Study participants who were not randomly assigned to New Hope were given a list of other community resources for help with employment or other social services, which they could pursue on their own.
The study’s cost-benefit analysis concluded that the New Hope program resulted in strong positive benefits for participants, including an overall trend toward increased income and corresponding decrease in material hardship; an increased ability to identify and rely on formal child care, as well as improved parenting outcomes; and a general reduction in stress. The monthly cost per participant varied between the four separate New Hope program offerings. Participants could use these four services independently, in combination, or all together; thus, cost per participant depended on the circumstances of the individual. The following costs are the average costs per participant, per month.
- Cash earnings supplement for individuals earning less than 200 percent of the federal poverty line: $126
- Program cost of the health insurance benefit offered to participants not eligible for employer-provided health insurance or Medicaid: $203
- Child care subsidy paid directly to child care providers: $329
- Community service job wages: $4.75 hourly (minimum wage)
- Program administration and case management: $140
The study examined services delivered between August 1994 and December 1997. Participants were eligible to receive New Hope services for up to three years, and follow-up outcomes were measured for eight years from the time of random assignment.
New Hope offered four main services, each of which could be accessed independently or in conjunction with other services:
- Earnings supplements. Participants who worked at least 30 hours a week received monthly cash payments if their earnings were below 200 percent of the federal poverty line. Although there was some confusion among participants about why supplements varied from month to month, as well as minor challenges in on-time receipt of pay stubs from participants in order to calculate and generate earnings supplements, implementation of this benefit largely went as planned.
- Health insurance. Participants who worked at least 30 hours a week but were not eligible for employer-provided health insurance or Medicaid were offered a New Hope health insurance plan. Implementation went smoothly, aside from some confusion among participants about whether coverage would lapse if they left their jobs. If participants were actively looking for work, New Hope often extended coverage beyond the three weeks dictated by official policy.
- Child care assistance. Parents who worked at least 30 hours a week received financial assistance to cover expenses for child care provided at licensed in-home or certified child care centers. New Hope participants paid a co-pay to providers; the remainder of program costs were paid directly to the provider by New Hope. The implementation of the child care assistance service had two main challenges. At first, New Hope issued two-party checks to participants to sign over to providers, but this policy was eliminated after it resulted in delayed payment to the child care providers. Second, when participants’ weekly work hours at times fell below 30 hours or when they did not submit pay stubs to New Hope, child care providers were not reimbursed at the maximum rate.
- Community service jobs. Unemployed participants who were unable to find work after eight weeks of supported job searching could apply for a full- or part-time subsidized community service job in a nonprofit organization. There were no major challenges with implementing this benefit. While community service jobs only paid the minimum wage, they made participants eligible for the federal and state earned income tax credits.
In addition to the above services, New Hope offered case management. Case managers met regularly with participants one-on-one (in person or by phone) or in small groups to provide job coaching, encourage participation in the full range of New Hope services, and provide personal counseling.
The study did not discuss any tools to measure fidelity to the intervention model.
The New Hope program received funding from a consortium of nearly 100 antipoverty organizations; state, local, and federal government agencies; and community businesses. The largest funders included the following:
- Helen Bader Foundation
- John D. and Catherine T. MacArthur Foundation
- Mott Foundation
- Rockefeller Foundation
- State of Wisconsin
- U.S. Department of Health and Human Services
New Hope was implemented in Milwaukee, WI. The program targeted two high-poverty, inner-city urban neighborhoods.
A community-based nonprofit, the New Hope Project, designed and operated the New Hope demonstration program. New Hope staff recruited local, service-oriented nonprofit organizations to develop job placement opportunities for study participants.
Community-based nonprofits provided job placement opportunities and supervision for New Hope participants. Nonprofit partners were responsible for creating the job openings and providing job supervision, and the Milwaukee Private Industry Council handled the payroll for participants using New Hope funds.
The New Hope program served a broad population of workers with low incomes. The program’s wide eligibility guidelines allowed it to offer services to any adult in the service area who had an income below 150 percent of the federal poverty level. The majority of participants (84.9 percent) were employed full time at some point in the past, with prior jobs lasting an average of three years. Thirty-seven percent of the sample was not receiving any public assistance, such as Aid to Families with Dependent Children, Food Stamps, General Assistance, or Medicaid, at the time of their enrollment in the New Hope program. Men represented 28 percent of the study sample, and the average participant age was 32 years. Participation in the New Hope program was not mandated.
Each community service job lasted up to 6 months, and participants could hold community service jobs for up to a total of 12 months. Participants could receive New Hope services for up to 3 years.
New Hope project representatives served as participants’ main point of contact with the program. Each project representative had a caseload of about 75 participants. The study authors did not include information on the number of project representatives or their training, degrees, or certifications.