Narrative: a.

Key changes implemented in W-2 Contracts beginning with 2013 include:

• Payments are structured to incentivize W-2 Contractors to prepare and place participants in sustainable jobs.
• Contractors are paid for specific outcomes, as well as for allowable costs.
• Longer contracts between DCF and W-2 Contractors create sustainable and stable long-term program outcomes and strengthen contract relationships.
• Management and oversight of participant cash payments are administered directly by DCF so W-2 Contractors can focus on job activities without the fear of liability for cash payments.
• DCF divided the state into ten geographical areas: four geographical areas in Milwaukee County, and six geographical areas in the Balance of State (BOS). These larger service areas for W-2 Contractors have been established to achieve economies of scale in operations and more cost-effective and efficient program administration.

The 2013-2024 W-2 Contractors for each geographical area are:

• Ross Innovative Employment Solutions in Milwaukee Northern area;
• UMOS, Inc. in Milwaukee Southern area;
• America Works of Wisconsin, Inc. in Milwaukee East Central area;
• MAXIMUS Human Services, Inc. in Milwaukee West Central area;
• ResCare Workforce Services in BOS Southeast area;
• Forward Service Corporation in BOS Southwest area;
• Forward Service Corporation in BOS Northeast area;
• Forward Service Corporation in BOS North Central area;
• Workforce Resource, Inc. in BOS Northwest area; and
• Workforce Connections, Inc. in BOS Western area.

(See map in Appendix 1: W-2 Contractors and Geographical Areas Effective January 1, 2013.)

W-2 Program Goals and Assumptions

The primary goals of the W-2 program are to: help eligible parents prepare for, obtain, and keep unsubsidized employment; help parents provide for their families; and become self-sufficient members of the community in which they live. For eligible parents who cannot work for a long period of time due to significant disability, the W-2 program helps the parents apply for and receive Supplemental Security Income (SSI) /Social Security Disability Insurance (SSDI).

W-2 policies are guided by the following basic assumptions:

• Work is the best way for parents to support their families.
• Family income should improve when parents work.
• Consistent work is essential for parents to achieve economic stability.
• W-2-eligible participants are parents as well as job seekers.
• Eligible parents must be willing to participate in work or work-like activities in exchange for W-2 payments.
• Families benefit from participating in W-2.
• W-2 matches the employment needs of parents with the needs of local employers.

(See W-2 Manual Chapter 1.)

Community Steering Committees

To strengthen the connection between the employment focus of W-2 and real employment opportunities in local areas, Wisconsin requires its contracted W-2 agencies to establish Community Steering Committees to identify and encourage employers to create work-experience opportunities, subsidized employment opportunities, and permanent unsubsidized jobs for W-2 participants. W-2 agencies are required to appoint to the committees at least one representative of business interests, and each county served by the W-2 agency must be represented on a steering committee by a member of the business community in that county or by a person from a city or county economic development department in that county. These committees are required to coordinate with local workforce investment boards and must appoint a chairperson that represents business interests. Wis. Stat. §49.143(2)(a).

W-2 Program Eligibility

There are five categories of individuals who may be eligible for W-2 services:

1. Individuals age 18 or older who are custodial parents of minor children;
2. Individuals age 18 or older who are Non-Custodial Parents (NCPs) of minor children and the subject of a child support order, if the custodial parent of the minor children is participating in W-2 or the Wisconsin Shares child care subsidy;
3. Individuals under age 18 who are custodial parents of minor children;
4. Pregnant women age 18 or older who are not custodial parents; and
5. Unmarried pregnant women age 18 or older who are in their third trimester of an at-risk pregnancy that results in their inability to work.

Custodial parents may be eligible for all W-2 services. Minor parents and NCPs may be eligible for W-2 case management services and Job Access Loans (JAL). An NCP may also be eligible for a monetary stipend for up to four months or a Trial Employment Match Program (TEMP) job. Pregnant women who are not custodial parents are eligible for case-management services. Those in their third trimester of an at-risk pregnancy that renders them unable to work may be eligible for cash assistance.

W-2 Program Financial and Non-financial Eligibility Requirements

Financial Eligibility Requirements

The W-2 group’s income must be at or below one hundred fifteen (115) percent of the federal poverty level (FPL). All earned and unearned income of all the W-2 group members is counted in determining the 115 percent gross income test, with the exception of the following:

• Tax Refunds;
• Educational aid;
• Federally funded benefits; and
• Earned income of a dependent child.

(Wis. Stat. §49.145(3)(b))

At application, the W-2 group’s assets cannot exceed two thousand five hundred dollars ($2,500) in combined equity value, excluding the combined equity value of vehicles up to ten thousand dollars ($10,000) and one home that serves as the homestead (Wis. Stat. §49.145(3)(a)).

Once eligible for W-2, if the W-2 group’s assets exceed $2,500 for two consecutive months, the group becomes ineligible for W-2. (Wis. Stat. §49.145(4)).

2017 Wisconsin Act 269 provides that the value of a home serving as the W-2 group’s homestead may only be excluded if the home is valued at no more than two hundred (200) percent of the statewide median value for homes, excluding the value of agricultural land owned by the W-2 group. DCF may establish a hardship exemption to the new asset restrictions by rule. The additional asset restriction is effective January 1, 2019. DCF is in the process of promulgating rules to define "a hardship exemption." DCF estimates that asset changes will be implemented by the conclusion of 2021.

Non-financial Eligibility Requirements

1. Custodial parent [Except NCPs are eligible for JALs, limited stipends, and TEMP placements]. Wis. Stat. §49.145(2)(a).
2. Age 18 or above. Wis. Stat. §49.145(2)(b).
3. U.S. Citizen or qualifying alien. Wis. Stat. §49.145(2)(c) and §49.84(5).
4. Residence in Wisconsin. Wis. Stat. §49.145(2)(d).
5. Cooperation in establishing paternity. Wis. Stat. §49.145(2)(f)1.a.
6. Cooperation in obtaining support payments. Wis. Stat. §49.145(2)(f)1.b.
7. Furnishes agency with relevant information. Wis. Stat. §49.145(2)(g).
8. Made good-faith effort to obtain employment, has not refused any bona fide offer of employment within the 180 days prior to application, and searches for unsubsidized employment while the application is processed, if required by the W-2 agency. Wis. Stat. §49.145(2)(h)-(hm), and Wis. Stat. §49.147(2)(a).
9. Not receiving Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), Social Security Child’s Disability (SSDC), or state supplemental payments. Wis. Stat. §49.145(2)(i).
10. Not participating in a strike. Wis. Stat. §49.145(2)(j).
11. Applies for or has a Social Security Number. Wis. Stat. §49.145(2)(k) and §49.82(2); DCF 101.09 (2), Wisconsin Administrative Code.
12. Reports changes in circumstances within 10 days. Wis. Stat. §49.145(2)(m).
13. Participation in W-2 does not exceed 48 months except when the agency determines that the individual is experiencing hardship or that the individual's family includes an individual who has been battered or subjected to extreme cruelty. Wis. Stat. §49.145(2)(n). The 48 month lifetime eligibility limit will go into effect with the passage of administrative rule changes currently being promulgated by the Department. DCF anticipates a promulgated administrative rule in 2019.
14. No other member of the W-2 group is participating in W-2. Wis. Stat. §49.145(2)(q).
15. Not a fugitive felon. Wis. Stat. §49.145(2)(r).
16. Not violating a condition of probation, extended supervision, or parole. Wis. Stat. §49.145(2)(rm).
17. Assigns to the state any support or maintenance from any other person. Wis. Stat. §49.145(2)(s).
18. Identifies in writing whether s/he has been convicted of a drug felony. Wis. Stat. §49.145(2)(v).
19. Complies with other eligibility criteria established by the Department through administrative rule. Wis. Stat. §49.145(2)(L).
20. Not ineligible due to receipt of child care assistance while residing with the child’s other parent and that parent refuses to participate in prescribed work, training, or community-service activities. Wis. Stat. §49.15 and Wis. Stat. §49.151(1m).

(See W-2 Manual Chapter 2.)

W-2 Program Services and Placements

The primary components of W-2 case management include screening and assessment, development of employment goals and an Employability Plan (EP), and participation in activities associated with the individual’s assigned paid or unpaid placement. Case management is a dynamic process, and plans and activities are subject to changes that reflect additional information obtained during ongoing case management.

Screening and Assessment

Screening and assessment include informal assessment, educational needs assessment, career assessment, and formal assessment. The purpose of the informal assessment is to gather information about an individual and his or her family to determine the individual's ability to become employed and remain employed; services and activities necessary for the individual to become employed and remain employed; appropriate placement of a participant; need for further career assessment and planning; need for vocational evaluation; existence of potential disabilities or other specific limitations through screening with a validated screening tool; and need for a formal assessment of any disabilities or other employment barriers by a qualified assessing agency or individual. Informal assessment is an ongoing case management practice which starts during the W-2 application period and continues until the individual no longer receives W-2 services. (See W-2 Manual Chapter 5.)

Employability Plan

Every W-2 participant works with a Financial and Employability Planner (FEP) to develop an initial EP. The EP is developed through a collaborative process between the FEP and the applicant or participant taking into consideration the individual’s personal strengths and barriers identified through assessment. It details what the individual will do to reach his/her employment goal (or goal to obtain SSI/SSDI) and what the W-2 program will do to assist in that effort. The EP also may include goals to help the participant meet basic and immediate family needs such as food, clothing, shelter, and health care. Meeting these needs helps the family to achieve and/or maintain economic stability. The EP is reviewed and updated at least once every six months, and may be updated more frequently if individual circumstances change. (See W-2 Manual Chapter 6.)

W-2 Program Paid and Unpaid Placements

The W-2 program has paid placements in which the participant receives a monthly payment, a subsidized employment placement in which the participant receives a subsidized wage, and unpaid placements in which the participant receives case management services only. Every applicant and participant is assigned to a placement to meet his or her individual needs. The W-2 program has multiple placements to meet the needs of eligible parents with varying skills and circumstances.

W-2 Paid Placements

The W-2 program’s paid placements are: Community Service Job (CSJ); W-2 Transition

(W-2 T); Custodial Parent of an Infant (CMC); and At-Risk Pregnancy (ARP).

1. CSJ placements are for individuals who need to develop basic skills and work habits in a work training environment. Two-third, one-half, and one-third time CSJ placements may be used for individuals already working part-time who need to develop additional skills for full-time employment. CSJ participants are expected to complete 40 hours of activities per week but can be assigned fewer hours depending on the participant’s circumstances. Of these 40 hours, up to 10 hours per week can be in education and training activities. CSJ work training hours countable toward the maximum 40 hours of activity as approved by the FEP may include:

• Work experience;
• Training activities conducted at the CSJ work training site;
• Other assigned work training activities, such as:
  • Job search activities;
  • Vocational rehabilitation; and
  • Meetings with child support agency staff, social workers, health care professionals or other meetings approved by the FEP and necessary to prepare a participant for employment.

2. W-2 T placements are for individuals who are unable to perform independent, self-sustaining work because of domestic abuse, functional limitations, disability, or family barriers. Based on the results of a formal assessment, the participant may be assigned up to 40 hours per week in activities, which may include work training, other W-2 T activities, and education and training. Examples of W-2 T work-training activities approved by the FEP may include:

• Community rehabilitation program - a program that provides directly, or facilitates the provision of, vocational rehabilitation to individuals with disabilities and that enables an individual with a disability to maximize opportunities for employment. Services may include vocational assessment, job readiness training, job placement, and on-the-job support targeted at individuals with disabilities. Assignable activities vary depending on the focus of the program, but may include:
• Disability and Learning Assessment;
• Career Planning & Counseling;
• Employment Search;
• Mentoring/Coaching;
• Job Readiness/Motivation;
• Occupational Testing;
• On-The-Job Training;
• Paid Work Experience in the public sector, not funded by TANF;
• Work Experience;
• Activities similar to a CSJ, but with more supervision; or
• Volunteer activities.

3. CMC placements are for individuals who are the custodial parent of an infant who is eight weeks old or younger. Participants in this placement are not assigned to activities; however, they are encouraged to volunteer for activities that help them prepare for work and the demands of being a parent.

4. ARP placements are for unmarried women who are in the third trimester of an at-risk pregnancy that results in their being unable to work, and who meet all W-2 eligibility criteria except that they are not a custodial parent of a dependent child. Participants in this placement are not assigned to activities; however, they may volunteer, with medical approval, for activities that help them prepare for work and the demands of being a parent.

W-2 Subsidized Employment Placement

The W-2 program’s subsidized employment placement is the Trial Employment Match Program (TEMP) job placement. TEMP job placements are for individuals who have some basic employment skills but still need some assistance and work experience to succeed in unsubsidized employment. An individual working in a TEMP job earns at least minimum wage, and the W-2 agency subsidizes all or a portion of the hourly wages paid to the individual by the employer. There are two TEMP placements: TEMP for custodial parents (CPs) and TEMP for non-custodial parents (NCPs). TEMP is available to CPs and NCPs statewide beginning January 1, 2019. NCP TEMP is an exception to the general requirement that W-2 participants be CPs. An NCP that is cooperating with child support and shares a child in common with a CP who is in W-2 or receiving a Wisconsin Shares child-care subsidy (due to participation in other qualifying activities, typically unsubsidized employment), is eligible for a TEMP job and enhanced case management, including a monetary stipend for up to four (4) months. At the same time, Wisconsin is piloting its Transitional Jobs subsidized employment program outside W-2.

W-2 Unpaid Placements

The W-2 program’s unpaid placements are: Case Management Job Ready (CMJ); Case Management Follow-Up (CMF); Case Management for Underemployed (CMU); Case Management for Non-Custodial Parents (CMN); Case Management for Minor Parents (CMM); Case Management for Pregnant Women (CMP); and Case Management Denied (CMD).

3. CMU placements are for employed applicants who do not have any barriers to full-time employment and meet the W-2 nonfinancial and financial eligibility requirements. The goal of CMU is to give participants the assistance they need to stay employed and advance in their careers. CMU placements are also for participants that participated in the CMF placement for twelve months and wish to receive additional case management services.

Time Limits

The maximum period of participation in a TEMP, CSJ, or W-2 T placement is limited to twenty-four (24) months for each placement. Extensions of the twenty-four (24) month limit may be available on a limited basis when barriers exist that prevent employment. (See W-2 Manual, Chapter 2.) Under provisions of 2015 Wisconsin Act 55, Wisconsin is changing its maximum lifetime limit of sixty (60) months for W-2 participation to forty-eight (48) months as well as the criteria for approving extensions. Under the amended statute, W-2 agencies may grant extensions of the 48-month lifetime limit if they determine, in accordance with rules promulgated by DCF, that an individual is experiencing hardship or that the individual’s family includes a member who has been battered or subjected to extreme cruelty. Act 55 also contained non-statutory language that gives DCF discretion to allow individuals participating in W-2 on the effective date of the 48-month lifetime limit to remain in W-2 for an appropriate time beyond 48 months in order to allow for transition out of W-2. DCF is in the process of promulgating rules to define “hardship” and the criteria for the transition period. DCF estimates that the lifetime limit changes will be implemented by the conclusion of 2021. (See W-2 Manual Chapter 2.)

Drug Felons

If a participant in a CSJ or W-2 T placement was convicted in any state or federal court of a drug-related felony within five years of applying for a W-2 paid placement, the individual must submit to a test for use of a controlled substance as a condition of continued eligibility.

If the test results are positive, the W-2 agency must decrease the pre-sanction benefit amount for that participant by up to fifteen (15) percent for no fewer than twelve (12) months, or for the remainder of the participant's period of participation in the employment position, if less than 12 months. The W-2 agency may also require an individual who tests positive for use of a controlled substance to participate in a drug abuse evaluation, assessment, and treatment program as part of the work or education and training requirements for that employment position. The participant will be required to take another drug test at the end of the sanction period to determine whether he or she is eligible for a full W-2 payment. (See W-2 Manual Chapter 11.)

Controlled Substance Abuse Screening, Testing, and Treatment

2017 Wisconsin Act 59 expanded current controlled substance abuse screening, testing, and treatment requirements as a condition of eligibility for certain DCF work experience programs to the following W-2 paid placements: TEMP, CSJ, and W-2 T. Individuals applying for a W-2 paid placement as well as all adult members of the applicant's W-2 group whose income or assets are included in determining the individual's eligibility for W-2 will be subject to the requirements. The screening and testing requirements do not apply to custodial parents of a child who is 8 weeks old or less, women in a medically verified at-risk pregnancy, or group members exempted by DCF administrative rule. DCF is required to promulgate rule to implement the controlled substance abuse screening, testing, and treatment requirements for W-2.

Individuals applying for a W-2 paid placement as well as all adult group members of their W-2 group will be required to complete a controlled-substance abuse screening. If, on the basis of the screening results, the administering agency determines there is a reasonable suspicion that the individual or group member is abusing a controlled substance, the individual or group member must undergo a drug test. Individuals or group members who test positive for a controlled substance without evidence of a valid prescription will be required to participate in a treatment program in order to remain eligible to participate. During the time that an individual or group member is receiving substance abuse treatment, the individual or group member is required to undergo random testing for the use of a controlled substance. In addition, a test for the use of a controlled substance is required at the completion of substance abuse treatment.

If an individual or any of the individual's W-2 group members fails to satisfy the screening, testing, or treatment requirements, then the individual will remain partially eligible for reduced monthly payments under a CSJ or W-2 T placement. A protective payee will receive the payment and use it exclusively for the benefit of the dependent children. The individual will remain partially eligible for 12 months. DCF may promulgate rule providing criteria for the individual to regain eligibility for full participation earlier than the end of the 12 month period.

W-2 Related Programs

In addition to the W-2 program, W-2 agencies administer the “related programs” of Contracted Child Care, Emergency Assistance (EA), JALs, and Refugee Cash Assistance (RCA) to help eligible individuals and their families.

Many of Wisconsin’s TANF programs use a percentage of the FPL to define eligible needy families. While each program has its own standards, none exceed three hundred (300) percent of the FPL. The applicable program description indicates when an alternate measure of neediness is used.

Wisconsin’s Other Programs and Services

1. In addition to W-2 and the W-2 Related Programs described in this section, Wisconsin supports other TANF programs and services described in Attachment 1.
2. In addition to Wisconsin’s other TANF programs and services, Wisconsin supports a number of non-TANF programs and services, described in Attachment 2, that assist needy families and children.