Study of Family Work Support Programs

Senate Resolution 2013-62 (Appendix A) directed the Legislative Budget and Finance Committee to consider the effect of major federal and state programs in assisting low-income families to achieve self-sufficiency and reduce the number of families living in poverty. In particular, the Committee was asked to determine if and how such programs mitigate the “cliff effect.” “Cliff effects” occur when program benefits are not phased out on a sliding scale basis, or increased earnings are not sufficient to cover the full cost of the lost benefit. With one exception, the Committee focused on programs available to all that apply and meet eligibility requirements: TANF (Temporary Assistance for Needy Families), SNAP/Food Stamps (Supplemental Nutritional Assistance Program), several federal tax credits, and Pennsylvania’s Special Tax Forgiveness Program. The one exception, the Child Care and Development Fund (CCDF), is a discretionary federal program offering child care subsidies for low- income families, with the number of eligible individuals served limited by available funding.