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Ralph da Costa Nunez

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How a GED Is a Real Advantage in Reducing Family Homelessness in NYC

Posted: 03/19/11 05:09 PM ET

New York City's Department of Homeless Services' Advantage program aims to assist families in making a permanent transition from shelter to self-sufficiency by providing a rent subsidy for one to two years once they leave shelter. To maintain their eligibility, Advantage program participants are required to work at least part time and contribute 30 percent of their gross monthly income toward rent in the first year, and if they qualify, 40 percent in the second year.

While receiving an Advantage subsidy is premised on a parent's ability to obtain and retain a job, without at least a high school equivalency diploma (known as the General Education Development Exam or GED), the road to gainful employment and self-sufficiency will be riddled with potholes. Homeless parents -- almost 50 percent of whom are high school dropouts -- require tools, such as a GED, to solidly begin down the road to self-sufficiency.

While funding Advantage is clearly better than having no significant subsidy in place, the city's housing policies must be linked to cost-effective investments in education. Even though a GED creates an avenue of opportunity for recipients and their families, overall less than 2% of New Yorkers without a high school diploma or GED take the exam each year.

Fortunately, the New York City Council recently launched a Back-to-School campaign to encourage New Yorkers to obtain a GED and participate in other free adult education classes. Ultimately, the initiative aims to improve New Yorkers' access to better jobs through education. However, while creating educational attainment opportunities for all New Yorkers yields benefits across the board, the Back-to-School program has the potential to provide homeless parents with a long-term advantage, not just a short-term subsidy.

Employment and Income Benefits of GEDs

Recent data demonstrate that obtaining a GED has employment and income benefits for all recipients. Nationally, high school dropouts who obtain a GED on average increase their earnings by $115 per week or $3,500 per year.

Even GED recipients who do continue to further their education are more likely to be employed full time than dropouts without the credential. Individuals with either a high school diploma or GED earn 33 percent ($7,000) more annually than high school dropouts without a GED -- New Yorkers with either credential earn 65 percent more over their lifetimes than they would with neither.

Most strikingly, female New Yorkers with either credential earn nearly 94 percent more over their lifetimes than those without. They are also more likely to exit poverty than women with lower educational attainment.

Moreover, during the recent economic downturn, New Yorkers with a high school diploma or a GED lost jobs at half the rate of those who did not have them. At a time when unemployment hovers at 9.1 percent in New York City, a GED becomes crucial to finding and retaining a job.

Meanwhile, a study issued by New York's Community Services Society reports that over a lifetime, a person without a high school diploma or GED represents at net fiscal cost of $134,000 to the city, whereas someone with either credential provides a net fiscal benefit of almost $193,000. A GED preparation course costs only about $1,000 per participant.

More than one-half of homeless heads of households lack a high school diploma or GED. These individuals are likely to have fewer job opportunities, work fewer hours, and earn lower wages than those with a high school diploma or GED. With­out long-term steady employment, the probability of returning to homelessness greatly increases. A recent report noted that 40 percent of families seeking emergency shelter services have lived in New York City's shelter system at some point in the past.

If homeless parents are expected to achieve stability through work, the Advantage program must provide them with the tools to make this goal a reality. Because family shelters often provide child care and other wrap-around services, GED courses can be easily and effectively offered at shelters. Given the advantage to families of participating in a GED program, and the timely opportunity of the City Council's Back-to-School campaign, there is a unique opportunity for collaboration to turn shelters into tools that will benefit homeless families and taxpayers alike.

 
New York City's Department of Homeless Services' Advantage program aims to assist families in making a permanent transition from shelter to self-sufficiency by providing a rent subsidy for one to two ...
New York City's Department of Homeless Services' Advantage program aims to assist families in making a permanent transition from shelter to self-sufficiency by providing a rent subsidy for one to two ...
 
 
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04:14 PM on 03/21/2011
Yeah a GED is going solve all the problems of the homeless. (Sarcasm) Applicant-"Hey I am not illerate anymore can I get a job now?" No. A GED is a stepping stone to other education opportunites that will help you compete in today's job market. It will not get a house or pay your rent. But, it will help become a fierce competitor. I tell all the welfare workers, when they ask if I want a GED (Which I already have.) or some pointless trade program Screw a GED! I WANT MY PHD!! They even told me they won't help me pay for my B.S. degree in BioChemistry but they have money for other programs like Medical Assistant, Adminstrative Assistant and EMT. Why should I settle at the bottom, when I can live at the top?
03:15 AM on 03/21/2011
Kind of a no brainer.
12:50 PM on 03/20/2011
How is the GED the real advantage? This article was obviously written in favor of the cronies who took away the Program. Let me say this, I am a single mom of two kids. I am college educated and have strong work ethics. I was forced into shelter system due to domestic violence and I have been fighting ever since to get out. IF I CAN’T FIND A JOB TO SUPPORT MY FAMILY, WHAT MAKES YOU THINK THAT SOME GED RECIPIENT IS ABLE TO EVEN COMPETE?!? On top of that, Affordable Housing is not so AFFORDABLE. You have to be making ATLEAST 20k and up to be even considered as a valid applicant. So if you make minimum wage ($7.25) and work 40 a week, you wouldn’t even qualify. NYCHA Housing has a waitlist of 1-2 years. If you are Domestic Violence, 1 yr. and you need 3 police reports in the last year, a current order of protection and the person has to be CHARGED with something heavier then assault. Slowly but SURELY, people will start living in the streets. As for me, all I can do is keep fighting, hopefully I will finish CUNY Hunter soon, so I can go off to med school. I have already call 311 and voiced my thoughts. But, I know it is futile.
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Actraiser
Medicare for all!
04:18 PM on 03/21/2011
Do you have the Advantage Program?

First of all, I am no expert of any kind, so this post shouldn't be considered advice of any kind.

That being said, if I were in this situation that I were an Advantage Program recipient who couldn't afford my rent next month, I'd request a "FAIR HEARING".

http://www­.nyc.gov/a­pps/311/al­lServices.­htm?reques­tType=list­Service&fi­lterServ=F­inance+-+B­enefit&ser­viceName=P­ublic+Bene­fit+Fair+H­earing+Req­uest&inten­tId=88438F­14-8139-11­DE-8E9F-96­DAE110FEB8

I don't think it should be used as a protest mechanism by those who DON'T need it since those that DO need it will need clear lines of communicat­ion and a convenient appointmen­t.
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Actraiser
Medicare for all!
05:12 PM on 03/19/2011
They estimate this is going to increase the homeless population 51% and cost the city an extra $455 million next year to house them. How is this "saving money". The program never worked in the first place, for reasons that another commenter already referenced. You mention "work advantage" but there is another part of the program called "fixed income advantage" designed for elderly and disabled. These people cannot physically work, so how this program is designed to allow them to achieve independence on a $600/mo social security payment is beyond me, it's not like these people can just go out and "get a job" which seems to be the city and talking heads answer to everything "get a job" or "more education". A G.E.D. may help some people, but it's not going to help the large population of homeless that are ill, disabled, or elderly. These people need a permanent solution, not a revolving door back to the shelters after the city cuts them off after 2 years (or in this case, after April 1). The problem is not with "jobs" or "education" or "homeless people are lazy" the problem is that there is just no affordable housing. Factor in a 40 hour work week on minimum wage and then the average $1,200 for a 1 bedroom apartment (say for a mom and child) and you are not even making enough money to cover all the rent, let alone other expenses.
12:57 PM on 03/20/2011
Thank YOU!
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Actraiser
Medicare for all!
03:26 PM on 03/19/2011
Work Advantage is a terrible program. The reasons are stated very lucidly here:

http://www.coalitionforthehomeless.org/pages/revolving-door

THAT being said, getting rid of Work Advantage and having NO home subsidy in its place is pure spiteful greed. If putting homeless families out onto the streets of New York doesn't bother people, then what about appealing to a New Yorker's practical side -- keeping someone in a homeless shelter costs well over $400 PER DAY.

Are Bloomberg and the NYC cronies going out of their way to enrich the private operators of homeless shelters? I am asking a serious question.
03:23 AM on 03/21/2011
Somebody is making big money at $400:00 per person per day. The shelter operators probably get tax subsidies and other spiffs as well and much of what they use to feed, cloth and provide for basic needs is donated so the profit at $400:00 is just the tip of the iceburg.
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Actraiser
Medicare for all!
01:22 PM on 03/21/2011
I believe they're getting federal funding, as well.
11:57 PM on 03/18/2011
Tough times.