The Work Supports Initiative connects low-income people with resources that lift them out of poverty

The ranks of the working poor are growing due to manufacturing job losses, welfare-to-work policies, wage stagnation, and increases in the cost of living. In 2006, one-fourth of all jobs in the United States paid $10 per hour or less, and since then millions of workers have lost their jobs in the recession. For the families that constitute the working poor, there is a gap where the budget for "basic needs" exceeds income. Simply stated, for many Americans, wages are insufficient to cover the full cost of basic needs for their families. The nation's policy response to unemployment, underemployment, and low wages is to provide work supports--supports like the Earned Income Tax Credit (EITC) and public benefits like food stamps, child care subsidies, children's health insurance, and Medicaid. The problem is that every year, eligible low-income families fail to claim some $54 billion in work supports. Only 7.2% of eligible families claim all four supports including EITC, food stamps, health insurance, and child care supports. Even the most-utilized work support, the EITC, is not claimed by over 6.5 million American households, which annually lose out on $11.7 billion in EITC refunds.

To overcome these barriers and many others, MDC formed the Work Supports Initiative. This national outreach effort uses a Web-based service called The Benefit Bank® to connect low- and moderate-income Americans with work supports in the form of tax credits, public benefits, and other assistance such as student financial aid. Modeled after the Ohio Benefit Bank, WSI seeks to replicate similar results in other states. In less than three years of operation the Ohio Benefit Bank has proven an impressive outreach model:

• 1,200 TBB sites are sponsored by community-based organizations
• 5,300 counselors are trained to use The Benefit Bank service
• 150,000 Ohioans have used the service
• $262 million in tax credits, public benefits, and other assistance have been claimed by users

These results are due to the continued success of the model, which is replicated in WSI. State Affiliates function as a statewide coordinator of outreach, building relationships with community and faith-based organizations to host Benefit Bank sites. Counselors do not need to be tax or benefits experts as the expertise resides in the software. At these sites, trained counselors follow the simple Web-based prompts asking questions to automatically complete and in many cases electronically file tax returns and other work supports applications. When claimed, these supports are proven to increase employment, education levels, and welfare-to-work success ratios--reducing poverty, hunger, homelessness, and recidivism.

WSI: Replicating and Expanding the Ohio Outreach Model in Other States:

Ralph Gildehaus, the former director of The Ohio Benefit Bank in the Governor's Office of Faith-Based and Community Initiatives, leads WSI efforts at MDC and coordinates work with our national partners and state affiliates. MDC is actively recruiting new state affiliates to join the WSI Initiative. Our success in identifying and supporting new state sponsors is a result of a dynamic process, including: identifying sources for catalytic investment, assistance building connections to state government, participation in the annual Training Institute, continued training and technical assistance, and support of the national network. These steps ensure outreach extends deep into communities and is supported by a local network of faith-based and community organizations.

Current Work:

WSI partners and initial funding are in place in several states--including South Carolina, North Carolina, and Indiana--and work will begin soon to employ site personnel to connect residents with work supports.

For more information about The Benefit Bank:

Graph showing results of Ohio Benefit Bank
Ohio University report about economic impacts
Video by Ohio Governor Ted Strickland
TV news story about Ohio Benefit Bank
National Public Radio story about Ohio Benefit Bank
FAQs about WSI and The Benefit Bank
Benefit Bank of NC
Contact information