What Works Wednesdays: Single Stops

Today’s papers bring grim economic news: the 2009 budget deficit is projected to reach $1.2 trillion, a figure that doesn’t account for President-elect Obama’s proposed $800 billion stimulus spending; pension plans are underfunded by $409 billion; and over one million jobs were lost in November and December alone.

The bad news is that this economic crisis is going to get worse before it gets better, and many families will struggle. The good news is that Obama’s Economic Recovery Package includes increased benefits for food stamps, unemployment insurance and the Earned Income Tax Credit. And while an increase in these benefits must be a priority in any stimulus package, the government must also make sure that everyone who is eligible for current benefits can easily apply.

Some have estimated that $65 billion worth of government benefits targeted to help low-income families and individuals is unused every year. The IRS estimates that each year 20 percent of the $36 billion EITC goes unclaimed. And a study by the Food Research and Action Center (FRAC) that looked at 24 U.S. cities, found that only 66 percent of the people surveyed who were eligible for food stamps actually received them - leaving $2 billion food assistance benefits unclaimed.

Why is all this money left on the table? Well, some people just don’t know that they are eligible or that the government even provides these benefits. And for others, the process for applying can be extremely complicated, confusing and timely.

All of this brings us to the first What Works post of 2009: single stop organizations that allow people to apply for many government benefits at one location. Two organizations, SingleStop USA and the Benefit Bank, have been extremely successful in helping more people receive assistance. A study on SingleStop found:

that for every dollar invested, the program immediately returned to its clients at least $3 in benefits; $4 to $13 in legal counseling; $2 in financial counseling; and $11 in tax credits.

In 2007, the Benefit Bank helped:

more than 6,100 clients who received more than $7.7 million in tax refunds, including $3.3 million in Earned Income Tax Credits. The federal tax returns filed represent a 95 percent increase over this time last year.

Both of these organizations use technology that allows caseworkers and volunteers to tell clients exactly what they are eligible for with just a click a mouse. By streamlining government services, they help people get back on the road to self sufficiency.

SingleStop USA and The Benefit Bank provide an invaluable service, but they don’t have to be in business. As the federal government looks to expand benefits for low-income Americans through an economic recovery stimulus package, leaders should simplify the application process. Finding jobs may get harder, feeding your family may get harder, but getting federal assistance shouldn’t be.