MFIP reporting changes proposed to help families get out of deep poverty

It’s not just a lack of income that keeps Minnesotans in deep poverty, but also the unpredictability of that income.

But a provision included in Gov. Tim Walz’s budget recommendations could help make the state’s cash assistance programs a greater source of stability for families in need, Human Services Commissioner Jodi Harpstead told the House Human Services Finance and Policy Committee Wednesday. No action was taken.

While programs like the Minnesota Family Investment Program and General Assistance are intended to help people in need – and do provide vital cash assistance – that aid can change from month to month, making it another variable for people who are already in crisis, she said.

Changing the program requirements to give people six months of uninterrupted benefits, without burdensome monthly reports, could improve that, especially for employed people on MFIP.

"It would allow them to spend their time filling out job applications instead of MFIP paperwork,” Harpstead said.

The change would also cut down on the workload of county and tribal workers, and align the program more closely with federal policies for the Supplemental Nutrition Assistance Program and Minnesota’s Housing Assistance program, which successfully switched to a six-month reporting schedule in 2016, said Deborah Schlick, manager of the Strategic Projects Office in the department’s Economic Assistance and Employment Supports Division.

Program participants would still be required to report certain changes as they occurred – including adjustments to household size or family status, like marriage – but their benefits wouldn’t change from month to month based on how many hours they managed to get at work, or a one-time donation of $200 from a church to help them with car repairs.

The proposed provision would also require benefits to be determined based on more current income information, more accurately accounting for fluctuations in income.

Because of technology changes needed, the shift to a six-month reporting period would not go into effect until May 1, 2023 and would be phased-in over a 12-month period, testifiers said.

Rep. Tina Liebling (DFL-Rochester) asked if the switch could be moved up, saying that these changes are “overdue” and thanking the department for “trying to drag us into the 21st century.”

But the changes are so significant, that a faster timeline might not be feasible, Schlick said.

“This would provide greater stability and help propel families forward,” said Bharti Wahi, director of Minnesota Children’s Defense Fund.