Consider this scenario: A single parent with two children receives a $0.10 hourly wage increase—approximately $200 annually. This seemingly positive step forward triggers an unexpected financial crisis as her income now exceeds the threshold for child care subsidies, resulting in a devastating $9,000 loss in essential support. Not only do these “benefits cliffs” cause direct financial harm to families, but the complexity of state and federal public assistance eligibility creates uncertainty as to when these cliffs may happen.
To address this challenge, Connecticut’s Two Generational Initiative (2Gen) partnered with the Atlanta Federal Reserve to build the Career Ladder Identifier and Financial Forecaster (CLIFF), a dashboard that calculates when benefits cliffs will occur for families based on their household composition and income. Using CLIFF, career counselors are working with families to help them understand the impact that a career change may have on their eligibility for public assistance — reducing the uncertainty of a career change.