Reinventing Arizona’s Safety Net System
This concept paper proposes a Demonstration showcasing efforts to reformulate the safety net system from one
with a primary emphasis on the effective delivery of benefits, goods and services to one with a primary
emphasis on growing the capacity of its consumers and where possible, reducing their dependency. By engaging
and joining with socially and economically challenged individuals in addressing their needs and building their
capacity in becoming their highest functioning selves, the Arizona Department of Economic Security (DES) will
concurrently reduce the cost of the safety net.
The DES Demonstration is predicated upon the idea that it should be the intention of the safety net system, in
design and function, to grow the capacity of as many consumers as possible beyond their need for public
assistance. Issues hindering the effective and efficient delivery of safety net benefits, goods and services must
be addressed and done so within the context of growing the capacity of the consumer.
This new construct requires a radically different model than what currently exists. The Demonstration will aid
DES in understanding what this new model needs to look like, as well as what steps need to be taken to shift the
existing model to the proposed construct.
The DES Demonstration will explore:
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The development and implementation of a new person-centric customer service model.
The development of a cross-authority governance structure that brings together different authorities
around a shared vision of growing the capacity of socially and economically challenged Arizonans.
Reformulating the existing safety net and related programs that allows them to work together to
achieve the shared vision.
The development of new and vital linkages between the state’s job generation mechanism (Arizona
Commerce Authority) and the safety net system, represented principally by DES.
The development of both individual and organizational incentives to grow consumers beyond their need
for the safety net.
The development and implementation of new metrics that measure the growth and development of
safety net consumers.
The development of a new Federal/State partnership to support the objectives of the Demonstration.
THE PROBLEM
Arizona’s safety net system is challenged by both a fundamental design flaw and an over-arching operating
flaw. These flaws inhibit the ability of the system to achieve better outcomes for the persons they serve and
reduce their dependency on public assistance.
The design flaw stems from a disconnected, often conflicting set of single-purpose programs, each designed to
address a narrow aspect of human well-being. Each program is structured through its own objectives, rules,
funding, and service delivery system that is self-contained and centered on a specific life-sustaining intervention.
Additionally, the rules of one program may conflict with those of another. As a result, these programs are not
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designed, nor are they intended to work in conjunction with each other to achieve the broader objective of
growing the consumer beyond that person’s need for public assistance.
The operating flaw stems from a safety net system that places little to no emphasis on helping a family or
individual move beyond the condition or circumstances for which the support was needed. In many situations,
persons present with problems that are inter-related. As each intervention only focuses on its own narrow area
of authority and those areas of authority were not designed to work with other interventions, there is no
overarching perspective of the person, nor any emphasis on remediating the inter-related problems. In some
instances, this disconnected and fragmented system has led to tragedy and even death as people served in the
individual program silos were failed by the system as a whole because no one accepted the responsibility for
connecting the dots of their circumstances. Even in economically and socially fragile situations this disconnected
program-focused system has no intentionality of addressing the presenting circumstances in order to help the
consumer grow beyond their need for the safety net. Instead of helping persons function at a higher level, the
existing system is designed to serve those who meet eligibility criteria which often differ across programs. Since
there is no intentionality in providing a holistic resolution that leads individuals out of the system, the safety net
system unintentionally fosters continued dependency by its design. Not only is the service delivery system
inefficient in human terms, it is also inefficient in terms of its cost to build and maintain it.
The DES Demonstration seeks to create an operating construct that addresses both the design and operating
flaws. By adding a new emphasis and inverting its operating construct, DES plans to address the needs and build
the capacity of those persons it serves. Dependency is reduced through the creation of a safety net system that
strengthens the social and economic capacities of its community members and builds flexibility across programs
for working collaboratively toward this same objective. Furthermore, it is the hypothesis of the Demonstration
that by intentionally working to grow people beyond the safety net, we will ultimately reduce its attendant costs
by shrinking the numbers served.
THE DEMONSTRATION
The proposed solution and the DES Demonstration is born out of our Vision that “DES will lead a coordinated,
integrated and comprehensive public and private effort to grow the capacity of socially and economically
challenged Arizonans to achieve their highest functioning level and reduce their dependency.”
The Target Population and Programs
The target population for the Demonstration will be 2000 Arizonans currently enrolled in the Supplemental
Nutrition Assistance Program (SNAP). Out of this target group, 1000 participants will continue to receive the
benefits, goods and services as they are currently operationalized. An additional 1000 participants will receive
the newly proposed service model. While it is our ultimate intention that the model will work for all 1.6 million
consumers DES serves annually through its 45 programs, it is our belief that the SNAP population constitutes the
broad range of DES consumers and is representative of the entire population served by the agency.
The Demonstration will first seek to stratify a group of DES consumers into one of three cohorts. Each cohort
represents an appreciably different set of circumstances that need to be remediated in order to grow the
capacity of those individuals in the cohort and thereby reduce their dependency. There will be a base design
and goal for each cohort. Beyond the base service model design, the approach for each individual will be person
specific based on that individual’s unique set of presenting circumstances.
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Cohort 1: Work Capable with Moderate Help
Individuals in this track are deemed “work capable” and are the closest to reaching a level where they
will no longer be reliant on DES services. DES will train and prepare these individuals for employment
opportunities.
Cohort 2: Work Capable with Intensive Help
Individuals in this track have been identified as possessing some work-capable skills, yet are not at a
level to enter the workforce and be ready for continued employment. The Demonstration intends to
show that with additional training and support services, individuals in this cohort can move up to the
Work Capable with Moderate Help track, and eventually obtain employment that will allow them to end
their reliance on social services.
Cohort 3: Unlikely to be Capable of Work without Supports, yet can Grow their Capacity
This track includes individuals who do not possess the educational, social or training skills to be classified
as Work Capable. These individuals may never reach work capable status, yet can advance their own
self-sufficiency levels while still needing public support.
Goals of the DES Demonstration
The Main Goals of the Demonstration are to determine:
 how to develop and implement a person-centric service model;
 how to design metrics that determine the growth of the capacity of those served;
 what kind of multi-authority governance structure is needed for this model;
 how to develop a cost model for the proposed structure;
 what authority exists in current safety net programs that support the objectives of the Demonstration;
 where waivers are needed from existing programs to allow them to support the costs of the new model;
 where new statutory authority needs to be created to support the new model; and
 how to stratify DES consumers.
Evaluation
To support the work of the Demonstration DES is partnering with the Arizona State University (ASU). This
collaborative partner will serve as a third party evaluator of the Demonstration in addition to other supportive
activities.
A New Federal, State and Local Partnership
The majority of the safety net design emanates from the federal government. As a result, Arizona works in
partnership with the federal government in the administration of the safety net for economically and socially
challenged Arizonans. This Arizona Initiative will require rethinking how that partnership works in meeting our
Vision. To that end, as part of its Demonstration, DES proposes the idea of creating a multi-disciplinary federal
policy team. This team, comprised of senior policy leaders from relevant federal agencies, would first be briefed
on the overall objective of the Arizona Demonstration and then work with each other to address the challenges
that are specific to their area of program authority within the context of the objectives and shared vision. Like
DES, it becomes important for the federal policy team to extend its focus beyond just the Health and Human
Services and Agriculture Departments.
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Funding
DES intends for its new model of operations to be self-sustaining, requiring no additional funding from the state.
The organization is taking the following three-prong approach for identifying existing and new sources of
funding to support this work:
1. Discover operational efficiencies within current programs and identify where funding may be utilized in
more cost-effective ways.
2. Expend existing program funding consistent with the Person-Centric Approach through the work of the
Demonstration’s objectives.
3. Locate and actively apply for external and other funding resources, such as federal grants, that are
consistent with the Demonstration’s objectives and will help fund the initial costs associated with the
DES Transformation (e.g., office renovations, hiring and training staff, new computer software and
equipment, and other logistical expenses).
Outcomes
As with all transformation efforts, a critical aspect of the Arizona Demonstration is how results will be measured,
individually and programmatically. Metrics will focus on the level of improvement as seen through the delivery
of DES services and assistance that grow the capacity of its consumers towards a higher level of functioning,
thereby reducing the need for public supports. With the assistance of ASU, DES will develop methodologies for
and track the growth of those served.
One of the outcomes that will determine success of the Demonstration will be the percentage of individuals who
were able to advance from lower to higher functioning cohorts (e.g., Cohort 3 to Cohort 2, Cohort 2 to Cohort 1,
and individuals who advance from Cohort 1 to work ready status, employment and independence from public
supports). Doing so would mean that more individuals are progressing through their development and are
closer to reaching their agreed upon goals.
Long term DES will see:
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a decrease in the recidivism rate for public assistance;
a reduction in the average duration of time persons are receiving public assistance;
employer metrics put in place and meeting their intended objectives;
increased numbers of individuals with improved economic situations who are contributors to Arizona’s
economy;
an overall reduction in costs to the state;
the creation of a plan for integrating basic and occupational skill development with work-based learning;
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a multi-agency governance structure dedicated to ongoing implementation of the model.
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