Lawmakers Study Low Income Families Path To Self Sufficiency

Leaders of the Women’s Health Caucus in Harrisburg welcomed a legislative study this week that recommends ways to avoid obstacles in low income families becoming self-sufficient, a term referred to the study as the “cliff effect”.

“Cliff effect” describes what occurs when a person’s earnings rise above income limits for public assistance, child care and other benefits, but too little to offset the value of the benefits they lose, with the result that families are left worse off by trying to get their footing.

“This study represents the first steps to improve how public assistance programs operate to ensure low-income working families have a manageable path toward self-sufficiency,” State Senator Charles McIlhinney of Bucks County said. “The results offer an opportunity to build on the strengths of these programs to help more low-income families climb out of poverty.”

McIlhinney, as the Senate Republican co-chairman of the caucus, originally proposed the study to the Legislative Budget and Finance Committee as a result of his work in Bucks County.

The report, which offers several recommendations, advised lawmakers to raise the amount of earnings that a family could keep without affecting their eligibility for government benefits, known as the ‘earned income disregard’. The study recommended increasing the disregard for the Temporary Assistance to Needy Families program from 50 to 75 percent.

“The study done by the Legislative Budget and Finance Committee has provided us with detailed information about specific aspects of our state laws and programs that disproportionately impact women in Pennsylvania,” said State Rep. Frank Farry of Langhorne. “We must use the findings of this study to address any bureaucratic barriers preventing families from rising out of poverty. Government should never hold anyone back from working toward self-sufficiency.”