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The Honolulu Advertiser

Posted on: Monday, August 23, 2004

'Jobs heal — that's the bottom line'

By Catherine E. Toth
Advertiser Staff Writer

Sonia Longoria knows the value of employment.

Unable to support her three kids on a part-time job while going back to school, Longoria began collecting welfare in 1999, two years after her divorce.

Sonia Longoria, with her children Christina, 12, left, Robert, 17, and Rachael, 14, earned an associate's degree and has a full-time job with University Health Alliance — after spending two years on welfare.

Eugene Tanner • The Honolulu Advertiser

"I told myself I would only stay on welfare for five years so I could do what I needed to do to better myself," she said.

Through the state's First-to-Work program, she got a job at a temp agency. Six weeks later the company she was temping for offered her a part-time job. And she has been there ever since.

Longoria earned her associate's degree in accounting and moved into a full-time position after two years on welfare.

"It is successful," said Longoria, 42, a human resources/payroll clerk at University Health Alliance. "And it does work."

Longoria is the kind of success story the state Department of Human Services wants more of. More than a year ago, the state contracted with the American Institute for Full Employment to restructure its current welfare-to-work program to get more people off government assistance and into unsubsidized employment.

The new employer incentive program — "Supporting Employment Empowerment" — is scheduled to launch in October, with the state picking up most of the tab for employers who hire welfare recipients.

The state will pay the full minimum wage for employees who work between 24 and 40 hours a week in this program for up to six months. Employers can apply for up to two 3-month extensions. And companies are not obligated to keep participants employed after their term is over.

Welfare-to-work program

10 a.m. Thursday

State Capitol auditorium

591-9193

Medical coverage will be provided through the state's Med-QUEST program. Participants also will receive childcare.

In addition, the state will reimburse employer contributions for unemployment insurance, workers' compensation and FICA, up to 14 percent of a worker's wages.

Employers also will be allowed to select employees through a hiring process similar to private hires. Companies submit job descriptions to the Department of Human Services, and First-to-Work staffers match clients with jobs based on interest, background and experience.

Employers then conduct interviews and select the best candidate for the job.

Thousands of welfare recipients in Hawai'i could benefit from the new program.

"The shift is based on us knowing what businesses need in order to participate (in the program)," said Lillian Koller, director of the Department of Human Services.

"It's us knowing what they're looking for, what type of talent they need. We're getting the insurance, childcare, medical and case managers who are going to support them if there's any kind of issues or concerns that arise. We're working with the employers to iron out any difficulties. ... This is really comprehensive to what we've been doing before."

"Supporting Employment Empowerment"

Target population: Welfare recipients

Wage reimbursement: $6.25 per hour (minimum wage) for 24 to 40 hours worked per week.

Additional reimbursements: 14 percent of wages reimbursed by employer for unemployment insurance, workers' compensation and FICA. Medical coverage provided through Med-QUEST. Participants will receive childcare coverage.

Eligible recipients: First-to-Work clients

Eligible employers: Any employer can qualify for the program.

Time period for program: Up to six months, with two 3-month extensions available. Maximum eligibility is 12 months.

Contact: Garry Kemp, 586-7050

State officials and members of various companies and organizations met last Thursday at the state Capitol to discuss the program and generate support for it. Another public meeting is scheduled this Thursday at the state Capitol.

The state now is trying to get the message out to companies and organizations about the new business-friendly program, realizing that partnership between the public and private sector is necessary for it to be a success.

"To revamp the welfare-to-work program will take employers getting enthusiastic about it," said Richard "Dick" Rowland, president of the Grassroots Institute of Hawai'i, a public policy think tank that supports the new program. "The idea is every American who wants a job should get a job."

The American Institute for Full Employment, a privately funded, not-for-profit research and development center, helped launch similar reforms in welfare-to-work programs in other states, including Mississippi and Oregon, which is a model for Hawai'i.

When the reformed welfare-to-work program in Oregon was implemented 10 years ago,

86 percent of participants moved into unsubsidized employment. The average wage employers paid participants was $2 higher than minimum wage. (The state paid up to minimum wage; employers could opt to pay participants over that out of their own pockets.)

"The whole trick is to match people with real employers in real jobs," said Ted Abram, AIFE executive director. "It's not the 'broom in the back room.' It's about them truly being involved in employment and the responsibility of employment. That's what we're all about."

Research shows that depression, substance abuse and abuse toward children are correlated with chronic unemployment, Koller said. The longer a person stays on government assistance, the harder it is to get off it.

"Jobs heal — that's the bottom line," Koller said. "When people work at a job they enjoy, have colleagues working with them, have relationships with these people, work becomes meaningful. ... This increases self-esteem, gives you financial mobility, and finally more choices open up. You have skills, you have something to offer to both the greater community and to your family, you become a mentor to your children. ... It's about strengthening families and breaking cycles."

Small businesses, in particular, may benefit from the new program, said Sandie Hoback, a consultant with AIFE and former welfare-to-work director in Oregon. A business poised for expansion may not have enough capital to hire another person. This program would allow the business owner to take that risk, she said.

Another component to the change is how the department executes the program, Koller said. Common complaints from businesses were that it took too long for the department to find a job candidate and reimbursements weren't quick enough.

The new program will start with payments made through a contractor at first. Ultimately the goal is to deposit reimbursements electronically into the employer's account. Turnaround time will be no more than five business days.

The department also plans to get prospective candidates to employers within a week of a request.

"Part of what we're doing is streamlining the process," Koller said. "We are mindful of the way things have been done in the past, that there have been frustrations. Those are precisely what we want to iron out."

No additional money will be needed to finance this new program, Koller added. The department will be making more efficient use of underused resources through the restructuring.

"This is a major shift," Koller said. "It's very business-based, and it's about setting outcomes and expectations high, because that's what we must do."

Reach Catherine E. Toth at 535-8103 or ctoth@honoluluadvertiser.com.