Navigating the Benefits Bridge: Resources for Employment Service Providers and Clients in Minnesota

Abstract

Public assistance programs are designed to be a bridge to economic stability; as individuals take home more earnings and become more financially stable, their benefits will decrease. Yet in some cases, by accepting a raise or increasing the number of working hours and, thus, wages, an individual may unintentionally reduce their net income (i.e., their combined wage plus benefits). This occurrence is sometimes referred to as a “benefits cliff” and can act as a barrier to career advancement for low-income individuals. Also, given the number of programs that exist and their often-complex eligibility rules, it can be very difficult for benefits recipients to understand how changes in their income might affect their eligibility for various programs. Recently, the Economic Services and Supports Division of St. Louis County, Minnesota—the local agency that administers many of the state and federal public assistance programs—asked the Bureau of Business and Economic Research (BBER) at the University of Minnesota Duluth’s Labovitz School of Business and Economics to provide a dynamic tool that could be used by career counselors when advising their clients about the potential financial impacts of a career change, using clients’ personalized information. To accomplish this, the BBER collected feedback from counselors, conducted a literature review and online search to identify existing tools, and analyzed data from various sources to determine the accuracy and usefulness of potential tools. The project will also include training by the BBER on how to use the tool. The BBER spoke to counselors in focus groups. The counselors noted that “higher minimum wages make it easier for people to surpass income thresholds—especially with small families,” thereby making those individuals more likely to lose public assistance benefits. Counselors also noted that each program has its own requirements and paperwork and that the program requirements are difficult to understand, even for them, which made it difficult to advise clients on how to make educated career choices. When asked what type of information, tools, or resources would be helpful in advising clients about public assistance programs and career advancement, many counselors said they most wanted to have a “simple calculator to calculate benefits for different variable inputs.” Examples of features they would like included the ability to calculate benefits for a given wage or a simple cost of living calculator to assist clients with budgeting. Several counselors mentioned that a handout or infographic depicting the process of moving from public assistance to a career could make conversations easier. The research team evaluated eight potential tools based on geographic availability, accuracy of data, and usability/design. Of the tools evaluated, the Federal Reserve Bank of Atlanta’s (hereafter referred to as the Atlanta Fed) CLIFF portal— developed using data from its Policy Rules Database (PRD)—was the most accurate for the largest number of St. Louis County assistance programs. Of the tools shown to the members of our working group—comprised of representatives from the county’s employment service providers— the CLIFF portal was also the most visually appealing and easiest to use. However, when comparing the data provided by the CLIFF portal with state and local policies, the working group identified inconsistencies with the Minnesota Family Investment Program (MFIP)—the state’s welfare program for low-income families with children—and the Supplemental Nutrition Assistance Program (SNAP). Therefore, the BBER contacted the Atlanta Fed to inquire about the possibility of incorporating Minnesota’s rather unique MFIP program. Since first connecting in January 2023, our collaboration with the Atlanta Fed has resulted in refinements to the user interface and the inclusion of policy rules for the MFIP program.