"Key Issues in Welfare Reform"
Approaches to Key Issues in Welfare Reform and
Safety Net Redesign
Senate Health and Human Services Committee
From the Western Center on Law and Poverty
February 5, 1997
The proposal made by Western Center in conjunction with
children's and anti-poverty advocates seeks to significantly
increase the ability of low-income families to be supported with
work while maintaining a safety net when needed. It rewards
families who "play by the rules." It calls for a significant
increase in investment in employment programs and supportive
services, utilizing the increased federal dollars available
through the Temporary Assistance for Needy Families Block Grant.
The proposal recognizes and builds upon successes which have been
achieved through prior efforts. The proposal also seeks to
simplify arcane procedures and rules and reduce excess
bureaucracy.
This proposal also seeks to prevent the erosion in living
standards of the poor families, both those with parents who are
working as well as those who are unemployed.
The following responds to the questions posed by the Committee.
Time Limits
Recognition that without time limits, most recipients (63%)
spend less than 2 years on aid in their initial spell, and
less than 3 years total time on aid. 89% have work history,
40-50% work over 2 years. Strong reasons to work and avoid
aid regardless of arbitrary "drop dead" time limits.
Vastly increased participation in work-related activities.
Full GAIN funding. Exemption reduced from child under 3 to
child under 1.
After 2 years (22 of 24 months): 100 hour work requirement,
unless no opportunity to complete post-assessment GAIN
activity.
5 years: aid to adult ends, unless exempt because of
1) parent's or child's disability,
2) increased risk of domestic violence, or
3) compliance with all work-related requirements, actively
seeking work but unable to find employment sufficient to
eliminate need for aid.
Work Requirements
Increasing GAIN participation, fewer exemptions, abolish
target groups, priorities.
Work-related activities begin immediately: job search for 6
weeks (increased from 3) for most.
Options after job search: subsidized employment, work
experience, community service, vocational education and
training, micro-enterprise.
100 hour work requirement for those on aid 22 of 24 months,
having had opportunity to complete post-assessment activity.
Use of subsidized employment, wage, as option.
Exemptions: child under 1, disabled, caring for disabled
parent, increased risk of domestic violence.
Continue operating under waivers obtained prior to PRWORA,
assert inconsistency with PRWORA as to countable work
activities, participation rates.
Child Care
Assured for those engage in work-related activities and for
those on aid needing child care to work.
No penalty for non-participation if child care unavailable
for child under 13.
Direct payment for those combining work and aid, as with SB
356 (Campbell) of 1995.
Greater GAIN participation increases costs, but exemption
for children under 1 and fewer hourly requirements than
Governor's proposal limit costs.
Safety Net
Aid not reduced for families after 5 years if they are
"playing by the rules," complying with work requirements,
actively seeking work but unable to find self-sustaining
employment.
For those not complying, parents' aid removed, children
assisted through payments to payees.
Job Creation
Micro-enterprise training and support authorized as work
activity option.
Subsidized jobs authorized at post-job search placement and
for two-year time limit work requirement.
Displacement protection encourage creation of additional job
opportunities.
Post employment assistance
Treatment of earnings: $100 disregarded, 50% of remainder,
"fill the gap."
Half-time minimum wage ($5.75/hr, $498 per month in wages)
worker gets combined $1034 cash per month.
1) $53 more per month than current law ($981) .
2) $199 more per month than Governor's proposal ($835) in
first 6 months, $284 more per month than Governor's proposal
($750) afterwards.
3) Poverty level = $1082/month.
Full-time minimum wage worker ($997 in wages) = $1283
1) $136 more per month than current law ($1147)
2) $177 more per month than Governor's proposal in first 6
months ($1106), $262 per month better than Governor's
proposal ($1021) thereafter.
Transitional counseling, case management for those finding
work to assist employee and employer.
Child support assurance option, based on New York's Child
Assistance Program, for single parents with child support
orders. Lesser payment than full cash aid, but subject to
reduction only when earnings exceed 150% of poverty. Allows
combination of guaranteed child support payment, earnings.
Evaluation shows $10 saved for every $1 invested in CAP.
Approaches to Key Issues in Welfare Reform
Western Center on Law & Poverty
February 5, 1997