Welfare Reform in Washington State

University of New MexicoPA 590-Program Evaluation and Performance Measurements Christell Begay &Summer 2008, Prof. M. Rivera Shelley Wooten

• Summary Overview

• Analysis of Case

• Questions & Answers

• Foundations of the American Welfare State– Establish during the Great Depression

• President Franklin Roosevelt– Creates the Social Security Act of 1935 - Foundation of the welfare

system

» Vocational programs» Public health» Child welfare programs (AFDC)

• President Lyndon Johnson implements changes– Food stamps– Medicare & Medicaid programs

• Welfare: A controversial issue in America– Create dependency and stifle private initiative– Poverty was a byproduct of a capitalist state– Government is responsible for those without

economic security – Costs for services continue to climb– Individuals on welfare increase during the 70’s and

80’s

• Restructuring Welfare in America– 8/22/96: President Bill Clinton introduces the

Welfare Reform– signs the PRWORA

(Personal Responsibility and Work Opportunity Reconciliation Act)

– Eliminates AFDC (Aid to Families with Dependent Children) and is replaced with TANF (Temporary Assistance to Needy Families

• Restructuring Welfare in America (Federal Requirements)

– 5 years for recipients of TANF benefits– Working within 2 years of receiving benefits– 2001, single parents required to work 30/hrs/week

• Two-parent households must have one parent working a min. of 35/hrs/week

• 12 month exemption for parents with child under age one– States failing to meet work requirements face reduction in

their grant– PRWORA – decrease caseload and increase work

participation

• 1997 – WorkFirst in Washington State– Immediate participation in employment– Reduce number of individuals on welfare– Help people in low-income families

• Find job, keep job, become self-sufficient

• Four agencies share responsibility– Department of Social and Health Services (DSHS)– Employment Security Department (ESD)– State Board for Community and Technical Colleges (SBCTC)– Department of Community, Trade, and Economic Development (CTED)

Welfare Reform in Washington State

• Governor Gary Locke, 1997 signed House Bill 3901 creating the WorkFirst Program

• Clare Banks – Assistant to the Director of the WorkFirst Division

• Accountability

Welfare Reform in Washington State

2000 Press Releases• Washington's child poverty rate declining; well below national tr

end August 10, 2000

2001 Press Releases• Locke announces limited extension of TANF benefits November

6, 2001

2002 Press Releases• Washington wins nearly $14 million in federal funds for

WorkFirst successes. July 19, 2002• Gov. Locke accepts national innovation award for WorkFirst's

Community Jobs program April 15, 2002• Governor adjusts welfare reform spending in response to

climbing welfare caseloads February 14, 2002

WorkFirst Successes

2002 Press Releases• Gov. Gary Locke Honors Businesses for Helping Families Move from Welfare to Wor

k November 20, 2002

• WorkFirst celebrates five-year anniversary with lowest welfare caseload July 30, 2002

2003 Press Releases• Gov. Gary Locke Announces New Statewide Welfare-to-Work Effort August 26, 2003• Washington's welfare reform program takes cuts to balance budget January 24, 20032004 Press Releases• Gov. Gary Locke honored businesses for helping Washington families move from wel

fare to work May 18, 2004

• Gov. Gary Locke promotes state's effort to help more Washington families get federal tax dollars (More on Earned Income Tax Credit.) April 7, 2004

2005 Press Releases• Governor Gregoire has announced her plans to strengthen the WorkFirst Program.

November 10, 2005

2006• Governor Gregoire Reforms WorkFirst to be More Efficient and

Effective at Placing Clients in Jobs September 25, 2006

• Governor Gregoire Announces Colleges to Offer Opportunity Grants to Low-Income Adults August 15, 2006

2007 • DSHS names new head of the Economic Services Administratio

n December 13, 2007

• Governor Gregoire Announces WorkFirst Successful in Helping More Families Break the Cycle of Poverty July 16, 2007

• WorkFirst Holds Parents Accountable February 28, 2007

• Governor create sub-cabinet Workfirst– Draft set performance measurements

• Set targets agencies involved with Workfirst

• State Legislative and DSHS– Created on performance measures

“Reduce the number of families on public assistance”

• WorkFirst exceeded performance targets– Legislatives– Governor’s

• Banks witness 5 years of success

• In 2001, cases jumped to 54, 801 – Compared to 53, 153 in Nov 2000

Appendix 4: Washington WorkFirst Cases November 1999 – February 2001

Washington’s Unemployment Rate

0

1

2

3

4

5

6

7

8

1999#48

2001#48

2003#49

2005#40

2007#27

Unemployment Rate

Ranking out of 51 Source: Department

of Labor

• August 3, 1993• Government Performance and Results Act

– Maximize Congress’s performance– Ensure Accountability– Benefit American taxpayers

• Federal Agencies – Issue performance reports for fiscal years

*Source: Restoring Gov’t Integrity Through Performance, Results, and Accountability

• Program elimination– Non-performing programs – Redundant – Overlapping– More effective in the private sector– Outdated service

• Continue creating new programs and spending that regard current problems

• Sources: Restoring Gov’t Integrity Through Performance, Results, and Accountability

• Agency Inspectors General (IG)

• U.S. General Accounting Office (GAO)

• Congressional Budget Office (CBO

• Office of Management and Budget

• Agency Inspectors General (IGs)– Highlight poor performance agencies in reports

• Sources: Restoring Gov’t Integrity Through Performance, Results, and Accountability

Avoid Elimination• Reliable performance information

• Seek assistance with:• Agency Inspectors General (IG)• U.S. General Accounting Office (GAO)• Congressional Research Service (CRS)• Other external auditors• Own investigators

– Sources: Restoring Gov’t Integrity Through Performance, Results, and Accountability

New Mexico welfare fund has $45 million surplus from lack of recipients

•NM is 3rd highest state with people living in poverty

•Payments to families are increased 15% in Bernalillo County to $340.72 a month

•Caseload at its lowest point ever

•1996 = 33,203 Aug. 2007 = 13,925

•Department does not track statistics for disqualification

•making too much money or not willing to participate in requirements; work and education – can’t earn more than $11,220 annual salary

•Enrollment difficulty

Jan. 26, 2008

Class discussion

NM returns $45M for lack of clients

• Should the TANF program continue in New Mexico?

• Should TANF criteria be reevaluated?