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Date: 8/3/2022
SPRINGFIELD – State Sen. Eric Lesser announced $1 million in funding for the Cliff Effect Pilot Program on July 26.
The Cliff Effect remained a subject of Lesser’s legislative agenda over the course of the year. In January, Lesser hosted a sit-down conversation with Anne Kandilis of Springfield WORKS and Regina Hudson of Springfield Partners for Community Action about the lingering impacts of the overlooked economic phenomena.
In that conversation, Lesser described how the Cliff Effect restricts people reliant upon benefits from advancing in the workforce due to fears of losing economic aid completely. Those dependent upon benefits end up declining raises to keep essential aid, like childcare or housing benefits.
“A lot of our benefits are tiered by income, except it’s not like a slope in terms of what you’re eligible for or not, it’s a cliff. When you hit a certain income level, all those benefits turn off for you,” said Lesser.
Before the legislative funding, Springfield WORKS operated a test pilot program that allowed participants to utilize state earned income tax credit to tier benefits more effectively. Kandilis advocated for the Cliff Effect to receive the legislative support so the program could be fully enacted.
“We need to create that true economic opportunity for all of us in Massachusetts. Passing this legislation is one way to do that,” said Kandilis.
With the announcement of state funding, the pilot program will now send 100 individuals and families across Massachusetts an Earned Income Tax Credit to close the cliff effect gap and reward workforce participation. The aim of the program is to provide a more gradual easement of benefits as workers receive wage increases. If successful, the pilot program can lead to a future economic ecosystem that incentivizes work and increases the quality of life for workers, according to Lesser’s press release.
The legislation also received support from state Sen. Adam Gomez and state Reps. Carlos Gonzalez and Patricia Duffy. In his official statement, Lesser reflected on the potential benefit of the pilot program.
“The passage of the Cliff Effect amendment is a tremendous victory for workers and families throughout the commonwealth…During a time of great financial and economic uncertainty, we must encourage and reward workforce participation while making sure that we do not abandon our workers by stripping away public benefits too rapidly,” said Lesser in his press release.
With the bill receiving passage, Kandilis acknowledged the impact an expanded Cliff Effect Pilot Program will have across the state.
“This bill is an important step in building a strong economy by removing obstacles for people as they earn a livable wage and grow in their careers,” said Kandilis via Lesser’s press release.
For more information about the Cliff Effect Pilot Program, readers can visit https://www.senatorlesser.com/news/2022/7/26/sen-lesser-secures-1-million-in-funding-to-jumpstart-the-cliff-effect-pilot-program.