# Presentation: 410957

## Employment Advancement 
Retention 
Network

**R****etention **
**N****etwork**

- Estelle B. RichmanPA Secretary of Public Welfare
- June 5, 2007

*Moving Pennsylvania*
* **Families to Self Sufficiency*

## State Context

- Act 35 adopted by Pennsylvania Legislature a few months prior to passage of TANF legislation. Mirrored TANF provisions in many respects, but more flexibility
- Work First approach plus strong economy reduced the caseload by 54% by 2002
- WPR Requirement = 0%
- Caseload reduction credit allowed state to operate under Act 35 rules

## Enhancements

**Pennsylvania’s effort to retool TANF **
**began back in 2003**
- Reduced bureaucracy and streamlined work processes in County Assistance Offices
- Placed emphasis on career building and long-term employment
- Increased accountability through employment and training system redesign

## County Assistance Office Improvements

**Developed** **CAO Model Office** bringing together state-of-the-art caseload management, staff deployment and technology to enable increased client service and efficiency
**Shift to electronic applications** – reduces costs and makes better use of community partners to assist clients
**Opened Change Reporting Centers** so clients can conduct business over the telephone rather than in person at CAOs

## Getting  a  Better Job

- Emphasis on career building and long-term employment
- Training and Education as the ticket to a better job
- Job Specific Skills Training
- Post-secondary education: KEYS Initiative
- Improving basic literacy and English language skills, attainment of GED: Move Up Initiative
- Assessment as tool for better meeting client needs, improving match between client and job
- Performance based contracting to raise accountability and get more out of every employment and training dollar

**Notes:**
The best way out of poverty is through educationNumerous studies have linked education and the opportunity for increased earnings over a person’s lifetime An example of PA’s programs encouraging education is KEYS (Keystone Education Yields Success) 

## The Challenge

- In January 2006, 40% of Pennsylvania’s TANF adults were participating under Act 35 state rules, but only 15% were getting federal credit under
- The differences:
- 3,500 ABE, GED or ESL
- 4,600 in vocational training
- 2,000 in post-secondary education
- 11,000 working but still on TANF
- 4,000 in Maximum Participation Program

## The Challenge 

**Jan 2006****	****    ****	****	****FFY007**
**     ****15%****	****	****	****            50%**

**Notes:**
The implications of not getting where we need to go are grave.  A penalty of up to $70 millionachieving the 50 percent by Oct. 1 may sound like a “Mission Impossible” scenario, but the numbers alone do not tell the whole story. We have been successful. In 2005, 20,628 recipients left TANF with jobs. However, the same number of new applicants came onto TANF, so we received no caseload reduction credit.An important thing to keep in mind is that “How many people are working?” is not the question being asked here.  The question is, “how many people are meeting the federal guidelines.”We are 100 percent  committed to not allowing this to happen.

## Strategies

-  **“****Chunked” Caseload and took action**
- Breakdown counties by size
- Analyze the population
- Adults not in any work activity
- Adults who are participating, but at fewer than the required number of hours
- New TANF recipients – make sure they are ramping up quickly

**Notes:**
In order to meet the federal work participation rate, the Department is developing a series of steps tailored to individuals in each of these categories.It must be noted, however, that  we may need to keep altering or amending these strategies along the way, especially in light of the fact many questions have yet to be answered by the federal government.  The Federal regulations defining such basic elements as what constitutes a countable activity will not be published until June 30, with a 60-day comment period to follow. It is difficult for the Department to make final plans without knowing the content of the regulation.

## Strategies

**Pennsylvania: 67 Counties and 98 CAOs**
- Large counties critical
- Philadelphia is 45% of the caseload
- Top 2 counties have 60% of the caseload
- 20% of the Counties have 80% of the caseload
- Small counties also important
- Counties with under 300 clients (over 50% of   counties) have only  6.3% of caseload
- Small counties submitted plans
- Monthly reports track progress in all counties and CAOs

**Notes:**
Bottom line:  We can’t do this without Philadelphia.

## Strategies

- For adults who participate no hours or fewer than the required hours
- Call client in and explain requirements
- Review case record to ensure that data entry captures hours correctly
- Explore options to increase countable hours
- Refer to employment and training  contractor as necessary
- Reviewed over 38,000 cases

## Strategies

**New Applicants**
**Issue:**
- 	6,050 new clients who are able to work become eligible for TANF each month.  It takes several weeks to become fully engaged to earn participation credit.
**Solution: Work Support Component**
- 	Enhanced assessment and job search.  New applicants are not enrolled TANF until employed or in other work activity at required hours.  Nearly half of new applicants find jobs through this process.

**Notes:**
DPW gets between 7,000 and 9,000 new applicants per monthOur new applicant process does not engage clients quickly enough, so we are redesigning it toward this goal

## Strategies

**Performance Based Contracting **
**for Employment and Training Contractors**
- Increased performance requirements on employment and training contractors – along with higher job placement and retention payments
-  Tightened time frame to data enter
- Build capacity by conducting statewide training for effective case management, job development, job coaching and job retention

**Notes:**
Bottom line:  We can’t do this without Philadelphia.

## Results: Caseload down by 17% since Oct 2005

- Budget for cash assistance has been reduced by $72.3 million over the past two years

**Notes:**
Although our strategies are sound and our approach comprehensive, there are numerous obstacles present.With a significant caseload reduction already achieved, many of the most employable clients have been assisted.  Our new applicants can be readily assisted in the TANF Work Support Approach.    What is left are those who have the most barriers to employment .  These barriers include literacy issues, mental health issues, and physical limitations.    The remedies for these barriers do not count under the federal regulations.The loss of better-paying manufacturing jobs and the growing base of low paying, part-time jobs is a major obstacle.  In many instances, several part-time jobs need to be cobbled together for the required work hours.  This may lead an individual out of welfare but not out of poverty.Increasing work participation means a coinciding increase in child care needs.  Unfortunately, there is no increase in federal child care funds.Transportation can also be a major obstacle, especially in rural counties.  It must be kept in mind that Pa. is very rural outside of the greater Philadelphia and Pittsburgh areas. 

## Results: 52% WPR in April 2007

- Economic development strategy creating more jobs and emphasis on work has lead to caseload decline and increase WPR.

**Notes:**
Although our strategies are sound and our approach comprehensive, there are numerous obstacles present.With a significant caseload reduction already achieved, many of the most employable clients have been assisted.  Our new applicants can be readily assisted in the TANF Work Support Approach.    What is left are those who have the most barriers to employment .  These barriers include literacy issues, mental health issues, and physical limitations.    The remedies for these barriers do not count under the federal regulations.The loss of better-paying manufacturing jobs and the growing base of low paying, part-time jobs is a major obstacle.  In many instances, several part-time jobs need to be cobbled together for the required work hours.  This may lead an individual out of welfare but not out of poverty.Increasing work participation means a coinciding increase in child care needs.  Unfortunately, there is no increase in federal child care funds.Transportation can also be a major obstacle, especially in rural counties.  It must be kept in mind that Pa. is very rural outside of the greater Philadelphia and Pittsburgh areas. 

## Where we are...

**Average wage= $8.36          Jobs with medical benefits=56%**

**Notes:**
Although our strategies are sound and our approach comprehensive, there are numerous obstacles present.With a significant caseload reduction already achieved, many of the most employable clients have been assisted.  Our new applicants can be readily assisted in the TANF Work Support Approach.    What is left are those who have the most barriers to employment .  These barriers include literacy issues, mental health issues, and physical limitations.    The remedies for these barriers do not count under the federal regulations.The loss of better-paying manufacturing jobs and the growing base of low paying, part-time jobs is a major obstacle.  In many instances, several part-time jobs need to be cobbled together for the required work hours.  This may lead an individual out of welfare but not out of poverty.Increasing work participation means a coinciding increase in child care needs.  Unfortunately, there is no increase in federal child care funds.Transportation can also be a major obstacle, especially in rural counties.  It must be kept in mind that Pa. is very rural outside of the greater Philadelphia and Pittsburgh areas. 

## Challenges Ahead

- Helping persons with significant barriers to employment including disabilities who are unable to meet required hours of 20 or 30 hours per week
- More flexibility on reporting requirements
- Example for teens in school: schools should be able to make the determination of when an absence is “excused”
- Better balance on education - many of the remaining clients have very low educational attainment
- Employers require basic literacy and English skills – very difficult to offer under new regulations

## Employment Advancement 
Retention 
Network

**R****etention **
**N****etwork**

- Estelle B. RichmanPA Secretary of Public Welfare
- June 5, 2007

*Moving Pennsylvania*
* **Families to Self Sufficiency*