Raised Bill No. 397 Summary

• Defines "benefits cliff" as the reduction or loss of public assistance benefits when employed beneficiaries' income exceeds eligibility thresholds without offsetting the lost benefits.

• Requires the Secretary of the Office of Policy and Management to study the effects of the benefits cliff on Connecticut's economy and report findings to relevant committees by September 1, 2020.

• Mandates development of a comprehensive plan by January 1, 2021, to reduce employment disincentives, beginning with elimination of the family cap in temporary family assistance effective fiscal year 2022.

• Plan includes earned income disregards, accessible transportation, subsidized child care, public-private employment partnerships, employer retention incentives, and a benefits cliff calculator program to help beneficiaries understand income thresholds.

• Eliminates the family cap provision in temporary family assistance (previously limited benefit increases for infants born after initial ten months of program participation) and allows earned income disregards up to the federal poverty level, effective July 1, 2021.