Expansion Supports Working Families and Aims to Resolve the Benefits Cliff

Madison, Wis. – Last night, the Wisconsin State Assembly supported working families by confirming its support for the expansion of child care benefits by advancing the state budget bill on to the Governor for approval.  The support of the State Assembly is another key milestone in the Benefits Cliff Coalition’s work to address the benefits cliff for citizens of Wisconsin.  Under the current benefit structure, workers have little to no incentive to grow in their careers or accept promotions or higher wages. 

“As a state, we must all be looking for creative and innovative solutions to grow our workforce,” said Graham Anderson, founder of  the Benefits Cliff Coalition.  “Addressing the benefits cliff is a straightforward way to promote workforce development, and an important measure to support working families in Wisconsin.”

Earlier this year, the Benefits Cliff Coalition, which represents thousands of working families across Wisconsin, was formed to address workforce issues in our state by reducing employment and promotion disincentives currently baked into the state’s benefits system.   Under the current system, public benefits can be fully revoked when workers reach a certain pay threshold.  With the expansion of the child care credit, these benefits will be more gradually stepped back to allow workers to continue to accept promotions and higher-paying jobs without the risk of fully losing necessary benefits. 

As part of the Wisconsin State bi-ennial budget, the measure to expand the Child Care Benefit and reduce the benefits cliff now advances to Governor Tony Evers for final approval.