The sensation of ‘falling off a cliff’ has become all too familiar for some Minnesota families. 

In neighborhoods across the East Metro, Minnesotans are joining the workforce in hopes of building a life of economic stability for themselves and their families. Given the proliferation of ‘help wanted’ signs in our community, it might appear to be an ideal landscape for workers. However, a closer look reveals that most unfilled roles offer low wages with erratic schedules. This often leads to highly variable, fluctuating monthly income levels that make it difficult to make ends meet.

For workers in industries such as retail, food service, and low-wage health care—where labor shortages are most acute—public benefit programs like the Minnesota Family Investment Program (MFIP) often help fill the gaps. This temporary financial support helps families with children meet basic needs like housing, food, and childcare, while enabling parents to move to financial stability through employment. 

However, eligibility requirements for public programs often present barriers to economic independence by effectively penalizing people who begin to experience any growth in income.  

Saint Paul Promise Neighborhood data reveals that 99% of surveyed families had lost a critical benefit due to a small increase in income. Approximately half of respondents lost multiple benefits, including critically needed housing or food assistance

This is commonly called the benefits cliff and occurs when small, incremental income gains cause critical benefits to abruptly disappear—resulting in sizable financial losses to households. 

In an effort to ‘smooth out’ these cliffs for families experiencing homelessness or precarious housing situations, YWCA St. Paul teamed with the Pohlad Foundation to help cover those financial gaps in combination with supportive services through a program called the Housing Stability Initiative (HSI). This two-pronged approach enables workers to stay employed, re-enter the workforce, or pursue more stable work and ensures housing stability. “We wanted to make investments that could propel someone off MFIP, while still maintaining their economic stability,” explained Deena Zubulake, Director of Programs. 

Upon acceptance into the Pohlad Foundation-funded program, participants join a 10-week cohort that focuses on ensuring housing stability, as well as financial literacy, budgeting, credit, and banking skills. They also introduced the idea of home ownership as a future goal and help participants understand landlord/tenant rights. A focus on goal setting permeates the program and each participant is paired with a case manager to receive weekly check-ins and support. 

Michael is one of the program’s success stories. A single dad to three kids, he’s taken the knowledge acquired through the program and ran with it. After receiving public assistance and struggling financially following his divorce, he entered the YW Works and HSI programs in 2020. He worked closely with his case worker, participated in group sessions, and took advantage of every class that was offered, from cooking to a Parent Power cohort. One of the real benefits of his association with YWCA St. Paul, was the relationships they helped him make. One of those connections was to the Neighborhood Development Center where he took advantage of a YW-funded class on how to start a business. 

Today Michael has supplemented his income as a musician with a new business! With two partners, he’s launched Flavors of Life Homemade Ice Cream. Currently the business is in growth mode and the ice cream can be found in several restaurants, through home deliveries, and at community events. 

“The relationship with the YWCA has been part of a journey for me. It’s helped me bring my dreams into focus. And it’s made it possible for me to build a legacy for my kids—that legacy is that you can do anything and go anywhere you want and you don’t need handouts to make that happen. That’s what breaking the chain looks like!” 

Stories like Michael’s showcase the complexities surrounding the benefits cliff and the need for solutions that offer a temporary safety net to families while they build economic stability. This offers more Minnesotans the opportunity to earn a steady living and move into financial independence, while also bolstering Minnesota’s currently strained workforce.

“With the YW’s support, I’ve done a lot of work the last few years. Something like home ownership is now a possibility. Being a successful business owner is possible. The future is looking good!”