State Laws

Washington State

The State of Washington included in its welfare legislation last year a provision to create community jobs using wage subsidies. The law includes the following provisions:

  • Program run by Community Economic Development Department
  • Conversion of welfare grant into wages
  • Full employment rights for participants
  • 20 hour work week
  • Placements can last a maximum of 9 months (attempting to extend)
  • Minimum wage payments (attempting to increase)
  • Social Security taxes (both employer and employee) paid through program
  • Local communities identify pressing community needs
  • Training component
  • Estimate creating 1,000 new jobs in 4-7 areas of the state, urban and rural
  • Expect to serve the "middle third" of the TANF caseload (neither the most job ready nor those with the most employment barriers)
  • Local governments and nonprofits will be placement sites
  • "Lead agencies" will administer the program, develop the jobs, and handle payroll
  • Job site employer will provide the job and supervision -- no other costs
  • Strong anti-displacement language in the regulations
  • Program will begin in the spring, 1998

Vermont

Vermont has established a Community Service Employment (CSE) program to provide temporary jobs to parents in families who reach an AFDC/TANF time limit and are unable to find unsubsidized employment. This program was initiated as part of a Section 1115 waiver that Vermont received from HHS for its "Welfare Restructuring Project" initially implemented in July, 1994. The project establishes a 15 month time limit for non-exempt two-parent families, and a 30 month time limit for non-exempt single-parent families. If a family reaches the time limit and the parent is unable to find an unsubsidized job, further assistance is conditioned on participation in the Community Service Employment program.

Placements are in either the public or non-profit sector and may last for up to 10 months, after which a two-month job search period is required. Subsequent placements following an unsuccessful job search period are also available. The hours of work are calculated by dividing a family's AFDC/TANF grant at the time of entry into the program by the minimum wage. The CSE program pays for the full cost of wages, the employer share of FICA taxes, workers compensation and liability insurance, and provides a monthly $90 stipend to participants to cover the FICA taxes deducted from the employee's wages and transportation costs. Employers are responsible for supervision of workers, but have no other expenses. The incremental costs of each placement, not including development of work sites, participant case management, and child care, is currently calculated to be $1,138 per participant per year. The current annual budget for the program anticipates a total of 590 CSE participants.

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