Forging an economy that works for everyone

On Dec. 7, the Economic Development Council of Western Massachusetts, together with the Food Bank of Western Massachusetts and Springfield WORKS, announced approval of the Cliff Effect Pilot Program. The initiative will incentivize those receiving public assistance to enter or reenter the workforce without losing benefits.

This critical work began several years ago in collaboration with the EDC, the food bank and other community leaders. We recognized a high percentage of our population was not participating in the workplace, including families that have been impacted for generations.

The three-year pilot program will test the use of monetary support to provide 100 households throughout the commonwealth with benefits tailored to fill the gap created by the cliff effect as they work toward economic independence from public benefits programs. It is projected that the state will, in fact, save money within the three-year timeframe. 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.

Unfortunately, our system places individuals in a tough situation, forcing people to choose between taking a minimum wage job (or perhaps a job promotion) and the sudden loss of critical services that ultimately leads to a decline in the standard of living, keeping individ- uals and families stuck in a cycle of poverty. Workers are trying to make the best financial decision for themselves and for their families in a system that offers no incentive to work, nor fosters the will to work, resulting in low workforce participation.