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Improving Lives: State and Federal Programs for Low-Income Adults

State Programs

State programs consist of two major types: (1) federal programs that direct funds to states and allow for considerable state or locality discretion in program design and administration, and (2) programs that are designed and funded entirely by the states. The two major federal programs are Temporary Assistance for Needy Families (TANF) and the Workforce Investment Act (WIA). Most major state-funded and state-designed programs are in the area of student financial aid. TANF and WIA. Enacted in 1996, one of the major objectives of TANF is to reduce the welfare dependency of needy families by promoting job preparation. Similarly, one of the most important goals of WIA is to meet the training, education, and employment needs of job seekers, many of whom are low-income individuals. Because both of these programs are managed at the state or local level, work requirements and education benefits vary considerably from state to state. One of the areas in which states vary significantly is the extent to which their TANF and WIA programs incorporate postsecondary education as an option for program participants. The state-level TANF and WIA programs described on this site incorporate postsecondary education, often in close cooperation with colleges and universities, allowing TANF recipients to complete a certificate or degree program.

TANF Programs

Bridge to Hope (Hawaii)

Description: Bridge to Hope is a collaborative program between the Hawaii Department of Human Services and the University of Hawaii System. The program was created as a result of legislation passed in spring 2000 recognizing that the way to financial self-sufficiency for low-income adults is through postsecondary education. The program provides funding for assistantship and internship positions for low-income adult students who are in the University of Hawaii System, are participating in Hawaii’s First-to-Work program, and are receiving TANF.

Eligibility: Students must be TANF participants who are enrolled in the University of Hawaii System during each term for which they request aid. Participants also must maintain passing grades throughout their course of study and meet all work activity requirements as defined by their department of study.

Amount: Hawaii appropriated $300,000 out of its general revenues for the Bridge to Hope program for fiscal year 2004–05.

Benefit to low-income adults: The Bridge to Hope program represents a positive step in providing assistance to low-income adults who wish to pursue postsecondary education. Through collaboration between a state department of human services and a university system, Bridge to Hope provides three major benefits to low-income adults. First, this program not only satisfies TANF work requirements, but also combines work with learning, by providing students with assistantships linked to their area of study. Second, combining work with education gives students with children more time for family obligations. Third, this program allows the Hawaii Department of Human Services and the University of Hawaii System to better understand each other’s services, operations, rules, and constraints. This increased understanding will likely result in better coordination and more effective efforts to combat poverty in Hawaii.

For more information: http://www.hawaii.edu/bridgetohope/.

California Work Opportunity and Responsibility to Kids (CalWORKs)

Description: CalWORKs, the California TANF program, allows participants to attend a community college for up to 24 months as a way to meet the TANF work requirement. CalWORKs participants must work or participate in welfare-to-work activities (such as attendance at a community college) in order to remain eligible for up to 60 months of cash assistance. CalWORKs recipients who attend community college must participate in 32 hours per week of welfare-to-work activity. Time in the classroom counts toward this requirement, as does work-study, employment, on-the-job training, community service, and, in some counties, class preparation.

Eligibility: CalWORKs recipients may attend community college under this program if the county welfare department agrees that it will help them achieve unsubsidized employment. In 2000, 28 percent of California’s adult welfare population enrolled in at least one community college course.

Amount: In 2003–04, California Community Colleges spent $62 million on CalWORKs services (including $34.6 million received from state general funds, $19.6 million from local college matching funds, and $8 million from TANF). In addition to classroom instruction, these services included childcare, work-study positions on campus, job development and placement, and dedicated CalWORKS coordinators at each community college campus.

Benefit to low-income adults: An evaluation conducted by the California Community Colleges and Center for Law and Social Policy found that CalWORKs students were twice as likely to work year-round after attending community college as they would be before attending, and experienced significant earnings increases after leaving college. Students who completed associate degrees and certificate programs of 30 credits or more experienced the largest income gains. Interviews conducted with CalWORKs students indicated that the targeted support and employment services offered by the community colleges were often crucial to their academic success.

For more information: http://www.cccco.edu/divisions/ss/calworks/calworks.htm.

Ready-to-Work (Kentucky)

Description: Ready-to-Work (RTW) is a program developed in partnership between the Kentucky Cabinet for Health and Family Services (KCHFS) and the Kentucky Community and Technical College System (KCTCS). It is designed to promote the success of Kentucky Transitional Assistance Program (KTAP)/TANF parents who are interested in attending community and technical colleges or who could benefit from short-term training opportunities. RTW began in 1999 as an effort to make additional work-study resources available to KTAP/TANF students in the community and technical colleges and has evolved into a statewide network. The network comprises a system-wide coordinator and 19 TANF-funded RTW coordinators serving 15 college districts. These coordinators provide and/or facilitate a comprehensive network of support services, including recruitment, assessment and retention strategies, tutoring, mentoring, counseling activities, job development, placement, and post-placement services. They also assist the RTW participants in obtaining access to all supportive services (such as transportation and child care) and resources available through KCHFS and other agencies. They serve as liaisons between and among the student, the campus system, and the KCHFS/Department for Community Based Services local office system and case managers.

Eligibility: All TANF/KTAP recipients are eligible to participate in the Ready-to-Work program.

Amount: In addition to their KTAP/TANF benefits (as well as any financial aid or other assistance for which they may be eligible), RTW participants may enroll in a state-funded work-study program. Each RTW work-study student can earn up to $2,500 per year that does not reduce his or her KTAP check. The placement of work-study students with both private and nonprofit employers helps prepare them for the workplace and may result in full-time permanent employment with that employer after graduation.

Benefit to low-income adults: Several organizations, including the American Association of Community Colleges, have identified Ready-to-Work as an exemplary program. The college enrollment rate for KTAP recipients is 8.7 percent, greater than the share of the general population attending college. Approximately 78 percent of KTAP participants attending Kentucky community and technical colleges are enrolled in Ready-to-Work. These students are achieving success; the overall semester-to-semester retention rate is more than 80 percent and the average GPA among these students was 2.66 during fall 2003, higher than the average among all students. Since spring 2001, 666 current and former RTW participants have graduated from KCTCS colleges and 531 have gone on to four-year institutions.

For more information: http://kctcs.edu/readytowork/.

Promise Jobs (Iowa)

Description: Promise Jobs, a component of Iowa’s Family Investment Program (FIP) and a participation requirement for most FIP recipients, is designed to help welfare recipients become financially self-sufficient. Among the activities available to Promise Job participants is assistance with academic and vocational training to prepare participants for a specific area of employment. Assistance is dependent on participants’ abilities and aptitudes, available funding, and other requirements. There is currently a 24-month funding limit on all approved postsecondary education.

Eligibility: Participants in Promise Jobs must be enrolled in the Family Investment Program.

Amount: Assistance for postsecondary education is variable and depends on applicants’ abilities and aptitudes, as well as available funding.

Benefit to low-income adults: Participants in this program are required to develop an individualized Family Investment Agreement (FIA) that outlines what steps they will take to overcome their dependence on public assistance. Thus, this program provides not just the means to achieve financial self-sufficiency, but also a roadmap for how the individual will achieve it. Persons who fail to comply with their FIA will lose their FIP benefits and consequently be ineligible to participate in Promise Jobs.

For more information: http://www.iowaworkforce.org/region15/promisejobs.htm.

Workforce Investment

Parents as Scholars Program (Maine)

Description: The Maine Department of Human Services created the Parents as Scholars (PaS) program to assist low-income parents enrolled in a two- or four-year postsecondary institution. The program requires students to participate in a combination of education, training, study, and workplace experience for an average of 20 hours per week. After two years in the program, students may choose between working 15 hours per week (in addition to school and study time), or combining class hours, study hours, and work for a total of 40 hours per week.

Eligibility: To be eligible for PaS, a person has to meet the same requirements as those of the TANF program. In addition, an applicant must lack a marketable bachelor's degree and the skills necessary to earn at least 85 percent of the median wage; be pursuing a degree full time that will improve his or her ability to provide family support, given the local labor market and employment opportunities; and be deemed able to succeed in the educational program that has been chosen.

Amount: Among the major costs that PaS covers are books and supplies (maximum $750/year), clothing (maximum $300/year), and occupational expenses for tools/fees (maximum $500). PaS also provides childcare and transportation assistance, and covers some medical expenses that Medicaid does not.

Benefit to low-income adults: Programs that require full-time enrollment generally present a challenge to low-income adult students, particularly low-income adults who are single parents and need assistance locating and affording childcare. The PaS program lessens some of this difficulty by providing childcare to all participants for children under age 13. Also, because it is entirely state-funded, participation in PaS does not count against the TANF five-year eligibility limit.

For more information: http://www.state.me.us/dhs/bfi/tanf/PAS.htm.

Worker Retraining Program (Washington)

Description: The Worker Retraining Program is a Washington state-funded program that provides job-related training and employment services to dislocated and unemployed workers to help them gain additional training in their existing field or start on a new career path. Training is available in 52 professional/technical programs. Students can choose to take supplemental occupational classes to upgrade their skills or earn a certificate or Associate of Applied Arts and Science degree. Free tuition and books are provided through this program.

Eligibility: To participate in the Worker Retraining Program, a person must be a Washington state resident who meets state income guidelines and is eligible for or currently receiving unemployment benefits. Finally, to be eligible for this program, individuals must be enrolled for at least six credits each quarter in a professional/technical program.

Amount: In 2001–02 (the most recent year for which data are available), colleges and private career schools were allocated $28.7 million for the Worker Retraining Program. Of that amount, approximately $20 million covered institutions’ costs of providing classes and support services. Most of the remaining funds went to students to help them pay for tuition and other expenses. The amount that an individual student receives varies, depending on his or her education costs and other financial assistance.

Benefit to low-income adults: Since 1993, the Worker Retraining Program has served approximately 64,000 unemployed and dislocated workers, most in the public community and technical colleges. In addition to increasing unemployed individuals’ prospects of finding employment in their current field through additional training, the Worker Retraining Program offers individuals the chance to pursue new career opportunities. By providing exposure to and training for different career areas, unemployed individuals are better able to move into a more stable career path that will increase the likelihood of their achieving financial self-sufficiency. Despite the economic downturn, 80 percent of program participants in 2001–02 were re-employed within nine months after completing training, most for wages commensurate with what they had earned before becoming unemployed.

For more information: http://www.sbctc.ctc.edu/college/_e-wkforceworkerretraining.aspx.

Financial Aid Programs

Part-Time Grant Program (Indiana)

Description: This program was established to assist part-time degree-seeking students who have demonstrated a commitment to pursuing postsecondary education at an Indiana public or private college.

Eligibility: Students must be enrolled in at least three but fewer than 12 credit hours per term at an eligible Indiana public or private college or university. Students also must meet Indiana state residency requirements and have completed a Free Application for Federal Student Aid (FAFSA) form. Eligibility is determined at the institutional level and is subject to approval by the State Student Assistance Commission of Indiana (SSACI).

Amount: Students may receive between $50 and $4,000, depending on their financial need. In fiscal year 2003, 5,695 students received a total of $5.2 million, for an average award of $921 per recipient.

Benefit to low-income adults: Due largely to family responsibilities and work requirements, most low-income adult students attend college half time or less than half time. Recognizing this, the Part-Time Grant Program addresses the gap in funding that often exists for low-income adults enrolled less than full time. Like many state programs, it has recently experienced a reduction in funding. In fiscal year 2000, this program awarded $5.9 million to 6,620 students.

For more information: http://www.ai.org/ssaci/programs/parttime.html.

Minnesota Post-Secondary Childcare Grant Program

Description: The Post-Secondary Childcare Grant Program was established to help low-income single parents pay for childcare while attending postsecondary classes. Funds for this program are administered by participating institutions.

Eligibility: Applicants must be Minnesota residents who have a child 12 years old or younger (14 or younger if the child has a disability) and demonstrate financial need. Additionally, students must be enrolled for at least six credits per term (half time), must not have completed four years of postsecondary education, and must not have defaulted on a student loan. Students attending all Minnesota public and private not-for-profit two- and four-year institutions are eligible.

Amount: The maximum award available to a full-time student is $2,200 for each eligible child per academic year. Assistance may cover up to 40 hours of childcare per week for each eligible child. In fiscal year 2003, 932 awards were made, totaling $1.1 million.

Benefit to low-income adults: Like Childcare Access Means Parents in School [link], Minnesota’s Post-Secondary Childcare Grant addresses one of the biggest challenges low-income adults (particularly single parents) face in pursuing postsecondary education. However, also like the federal program, the Minnesota initiative currently suffers from a lack of adequate funding. In fiscal year 2003, institutions estimated a total funding need of $5.7 million, but only $1.1 million was awarded. In fiscal year 2002, $4.75 million was expended to support 2,736 students.

For more information: http://www.mheso.state.mn.us/mPg.cfm?pageID=348.

Arkansas Workforce Improvement Grant

Description: This grant, offered through the Arkansas Department of Higher Education, provides student assistance grant funds to adults in low-paying, low-skilled jobs who want to attend college. This grant reportedly is the first of its kind in the United States, targeting adults who make too much money to qualify for federal Pell Grants but not enough to pay for a college education. This program recognizes that while many opportunities exist for students to earn scholarships for college immediately after they graduate high school, very few exist for working adults.

Eligibility: Students must be U.S. citizens and residents of Arkansas. They must be enrolled in a minimum of three credit hours, lack a baccalaureate degree, and meet the satisfactory academic progress standards required to receive Title IV federal financial aid (i.e., Pell Grants, College Work-Study, or Stafford loans). To be eligible, a student must be age 24 or older on or before the first day of the semester or summer session in which the Workforce Improvement Grant has been awarded, and must have been declared an independent student for federal financial aid purposes.

Amount: The maximum annual award is $1,800 per year. The amount of the Pell Grant award that the student receives is taken into account (that is, the Workforce Improvement Grant is the maximum award amount less the Pell Grant). The cumulative award to any one student shall never exceed $7,200, and students may not be awarded grants for more than the full-time equivalent of four years.

Benefit to low-income adults: This program is unique in that it targets a specific population of low-income individuals who find themselves lacking postsecondary education funding. For states such as Arkansas, which have a low percentage of individuals over the age of 25 with a bachelor's degree, programs like this address the needs of low-income adults who otherwise would be left with few options in the search for financial assistance for postsecondary education.

For more information: http://www.arkansashighered.com/aidrules_regs.html.