The End of Public Welfare: Eroding the rights of women and children or encouraging self-sufficiency?

1
The End of Public WelfareEroding the rights of
women and children or encouraging
self-sufficiency?

• Dan Meyer
• Research Joint with Maria Cancian
• November 2003

2
Overview

• Brief history of policy changes affecting women
  and children with low incomes
• 1996 welfare reform
• Wisconsins response
• How are TANF recipients in Wisconsin faring?
• Broader context
• Issues for the future

3
Brief History

• 1935 Social Security Act establishes Aid to
  Dependent Children (ADC), federal-state
  partnership in providing cash to single-parent
  families that have low incomes, primarily widows,
  so that mothers dont have to work
• Disenchantment throughout. Major reforms in
  early 1980s, late 1980s, early 1990s, 1996

4
National Welfare Reform

• Sense that old policy wasnt working
• Some chose welfare over work
• Long-term recipients
• Inflexible program
• Based on rights rather than mutual social
  contract
• Personal Responsibility and Work Opportunities
  Reconciliation Act (1996)
• Replaced AFDC with TANF
• Work requirements
• Time limits
• State discretion (block grant)
• No entitlement

5
1996 Welfare Reform Other Features

• Limitations on assistance to immigrants
• Limitations on food stamps to working age single
  adults without a disability
• Changes in the definitions of disability for
  children in eligibility for SSI
• Child support reforms

6
Wisconsins Response W-2

• Philosophy Parents without a disability should
  work and face conditions faced by other working
  poor
• First check should follow work
• Payments should not vary by family size
• Participants should receive all child support
  paid on behalf of their children
• Self-Sufficiency Ladder
• Unsubsidized Employment
• Trial Jobs
• Community Service Jobs, 673/month
• W-2 Transitions, 628/month
• Caretaker of Newborn, 673/month, 12 week limit

7
How are W-2 Recipients Faring?

• Improved employment and earnings
• mean wages for workers 7.30/hr in 98, 8.10 in
  99
• mean earnings overall 4350 in 98, 6000 in 99
• Moving off benefits quite quickly
• Family income increasing
• But

8
Benefits Decreasing
9
Family Income of Wisconsin TANF Participants
Increasing
10
But

• Improvements in income and poverty, but levels
  still very high
• In 1999, 67 with family incomes below poverty
• Economic hardship levels high

11
High Levels of Economic Hardship
12
Consumer Perspective

• W-2 participants report limited satisfaction
• 68 of mothers disagree with the statement W-2
  helped me get a job or get a better job
• 46 disagree with I think Ive been treated
  fairly on the W-2 program.

13
Broader Context

• TANF only a small part of welfare system
• Welfare only a small part of governmental support
  for families with children

14
(No Transcript)
15
(No Transcript)
16
To think about

• TANF reauthorization this year
• Marriage promotion work requirements funding
  levels child care
• Results achieved in best economy on record
  recent downturn has affected recipiency but
  outcomes not clear
• Employment not only goal economic well-being,
  broader measures of well-being
• For more information
• http//www.ssc.wisc.edu/irp/csde/phase1-tocs.htm
• http//www.ssc.wisc.edu/irp/focus/foc213.pdf