Disincentives to Pay Incarceration is considered “ voluntary unemployment ”

1. 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

2. Some Facts • 650,000 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

3. Some Questions • Should Welfare, Child Support, and Prison Re-entry Programs Be Better Coordinated? • Do We Understand How They are Related?

4. Typical Scenario Low-income male non-custodial parents* • Average age = 28 years old • 68% have a felony and are on parole or probation • 48% lack a diploma or GED • 53% drive regularly but only 18% have a valid license • 2% carry auto insurance *Welfare-to-Work program data (1999-2003)

5. Out of the economic mainstream • 15% unemployed (looking for work) • 40% not in labor force (not even looking for work) • No tax-paying job longer than 3 months in past year • Worked in underground economy or engaged in criminal activities to make ends meet in the past year • Carries an average debt of $18,000 (mainly child support) • 82% can’t open a bank account due to writing bad checks

6. Child Support Caseload Trends#1 • In 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

7. Child Support Caseload Trends #2 • In 1980, 85 percent of families participating in the child support program were current recipients of cash assistance • By 1996, when Congress replaced AFDC with TANF, 38 percent of families were current assistance recipients • In 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

8. What DOC is Doing #1 • Instituting 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

9. 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

10. 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

11. Blueprint to End Homelessness • Housing First • Housing Plus – services to support housing retention and self-sufficiency where appropriate • Access to mainstream resources

12. 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

13. Re-entry Recommendations • Increase collaboration between corrections, welfare and child support agencies • Include child support education and parenting skills as a part of prison programming • Do not suspend driver’s license as a first-level punishment • Upon release, child support debt should be manageable, and releasing authorities should be aware of potential legal repercussions for failure to pay child support • Reward responsible behavior

14. Current Environment • Child 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

15. Child Support Retained to Repay TANF Families

16. 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

17. A Solution Transitional Jobs • An 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 muscle • A service-enriched environment offering work supports and related services to promote work attachment • A pipeline of able workers for local business • A response to Mayor’s workforce development strategy outlined in Blueprint to End Homelessness

18. Transitional Jobs Advantage • Work attachment • Workplace 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

19. Indianapolis Transitional Jobs Project “Remaking Our Resources” • One of seven sites selected in a national competition to launch transitional jobs projects • Sponsored by the Mayor’s Office • Guided by a Planning Team of 20 community stakeholders • Located in the Enterprise Zone

20. How Work Pays • Benefits to Court System • Lighter dockets • Lower jail costs • Benefits to Community • Increased child support • More taxes paid • Less burden on safety net services • Families re-united

21. 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