Human Services programs must create pathways (or highways) out of poverty. Our efforts must be directed toward creating the right incentives, helping people prepare for work, providing real employment opportunities, and supporting success.

I recently received an email from an employer expressing serious concern that someone from DCF had recommended to one of his employees that she would be better off financially if she quit her job and “went on welfare”. The employee had a job making $16/hour and good benefits, including health care. This salary level put her just beyond the reach of most benefit programs.

I looked into the matter and determined that the situation did not occur exactly as portrayed. Needless to say, DCF’s mission is to help people move out of poverty, and we must always be on the side of supporting families to gain and sustain employment. Employment is critical to economic stability. It also helps to build one's sense of self and brings purpose to life.

Beneath the issues in this particular case, however, lies a very concerning reality. For many Vermonters, pathways out of poverty are really obstacle courses. In certain income brackets, benefits and work supports go down at a more rapid rate than the rise in income, leaving a family worse off financially when earning more. This is especially true for parents with young children who require child care. For example, a family of three—a mother with two children, ages 3 and 6—is actually better off financially with an income of $17,000 than an income of $37,000. Only when income rises to $42,000 or so is the family clearly better off financially with each new dollar earned.

This issue has attracted widespread attention—from community advocates, state legislators, and the Governor. Three years ago, the legislature created the Vermont Child Poverty Council. Witnesses at 14 regional hearings raised concerns about this phenomenon, also described as a “benefits cliff”.  At the Governor’s Conference on Economic Stability, held in April of 2009, addressing the benefits cliff was given the highest priority for action.

Small gains have been made over the past two years through actions such as expanding eligibility for 3SquaresVT and fuel assistance and increasing child care benefits. We must continue to analyze this issue and address it in every way possible.

The young woman described above is finding the pathway out of poverty through sheer grit and determination and a strong commitment to improving her life. DCF staff and contractors will continue to encourage and support Vermonters on their paths out of poverty. And we will continue to work to create a benefits structure that consistently reinforces hard work.

Steve R. Dale, DCF Commissioner