Workfare

 

Workfare Overview

• Colorado Workfare is a mandatory activity in which food stamp applicants/recipients perform public service work at either public or private non-profit sites in exchange for food stamps.

• Work sites include, but are not limited to, city and county departments, schools, daycare and senior centers, animal shelters, hospitals, food banks, and non-profit organizations such as Goodwill.

• Workfare operates in all Employment First counties.

• Once a Workfare participant has obtained unsubsidized employment, program revenue, called enhanced funding, may be generated. Enhanced funding is a one-time payment from the Federal Department of Agriculture intended to reflect a share of the food stamp savings. The enhanced funding is calculated by taking the reduction in food stamps times 1.5. For example, a $200 reduction in food stamps equals $300 of enhanced funding.

• The following individuals can be mandated to Workfare:

All Employment First participants including ABAWDs, work registrants and volunteers.

Persons who have applied for or are receiving unemployment insurance.

Persons in Colorado Works (TANF) program who both the Colorado Works case manager and EF counselor feel would benefit from Workfare. Workfare counts toward meeting
the TANF participant requirement. Colorado Works participants who do not comply are sanctioned under Colorado Works rules.

Any person, who is on food stamps, even though they may be exempt from work registration, may volunteer to be in Workfare. Volunteers cannot be sanctioned.

• Participants in Workfare meets the requirement for ABAWDs.

• If mandated individuals do not comply with Workfare requirements, their portion of food stamps are deleted from the household allotment for 1, 3 or 6 months. They can comply or regain just as in Employment First.

• Workfare must be operated by a public or private non-profit agency.

• There must be a contract on file with the State for each Workfare site in a county. At a minimum, large counties must have 10 sites, medium counties must have 5 sites and small counties must have 3 sites.

• Worker's compensation insurance must be provided for each participant. Either the county or the individual work site can provide compensation insurance. Volunteers or liability insurance is not sufficient.

Agency Benefits

• Additional 100% Federal funds through enhanced funding for program operations once participants obtain employment.

• Strengthens the partnership between the operating agency and the community by providing employees that perform needed work that can no longer be funded through traditional means.

• Through increased work experience, more individuals gain employment decreasing the need for food stamps and the corresponding food stamp administration costs.

Community Benefits

• Public and private non-profit organizations benefit from the work provided by Workfare participants.

• Once an individual obtains unsubsidized employment they pay additional sales and excise taxes.

• There is increased responsibility on the part of individuals for the food stamps they receive.

Participant Benefits

• Workfare provides valuable work experience and work related self management skills.

• Research suggests that Workfare experience may compensate for a poor education when looking for a job.

• Working individuals are more likely to be hired than non-working individuals.

• Successful participants receive a good local reference when applying for other jobs.