The Pathways to Family Economic Self-Sufficiency Act (HD872/SD501) Frequently Asked Questions

What is Pathways to Family Economic Self-Sufficiency? . Pathways to Family Economic Self Sufficiency 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 and would require that 40% of participants be recipients of Transitional Aid to Families with Dependent Children (TAFDC). . Pathways to Family Economic Self Sufficiency would enable low-income adults and teens with dependent children to attain education and/or skills training for jobs in high-demand occupations. Participants may receive vocational assessment, pre-employment training, remedial education, college navigation, opportunity for work-study jobs, internships or on-the-job training, and case management support to insure successful job placement and retention. Why does the Commonwealth need the Pathways to Family Economic Self-Sufficiency pilot program? . Massachusetts has a highly skilled economy. The unemployment rate for workers with only a high school diploma is two and a half times higher than those with college degrees.1 Workers with only a high school diploma earn about half of what those with a college degree or higher earn ($42,863 per year vs. $80,611 per year).2 . Eighty-five percent of TAFDC participants in Massachusetts have a HS Diploma or less.3 This makes it extremely difficult for them to compete in our state’s highly skilled economy. In the next five years, almost two thirds of all jobs in the United States will require some postsecondary education or training.4 What is the Commonwealth’s track record in helping low-income head of families gain the education and/or training they need for job placement and retention? . Massachusetts ranks 44th in the country for Temporary Assistance for Needy Families (TANF) participants enrolled in education or training. Only six states have fewer TANF participants enrolled in education or training than Massachusetts.5 . Massachusetts spends only one percent of its state and federal welfare funds for work- related activities for TAFDC recipients.6 This puts the Commonwealth in the bottom quarter of states for investment in work-related activities for TAFDC recipients. . Massachusetts’ investment in education and training for TAFDC participants has declined from a high of $36.2M in FY 2002 to a low of $7.9M in FY 2013.7 . Current state funded job readiness programs only enable TAFDC participants to secure low wage jobs that don’t pay enough to support a family.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 Self Sufficiency program look like? . The Commonwealth Corporation would issue a request for proposals to create pilot programs to meet regional needs. Community-based non-profits, non-profit two year colleges, community colleges, public vocational technical schools, career centers, and workforce investment boards would collaborate on programs for their regions. . Programs funded under the pilot may include the following: academic and work-readiness assessment, pre-employment training, case managers, social workers or college navigators to help participants address impediments and access services and supports, funding for work study jobs for students attending non-profit two-year colleges or community college 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 coordination and enhanced investment in education and training, low- income families can leverage the support from these critical programs to move out of poverty and become self supporting; 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? Before state budget cuts in 2009, Jewish Vocational Service (JVS) operated a program to train TAFDC recipients and other low income parents for medical office jobs. Training was provided for 20-25 hours a week for @ 25 weeks. Core classes in computer software (Excel, Power Point, and Access), basic accounting, and specialized medical office training led to a four-six week internship. JVS provided case management services and assisted with transportation and child care barriers in partnership with other agencies. Participants were placed in jobs and provided with follow up support. In the year following the training, participants earned 29% more than a control group who did not receive the sector based training. Participants earned an additional $4,000, were likely to work more hours, and to secure and retain jobs with benefits.10 What have other states done to help low-income families find and retain jobs? . Arkansas invests approximately $12M of its federal TANF 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.11 . Kentucky’s $10.8 M program, Ready to Work, helps TANF recipients 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.12 . In 2009-2010, 39 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.13 This legislation is supported by Asian American Civic Association , Bessie Tartt Wilson Initiative for Children, Community Education Project, Community Teamwork, Inc., Crittenton Women’s Union, Homes for Families, Horizons for Homeless Children, Jewish Vocational Service, Massachusetts Alliance on Teen Pregnancy, Massachusetts Association of Community Action Programs, Massachusetts Association of Jewish Federations, Massachusetts Coalition for the Homeless, Massachusetts Law Reform Institute, National Association of Social Workers Massachusetts, One Family, Inc., Project Hope, Public Higher Education Network of Massachusetts, SkillWorks, Wellspring House, Inc., Workforce Solutions Group, and Year Up-Boston.

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 Commonwealth Corporation. Annual Performance Report for Massachusetts Workforce Development Services and Programs. Boston, MA: Commonwealth Corporation, 2010. 4 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. 5 “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 6 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. 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 10 Public/Private Ventures. Executive Summary: Findings from the Sectoral Employment Impact Study, July 2010. 11 Bone, Josh. TANF Education and Training: The Arkansas Career Pathways Initiative. Washington, DC: CLASP, 2010. 12 Bone, Josh. TANF Education and Training: Kentucky’s Ready to Work Program. Washington, DC: CLASP, 2010. 13 Lower-Basch, Elizabeth, LaDonna Pavetti, and Liz Schott. Creating Subsidized Employment Opportunities for Low-Income Parents: The Legacy of the TANF Emergency Fund. Washington, DC: Center on Budget and Policy Priorities and CLASP, 2011.

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], 617-263-3344. 40 Court Street, 11th Floor, Boston, MA 02108 workforcesolutionsgrp.org 617-263-3344