Senate Bill Proposes Real Jobs with Real Wages for Hardest to Employ Welfare Recipients

6/19/2002

From: Tracy Zimmerman or John Carey, 202-518-8047; E-mail: tracy@publicinterestpr.com

WASHINGTON, June 19 -- While the House welfare reauthorization proposal diverts TANF resources to an ineffective "make-work" program, new legislation introduced today in the Senate recognizes that those hardest to employ welfare recipients benefit most from real jobs with real skill development and real wages. Sponsored by Senator Jeff Bingaman, The STEP (Support, Training, Employment) Act would provide dedicated funding to transitional jobs programs.

With more than 80 percent of those completing a transitional jobs program finding permanent employment, (Mathematics Policy Research, Inc., 2002) transitional jobs programs are among the few strategies shown to be effective in helping hard-to-employ individuals get jobs.

Transitional jobs are short-term, publicly subsidized jobs that combine real work, skill development, and support services to help participants overcome substantial barriers to employment. By earning a paycheck, participants are eligible for the Earned Income Tax Credit, which boosts their income by as much as 40 percent.

Currently, four states (Washington, Pennsylvania, Georgia, and Minnesota) and more than 30 cities have established Transitional Jobs Programs. Programs are principally funded through TANF and Welfare-to-Work block grants. However, dedicated funding is needed to make these programs more widely available. Welfare-to-Work funds have been exhausted in many parts of the country and must be spent completely during the next year or two.

The STEP Act would set aside a block grant totaling more than $2.3 billion over five years for states to support transitional jobs programs.

Transitional jobs program participants, employers, and program directors are available for interviews. Please contact Tracy Zimmerman or John Carey for more information at 202-518-8047.