New Mexico TANF Longitudinal Study (Printer-Friendly Format)

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New Mexico TANF Longitudinal Study

General Information

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Evaluator(s)	MAXIMUS, Inc.
Investigator(s)	Philip A. Richardson (MAXIMUS, Inc.)
Sponsor(s)	New Mexico Human Services Department
Funder(s)	New Mexico Human Services Department
Subcontractor(s)	MAXIMUS Survey Research Center

Domain	Income Security/TANF
Status	Completed (final report released)
Duration	Jul 1999 - May 2003
Type	Research and/or Program Evaluation Policy Analysis
Goal	To provide policymakers with useful information on the New Mexico TANF program and to help create effective policies. To examine the employment situation, earnings, indicators and other outcomes of welfare leavers. To examine barriers to leaving welfare among long term welfare recipients. To evaluate caseload dynamics of the NM Works recipient population.
Program/Policy Description	New Mexico Works is New Mexico’s state implementation of the TANF program. The purpose of the New Mexico Works (NMW) program is to improve the quality of life for parents and children by increasing family income, assisting parents to develop the discipline necessary for self-sufficiency and to improve their self-esteem. The further purpose of the program is to increase family income through family employment and child support and by viewing financial assistance as a support service to enable and assist parents to participate in employment. The program has a 60-month life time limit on cash assistance receipt. There is also a 60-day work requirement if not caring for a young child.
Notes	Project reports available on the MAXIMUS website http://www.cortidesignhost.com/maximus/cpss/publications.asp.

Last Updated	02/11/04
Type of Summary	Reviewed
External Reviewer(s)	Philip A. Richardson (MAXIMUS, Inc.)
Contact(s)	Philip A. Richardson (philrichardson@maximus.com) MAXIMUS, Inc. 11419 Sunset Hills Road (T) (703) 251-8500 (F) (703)251-8240
Publications Department	Not applicable (N/A) (T) N/A (F) N/A
Submitter(s)	Philip A. Richardson (philrichardson@maximus.com) MAXIMUS, Inc. 11419 Sunset Hills Road (T) (703) 251-8500 (F) (703)251-8240

Populations Studied

Target Population	Recipients/participants/clients Former recipients ("leavers") Single parent families Native Americans Children Persons with mental/physical health problems Low-income households
Subgroups Analyzed	Former recipients ("leavers") Single parent families Two-parent families Native Americans Domestic violence victims Caseworkers/managers/administrators Rural Populations
Sample Size and Unit	1. A cohort of 33,000 families who received TANF any time between July 1998 — June 1999 were tracked using administrative data. 2. 2,500 randomly selected families from the above sample were selected for telephone follow-up surveys. 3.Several additional samples were selected for special studies, including long-term TANF recipients and time-limited welfare leavers.

Sites Studied

New Mexico - statewide

Program Components, Policies, and Activities Evaluated

Employment activities

Job skills training
Job readiness activities
Job search
Job placement
Job development
Employment policies linked to treatment
Employment Activities - misc.

Financial disincentives/Sanctions

Reduced benefits for non-compliance
Financial Disincentives/Sanctions - misc.

Social/Support services

Child care
Transitional child care
Transportation
Case management
Employment support for job retention
Enhanced social and health services
Social/Support Services - misc.
Referrals to other service organizations

Administration/Implementation

Development of partnerships with private organizations
Development of new welfare policies
Administration/Implementation - misc.

Time limits

Time Limits - misc.

Post-Program activities

Post-Program Activities- misc.

Variation in program components across sites?

Yes

Notes on program components

Administration/Implementation:Examination of the administration of welfare policies in individual state offices. Evaluation of what procedures and tools are being used to assess TANF recipient barriers and how they are being improved based on best practices of other states.

Employment Activities:The evaluation of employment programs and job readiness activities utilized by recipients and leavers. Evaluation of the types of employment activities in which recipients and leavers are currently engaged.Examination of job readiness activities that may be needed for those who are approaching the time limit.

Post Program activities:Examination of employment activities and overall status, well-being and self-sufficiency of program leavers.

Social/Support Services:Examination of support services needed and utilized by recipients and leavers.

Outcomes Assessed

Benefit termination

Due to time limit
Benefit Termination-misc.

Education

High school graduation/GED receipt
School attendance
Adult literacy levels
Education - misc.

Employment

Job readiness/training
Job attainment
Job retention
Job promotion
Number of hours worked for wages
Employment - misc.

Family and relationship outcomes

Births/pregnancies
Fatherhood
Family and relationship outcomes - misc.

Income security

Child support payments
Earnings
Food stamps receipt
Medicaid receipt
Welfare receipt
Income security - misc.
Overall income
Unemployment Insurance (UI) receipt

Adult outcomes

Emotional well-being
Health/ physical well-being (including prenatal health)
Adult outcomes - misc.

Housing

Residential mobility
Homelessness
Housing - misc.

Substance abuse

Patterns and severity of substance use
Substance abuse - misc.

Attitudes towards work, welfare, and program

Attitudes towards work, welfare, and program - misc.

Standard of living

Standard of living - misc.

Service utilization

Service utilization - misc.

Sanctions

Sanctions - misc.

Program implementation

Program Implementation - misc.
Capacity of management systems to meet priorities

Financial costs and benefits/cost-effectiveness

Financial costs and benefits/cost-effectiveness - misc.

Policy changes

Policy changes-misc.

Caseload Dynamics

Exit effects
Caseload dynamics - misc.
Recidivism

Child Outcomes

Child social/emotional/behavioral outcomes
Child academic outcomes
Child overall development
Child mental/physical health outcomes
Child outcomes - misc.

Types of Studies

Type	Longitudinal/Prospective Study
Aim	To track the characteristics and well being of welfare leavers as well as barriers of current recipients to leaving welfare over the course of three years.

Type	Descriptive/Analytical Study
Aim	To examine the characteristics and well being of welfare leavers as well as barriers of current recipients to leaving welfare since implementation of TANF.

Type	Descriptive/Analytical Study
Aim	To gather information on the characteristics, barriers, expectations, and service needs of long-term welfare recipients; To develop a profile of families who might have difficulty leaving the welfare rolls before reaching the 60-month lifetime limit on TANF benefits; To provide information that might be useful in determining criteria for exempting families from the 60-month time limit as “hardship” cases under national welfare reform legislation; and To help determine how long-term welfare recipients might best be served through the federal Welfare-to-Work (WtW) program, which provides special funding for long-term welfare recipients with employment barriers.

Data Sources

Source	Focus Group
Title	Focus Groups
Sample Characteristics/Data Collection	N=21 subset of those who participated in the primary survey.
Sites	Bernalillo county, Dona Ana county, And San Miguel county, NM
Response Rate/Attrition Notes	Not applicable.
Additional Execution Notes	Focus group was conducted as part of sub study of long-term welfare recipients, defined as those who have used up 30 months or more of their 60-month lifetime limit on TANF benefits.

Source	Survey
Title	Telephone survey
Sample Characteristics/Data Collection	N=301 individuals who have been on TANF for at least 30 months as of May 2001. N=320 follow up survey for those who left TANF for employment.
Sites	NM
Response Rate/Attrition Notes	Not reported.
Additional Execution Notes	Conducted between July and August 2001. Mail-outs offered $20 compensation for the first survey and $25 for the second.

Source	Survey
Title	Annual Survey of Primary Sample
Sample Characteristics/Data Collection	N=2,500 random sample of TANF recipients who received benefits any time between July 1998 and June 1999.
Sites	NM
Response Rate/Attrition Notes	Response rates for the three rounds of surveys ranged from 70 to 76 percent.
Additional Execution Notes	Three rounds of surveys were conducted for the primary sample. First survey conducted between Nov 1999 and April 2000. Second survey conducted between Nov 2000 and March 2001. Third round conducted between August 2001 and May 2002. The second round of surveys contained new questions on mental health and domestic violence. Surveys were conducted using Computer Assisted Telephone Interviewing (CATI). Some interviews were conducted face to face as part of the field-based surveys efforts.

Source	Administrative data
Title	Administrative Data
Sample Characteristics/Data Collection	N=5,936 families who have been on TANF for at least 30 months as of May 2001
Sites	NM
Response Rate/Attrition Notes	Not applicable.
Additional Execution Notes	Conducted as part of sub study on long term welfare recipients and used in comparative analysis of long term recipients to overall TANF population.

Source	Administrative data
Title	Longitudinal database of TANF recipients
Sample Characteristics/Data Collection	N=33,000 families who were on TANF some time between July 1998 and June 1999.
Sites	NM
Response Rate/Attrition Notes	Not applicable.
Additional Execution Notes	Updated on a regular basis to provide follow up on the cohort through 2001. Contains information on TANF status each month, demographic characteristics of each case, employment and earnings as reported in UI system, participation in the child care subsidy program, participation in food stamps and Medicaid, sanctioning for non-compliance with program rules.

Source	Survey
Title	Barrier and Safety Net Study Telephone survey
Sample Characteristics/Data Collection	N= 1,000 families who had been on TANF for at least 30 months as of October 2002
Sites	NM
Response Rate/Attrition Notes	Response rate: 71%
Additional Execution Notes	Conducted between Nov 2002 and Jan 2003. Conducted as part of Barrier and Safety Net sub Study.

Source	Field Research
Title	Site visits
Sample Characteristics/Data Collection	New Mexico Human Service Department offices and New Mexico Works contractors
Sites	NM
Response Rate/Attrition Notes	Not applicable.
Additional Execution Notes	Site visits were conducted on March 2003.Conducted as part of Barrier and Safety Net sub Study.

Source	Focus Group
Title	Barrier and Safety Net Study Focus Groups
Sample Characteristics/Data Collection	n=6 focus groups consisting of sub sample of those who completed telephone interviews.
Sites	Bernalillo county, Dona Ana county, And Valencia county, NM
Response Rate/Attrition Notes	Not applicable.
Additional Execution Notes	Focus group was conducted as part of Barrier and Safety Net sub Study.Conducted in March 2003.

Findings Available

Interim Implementation Findings
Final Implementation Findings
Interim Descriptive/Analytical Findings
Final Descriptive/Analytical Findings

Findings

06/01/02: New Mexico TANF Longitudinal Study: Final Report (First Three Years)

Final Descriptive/Analytical Findings:
For welfare leavers:

At the final round of surveys, almost 66% were working for pay. Almost 81% were working or living with an employed adult.
Of those who were not working and not living with an employed adult at round 3, about 43 percent had another source of income.
Employment rate varied by race, education, ethnicity, age and county.
Employment stability varied in general and across occupation, earnings levels and education.
Among welfare leavers at round 3, almost 58 percent were working full time.
Some employed welfare leavers had low earnings.
Earnings among leavers varied by education and ethnicity.· Average earnings varied greatly across occupations.
74% of single parent leavers were living below the poverty level based on parental earnings alone.
Poverty status of single parent leavers varied by age, ethnicity, education, and urban/rural location.
About 26 percent of the welfare leavers who were employed at round 3 thought it was very likely or somewhat likely that they would be on TANF again in six months.
About 63% of employed welfare leavers at Round 3 were using the EITC. Only 51% of high school dropouts were using it.
About 55% of unemployed leavers had worked since leaving welfare.
Of welfare leavers not working, 55% indicated health reasons.

05/01/03: New Mexico TANF Longitudinal Study: Survey of Long-Term Welfare Recipients for the Barrier and Safety Net Study

Interim Descriptive/Analytical Findings:

Long term welfare recipients have a number of potential assets for employment including having worked at some time in the last year; having worked at least half the time since turning 18; and/or having obtained a high school diploma or GED. 31% had worked in the last 7 months and 33% were currently working.
Long-term welfare recipients have a number of personal employment liabilities including mental health and physical health and learning disability problems or family members with one of these problems.
Less prevalent employment liability problems included being a victim of domestic violence, having a criminal record, or problems with English. These were not significantly related to employment status.
Long-term recipients have a number of logistical or situational employment barriers including having preschool children, 3 or more children, childcare, transportation, housing, or neighborhood safety issues.
Physical or mental health problems were the most important liabilities in terms of current employment and recent work history.
Barriers that were situational in nature were not highly related to current employment status except for transportation.
Respondents who had physical health problems were also more likely to have mental health problems and learning disabilities.
Older respondents, whites, and divorced/separated Respondents were the most likely to have a chronic health condition or poor health; be limited in their daily activities; or report a health barrier to employment or job training.
Types of health problems varied by age, and ethnicity.
Health problems were the most common problem cited by unemployed workers for not working.
22% had a MH problem that prevented them from working or attending school in the past year.
Education deficits played a major role in job skills, occupation, earnings, job advancement potential, and employer benefits.
52% of the female respondents have experienced physical abuse at some time in their lives.
Whites were more likely than Hispanics and those formerly married were most likely to be victims of domestic violence or threats.
Fifty nine percent of respondents had been romantically involved with the fathers of their youngest child at time of birth. Only 16% were involved at the time of survey.

03/01/02: New Mexico TANF Longitudinal Study: Results of the Third Year Follow Up Surveys

Final Descriptive/Analytical Findings:

Only 10 percent of leavers said that they were very likely or somewhat likely to go back on welfare in the next six months.
Only 22% were on welfare by the third round of surveys.· About 26% of the welfare leavers who were unemployed at round 3 thought it was very unlikely or somewhat likely that they would be on TANF in six months.
The percentage of respondents still on welfare at round 3 did not vary among major ethnic groups, but did vary significantly across county.
High school dropouts were slower to leave welfare than were other recipients.
About 40% of those who were still on welfare at Round 3 dropped out of high school, 49% have never been married and 48% had three or more children.
Welfare recidivism was highest among high school dropouts, younger recipients and those who have never married.
Long-term welfare recipients were more likely to be high school dropouts, to never have been married, or to have 3 or more children.
Educational attainment among long term recipients varied by ethnicity and age.
About 36 percent of welfare recipients at round 3 were employed at age but 29% had never worked or had not worked in two years.
Many high school dropouts , Native Americans, and older recipients had little work history.
Of those who were still on welfare at round 3, 38% cited health problems as a main barrier to employment.

09/01/01: New Mexico TANF Longitudinal Study: Poverty Rates, Employment Stability, and Recidivism Among Welfare Leavers in New Mexico: Executive Summary

Interim Descriptive/Analytical Findings:

Three quarters of all single parents who had left TANF were still below the poverty level. Even among employed persons, 57% were still below the poverty level.
40% of leavers were working at least 40 hrs. 34% had 3 or more children.
The group most at risk of staying in poverty is high school dropouts, 89% of whom are below the poverty line. Others groups are risk are Native Americans, younger leavers, and those in rural areas.
Overall rates of employment, ranging from 40-59%, among leavers remained steady during the tracking.
In the 8th and 9th quarter after leaving TANF, 50% of leavers were UI covered employment.
Employment rates were higher in urban vs. rural areas and lower in one parent vs. two parent families.
29% of leavers were employed in all four quarters. 15% of were employed in the 3 of the quarters.
22% were employed in only 1 or 2 of the quarters after leaving TANF. 34% were employed in none of the quarters.
66% of the leavers were employed in at least one quarter.
Employment stability was higher in urban areas.
Hispanics had the highest stability rate: 48% employed in all four quarters compared to 38% of Caucasians and 40% of Native Americans.
Employment stability varied by occupation with professional/paraprofessional/clerical having more stability compared to retail/manufacturing.
Earnings level and education also played a major role in employment stability with higher earnings and education being associated with higher stability.
After leaving TANF the median quarterly earnings were: $2,654 for the first quarter; $2,997 for the 4th quarter; and $3232 for the 8th quarter.
Median earnings varied by county.
Urban residents has higher earnings than did rural.
Native Americans had lower earnings than did Hispanics or Caucasians.
Earnings varied by occupation.
About 34% were on welfare but not working in Round 3 were looking for work.

10/01/01: New Mexico TANF Longitudinal Study: Focus Group Study of Long-Term TANF Recipients Summary

Interim Descriptive/Analytical Findings:

Reasons given for applying for welfare include divorce/separation, medical incapacitation, working poor, or pregnancy.
Reasons given for not leaving welfare include medical incapacitation, need for health insurance and Medicaid, inability to find a job, in school full time, or having a child under 12 months and lack of child support.
Requirements that would be needed in order to leave welfare include employment, disability insurance, job training, or daycare. Financial disincentives discussed included the earned income deduction, which did not allow for those who worked to maintain enough funds to get by month to month as well as retroactively decreasing benefits after a recipient began to work.
Of the 27 respondents, 2 said they had poor prospects, 7 had borderline prospects, 6 had some prospects, and 6 had good prospects at self sufficiency at the time they reached the 60 month time limit.

10/01/01: New Mexico TANF Longitudinal Study: Study of Long-Term TANF Recipients

Interim Descriptive/Analytical Findings

Of the 5,900 families on TANF for 30 months or more in May 2001, 30% of them had been on TANF for more than 45 months and 52% had been on for more than 40 months.
In comparison of long term recipients with the overall TANF population, males accounted for 11 percent of the long term recipients and 6.7% of the entire TANF population. Persons aged 30 and older accounted for 59% of long term recipients but only 48% of the entire TANF population. Persons with 3 or more children accounted for 44.5 % of the population but only 32.4% of the entire TANF population.
Educational levels of long term recipients were very low. 44% had not completed high school or had a GED, 10.6% had completed only a GED. 26% of respondents had attended college but only 5% had graduated. Education levels varied by age and ethnicity.
Ethnic composition of long term recipients varied by age.
Different types of long-term recipients face different barriers to self-sufficiency. Older recipients (30 or over) often cited mental or physical health reasons as barriers to self-sufficiency. Younger recipients often cited "voluntary" reasons such as attending school, pregnant, caring for child.
Barriers to self-sufficiency differed by race. Whites were more likely to cite health problems. Hispanics and Native Americans were more likely to cite lack of education and literacy problems.
Different barriers have different impacts on prospects for achieving self-sufficiency. Among those who cited mental health barriers as their primary barrier, 22% thought they would leave after one year. Only 34% of those who cited physical health thought they would leave. 80% of those who cited transportation problems said they thought they would leave welfare in a year.
About 90% of surveyors were aware of the 60 month time limit but 31% did not know how many they had used or did not know they had used 30 months.
Reasons given for not working among unemployed respondents included mental and physical health conditions, MH and physical health problems among family members, staying at home to take care of children, or going to school.

03/01/01: New Mexico TANF Longitudinal Study: Results of the Second Year Follow-Up Surveys Executive Summary

Interim Descriptive/Analytical Findings

At the time of the second year survey, 33% of respondents were still on welfare.
33% of recipients who are on welfare at Round 2 have generally been on welfare for long periods of time. Many of these "stayers" represent the types of welfare recipients who are most difficult to serve.
With regard to recidivism, 16% of the respondents who were off welfare in May 1999 were back on it at Round 2.
Employment rates varied by age, ethnicity, county and marital status. 57% of Native Americans were employed compared to 69% of Hispanics. One quarter of Native Americans were neither working nor living with an employed adult.
For employed high school dropouts, average monthly earnings were $1,006 per month, compared to $1,163 for persons who had completed high school only, and $1,384 for persons who had attended college.
Of the respondents who were off welfare and not working at the time of the Round 2 survey, 56% had worked at some time since going on welfare.
Of all the unemployed respondents who had worked since leaving welfare, 70% had worked in the last six months.
40% of those still on welfare were employed.
49 % of those who were not working and still on welfare had never worked or had not worked in the past two years.
About 11% of those not receiving welfare were receiving child support. The percentage receiving child support varied by ethnicity and by county.
Almost 37% of the respondents who left welfare were still receiving Food Stamps.
Very few respondents who were off welfare reported experiencing the most severe types of hardship - such as staying in a homeless shelter or having their children be placed in foster care.
33% who were no longer on welfare reported having a problem gaining access to medical services.
60 percent of the respondents who were no longer on welfare at Round 2 thought that their income and benefits were adequate to meet their family's needs.
16% on round 2 reported not having healthcare for their children.
Among employed persons, there was a slight increase in the percentage covered by employer health plans.
Respondents who were no longer on welfare and who were paying for childcare, 52 percent said they were receiving help from the county in paying for care.
Among respondents who were still on welfare at Round 2, 15 percent said they were currently receiving services to help them find a job. Another 38 percent said that they had received these services in the past.

04/01/00: New Mexico TANF Longitudinal Study: Results of the First-Year Follow-Up Surveys

Interim Descriptive/Analytical Findings:

Of the persons who were no longer on welfare at time of the surveys, two-thirds thought it unlikely that they would be returning to welfare in the near future.
About 62 percent of the persons who were no longer on welfare were working for pay when interviewed.
Of the persons who were employed, 55 percent were working 40 hours or more per week, and 79 percent were working 30 hours or more.
About 37 percent of persons still on welfare were working for pay at the time of the surveys. Almost 22% were earning $1000 per month or more.
Of those not working, 45% had worked at some time while receiving welfare, and about half were currently looking for work.
Among unmarried leavers, 11 were receiving child support, 38% were receiving food stamps, and 58% were on Medicaid.
Of those who left welfare, 58% said they were better off than when on welfare, 17% thought they were worse off, 74 said they had health care for their children. Among those employed, 24 percent were participating in an employment sponsored health plan.
About 55% of leavers had heard of the EITC; 43% on welfare had heard of it.
About 20 percent of persons who had left welfare had received help in finding jobs while they were on welfare, and 31 percent of current welfare recipients had received help.
About 28% of leavers were using childcare; of these 33% were receiving some form of childcare assistance.

Recommendations

New Mexico TANF Longitudinal Study: Survey of Long-Term Welfare Recipients for the Barrier and Safety Net Study (05/01/03)

A safety net program may be appropriate for long term welfare recipients with physical and/or mental health problems.
There is a need for earlier in-depth assessment procedures to identify barriers before recipients reach the time limit.
Possible need for a case consultation approach when TANF recipients have accumulated a certain number of months on assistance.
Need for more programs that address issues for those with serious barriers to employment.
Case managers may need to focus on the presence of mental health problems among older TANF recipients.

New Mexico TANF Longitudinal Study: Study of Long-Term TANF Recipients (10/01/01)

Need to focus on those with mental and physical health problems especially those aged 30 and over.
Need to focus services on long-term recipients who are likely to reach the time limit without employment.
Need to educate groups of recipients ab the 60-month time limit, especially those exempt from work activities.
Need to increase the number of recipients who are actively using employment services.

Existing Publications

04/01/00	New Mexico TANF Longitudinal Study: Results of the First-Year Follow-Up Surveys	MAXIMUS
03/01/01	New Mexico TANF Longitudinal Study: Results of the Second Year Follow-Up Surveys Executive Summary	MAXIMUS
09/01/01	New Mexico TANF Longitudinal Study: Poverty Rates, Employment Stability, and Recidivism Among Welfare Leavers in New Mexico: Executive Summary	MAXIMUS
10/01/01	New Mexico TANF Longitudinal Study: Study of Long-Term TANF Recipients	MAXIMUS
10/01/01	New Mexico TANF Longitudinal Study: Focus Group Study of Long-Term TANF Recipients Summary	MAXIMUS
03/01/02	New Mexico TANF Longitudinal Study: Results of the Third Year Follow Up Surveys	MAXIMUS
06/01/02	New Mexico TANF Longitudinal Study: Final Report (First Three Years)	MAXIMUS
05/01/03	New Mexico TANF Longitudinal Study: Survey of Long-Term Welfare Recipients for the Barrier and Safety Net Study	MAXIMUS

Forthcoming Publications

00/00/00

New Mexico TANF Longitudinal Study: Year Four Final Report

MAXIMUS