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Pennsylvania State Senate
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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: February 7, 2013 11:25 AM
From: Senator Charles T. McIlhinney, Jr.
To: All Senate members
Subject: Memo #4 - LBFC Study on Cliff Effect
 
In the near future, I plan to reintroduce Senate Resolution 376 from last session, legislation that directs the Legislative Budget and Finance Committee (LBFC) to study approaches to family work support programs which will increase income, keep families working and mitigate the circumstance referred to as the cliff effect. This effect occurs when working parents receive a minor increase in their income that makes them ineligible for various programs that allow them to work such as child care assistance, transportation, food stamps and free and reduced school lunches. The phenomenon often creates disincentives for poor families to achieve self-sufficiency.

More and more middle class families are living paycheck to paycheck, especially in these very difficult economic times. Nearly one in five Pennsylvania children lives in poverty. More states are recognizing that reducing poverty by addressing the needs of low and moderate income families is a critical development issue. Reducing poverty requires strategic, integrated and comprehensive approaches that create opportunities for families to achieve economic success, including creating quality jobs, providing work supports, and implementing targeted tax policies.

My legislation directs the LBFC to assess current state practices that promote economic opportunity and poverty reduction, and to develop a strategic, integrated and comprehensive plan to mitigate the cliff effect.
Sponsors of the previous resolution include: Tartaglione, Rafferty, Solobay, Tomlinson, Waugh, Ward, Erickson, Fontana, Greenleaf, Schwank, Vulakovich, Stack and Hughes.

If you have any questions concerning this resolution, please contact Gail Reinard at 787-7305.



Introduced as SR62