THE CLIFF EFFECT PILOT PROGRAM

CREATES HOPE FOR SUSTAINABLE CHANGE FOR LOW-INCOME FAMILIES

In December, the EDC, The Food Bank of Western Massachusetts, and Springfield WORKS announced the approval of the Cliff Effect Pilot Program, a new initiative that will create incentives for those receiving public assistance to enter or re-enter the workforce without losing benefits. “This pilot is a tremendous victory for workers and families throughout the commonwealth,” says Anne Kandilis, director of Springfield WORKS. “To create economic opportunity, we must remove obstacles for people as they work to earn a livable wage by making sure that we do not strip away public benefits too rapidly.”

The best way to understand the impact of the bill is to digest the story of Shalonda, a single mother in Springfield. A family service clinician at Square One who is also in graduate school, she recently accepted a promotion, knowing full well the increase in pay would cause her to lose her housing benefit—and thus, the place her family called home. She says, “I’ve been avoiding promotions for so long, knowing that I would lose all this support, but I’m tired of it now.”

Unfortunately, our system places individuals in this tough situation, forcing people to choose between taking a minimum wage job—or in Shalonda’s case, a job promotion—or keeping critical services. This perpetuates the cycle of poverty.

Our critical work on the Cliff Effect Pilot Program began several years ago in collaboration with The Food Bank and other community leaders. The three-year pilot will provide support to 100 households throughout the state with benefits tailored to fill the gap created by the cliff effect as they work towards economic independence from public benefits programs. It is projected that the state will, in fact, save money over the three years.

The Cliff Effect Pilot will run hand-in-hand with the EDC’s Western Mass Anchor Collaborative, deploying a number of strategies and initiatives to support the business community to create career pathways for various occupations, so that people who enter the workplace can then, in turn, earn a living wage, gain ongoing professional growth, and can contribute to their respective businesses in Western Massachusetts.

“Fallout of the cliff effect is ultimately an economic development problem, severely impacting the workforce and many businesses struggling to find workers and consistent talent,” says Rick Sullivan, EDC’s president and CEO. “Workers are making the best financial decisions for themselves and for their families in a system that has no incentive to work, nor fosters the will to work, resulting in low workforce participation.”