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Southern Institute Research Shows Income Support and Other Benefits Help
Low-Wage Families Meet Needs
Studies by the Southern Institute on Children and Families often involve
personal interviews and focus groups with families where they are asked to share
their views and are encouraged to make suggestions on what actions are needed to
improve policies and operations. In Southern Institute studies on health and
welfare issues, a resounding message from families has been that they need
assistance in paying for child health coverage, child care and other needs and
they would like such assistance to be related to their income. They are
frustrated by public programs that provide benefits based on arbitrary time
limits and other rules that are not related to their ability to pay.
An economic reality check demonstrates the income versus expenses predicament
faced by low wage families. For example, the annual income for a family of three
earning at the minimum wage (approximately 80% of the federal poverty level) is
only $13,736. Given this income level, it is not difficult to understand how
low-wage families are in a constant economic struggle to pay for housing,
utilities, food, clothing, transportation, health care, child care and other
basic needs. And it's not difficult to understand why they become discouraged
when they encounter public policies and programs that fail to recognize simple
economic realities.
In addition to implementing new strategies to assist low income families,
states must move aggressively to utilize existing opportunities to bolster
families who work in low wage jobs. The extent to which states take advantage of
and promote available programs varies widely across the southern region.
There is help for low-income working families, but many are not aware that
they may qualify. Benefits that are available to low-income working families
include Medicaid and the State Children’s Health Insurance Program (SCHIP), the
Earned Income Tax Credit (EITC), Child care assistance and Food Stamps.
To help publicize these benefits and basic guidelines about eligibility, the
Southern Institute, with support from the states of Georgia and North Carolina,
developed a series of brochures for targeted audiences. With support from The
Robert Wood Johnson Foundation, the brochures were replicated and localized in
16 southern states, and Spanish-language versions also were developed. In
addition, The Robert Wood Johnson Foundation provided further support to develop
six accompanying information outreach videos in English and Spanish for use with
the brochures, including a training video on how to most effectively use the
brochures.
Outreach brochures developed by the Southern Institute include:
Leaving
Welfare for Work Isn't As Scary as it Seems (for families on cash
assistance): This colorful brochure tells families that they can work full time
and still receive some benefits, including health coverage. This is ideal for
review with welfare families at redetermination interviews and in job readiness
classes.
Have You Heard About Benefits for Working Families??? (for general community
outreach): This brochure is designed to help families who apply for cash
assistance to understand that they can receive Medicaid and other benefits
without having to be on welfare. It is appropriate for distribution through
schools, health providers, churches and other community organizations and to
employers for dissemination in the workplace.
Facts for Employers
(for employers of low-wage or minimum wage workers): This brochure provides
employers with information on how to connect low-income workers to benefits that
basically supplement low wages at no cost to employers. It is an effective
communication tool for use with employers and business groups.
For more information, see the Southern Institute's report published in
February 1998, Southern Regional Initiative to Improve Access to Benefits for
Low Income Families with Children. Also, see
The Relationship Between Health Benefits and Welfare Dependency, remarks by
Sarah C. Shuptrine, President of the Southern Institute on Children and
Families, presented to The White House Southern Region Economic Conference on
March 29, 1995.
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