By CHUCK GOODRICH
State Representative
Indiana needs more skilled workers to fill high-paying, in-demand jobs, and we need to do more to strengthen our talent pipeline.
For the last three years, I’ve been working on the state level to identify some of the root causes of the labor shortage and find ways to help. In working with our state agencies, we’ve taken action to remove roadblocks for low-wage or jobless Hoosiers who are receiving government assistance, so they can skill up, obtain a better-paying job and discover financial independence.
According to the Indiana Community Action Poverty Institute, most often the single greatest barrier to self-sufficiency for low-income individuals is the “cliff effect.” This is when any extra money earned through a raise, promotion or higher-paying job makes recipients ineligible to receive Temporary Assistance for Needy Families or other benefits. This means a job promotion or small pay raise could push a worker just outside the income-eligibility requirements, and they could lose all their benefits. Now, they’re working harder but making less overall with no way to bridge the gap. The cliff effect is a real issue that many low-income Hoosiers face.
To help, I authored a new law this year to ensure Hoosiers who are actively pursuing higher-paying jobs or workforce education and training don’t lose their government benefits solely because of an increase in their income. House Enrolled Act 1361 will allow families who receive TANF to save up to $10,000 in additional assets and keep their benefits. TANF is a program that provides cash assistance and supportive services to families with children under age 18 when the parents or other responsible relatives cannot provide for the family’s basic needs.
This new law does not expand program eligibility. It simply enables families who qualified for and began receiving TANF to remain eligible as they continue taking steps toward self-sufficiency through saving money.
Additionally, this new law will help mitigate the cliff effect when it comes to paying for child care. For example, the Child Care and Development Fund is a federal program that helps low-income families obtain child care so they can work, attend training or continue their education. Under the new law, if a parent, who already receives CCDF vouchers, decides to pursue their first degree, certificate or apprenticeship, then $15,000 of income earned while in those education programs will be disregarded. Excluding this income will help more Hoosiers continue to send their children to quality child care programs while they work, attend training or go to school.
Last year, I authored legislation to allow Hoosiers who are 24 years old or younger in a home receiving TANF benefits to earn up to $15,000 through internships or work-based learning programs and not jeopardize their family’s assistance. This can be an incentive for students from low-income families to pursue additional education or training that launches them into a new or better job.
While there are many factors affecting the workforce shortage, I’ll continue to look for ways the state can help skill up more Hoosiers and strengthen the state’s talent pipeline. I believe it’s also critical that we keep our focus on empowering low-income individuals to further their education and seek higher-paying jobs in order to find a path to financial stability and independence.
If you have comments on this issue or other topics, please contact me anytime at h29@iga.in.gov or by calling (317) 234-0931.
State Rep. Chuck Goodrich (R-Noblesville) represents House District 29, which includes portions of Hamilton County.