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Hilton Head charity says Circles program lifts incomes but urges delegation to address the 'Cliff Effect'
Summary
DeepWell described the Hilton Head Circles program — weekly coaching paired with volunteers — and told the delegation local families have seen income gains (presenter cited 61% at 12 months). The presenter asked legislators to review policies that cause benefit cliffs that can disincentivize work.
DeepWell — the Hilton Head nonprofit that runs the local Circles chapter — briefed the Beaufort County legislative delegation on a volunteer-led, cohort-based program aimed at helping families exit poverty.
"Circles' goal is at the micro level, we want to help local families get out of poverty," Sandy Gillis said. She told members that, nationally, Circles programs report an average 47% income growth at 12 months; the Hilton Head chapter is reporting 61% income growth with its first cohort.
Gillis asked delegation members to examine the 'Cliff Effect' — situations where modest wage increases cause a sudden loss of benefits such as childcare vouchers or subsidized housing — and to consider whether state policies could be modified to ease transitions as incomes rise.
Delegation members discussed which benefits are federally administered (food stamps, certain subsidies) and which are implemented at the state level (Medicaid parameters, childcare vouchers through state DSS). Members urged Gillis to follow up with a list of state programs affected by the Cliff Effect; she agreed to provide materials and examples from chapters elsewhere that have pursued mitigations.
Members and staff said the program’s volunteer model and focus on employment supports were promising and recommended ongoing coordination between nonprofits and state offices to identify policy changes that could smooth benefit transitions.
