Gov. Peter Shumlin has proposed that the state implement a three-year time limit for recipients of the state’s welfare program for families, Reach Up, to receive benefits this year. In certain cases, benefits could be extended for two additional non-consecutive years. The plan would save the state $6 million.
The Shumlin administration recently released a report that breaks down the Reach Up program by the numbers. VTDigger has summarized the findings.
What happens when the cap goes into effect?
On Oct. 1, 1,188 families, or a total of 3,772 individuals, will lose their cash benefit. The majority — 2,398 — are children. Eighty-four percent of the households are single parents. They face, on average, 3.7 “barriers” to finding employment, including lack of transportation, emotional or physical health problems, and no high school diploma.
All of these families have received benefits for 36 months or longer. Some can temporarily regain their benefits after taking time off from the program. Someone who has received benefits for three years would be booted from the program for one year. They could receive benefits for the following year, then they would have to take another year off before being eligible for one final year of benefits.
As of September 2012, 864 families had exceeded 60 months of assistance — they would be cut off permanently from Reach Up on Oct. 1.
There are about 6,500 households currently in the Reach Up program, and they received benefits for 24 months on average. The median is 18 months.
What will they lose?
The Reach Up program currently provides cash benefits to cover roughly 50 percent of a household’s basic needs. Basic needs include food, shelter, clothing, fuel and utilities. In 2012, basic needs for a family of four were estimated to cost $1,289 per month, and the maximum Reach Up benefit would cover $726. For a family of two, the maximum benefit is $535. Benefit rates are slightly higher in Chittenden County.
What are the work requirements for Reach Up?
People can receive assistance for up to 12 months without meeting a work requirement; after that point, they must work a certain number of hours per week or they face sanctions, meaning that their benefits will be reduced. Work requirements vary depending on the composition of families, and exceptions are granted if adults are deemed unable to work. A single parent with a child under 6 years old is expected to work 20 hours per week. A single parent whose children are 6 or more years old must work 30 hours per week. In a two-parent household, the adults are expected to work a combined 40 hours per week.
Just under 2,000 Reach Up participants were employed between October 2011 and September 2012. About 50 percent were working in the services industry and just over 20 percent were working in retail or for transportation and public utility companies.
When a family of three starts making more than $13,200 a year it is no longer eligible for Reach Up.
How many of these people are not complying with Reach Up’s work requirements?
Nine percent of the households, or 101 individuals, who have been on Reach Up for more than 36 months are not meeting their work requirements.
How much does the Department of Children and Families spend on Reach Up and how much does the department stand to save?
DCF spends about $465,000 a month on families that have been on Reach Up for more than 60 months — a portion of this money comes from the federal grant and a portion comes from state funds. Sanctioned families, however, cannot receive funding from the federal government. As a result, the state must pay full freight, or an average of $7,864 per month for these families.
The department’s budget request for FY 2014 suggests it will save $6 million during the first nine months after the cap is enacted.
How does DCF plan to cushion the blow?
After families have received assistance for two years, an employment training specialist will contact them on a weekly basis. They will provide “enhanced vocational assessments,” a home visit, and a review of the family’s finances.
DCF will grant exemptions to the time limit if a household has medical problems or other barriers to employment that the department considers legitimate. Currently, there are 867 families who have been on Reach Up for more than 36 months but will be permitted to stay in the program beyond Oct. 1.
