Business

Work program needs funding action

A statewide employment program that has helped more than 6,000 low-income individuals and youth find work would have to be scaled back significantly if Congress does not extend funding by Sept. 30.

According to the Center on Budget Policy and Priorities, a nonprofit research and policy organization in Washington, D.C., Connecticut is among 37 states that would have to shrink or shutter job creation programs by the end of the month if the U.S. Senate does not vote to extend what’s known as the Temporary Assistance for Needy Families (TANF) Emergency Contingency Fund.

The House of Representatives already has voted for an extension.

The Emergency Fund was established using funds allocated under the Recovery Act. TANF was created by federal law in 1996 and provides block grants to states to help needy families with child care expenses and promote job preparation and work opportunities. Connecticut’s unemployment rate is at 8.9 percent.

“It makes no sense to shut down an effective jobs program and put more people out of work right now,” said LaDonna Pavetti, co-author of the Center on Budget Policy and Priorities report. “It’s the opposite of what the country needs. Jobs will evaporate, unemployed mothers and fathers will struggle to make ends meet and it will add more strain to the already fragile economic recovery.”

David Dearborn, communications director for the state Department of Social Services, which receives the federal funding, said the state Department of Labor and regional Workforce Investment Boards operate the jobs programs.

According to state data, a reported 6,461 individuals participated in a summer employment program, bringing enrollment 6 percent higher than initially expected. State labor officials estimate that 60 percent of participants would stop working as of Sept. 1 and return to school. The remaining older youth and adults will remain at work sites through Sept. 30.

After that date, “There are some federal funds designated for youth services that the (regional) Workforce Investment Boards use for year-employment services for youth, so some employment may continue along with other employment-related activities, but for a smaller number of youth,” Dearborn said.

Some state funds through the Jobs First Employment Services also subsidized work programs and will be used to continue employment assistance, but at a lower level, absent additional federal funding, Dearborn said.

Final reports on the participants’ demographics, including age, are expected by late October. Continued...

Call Angela Carter at 203-789-5752.


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