Item Description:
title
Amd current Benefits Cliff (Succeeding in Employment) and Youth Employment Services contracts for continued funding through 02/28/26, NTE of $213,721 ($166,286 for Succeeding in Employment and $14,435 for Youth Employment Services)
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Resolution:
body
BE IT RESOLVED, the Benefits Cliff (Succeeding in Employment) and Youth Employment Services contracts be increased by the following not to exceed amounts in the table for services delivered January 1st - February 28th, 2026:
Benefits Cliff (contracted June 01, 2025 through May 31, 2027):
|
Provider |
Contract Number |
2026 NTE |
|
Avivo |
HS00001987 |
$33,316.00 |
|
Lutheran Social Service |
HS00001986 |
$34,903.00 |
|
Hired |
HS00001984 |
$26,834.00 |
|
Emerge Community Development |
HS00001985 |
$41,667.00 |
|
Tasks Unlimited |
HS00001988 |
$29,566.00 |
|
|
|
Total: $166,286.00 |
Youth Employment Services (contracted July 01, 2025 through December 31, 2026):
|
Provider Contract Number 2026 NTE |
|
|
|
Lutheran Social Service |
HS00001999 |
$14,203.00 |
|
Spark-Y |
HS00001998 |
$16,667.00 |
|
Greater Minneapolis Council of Churches |
HS00002000 |
$16,565.00 |
|
|
|
Total: $47,435.00 |
BE IT FURTHER RESOLVED, that following review and approval by the Hennepin County Attorney’s Office, the Chair of the Board be authorized to sign the Agreement on behalf of the county, and that the Controller be authorized to disburse funds as directed.
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Background:
The Hennepin County Board of Commissioners approved multi-year contracts to mitigate the benefits cliff impact in resolution 25-0196 and Youth Employment Services in resolution 25-0243. The two programs are funded by property tax dollars and require board approval for continued funding and contract amendments to include funding amounts.
Benefits Cliff pilot began in 2022 with thirteen community-based providers offering a wide array of services to Hennepin County residents facing a benefit cliff. For those that experience a benefits cliff, increased earned income does not make up for the loss in benefits which results in a negative financial gain. Residents eligible to be part of the benefits cliff program must be facing one or more benefits cliffs, earning below 200% of federal poverty guidelines, and must be exiting or recently exited MFIP. Phase one had 1,145 participants enrolled, 266 participants were able to get new or enhanced employment, 331 participants participated in a savings match program, and 355 participants completed financial/wellness literacy.
Results of learnings and best practices gleaned from the pilot address the benefits cliff. Staff worked with U of MN Hennepin-University Partnership (HUP) to evaluate learnings from providers that informed the benefits cliff.
This strategic shift moves away from directly addressing the benefits cliff to implementing strategic supports in the right time in the right place to mitigate the impact of a benefits cliff. The Succeeding in Employment program kicked off in June of 2025 with a smaller footprint and a more streamlined strategy that focuses on employment and training services and flexible support dollars available to participants to overcome employment barriers. There are now five community-based providers serving residents facing benefits cliff. To date, there are 200 participants enrolled.
Youth Employment Services (YES) is a new initiative that began in 2025 utilizing learnings from youth workforce development programs provided with ARPA funding under the Workforce Development Roster program including the Youth Gun Violence Prevention Employment Strategy program and justice-involved youth initiatives. The YES program serves Hennepin County youth ages 11-19 who face employment and systemic disparities, with priority given to areas impacted by gun violence, poverty, and low education or employment rates. Services include career exposure, paid work experiences, mentorship, skills training, and financial literacy, delivered through a youth-led, trauma-informed approach.
Current Request: Amend current Benefits Cliff (Succeeding in Employment) and Youth Employment Services contracts for continued funding through February 28th, 2026, with a 2026 NTE of $213,721 ($166,286 for Succeeding in Employment and $47,435 for Youth Employment Services).
recommendation
Recommendation from County Administrator: Recommend Approval