Disincentives to Pay Incarceration is considered “ voluntary unemployment ”

2005 Statewide Conference on Housing and Community Economic Development

Improving Child Support Enforcement Through Transitional Jobs

Disincentives to Pay

Incarceration is considered “voluntary unemployment”

Child support accrues to high levels during a non-custodial parent’s jail or prison term

40-55% of wages may be garnished

Low-wage workers may choose not to work as a result



Some Facts650,000 persons are released from State/Federal facilities

7 million are released from local jails

Most will be rearrested in 3 years

55% of all ex-offenders are parents

Over 10 million children have parents who were incarcerated at some point in their lives

Few human service agencies have integrated programs to serve the whole family



Some Questions

Should Welfare, Child Support, and Prison Re-entry Programs Be Better Coordinated?

Do We Understand How They are Related?



Typical Scenario

Low-income male non-custodial parents*

Average age = 28 years old68% have a felony and are on parole or probation48% lack a diploma or GED53% drive regularly but only 18% have a valid license2% carry auto insurance

*Welfare-to-Work program data (1999-2003)



Out of the economic mainstream15% unemployed (looking for work)40% not in labor force (not even looking for work)No tax-paying job longer than 3 months in past yearWorked in underground economy or engaged in criminal activities to make ends meet in the past yearCarries an average debt of $18,000 (mainly child support)82% can’t open a bank account due to writing bad checks



Child Support Caseload Trends #1In 2003, the child support program served 17.6 million children

Half of poor children have parents who live apart from them, making them potentially eligible for child support

Almost 85 percent of child support-eligible families with incomes below the federal poverty level participate in the child support program

Nearly two-thirds of families participating in the child support program are current or former cash assistance recipients under TANF



Child Support Caseload Trends #2In 1980, 85 percent of families participating in the child support program were current recipients of cash assistanceBy 1996, when Congress replaced AFDC with TANF, 38 percent of families were current assistance recipientsIn 2003, just 17 percent of families in the child support caseload were current assistance recipients. Today, the largest group of families participating in the child support program is former welfare recipients



What DOC is Doing #1Instituting a comprehensive case management system

Individualized treatment and services for each offender that begins at intake

Regularly reviewed and updated Continues throughout release to parole

Pilot program to secure BMV-issued state identification cards at no cost to the offender prior to release from correctional facility



What DOC is Doing #2

Pilot program to establish a WorkOne center in the correctional facility

Pilot program to pay rental deposit and rent subsidies of up to 100% for a period of up to 18 months



Blueprint to End Homelessness

City of Indianapolis is Project Sponsor for Transitional Jobs project

There is a link between an overtaxed criminal justice system and providing supports to homeless populations



Blueprint to End Homelessness

Housing First

Housing Plus – services to support housing retention and self-sufficiency where appropriate

Access to mainstream resources



Blueprint Recommendations:

• Reduce the number of former criminal offenders in the homeless population and ensure that increasing numbers of people leaving incarceration achieve stable housing and employment

• Focus services on offenders most at risk of becoming homeless or reoffending

• Educate the community about reintegration challenges faced by people leaving incarceration and the benefits of enhancing services for returning offenders



Re-entry Recommendations Increase collaboration between corrections, welfare and child support agenciesInclude child support education and parenting skills as a part of prison programmingDo not suspend driver’s license as a first-level punishmentUpon release, child support debt should be manageable, and releasing authorities should be aware of potential legal repercussions for failure to pay child supportReward responsible behavior



Current EnvironmentChild support a welfare cost recovery mechanism

under current rules

Child support intercepted by the State for TANF

recipients (no pass-through)

Interception continues after TANF ends until total

cost of cash benefits is recovered



Child Support Retainedto Repay TANF Families

Total Collection-- All Child Support

Collected for Current and

Former TANF2004 $442.6 mill $102.6 mill2002 $430.2 mill $ 84.4 mill

Retained collections for

current and former TANF families

State share of collections for

current and former TANF

families2004 (est.) $27.7 mill $10.5 mill2002 (actual) $26.8 mill $10.2 mill



Alternative Uses of Indiana’s Child Support Incentive Payments

Besides TANF block grant, Indiana receives incentive payments for its welfare cost recovery

Indiana’s 2002 incentive = $5,564,581

Investing a small portion of these funds in Transitional Jobs programs would pay great dividends

Transitional Jobs Programs would: Significantly increase child support collections Maximize federal incentive payments



A Solution

Transitional JobsAn incubator for people who need meaningful work experience in order to enter the labor market and to participate in civil society—re-building the work muscleA service-enriched environment offering work supports and related services to promote work attachmentA pipeline of able workers for local businessA response to Mayor’s workforce development strategy outlined in Blueprint to End Homelessness



Transitional Jobs AdvantageWork attachmentWorkplace mediation Long-term retention management services (one year)Emphasis on paying child support (responsibility)Limited cash assistance with “work supports” (reward)

– Rent & Utilities – Transportation– Vehicle Insurance – Uniforms – Vehicle Repairs – Legal Services– Driver's License Re-instatement



Indianapolis Transitional Jobs Project“Remaking Our Resources”

One of seven sites selected in a national competition to launch transitional jobs projectsSponsored by the Mayor’s OfficeGuided by a Planning Team of 20 community stakeholders Located in the Enterprise Zone



How Work PaysBenefits to Court System

Lighter dockets Lower jail costs

Benefits to CommunityIncreased child support More taxes paidLess burden on safety net servicesFamilies re-united



For a copy of this presentation, please visit:Workforce, Inc. www.work-force-inc.com

For other partner resources:

Choices, Inc. www.choicesteam.org

City of Indianapolis www.indygov.org

CLASP www.clasp.org

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Disincentives to Pay Incarceration is considered “ voluntary unemployment ”

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