In late January Governor Walker recommended a policy that allows working families receiving Wisconsin Shares subsidies to continue on the subsidy program beyond the current income threshold which is 200 percent of the poverty level.
In a press release, the Governor indicated that when families meet the 200% of poverty cliff ($40,230 for a family of 3), “a family may lose far more in subsidies than they gain for working more hours or taking a raise. This discourages work.”
The plan is to establish a phase-out structure. Families would see co-payments increased by $1 for every $3 that family earns over 200% of poverty level.
This would be promising to families that reach the income cliff. The Governor plans to include this recommendation in his budget proposal in February.
Early Education Policy Analyst