Leveraging Federal Funds to Expand Job Training: Food Stamp Employment and Training (FSET)

Washington State Innovations Using the Food Stamp Employment and Training Program

Job training is essential to promoting family economic success, and finding the resources to provide this training is a major challenge for state workforce development systems. A select group of states have begun leveraging a valuable but underused funding source called the Food Stamp Employment and Training program, and one state -- Washington State -- has developed an innovative approach that is showing promising results for helping low-wage workers along the path to family economic success.

How the Food Stamp Employment and Training (FSET) Program Works

FSET is a federal program that provides grants to states to provide job training services for food stamp recipients. In addition, this program also provides unlimited 50 percent federal funding match for additional state and local funds invested in training for this population. This additional funding covers not only direct training costs such as uniforms, training manuals, and transportation, but also may cover expenses for other supports needed to obtain employment, such as vision correction, dental care, legal services, and housing assistance. States that access these uncapped matching funds can leverage significant federal dollars to provide expanded job training and related supports to those at the lowest end of the income scale.

How States and Localities Are Using This Program

While every state is required to operate an FSET program, the federal government provides significant discretion in implementation, and program use varies widely among states and localities. Most states leverage only small amounts of the additional matching funds available. The following examples illustrate some of the more active states in providing services and leveraging federal funds under the FSET program:[1]

Massachusetts. Massachusetts operates an FSET program that has leveraged as much as $13.5 million of federal matching funds in a single year. On average, this program serves 3,000 people annually and provides job training, job search and placement services, and case management services.
Texas. The FSET program in Texas leverages approximately $5 million in federal matching funds per year. This program offers education, job search, work experience, and post-employment follow-up services. A unique aspect of FSET in Texas is its service to formerly incarcerated persons, providing skills training and other services to promote employment and reduce prison reentry.
San Francisco. The City and County of San Francisco operate the largest FSET program in California, leveraging almost $10 million of federal matching funds per year. This program serves 6,500 people per year and provides education, vocational training, work experience, and other services.

The Washington State Innovation

Unlike the states described above, Washington State did not have an active FSET program until a new effort was launched between state agencies, not-for-profit organizations, and the Annie E. Casey Foundation's Making Connection project in the White Center community within King County. Through this effort, the county developed a pilot project through which five community agencies became eligible to provide employment and training under the FSET program, and began receiving federal matching funds for their investment in these services. By partnering with these community organizations, Washington State established the first third-party match program in the nation. In 2005 this partnership began with five non-governmental organizations:

Seattle Goodwill Industries
YWCA of Seattle-King County-Snohomish County
Seattle Jobs Initiative
South Seattle Community College
PortJobs

One year later, four additional organizations joined this partnership:

Refugee Federation Service Center
Refugee Women’s Alliance
Bellevue Community College
Green River Community College

By engaging these partners, this initiative expands the programs reach and potential for identifying individuals eligible for the food stamps,

coordinating client eligibility and participation in employment training, and ensuring that federal matching funds are accessed for community-based

services.

An evaluation of the first 18 months of the pilot program identified the following successes:[2]

Enhanced Services. Through the pilot program, partnering agencies enhanced access to employment services, expanded the services available, and provided more personalized and intensive services. In the first year of the program, 566 people received employment and training services -- people who, without this program -- would not have been eligible for these services.[3]

Higher Wages Among Participants. State data show that wages of program participants grew from $8.80 before participation to $11.46 afterward -- a gain of 30 percent.

Significant Leverage of Federal Funds. During the first 18 months of this pilot, partners accessed over $1.1 million in federal matching funds.

Based on this success the pilot received the 2006 Governor’s Award for Best Practices in Workforce Development.

[1] David Fischer, 2007. "Food Stamp Employment and Training: Lessons from Massachusetts, Texas, San Francisco, and Wisconsin," Seattle WA: Seattle Jobs Initiative.

[2] Seattle Jobs Initiative, 2007. "Food Stamp Employment and Training: An 18-Month Review of the King County Third-Party Match Pilot Project," Seattle, WA: Seattle Jobs Initiative.

[3] Workforce Training and Education Coordinating Board, Sept. 7, 2006. "Innovation Puts White Center Residents Back in the Economic Picture," Press Release.