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, benefits recipients may have difficulty understanding how changes in their income might affect their eligibility for various programs.
Last summer, 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 us, the Bureau of Business and Economic Research (BBER) to provide a dynamic tool that could be used by career counselors to advise their clients about the potential financial impacts of a career change, using clients’ personalized information.
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.
In addition to collecting feedback from counselors, the BBER 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 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) Career Ladder Identifier and Financial Forecaster (CLIFF) portal—developed for 16 public assistance programs in all fifty states—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 rules into the CLIFF tool. Since first connecting in January 2023, our collaboration with the Atlanta Fed has resulted in refinements to the user interface and the inclusion of the MFIP program.
The BBER also conducted training courses with local career counselors demonstrating the tool and how to use it when working with clients.
If you are interested in learning more about the BBER's research project or the CLIFF portal and how you might use it for understanding public assistance eligibility or career planning, contact us at [email protected].
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