] or Kathie Mainzer at the Workforce Solutions Group at [email protected]

Sources: 1 Massachusetts Budget and Policy Center. The State of Working Massachusetts 2010. Boston, MA: Massachusetts Budget and Policy Center, 2010. 2 Massachusetts Executive Office of Labor and Workforce Development. Massachusetts State Integrated Workforce Plan Program. Boston, MA: Massachusetts Executive Office of Labor and Workforce Development, 2012–2016. 3 Carnevale, Anthony P., Nicole Smith, and Jeff Strohl. Projections of Jobs and Educational Requirements Through 2018. Washington, DC: Georgetown University Center on Education and the Workforce, 2010. 4 “Temporary Assistance for Needy Families Average Monthly Number of Work-eligible Individuals with Hours of Participation by Work Activity as a Percent of the Total Number of Work-eligible Individuals,” U.S. Department of Health and Human Services, accessed August 28, 2012, http://www.acf.hhs.gov/programs/ofa/particip/2009/tab06c.htm. 5 Center on Budget and Policy Priorities. How States Have Spent Federal and State Funds Under the TANF Block Grant. Washington, DC: Center on Budget and Policy Priorities, 2012. 6 Commonwealth Corporation. Annual Performance Report for Massachusetts Workforce Development Services and Programs. Boston, MA: Commonwealth Corporation, 2010. 7 “Budget Browser: Employment Services Program FY08 and FY13,” Massachusetts Budget and Policy Center, accessed August 28, 2012, http://browser.massbudget.org/SelectCriteriaTime.aspx. 8 Commonwealth Corporation. Annual Performance Report for Massachusetts Workforce Development Services and Programs. Boston, MA: Commonwealth Corporation, 2010. 9 “DTA Facts & Figures,” Massachusetts Department of Transitional Assistance (DTA), accessed August 28, 2012, http://www.mass.gov/eohhs/researcher/basic-needs/financial/dta-facts-and-figures.html.