Subsidized employment pilot program approved

Lawmakers passed a bill May 29 that creates a subsidized employment pilot program in Nebraska.

LB368, introduced by Omaha Sen. Sue Crawford, is intended to provide opportunities for employers and participants in the Aid to Dependent Children (ADC) program, known at the federal level as Temporary Aid to Needy Families (TANF).

The bill creates a wage subsidy pilot program for low-income, TANF recipients using existing “rainy day” TANF funds. A nonprofit organization will administer the pilot program, which will become operative July 1, 2014, and expire on July 1, 2018. A final report on the program will be submitted to the Legislature.

The nonprofit organization will establish an application process for employers that will include a process for initial client assessment, job development, job placement and employment retention services and strategies for placement.

Additionally, the nonprofit organization will:
• recruit participants and employers;
• determine participant eligibility;
• assist with employer and employee match;
• ensure the pilot program operates in both rural and urban areas; and
• gather data and performance measures.

No more than 10 percent of the $1 million appropriated to carry out the program may be used for administrative costs, which will not include the cost of service delivery.

Participating employees will receive a prevailing wage for 40 hours per week, not to exceed six months. The subsidies will be 100 percent in the first two months, 75 percent in month three, 50 percent in months four and five and 25 percent in month six.

LB368 passed on a 34-7 vote.