Phone: 510-339-3801
Fax: 510-339-3803
E-mail: jmasters@cencomfut.com
Mailing Address:
Center for Community Futures
P.O. Box 5309
Berkeley, CA  94705
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Appendix D: Income and Work Support Policies and Strategies

Government Cash Assistance

      Temporary Assistance for Needy Families (TANF) cash assistance provides monthly cash benefits to very low-income families based on eligibility standards set by the states. TANF is not an entitlement program. Eligible families are not guaranteed benefits. Unlike previous welfare programs,

bulletA primary goal is to transition recipients to employment, so that cash benefits are no longer necessary;
bulletRecipients must fulfill ongoing work requirements; and
bulletThere is a time limit on benefits.

Requirements vary by state.

Food and Nutrition

      The Food Stamp program is the primary food assistance resource available to low-income families. Families with a gross income at or below 130 percent of the federal poverty are eligible. The resources are distributed through monthly vouchers to participants that can be used to purchase food. Food stamps are an entitlement, so all eligible families may receive benefits. However, many who are eligible do not participate. Reductions in TANF cash assistance have resulted in reduced food stamp participation, because non-TANF families are less likely to participate in the program. Rates among eligible working families are particularly low.53

Additional nutritional programs include54:

bulletThe Special Supplemental Nutrition Program for Women, Infants, and Children - better known as the WIC Program - serves to safeguard the health of low-income women, infants, & children up to age 5 who are at nutritional risk by providing nutritious foods to supplement diets, information on healthy eating, and referrals to health care55  
bulletNational School Lunch Program - public or nonprofit private schools of high school grade or under and public or nonprofit private residential childcare institutions may participate in the school lunch program. School districts and independent schools that choose to take part in the lunch program get cash subsidies and donated commodities from the U.S. Department of Agriculture (USDA) for each meal they serve. In return, they must serve lunches that meet federal requirements, and they must offer free or reduced price lunches to eligible children. School food authorities can also be reimbursed for snacks served to children through age 18 in after-school educational or enrichment programs.  
bulletSpecial Milk Program - the Special Milk Program (SMP) provides milk to children in schools and childcare institutions who do not participate in other federal meal service programs. The program reimburses schools for the milk they serve.  
bulletThe School Breakfast Program (SBP) provides cash assistance to States to operate nonprofit breakfast programs in schools and residential childcare institutions. It is administered at the federal level by FNS. State education agencies administer the SBP at the State level, and local school food authorities operate it in schools.  
bulletSummer Food Service – this program ensures that children who are eligible for free and reduced meals during the school year continue to receive good nutrition during the summer. State education agencies administer the program in most States. Locally, the program is run by approved sponsors, including school districts, local government agencies, camps, or private nonprofit organizations. Sponsors provide free meals to a group of children at a central site, such as a school or a community center. They receive payments from USDA, through their State agencies, for the meals they serve and for their documented operating costs.  
bulletChild and Adult Care - FNS administers the program through grants to States. FNS provides cash assistance to designated state agencies for meals served to eligible children and adults in day care centers based upon the participant’s eligibility under the Income Eligibility Guidelines for free, reduced price, or paid meals. In centers, participants from households with incomes at or below 130 percent of poverty are eligible for free meals. Participants in centers with household incomes between 130 percent and 185 percent of poverty are eligible for meals at a reduced price. Institutions must determine each enrolled participant’s eligibility for free and reduced price meals served in centers.  

Health Insurance

      It has been repeatedly documented that the poor have significantly more health issues than the average citizen. Very low-income individuals are56:

bulletMore than twice as likely to have mental disorders than high income individuals;
bulletMore likely to engage in unhealthy behaviors (smoking, drugs, alcohol, poor diet, unprotected sex);
bulletMore subject to injury caused by violent crime; and
bulletMore likely to suffer the affects of pollution from the neighborhoods in which they live.

They are also less likely to seek medical attention, particularly preventative medical attention.

Medicaid is the largest health and medical care resource for low-income individuals. It is a federal program under Title XIX of the Social Security Act, jointly funded by federal and state governments. The program has greatly expanded since its inception in 1965 due to expanded coverage beyond its original intent to provide medical coverage just to cash assistance recipients.

Although the federal government sets broad guidelines, individual states are authorized to determine:

bulletEligibility standards
bulletType, amount, duration, and scope of services
bulletRate of payment for services
bulletProgram administrative rules.

Programs therefore vary from state to state as well as within states over time. Not all people in poverty are eligible, although to receive federal matching funds, states are required to provide coverage for certain “categorical needy” groups, including Supplemental Security Income recipients, and children under age six whose family income is at or below 133 percent of the federal poverty level.

Federal policy requires states to offer basic services to individuals who fall within the categorically needy populations. These services include:

bulletInpatient hospital services.
bulletOutpatient hospital services.
bulletPrenatal care.
bulletVaccines for children.
bulletPhysician services.
bulletNursing facility services for persons aged 21 or older.
bulletFamily planning services and supplies.
bulletRural health clinic services.
bulletHome health care for persons eligible for skilled-nursing services.
bulletLaboratory and x-ray services.
bulletPediatric and family nurse practitioner services.
bulletNurse-midwife services.
bulletFederally qualified health-center (FQHC) services, and ambulatory services of an FQHC that would be available in other settings.
bulletEarly and periodic screening, diagnostic, and treatment (EPSDT) services for children under age 21.

The State Children’s Health Insurance Program (SCHIP) gives grants to states to provide health insurance coverage to uninsured children up to 200% of the federal poverty level (FPL). The legislation sets eligibility criteria. States can decide to cover all of those children or to target coverage to a narrower group of children. The eligibility criteria are to cover uninsured children who are:

bulletnot eligible for Medicaid
bulletunder age 19; and
bulletat or below 200% of the federal poverty level (FPL).

Since enactment of the SHCIP block grant program to states in 1997, the number and rate of uninsured children has substantially declined for near-poor children, those from families with incomes 100-200% of the federal poverty level. However, it is estimated that 2.7 million near-poor children remain uninsured, despite the fact that the vast majority would be eligible for Medicaid or SCHIP.57

While the near poor have experienced considerable benefit, there has been little impact on the poor themselves. “The most recent data suggest that 27.3% of all poor children and 24.9% of all poor citizen children are uninsured, despite the fact that all citizen children in this income range were eligible for Medicaid or SCHIP in 2000.”58 Reasons parents gave for not enrolling their children included lack of knowledge of the program, administrative hassles involved with enrollment, and not wanting their children covered by public programs or thinking it wasn’t needed. Information about requirements in each state can be obtained through the Insure Kids Now! website at http://www.insurekidsnow.gov/states.htm

Clearinghouse services: The U.S. Department of Health and Human Services, Bureau of Primary Health Care, maintains several databases, including geographic listings of health centers that provide free or low-cost care and a pharmacy database for reduced cost medications (http://bphc.hrsa.gov/bphc/database.htm).

There are also a number of smaller targeted programs that include block grants for maternal and child health services; community health centers; migrant health centers; and the Indian Health Service.  

 

Housing Assistance

Section 8 Housing Choice Vouchers allow very low-income families to choose and lease or purchase safe, decent, and affordable privately owned rental housing. The trend has been to move toward a voucher process and away from public housing projects. The majority of people receiving Section 8 assistance now receive vouchers rather than live in housing projects. There are several types of vouchers, including:

bulletConversion - If a family lives in a public housing unit that is scheduled to be demolished, disposed of or converted, they will be contacted by the public housing agency (PHA) when they are eligible for a conversion voucher. The PHA compares the family’s annual income (gross income) with the HUD-established very low-income limit or low-income limit for the area. The family cannot earn more than this limit. It is the responsibility of a family to find a unit that meets their needs. If the family finds a unit that meets the housing quality standards, the rent is reasonable, and the unit meets other program requirements, the PHA executes a housing assistance payment (HAP) contract with the property owner. This contract authorizes the PHA to make subsidy payments on behalf of the family.  
bullet Family unification - Family unification vouchers are made available to families for whom the lack of adequate housing is a primary factor in the separation, or threat of imminent separation, of children from their families or in the prevention of reunifying the children with their families. Family unification vouchers enable these families to lease or purchase housing that is affordable in the private housing market.  
bulletHomeownership - Homeownership vouchers assist first-time homeowners with their monthly homeownership expenses. The home must pass an initial housing quality standards inspection conducted by the PHA and an independent home inspection before the PHA may approve. PHAs may choose to administer a homeownership program, but are not required to do so.  
bulletProject based - Project-based vouchers are a component of a (PHAs) housing choice voucher program. A PHA can attach up to 20 percent of its voucher assistance to specific housing units if the owner agrees to either rehabilitate or construct the units, or the owner agrees to set-aside a portion of the units in an existing development. There are no appropriations for this program and HUD does not allocate funding for project-based voucher assistance. Instead, funding for project-based vouchers comes from funds already obligated by HUD to a PHA under its annual contributions contract (ACC).  
bulletTenant based - Tenant-based vouchers increase affordable housing choices for very low-income families. Families with a tenant-based voucher choose and lease affordable privately owned rental housing. Very low-income families (i.e., families with incomes below 50% of area median income) and a few specific categories of families with incomes up to 80% of the area median income are eligible. These include families that are already assisted under the 1937 U.S. Housing Act, such as families physically displaced by public housing demolition, and owners opting out of project-based section 8 housing assistance payments (HAP) contracts.  
bulletVouchers for people with disabilities – elderly and non-elderly families that have a person with disabilities are eligible. As part of a demonstration program between HUD and HHS, 400 vouchers were awarded in Fiscal Year 2001 to 11 lead PHAs to partner with Medicaid agencies in providing housing assistance to non-elderly disabled persons transitioning from nursing homes into the community.  
bulletWelfare-to-work vouchers - To address the lack of stable, affordable housing available to families moving off of welfare, HUD awarded approximately 50,000 additional housing choice vouchers to housing authorities throughout the country through its Welfare to Work (WtW) Voucher Program.  According to the National Low-Income Housing Coalition, the housing voucher program is generally successful, but could be improved. They note that:
bulletDifferent administrators in the same housing market require different forms and procedures, making it difficult for owners and tenants to maximize their use of Section 8 and inhibiting the portability of vouchers;
bulletOwners are sometimes deterred from participating because of late rental payments from administrators or difficulties with tenants;
bulletAdministrators contend that their parent housing authorities skim off a portion of the administrative fees they receive from HUD, impairing their ability to run their programs efficiently.  

The Coalition has made recommendations for improvement, including setting payment standards at levels that allow voucher holders to maximize opportunities to use the voucher, and conducting thorough rent reasonableness determinations to avoid excess subsidy payments.59 

“Housing vouchers look particularly promising as a tool for promoting employment. Studies have identified a distinct advantage to vouchers compared to public housing projects… Data from the National Survey of American Families show that among poor families who left welfare between 1997 and 1999, those with housing assistance had significantly higher barriers to employment— low education levels, poor mental and physical health, and lack of recent work experience—than those without it. Despite these barriers, however, they achieved employment rates and incomes equal to or above families without subsidized housing. A study in Massachusetts also found better employment outcomes among families with housing assistance despite greater employment barriers, including a longer history of welfare use.”60  However, there are waiting lists for these vouchers, and only a small percentage of eligible individuals receive them.

Energy Assistance

            Low Income Home Energy Assistance Program (LIHEAP) is a federal program under the authority of the Office of Community Services that helps low income households pay for heating and/or cooling their homes. The program targets two groups of low-income households that have the highest home energy needs:

bulletVulnerable households, which include frail older individuals, individuals with disabilities, and very young children.
bulletHigh energy burden households, i.e., those with the lowest incomes and highest home energy costs.

LIHEAP applications, eligibility, assistance, and benefit levels vary among LIHEAP programs and individuals must contact their individual state agencies to find out about requirements. LIHEAP grantees can spend a portion of their funds on weatherization or low-cost energy related repairs for homes, but they are not required to do so. If they wish, they can use some of their funds to do such things as fix leaky doors or windows, install insulation, or repair/replace defective or inefficient furnaces or air conditioners. Sometimes, grantees will not weatherize rental homes or apartments unless the landlord agrees to pay for a portion of the cost or agrees to other conditions.

The U.S. Department of Energy (DOE) also administers a program called the Low Income Weatherization Assistance Program (LIWAP) to weatherize homes or apartments of low income people. This program is usually run at the local level by Community Action Agencies.61

The federal government operates a National Energy Assistance Referral (NEAR) project. NEAR is a free service for persons who want information on where to apply for energy assistance. Individuals may call toll-free at 1-866-674-6327 for energy assistance referral, or e-mail for help at energyassistance@ncat.org.

Child Care

    The Child Care and Development Fund (CCDF) was created in 1996 to consolidate several fragmented programs. The fund subsidizes childcare for low-income families to enable them to work or participate in education or training. Assistance is provided in the form of:

bulletA contracted child care slot; or
bulletA voucher that may be used to access care by any provider that meets state requirements.

The subsidy is usually paid directly to the provider and covers the difference between the family’s co-payment and the actual cost of care. The cost of care is capped by maximum state payment rates. The co-payment is based on factors that include income, family size, and the number of children in care. CCDF subsidies are not a federal entitlement. Not everyone who is eligible receives subsidies. Only Rhode Island guarantees benefits to all eligible families who apply. Nearly half of the states keep waiting lists for subsidies, and more than 500,000 children were on these lists in 2003.62  CCDF provides states with an annual base amount as well as matching funds, as long as states meet maintenance of effort and matching requirements. States may transfer money into CCDF programs from TANF and other sources.63 

Because of the variety of state rules and programs, there are websites available to help people get to the information they need about local eligibility. These include the National Child Care Information Center at http://nccic.org/statedata/statepro/index.html and Child Care Aware at http://www.childcareaware.org/en/.

The United States Department of Agriculture's Rural Development programs offer loans to develop community facilities, which may include childcare centers. Public entities (such as counties and cities) and non-profit organizations (under certain conditions) may be eligible for the loans. For details, consult USDA's web site at: http://www.rurdev.usda.gov/rhs/index.html. The Senate voted on March 30, 2004 for an amendment to the TANF reauthorization bill that would increase funding for child care assistance by $6 billion. The Senate has not yet passed TANF reauthorization. The House, in 2003, passed a TANF reauthorization bill requiring $1 billion in additional childcare funding. Individuals programs such as WIA are allowed to provide vouchers to participants for childcare while they are in training, although they are not required to do so.

Transportation

  Reliable Transportation is essential to enable people to get to work every day, and thus retain their jobs, but most job development has been in suburban areas while the poor tend to live in urban or rural areas. In 1998, the Federal Transit Administration (FTA) found that:

bulletOnly about 6 percent of welfare recipients owned automobiles;
bulletTwo-thirds of all new jobs were in the suburbs, but three-fourths of welfare recipients lived in rural areas or central cities;
bulletIn metropolitan areas with excellent public transit systems, less than half of the jobs were accessible by public transit.64

Further, many low-income workers must work 2nd or 3rd shifts when public transportation, if it is available at all, may not be in operation.

Meeting transportation needs has been traditionally handled on an individual basis, with participants in programs such as WIA, Welfare-to-Work, and other job training programs receiving vouchers, bus passes, and taxi reimbursements from program funds. Whether to use such funds for transportation supports is at the discretion of the individual program grantees. The U.S. Department of Labor, Federal Transit Administration, and HHS developed guidance that clarified that TANF and welfare-to-work funds could be used for:

bulletContracting for shuttles, buses and car pools
bulletPurchasing vans, shuttles and minibuses
bulletPurchasing rider slots, passes or vouchers
bulletFacilitating the donation and repairs of older vehicles
bulletProviding loans to eligible individuals for lease or purchase of vehicles
bulletMaking one time or short-term payments for repairs and insurance65

The Federal Transit Administration found that "most state welfare plans submitted to the federal government barely mentioned transportation.”66

The Department of Health and Human Services has provided guidance on how to use TANF  s a match for car purchases with IDAs. Arkansas, Connecticut, Oklahoma, Illinois, Tennessee, Pennsylvania, and Maine have policies supporting matched saving accounts for car purchase, and some of these states use TANF to match savings.67

On April 2, 2004, the House passed the federal transportation bill ensuring programming for low-income workers, the disabled, and seniors with enhanced funding opportunities for rural communities. The bill retains funding for the Job Access Reverse Commute (JARC) program. JARC, which originated in 1998, provides grants to transportation projects that connect low-income workers to employment and related services. Several grants provided new transportation services to low income workers. According to a survey completed by the University of Illinois at Chicago, sixty-six percent of workers who used these new services said that they had total reliance on the new service and could not get to work without it, twenty-seven percent of respondents said that they did not work prior to new services being provided as a result of the program and thirty percent earned more income due to the service.68

Minimum Wage and Living Wage

          The first federal minimum wage law was introduced as a part of the Fair Labor Standards Act (FLSA) of 1938. Today the law applies to about two-thirds of wage and salary workers. It is not indexed to inflation or any other indices of cost of living. Increases in federal minimum wage are by votes in Congress.

Many states have their own minimum wage laws. Between 1979 and 1989, the number of states with minimum wages higher than the federal level went from one to 15.69  Twelve states (Alaska, California, Connecticut, Delaware, Hawaii, Illinois, Maine, Massachusetts, Oregon, Rhode Island, Vermont, Washington), and the District of Columbia have established a minimum wage that is higher than the federal minimum wage of $5.15 an hour, with a high rate of $7.16/hour in Washington, and $7.15/hour in Alaska.

Attempting to raise wages of some low-income workers closer to a level sufficient to support their families and set an example through jobs created by public funding, over 50 localities have enacted “living wage” ordinances. In the cities and counties where ordinances have been initiated, they generally apply to employers who have a contract with local government or businesses that receive economic development subsidies from the locality. The wage rates specified by the living wage ordinances range from just under $7 an hour in Milwaukee, Wisconsin to a high of $12 an hour in Santa Cruz, California. More than half of the ordinances also require or encourage employer-provided health insurance.

-----------

1 Personal Finance and the Rush to Competence: Financial Literacy Education in the U.S., Lois A Vitt, Carol Anderson, Jamie Kent, Deanna Lyter, Jurg Siegenthaler, Jeremy Ward, Institute for Socio-Financial Studies, 2000.(www.ISFS.org)
2 FDIC, during a symposium entitled “Tapping the Unbanked Market” in Washington DC on November 5, 2003.  
3 2001 Survey of Consumer Finance, Federal Reserve Board.  
4 Income Households, section IV, Larry W. Beeferman and Sandra H. Venner, Asset Development Institute, Center on Hunger and Poverty, Heller Graduate School, Brandeis University, April 2001.  
5 Sharing the Wealth: Resident Ownership Mechanisms, Heather McCulloch, Policy Link, 2001.  
6 Ibid.  
7 This practice, known as “flipping” generates considerable fees for lenders each time the loan is refinanced.  
8 Federal bank regulators refer to the Federal Deposit Insurance Corporation; the Federal Reserve System; the Office of the Comptroller of the Currency; the National Credit Union Administration; and the Office of Thrift Supervision.  Both the Office of the Comptroller of the Currency and the Federal Reserve Board have recently asserted their authority to utilize the FTC Act.  
9 See 15 U.S.C. §§ 1601-1667f (2000 & Supp 2003).  
10 See 15 U.S.C. § 1635.  
11 See Pub. L. 103-325 §§ 151-158, 108 Stat. 2190-2198.  
12 Loans with balloon payments offer consumers lower monthly payments but one large payment (the balloon) is due when the loan matures. Some bad actors have extended such loans to consumers without informing them about the balloon feature. Loans with negative amortization allow borrowers to make regularly scheduled payments that do not cover the interest due on the loan. Mandatory arbitration clauses limit a borrower’s ability to seek redress against the lender in court. Loans with such features, when fully disclosed, can provide benefits, particularly to financially sophisticated borrowers. However, these features have also been used to harm certain consumers such as the elderly.  
13 Minnesota Family Investment Program, at http://www.dhs.state.mn.us/ECS/Program/mfip.htm  
14 Reforming Welfare and Rewarding Work, A program Evaluation, Manpower Distribution Research Group, 2000  
15 Ibid.  
16 Low-Income Families and the Marriage Tax, Laura Wheaton, the Urban Institute, September 1, 1998, at http://www.urban.org/urlprint.cfm?ID=6394.  
17 Helping Unwed Parents Build Strong and Healthy Marriages: A Conceptual Framework for Interventions, Final Report, Department of Health and Human Services, 2003  
18 Beyond Marriage Licenses: Efforts in States to Strengthen Marriage and Two-Parent Families, A State-by-State Snapshot, Theodora Ooms, Stacey Bouchet, and Mary Parke, CLASP (Center for Law and Social Policy), April 2004. Also at http://www.clasp.org/DMS/Documents/1082987634.24/beyond_marr.pdf%20.  
19 Welfare Promotes Marriage”, Cheryl Wtzstein, The Washington Times, September 16, 2002. On-line at http://www.shatterdmen.com/Welfare%20promotes%20Marriage.htm  
20 Beyond Marriage Licenses: Efforts in States to Strengthen Marriage and Two-Parent Families, A State-by-State Snapshot, Theodora Ooms, Stacey Bouchet, and Mary Parke, CLASP (Center for Law and Social Policy), April 2004. Also at http://www.clasp.org/DMS/Documents/1082987634.24/beyond_marr.pdf%20  
21 Helping Unwed Parents Build Strong and Healthy Marriages: A Conceptual Framework for Interventions, Final Report Department of Health and Human Services, 2003   
22 Beyond Marriage Licenses: Efforts in States to Strengthen Marriage and Two-Parent Families, A State-by-State Snapshot, Theodora Ooms, Stacey Bouchet, and Mary Parke, CLASP (Center for Law and Social Policy), April 2004. Also at http://www.clasp.org/DMS/Documents/1082987634.24/beyond_marr.pdf%20  
23 www.socialwork.iu.edu
24 www.gottman.com/marriage  
25 www.couplecommunication.com
26 www.imagotherapy.com
27 www.pairs.com
28 www.retrouvaille.org
29 Beyond Marriage Licenses: Efforts in States to Strengthen Marriage and Two-Parent Families, A State-by-State Snapshot, Theodora Ooms, Stacey Bouchet, and Mary Parke, CLASP (Center for Law and Social Policy), April 2004. Also at http://www.clasp.org/DMS/Documents/1082987634.24/beyond_marr.pdf%20 
30 Incarceration and Bonds Among Parents, Bendheim-Thoman Center for Research on Child Wellbeing, Princeton University, 2002  
31 Beyond Marriage Licenses: Efforts in States to Strengthen Marriage and Two-Parent Families, A State-by-State Snapshot, Theodora Ooms, Stacey Bouchet, and Mary Parke, CLASP (Center for Law and Social Policy), April 2004. Also at http://www.clasp.org/DMS/Documents/1082987634.24/beyond_marr.pdf%20.  
32 http://www.hyperdictionary.com/dictionary/capital  
33 Human Capital, Gary Becker, in The Concise Encyclopedia of Economics, The Library of Economics and Liberty, at http://www.econlib.org/library/Enc/HumanCapital.html 
34 Supports for Low-Income Families; States Serve a Broad Range of Families through a Complex and Changing System, United States General Accounting Office, January, 2004.  
35 Income Households, Larry W. Beeferman and Sandra H. Venner, Asset Development Institute, Center on Hunger and Poverty, Heller Graduate School, Brandeis University, April 2001.  
36 Ibid.  
37 These states are Colorado, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oklahoma, Oregon, Rhode Island, Vermont, Virginia, Wisconsin, and the District of Columbia.  
38 Making Wages Work: The Child Tax Credit, The Finance Project, www.financeprojectinfo.org/mww/childtaxcredit.asp  
39 Getting ahead: A survey of low-wage workers on opportunities for advancement, conducted by Lake Snell Perry & Associates for Jobs for the Future, September 2003  
40 Building bridges to self-sufficiency: Improving services for low-income working families, Jennifer Miller, Frieda Molina, Lisa Grossman & Susan Golonka, March 2004, for National Governors Association Center for Best Practices (NGA Center) and MDRC.  
41 Closing the Gap: How Sectoral Workforce Development Programs Benefit the Working Poor, The Aspen Institute, 2001.  
42 Quoted in Getting ahead: A survey of low-wage workers on opportunities for advancement, conducted by Lake Snell Perry & Associates for Jobs for the Future, September 2003. Also, The Self Sufficiency Standard for the City of New York, Wider Opportunities for Women and Women’s Center for Education and Career Advancement. Pearce, Diane, September 2000.  
43 Getting ahead: A survey of low-wage workers on opportunities for advancement, conducted by Lake Snell Perry & Associates for Jobs for the Future, September 2003.  
44 The Struggle to Sustain Employment: The Effectiveness of the Postemployment Services, Rangarajan, A. and Novak, T., Mathematica Policy Research Inc., April 1999, at http://www.mathematicampr.com/publications/PDFs/strug-rpt.pdf.  
45 Steady Work and Better Jobs: How to Help Low-Income Parents Sustain Employment and Advance in the Workforce, Strawn and Martinson, Manpower Demonstration Research Corporation, June 2000.  
46 Ibid.  
47 Staying Employed After Welfare: and Work Supports Job Quality Vital To Employment Tenure And Wage Growth, Heather Boushey, Economic Policy Institute Briefing Paper.  
48 Using Incentives to Promote Job Retention and Advancement: Guidance from the Performance Improvement Industry Final Report, Heather Hill and LaDonna Pavetti; Mathematica Policy Research, Inc. May 9, 2000.  
49 Ibid.  
50 Incumbent Worker Training for Low-Wage Workers, Nanette Relave, Welfare Information Network Issue Notes, Vol. 7 No. 13; October, 2003.  
51 Ibid.  
52 Ibid.  
53 National Center for Children in Poverty, at http://nccp.org/policy_index_20.html  
54 United States Department of Agriculture, at http://www.fns.usda.gov/fns/  
55 USDA Food and Nutrition Service, at http://www.fns.usda.gov/wic/aboutwic/default.htm  
56 Health Policies for the Non-Elderly Poor, Mullahy and Wolfe, in Understanding Poverty, Danziger and Haveman, Russell Sage Foundation, 2001.  
57 Five Things Everyone Should Know about SCHIP, The New Federalism: Issues and Options for State, The Urban Institute, October 2002.  
58 Ibid.  
59 Scarcity and Success: Perspectives on Assisted Housing; National Low-Income Housing Coalition, http://www.nlihc.org/  
60 National Center for Children in Poverty, at http://www.nccp.org/pub_sum03c.html  
61 U.S. Department of Health and Human Services, Administration for Children and Families, Questions and Answers Support, at http://faq.acf.hhs.gov  
62 National Center for Children in Poverty; http://www.nccp.org/pub_swf04.html  
63 National Center for Children in Poverty, http://www.nccp.org/policy_long_description_13.html  
64 Welfare and Transportation: Will there be justice for the poor? Beverly G. Ward; http://thewitness.org/archive/julyaug2002/welfaretrans.html  
65 Transportation: The Essential Need to Address the "To" in Welfare–to-Work; Kaplan; Welfare Information Network; Issue Notes; Vol. 2 No. 10, June, 1998.  
66 Welfare and Transportation: Will there be justice for the poor? Beverly G. Ward, at http://thewitness.org/archive/julyaug2002/welfaretrans.html 
67 National Economic Development and Law Center; http://www.nedlc.org  
68 A User Survey of Transportation Services Funded by the Job-Access-Reverse-Commute Program; Sööt, S., Sriraj, P.S. and Thakuriah, P., prepared for the Federal Transit Administration, Urban Transportation Center, University of Illinois at Chicago, 2002, at http://www.utc.uic.edu/~fta/Reports/survey02.pdf  
69 States Move on Minimum Wage: Federal Inaction Forces States to Raise Wage Floor to Protect Low-Wage Workers, Jeff Chapman, Economic Policy Institute, June 11, 2003.

 

Creating A 21st Century Model To Address Poverty

Maximizing Technology

Research Brief

August 31, 2004

1 Background

1.1 The Changing Face of Technology

Developments in IT over the next five years will significantly change how individuals, governments and societies deal with information. There will be new and better ways of presenting, analyzing and using information. There will be improved mobile devices for end users, much-improved middleware, better-conceptualized standards, wider connectivity, new collaboration tools, and new and better models for doing business. Many upcoming technological innovations will change how people, teams, enterprises, governments and even whole societies interact with and share data. Imagine a world where objects can sense, reason, communicate and act. The explosion of smaller, cheaper sensors, continuously connected through wireless communications, will create a sensory web where we will see the physical world online – this will change everything.  The main drivers are standards for improved interoperability, improved understanding of information supply chains, wider connectivity and some key technologies like micropayments, digital rights management, extensible markup language and ontologies. Many of the implications are beyond providing better IT infrastructure. They are more about doing business completely differently.

If we consider the state of the world technologically as it was in 1994 - just 10 years ago, we would be without email, without a cell phone, without instant messaging. We would not be browsing the Internet nor would we be transacting business via e-commerce. We would not have Personal Digital Assistant’s (PDAs) or web kiosks. We would be technologically immature. In year 2014, we will look back to 2004 and we will appear to have been technologically immature. Instead of carrying a computer around, computing environments will be available everywhere for personalized access to anytime/anywhere information via modified TV, electronic kiosks, or airplane display monitors. Voice activated applications will have substantially reduced the need for keyboard typing.  Physical hardware computing machines and “boxes” as we know them will have been replaced by virtual networks. All relevant information will be connected and accessible to anyone granted permission to access it - at any time. Electronic devices will integrate and communicate wherever we are, giving us any information that we need. The network will be the heart of it all — personal and pervasive. Emerging technology and trends will transform the ability of businesses and people to control their work and personal environments. The Human Services infrastructure must successfully face the business and human challenges that will arise in the always-on, always-connected world of 2014.

Experts maintain that a new US and world economy has emerged – a new stage of global capitalism. This new stage is referred to by some as post industrialism or informationalism. Informationalism represents a third industrial revolution (table 1.1).  The first followed the invention of the steam engine in the eighteenth century and was characterized by the replacement of hand tools by machines. The second followed the harnessing of electricity in the nineteenth century and was characterized by the development of large scale factory productions. The third revolution came to fruition in the 1970s with the diffusion of the transistor, the personal computer and telecommunications. In other words, what we have is not an Internet economy but an information economy in which computers and the Internet play an essential and enabling role. Experts have identified four features that distinguish informationalism from the prior industrial stage: the driving role of science and technology for economic growth; a shift from material production to information processing; the emergence and expansion of new forms of networked industrial organization and the rise of socioeconomic globalization.1

Table 1.1 – The Three Industrial Revolutions

 

First
Industrial Revolution

Second
 Industrial Revolution

Third
Industrial 
Revolution

Beginning

Late 18th century

Late 19th century

 

Mid to late 20th

Key Technologies

Printing press, steam engine, machinery

Electricity, internal combustion, telegraph, telephone

Transistor, personal computers, telecommunications, Internet

Archetypical Workplace

Workshop

Factory

Office

Organization

Master-apprentice-serf

 

Large vertical hierarchies

Horizontal Networks

 

            The changes to date in the world’s economy (as noted above) as well as emerging technologies that are changing business practices as we know them, create the need for all industries to reevaluate their use of technology to achieve goals and objectives.  

1.2 Technology in Human Services Delivery Infrastructure

Human services programs have evolved dramatically during the past several generations, often experiencing tectonic shifts as political perceptions evolve regarding their need and value.2  Prior to the Great Depression, most human services needs were addressed by the families or religious institutions of those in need. However, because the Great Depression generally overwhelmed the ability of families and charities to care for all of those in need, government programs were created. In the mid-1960s, the number and complexity of government programs grew dramatically as part of the "war on poverty." As political leadership challenged the effectiveness of these programs in the 1980s, their growth was slowed and more flexibility was shifted back to lower units of government. Since the mid-1990s, even more flexibility has been granted to noncentral governments and private agencies to offer new or more-flexible services (see Figure 1). (Gartner Group)


Figure 1. The Evolution of Human Services Delivery

Source: Gartner Research (August 2003)

The upper portion of Figure 1 graphically depicts the relative role of government in the delivery of human services during these eras. The lower portion of Figure 1 depicts how the role of technology has evolved. Early on, IT was nonexistent. With the development of mainframes and large-scale payroll systems, technology began to play a more prominent role in human services during the 1960s as agencies moved management of cash assistance programs onto computers. However, until the late 1990s, little of this technology development was specifically designed for or targeted at human services agencies. Other than financial management, technology played little or no role in far more-qualitative activities, such as case management, until very recently.3

When human services were primarily the responsibility of the family and charities, the beneficiaries of those services were given only those things that were perceived to be necessary in the short term (such as money, clothing, food, spiritual guidance and job tools). Through the 1970s, as the government's role grew, services became more homogeneous (for better or worse). With welfare reforms beginning in the early 1980s and continuing into the mid-1990s, more programs have become available to meet the unique and highly varying needs of each case. Yet, because of the complexity of administering all of these programs, few government jurisdictions or policies have adapted to better apply these programs to the needs of their constituents.

Human services agencies work to support complex financial and social needs of qualifying individuals and families. By their very nature, these needs may vary from one individual or case to another. Human services programs provide income to people or families in need, provide assistance to enable self-sufficiency from these programs, or which help support or protect children, the disabled, and the elderly in situations where they are dependent on others. Because societal needs are so diverse, a wide variety of programs has been, and continues to be, created to address varying conditions. Each of these programs may have different eligibility criteria and administrative distinctions.  Resources to support eligible clients exist in federal, state and local governments, community action agencies, faith institutions and other not-for profit entities.

As important as efficient client management is to reducing poverty, the Human Services community does not have a single system capable of fully integrating program and resource information holistically to empower those most in need. Most of the problems that the low-income people face in seeking remedies can be ascribed to the nature of human services programs and the lack of timely, accurate information needed to make sound and rapid decisions. This lack of timely accurate information (which should be available on demand) forces the system into a generally reactive mode. Neither case managers nor clients are able to see opportunities or obstacles in advance.

While there are a few exceptions, for the most part, the Human Services infrastructure is limited by stove-piped systems that are independently operated and managed throughout the various layers of the infrastructure. Data currently resides in redundant, stovepipe applications that reflect decades-old business processes. System functionality limitations, lack of integration, and operating difficulties result in extensive manual efforts and inefficient business processes. These conditions require field staff to focus an inordinate amount of time and effort collecting data and shuffling paperwork. This does not allow sufficient time for analysis and service intervention.

The most significant administrative challenge human services agencies will continue to face will be marrying the specific needs of each client with the most appropriate solution or program. This is, first and foremost, a problem of case management for employees of human services agencies and the technology infrastructure intended to support them.

In the future, human services must “invert the paradigm”. The Human Services infrastructure must consider that the system should operate from the perspective of meeting the individual need of the client rather than supporting organizations and programs. The process must begin with the individual by providing tools and resources to allow the person in need to design a navigation strategy. Governmental resources could then be used to support service delivery issues which are more complex and not easily solved by technology. Technology is in place to support the inversion of the paradigm. Technology allows for self-service strategies to empower individuals and communities to address their own unique needs.

 

1.3 Technology for Communities and Individuals

There have been mixed reviews in terms of how technology has been leveraged to date by communities and individuals to deal with issues of poverty. As of August 2001 an estimated 513 million people around the world had Internet access. This represents 8.4% of the world’s population4.  Even though Internet access has been increasing rapidly in some countries, access remains highly stratified by region. The number of people with Internet access ranges from 57.2% in North America to .5% in Africa. The reasons for the disparity in Internet access rates are multiple and involve issues of economics, infrastructure, politics, education and culture.

Although access is an issue, a computer and the Internet are not much use without content and applications that serve people’s needs. According to Warschauer in Technology and Social Inclusion, the United States which leads the world in Web site production suffers from significant content gaps that affect underserved communities. In other words, the applications or service interventions that technology affords are not available to meet the needs of individuals and communities to the degree needed. Additionally, an in-depth study of Internet content and diversity was carried out by the Children’s Partnership5.

    They identified four main content-related barriers that affected large numbers of Americans. The greatest barrier was the lack of locally relevant technology applications and information to address the needs of at-risk populations. According to the study, low income users seek practical, relevant information that affects their daily lives.

Information of this nature is not consistently available at the local level to empower communities and individuals.6  Locally relevant applications and information must be available as follows:

bulletEducation – Adult high school degree programs, adult literacy programs, financial aid, homework assistance, tele-mentoring
bulletFamily – Low-cost child care, low cost enrichment activities for children, public assistance programs for families
bulletFinances – Public benefits news, consumer information, credit information
bulletGovernment advocacy – Immigration assistance, legal services, tax filing support
bulletHealth – Easy to understand health encyclopedias, local clinics, low cost insurance resources
bulletHousing – low cost housing, low cost utilities, neighborhood crime rates
bulletPersonal enrichment – foreign language newspapers and search engines, communities of interest for youth and adults
bulletVocational – Low cost career counseling programs, job training programs, job readiness programs, job listings

The author of Spanning the Digital Divide summarized some key questions/issues that must be addressed if technology is to be leveraged to successfully impact individuals and communities in the 21st  century. The questions/issues are as follows7:

Physical Access

Is there physical access to technology? People will only use technology if it is available within a reasonable distance from their home or work. A computer that lacks adequate power supply, connection (internet capabilities), and software will not be effective in helping people see the relevance of technology to their lives.

Capacity

  Do people understand how to use technology and its potential use? People must be able to effectively use the technology. Further, it is essential that people understand the broader potential for technology applications, so users can be empowered to creatively apply the technology to other parts of their life.

Affordability

Is technology affordable enough for people to use? The cost of hardware, phone lines, electricity, internet connection, software, and maintenance must not be so expensive it excludes many people and organizations from using technology.

Trust

Do people have confidence in and understand the implications of the technology they use, for instance in terms of privacy, security, or cyber crime?

Relevant Content

Is there locally relevant content in the local languages? Content is only relevant when its substance is interesting to users given their culture background, and accessible given their reading, writing, and language skills.

Integration

Does the technology further burden people's lives or does it integrate into daily routines?

Socio-cultural Factors

Are people limited in their use of technology based on gender, race, or other socio-cultural factors? People are often excluded from using technology based on ethnic, gender, or other socio-culturally-based inequalities. These factors must be considered and addressed.

Appropriate Technology

What is the appropriate technology that meets the needs and desires of people? A wide variety of technologies are available. Policy makers and users must be able to critically assess which kind of technology is appropriate for the intended use.

Local Economic Environment

Is there a local economy that can sustain its use? The local economic situation will determine the level and frequency of technology use. Technology that can be used to foster economic growth will foster use in the community.

Legal and Regulatory Framework

Do laws and policies foster technology use? What changes are needed to create an environment that does?

Macro-economic environment

Is national economic policy conducive to widespread technology use, for example in terms of transparency, deregulation, investment, and labor issues?