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MFIP replaces AFDC and Family General Assistance (FGA), the two cash grant programs to families with children. MFIP combines cash grants, food stamps, Medical Assistance eligibility, education and training and child care assistance into one MFIP grant, which varies by family size and earnings. Grant amounts are reduced as earnings increase and end once earnings reach 120 percent of the federal poverty level.
Families who need only the food assistance while they work may receive it longer than five years and may continue to receive Medical Assistance and child care assistance. A new Diversionary Assistance Program provides a one-time grant for a period of up to four months to families who do not want ongoing cash assistance.
The emphasis is on work first, although short-term (12 months or less) education and training opportunities are available based on the discretion of Employment Service providers. Educational opportunities are prioritized for those who do not have a high school degree or need English as a Second Language. Also, individuals participating in STRIDE (state JTPA) programs as of March 1, 1997, may be allowed to finish the program for a period of no longer than two years.
The priorities of work and education/training activities are:
- Immediate full-time employment;
- Immediate part-time employment leading to full-time work;
- Combination of training (or social services) and employment;
- Short-term (less than 1 year) training leading toward full-time work;
- Longer term training leading to full-time work; and,
- Combination of social services and training leading to full-time work.
Minnesota counties are responsible for developing and administering MFIP implementation plans.
Primary Goals of MFIP
MFIP has 4 main goals:
- To make work financially rewarding;
- To remove childcare and health care insurance barriers to employment;
- To reduce long-term dependency on public assistance; and,
- To move individuals into work as quickly as possible.
Work Participation Requirements
Minnesota must meet federal work participation requirements. Failure to do so results in a 5 percent loss of the state's block grant the first year. The penalty grows each year up to 21 percent.
Phase-in Process
Key dates:
- July 1, 1997 - 60-month time limit begins, residency requirements begin.
- January 1, 1998 - All current cash grant cases begin to be converted to MFIP over a 3-month transition period and all new cash grant applicants must apply for MFIP.
- July 1, 1998 - Statewide MFIP assists all eligible families.
Key steps in the process of enrolling in MFIP and seeking employment
All AFDC participants must attend an orientation provided by Hennepin County to begin the conversion process. Orientations began in January of 1998.
Each participant selects an Employment Service Provider. The Employment Service Provider is responsible for helping the participant find employment, transportation, childcare, and other resources.
Each participant develops an Employment Plan, which may be a mix of employment, education and training, although the emphasis is on work. Most participants are provided with a minimal level of soft skills training. Post secondary education activities are generally limited to one year, with a second year possible for some.
Participants have eight weeks to find employment and must devote at least 30 hours per week to searching for employment. Those who cannot find employment receive a second assessment and are generally provided with additional short-term educational and training opportunities to improve skill levels. Once completed, participants have an additional eight weeks to find employment. Employment Service Providers follow-up with participants for 180 days to ensure they remain employed.
MFIP participants receive assistance from a variety of community supports through McKnight Foundation funded 'networks of supports' for families making a transition from welfare to work.
Special programs for those who are not job ready
An estimated 20 to 35 percent of welfare participants have serious personal and family obstacles to successful employment.
Some flexibility is built into MFIP to provide additional assistance to MFIP participants who face special barriers to employment, including lack of education or work history, mental health problems, substance abuse or domestic violence. Most importantly, if a participant is unable to find work during the first eight-week job search process, additional education, training and special programs are made available.
Minnesota relies on a wide range of private nonprofit agencies and publicly funded programs to provide services to those who are not job ready. Up to 20 percent of MFIP cases may be applied to the federally defined "hardship" category.
Education and Training
Beyond immediate soft-skills training or high school diploma education, education and training programs are generally not encouraged as part of an MFIP participant's employment plan. However, legal advocates are pushing MFIP participants and Employment Service providers to consider education and training as a means to increase job wage potential. Permissible education and training are as follows:
- Teen parents without a high school education must attend secondary school.
- Post-secondary training must be 12 months or less. If a participant is permitted to attend for longer than 12 months, the participant must repay the cost of the training to the State.
In order to qualify for paid education or training activities (beyond basic soft-skills training) at the initial assessment stage, a participant must demonstrate that the training/education meets the following guidelines:
- It is necessary to get a job;
- The training/education is less than 6 months;
- The resulting job will result in significantly higher pay; and,
- The training/education activity is part of a forty-hour workweek (combination of work and training/education).
Qualifying for paid education and training at the second assessment is easier if the MFIP participant is unsuccessful in finding employment during the first eight-week job search. Still the emphasis will be on short-term training and educational activities.
Time Limits
Recipients may receive federal assistance for a maximum time of five years, starting July 1997.
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