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ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE RESOLUTION 462
Introduced by Ballard, 21.
PURPOSE: The purpose of this resolution is to propose an interim study to
examine a stair-stepping approach to public assistance eligibility, which would
gradually reduce public assistance to recipients based on increases in income,
and whether such an approach would result in cost savings while improving
outcomes by fostering economic stability and promoting upward mobility.
(1) The study shall examine whether the stair-stepping approach could
benefit taxpayers by:
(a) Reducing long-term dependency. By incentivizing work and career
progression, stair-stepping could help move individuals and families toward
self-sufficiency, ultimately reducing long-term reliance on government
assistance programs;
(b) Lowering administrative costs. Standardizing eligibility requirements
and streamlining the phase-out process can reduce the complex administrative
burden associated with the abrupt, varied income limits of different programs;
(c) Increasing tax revenue. As recipients earn more and work steady jobs,
they contribute more through income taxes, boosting government revenue;
(d) Encouraging economic growth. By promoting workforce participation and
stability, the overall economy benefits, leading to better community health and
reduced poverty rates; and
(e) Promoting health care savings. Stable financial foundations and access
to basic needs, such as food and housing, lead to better health outcomes, which
can lower public health care expenditures.
(2) The study shall also examine whether a stair-stepping approach would
benefit recipients by:
(a) Avoiding financial loss. The primary benefit is preventing the net
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loss of income that occurs with a benefits cliff. Instead of a pay raise
resulting in a net pay cut due to lost benefits, families see a real financial
gain as they earn more;
(b) Incentivizing work and advancement. A gradual reduction ensures that
pursuing a new job, a raise, or a promotion is always a beneficial decision,
rather than a risky one that could lead to financial hardship;
(c) Providing stability. Gradual phase-outs give recipients the necessary
time to adjust budgets and build savings, creating a stable financial
foundation as recipients transition off public assistance;
(d) Encouraging opportunity. With a more predictable and supportive
system, recipients are more likely to pursue education, skills training, or
career development opportunities that can lead to intergenerational economic
mobility; and
(e) Reducing stress. Predictable, gradual changes alleviate the stress and
anxiety associated with the sudden loss of vital aid like child care or housing
assistance.
NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE ONE HUNDRED NINTH
LEGISLATURE OF NEBRASKA, SECOND SESSION:
1. That the Health and Human Services Committee of the Legislature shall
be designated to conduct an interim study to carry out the purposes of this
resolution.
2. That the committee shall upon the conclusion of its study make a report
of its findings, together with its recommendations, to the Legislative Council
or Legislature.
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