M E M O R A N D U M

IM-97  5/24/01 WELFARE TO WORK (WTW) FUNDING UPDATES


SUBJECT:
WELFARE TO WORK (WTW) FUNDING UPDATES
 
DISCUSSION:
This memorandum discusses the current eligibility criteria for WtW funding and how the funding appropriations may be used.  The U.S. Department of Labor has a website, wtw.doleta.gov that provides extensive information in the Questions and Answer pages.

WtW Requirements

The WtW legislation targets those welfare recipients who will have the most difficulty transitioning into employment.

70% Funding Criteria (Primary Eligibility Category)

    Custodial Parent must: 
    1. be receiving Temporary Assistance (at the time of enrollment) and has received for 30 months or more
    Noncustodial Parent must:
    1. be unemployed, underemployed, or having difficulty paying child support obligations and
    2. have minor children, that are eligible for or  receiving Temporary Assistance benefits, or has received Temporary Assistance benefits during the preceding year.  Also, if the child(ren) are eligible for or receiving benefits from the Food Stamp program, the Supplemental Security Income (SSI) program, Medicaid, or the Children's Heath Insurance program and
    3. enter into a personal responsibility contract, or pact, that will state they  commit to cooperate in establishing paternity, to paying child support and  to participating in services to increase their employment and earnings in order to support their children.
Note:  All three of the above criteria must be met for the Non Custodial Parent.  This can   assist the Custodial Parent to receive the awarded child support and give the assistance he/she requires to become self-sufficient.
30% Funding Criteria (Other Eligible Category)
    Custodial Parent
    1. Those currently receiving Temporary Assistance and
    2. Those that have one or more of the "characteristics associated with, or predictive of" long-term welfare dependency, such as:
      1. High School Dropout
      2. Pregnant teen or teen parent
      3. Poor work history (not worked at least 13 consecutive weeks in past 12 months in full-time unsubsidized employment)
      4. Previous criminal history
      5. Number of children under age 6
NOTE: Additional criteria can be locally determined.
    Other Eligible Participants
    1. Youth (at least age 18, but not yet 25) who have "aged out" of foster care 
    2. Custodial parents with incomes below the poverty line (FPL)
Allowable Use of Funds
Funds may be used to help move eligible individuals into jobs by:
  1. Job creation through public or private sector wage subsidies;
  2. On-the job training;
  3. Contracts with public or private providers of;
    1. Job readiness;
    2. Job placement;
    3. Post-employment services such as:
      1. Basic education skills
      2. Occupational skills training
      3. English as a Second Language
      4. Mentoring
  4. Job vouchers for similar services
  5. Community service or work experience; or
  6. Job retention and supportive services provided for post employment (if such services are not otherwise available) such as;
    1. Transportation
    2. Child Care
    3. Substance Abuse Treatment
    4. Housing Assistance
Additionally, WtW funds may be used to contribute to certain asset-building accounts.
An Individual Development Account (IDA) is an account established by or on behalf of a Temporary Assistance recipient to enable the recipient to accumulate funds for one of the "qualified purposes, which could possibly be postsecondary educational expenses, first home purchase, or business capitalization.  The account must be a trust, and withdrawn only for a qualified purpose.

The allowable activities for what the funding can be used for is not new with the exception of allowing vocational training for six (6) calendar months PRIOR to putting the participant in a work activity.

Memorandum Welfare-to-Work Experience IM#-108 (August 13, 1999) discusses earnings received from Work Experience through Welfare-to-Work (WtW) for all IM programs.  IDA accounts do not count on any program's budget.

Coordination with affiliated agencies and organizations is critical to the success of all WtW programs.  Attention to non-duplication of services and ease of identification of eligible individuals and subsequent service deliver is a primary goal.  Each Workforce Investment Board will have varying combinations of programs and services.

A Welfare to Work Eligibility Screening Document (in Adobe Acrobat format) is attached to identify eligible individuals to use these funds.  A copy of this form can be attached to the IM-311 for referrals to the WtW providers unless a similar referral process is developed locally.

 
NECESSARY ACTION:
  • Review memorandum with appropriate staff.
  • Copy and use WtW eligibility form with the IM-311 to make appropriate referrals to WtW case management services.
DC/DB
Distribution #6
Attachment (in Adobe Acrobat format)

[ Memorandum Table of Contents ]

IM-096
 IM-098