February 5, 2025, Senate Committee on Public Health, Welfare, and Labor 

About the Bill 

SB50 | Sen. Justin Boyd and Rep. Carlton Wing 
This bill would require the Arkansas Legislative Council-Hospital and Medicaid Study Subcommittee to study issues and ideas related to the reform of the state’s workforce and social services and to consider related legislation that may be necessary to remedy any issues identified. The Subcommittee would consider models for coordinating and fully integrating workforce, social services, education, child care, and healthcare programs, as well as novel approaches to achieve improved outcomes in workforce and social service programs. The study would be completed by December 31, 2026. 

AACF Testimony 

Pete Gess, Economic Policy Director, Arkansas Advocates for Children and Families 

Good morning, Madame Chair and members of the committee. Thank you for this opportunity to speak in favor of SB50. 

As you may know, Arkansas Advocates for Children and Families has been hard at work for children and families in Arkansas for almost half a century. We advocate for evidence-based, research-driven solutions to improve the lives of Arkansans. Information and analyses are essential to our work. 

At Arkansas Advocates we understand that for families to succeed, parents need to have viable economic opportunities. We are paying more attention to issues that may prevent some Arkansas families from thriving, such as those related to housing, transportation, healthcare, childcare, education, and workforce training. We also know that poverty persists across Arkansas and around the country. As some families struggle to meet basic needs, federal and state public assistance programs are important to help them move from that struggle, to self-sufficiency, to prosperity. We all want children and families to thrive. 

Allow me to discuss one specific issue that would be addressed by SB50’s study committee. At Arkansas Advocates, we are concerned about the challenges brought on by so called “benefit cliffs.” As all parents make decisions in the best economic interests of their families, the sudden loss of an important assistance program can make it difficult to accept a promotion or a better-paying job opportunity. 

Thanks to a simulator developed by the Federal Reserve Bank of Atlanta, I recently modeled the benefit cliffs issue for families in Arkansas. Just for one example, a single parent with two children living in Pulaski County would face at least four major benefit cliffs as mom continues to receive higher salaries. These occur when she loses TANF, SNAP, and CHIP coverage, among others. Some of these cliffs are steep, a loss of $7,000 or more. A parent is facing a difficult choice with a loss of this magnitude. 

There are many proven state-level solutions to the challenges created by benefit cliffs, such as avoiding the clustering of multiple thresholds, phasing out benefits to minimize the slope of the cliff, and increasing or limiting threshold limits. The study committee, as it works to develop novel approaches to improved workforce and social service programs, will minimize the detrimental effects of benefit cliffs. 

We believe that the study committee, as it answers its charge, will uncover innovative ways of increasing the efficiency and effectiveness of social services, workforce development, and economic opportunities. For this reason, I ask that you support SB50. 

Thank you.