The budget bill brought both good and bad news for the Transitional Jobs program, which provides subsidized job placements and training for unemployed, non-custodial parents who are ineligible for both unemployment insurance and the Wisconsin Works (W-2) program. It was initiated in September 2010 as a two-year demonstration program, but was provided just one year of funding.

Although Governor Walker’s budget proposed ending the Transitional Jobs program on July 1, 2011, the Legislature appropriated $12 million of TANF funding in the 2011-13 budget bill to allow the demonstration program to continue for 12 months.

In addition, the Legislature’s revisions to the budget extend the statutory authority for the program for the duration of the 2011-2013 budget period, though no funding was set aside for the second year of the biennium. Those changes give the demonstration program another year to prove its worth, and give the Joint Finance Committee or full Legislature an opportunity to extend the program for an additional year, if a funding source can be found.The Governor approved the changes made by the Legislature, but used an item veto to make a positive alteration. The Legislature’s version would have limited the host sites to private sector, for-profit employers. The Governor used his veto authority to allow nonprofits to also be host sites. Currently, a little over half of the program participants work for non-profit organizations.

The Transitional Jobs program has grown steadily since it began in September 2010 and has become an important source of employment in the areas where the program is being piloted. By February of this year, participation had climbed to 1,059 people and spending was averaging about $900,000 per month. (The initial year of funding came indirectly from the Recovery Act, which provided federal TANF Contngency Funds that the state used to help fund W-2, thereby freeing up funding used for the Transitional Jobs program.)

One of the areas where the program is being piloted is La Crosse. Workforce Connections is using a grant to serve at least 30 people in its Constructing Opportunities program, which helps people develop basic construction industry skills. The local program partners with the City of La Crosse to rehabilitate city-owned housing for resale to income-eligible families. Participants in the program receive training and a paycheck while they assist in the rehabilitation of the homes, and then are helped with finding unsubsidized employment.

As Jamie Applin, executive director of Workforce Connections, told the La Crosse Tribune, “From our perspective, this isn’t about building homes. For us, it’s about building futures.”

Advocates are pleased that the Transitional Jobs program received a one-year extension, although many would have preferred to see it funded throughout the 2011-13 biennium

Jon Peacock

Tomorrow—Way #15: Cuts to Higher Education

About the series: “31 Ways in 31 Days” is a series of posts to the WCCF blog exploring the recently-passed biennial budget’s impact on children and families in Wisconsin. Each day in July, we are posting a description of one way the budget will affect kids and families, with an eye toward what should be done going forward to help improve outcomes and move us closer to the goal of making Wisconsin a place where every child has the opportunity to grow up, learn, and thrive in a safe, healthy, economically secure home and community.