Re:LA County's guaranteed income program to give some foster...
by bombcar on Thursday October 26, 2023 @12:28PM
(#38027933)
Some programs are means tested at the beginning, and then you "can't lose it" - iirc Calgrants are/were this way. If you qualified, you qualified, and then you wouldn't lose it during your 4 year college stay even if your situation changed.
Doing these types of programs can avoid the "welfare gap" where there's a period where earning more to try to get off welfare actually hurts you - this will occur if you're getting a $X benefit that goes to $0 when your income increases above a certain level.
Much better to have it taper off in such a way that you never lose more than $1 for earning another dollar.
Doing these types of programs can avoid the "welfare gap" where there's a period where earning more to try to get off welfare actually hurts you - this will occur if you're getting a $X benefit that goes to $0 when your income increases above a certain level.
Much better to have it taper off in such a way that you never lose more than $1 for earning another dollar.