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Monitoring States’ Welfare Reforms

General Information

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Evaluator(s) US Government Accountability Office
Investigator(s) Gale Harris (US Government Accountability Office)
Andrew Sherrill (US Government Accountability Office)
Sponsor(s) US House Ways and Means' Subcommittee on Human Resources
US Senate Finance Committee
Funder(s) US Government
Subcontractor(s) Not applicable
 
Domain Income Security/TANF
Status Completed (final report released)
Duration Oct 1996 - Jun 1998
Type Research and/or Program Evaluation
Goal To monitor and report on states’ progress in implementing programs to meet the states’ objectives of Title I of the Personal Responsibility and Work Opportunity Reconciliation Act.
Program/Policy Description State programs evaluated were selected according to the following criteria: 1) obtaining variety with respect to child poverty rates, AFDC benefit levels, unemployment rates, level of TANF funds, extent of experience under welfare waivers, urban/rural population mix, and geographical location; 2) including at least some states with large cities; 3) including states with features of special interest; 4) taking advantage of states in proximity to GAO field offices; and 5) minimizing overlap with other research organizations’ case study states.
Notes No notes reported.
 
Last Updated 01/25/99
Type of Summary Reviewed
External Reviewer(s) Andrew Sherrill (US Government Accountability Office)
Contact(s) Andrew Sherrill (sherrilla.hehs@gao.gov)
US Government Accountability Office
441 G Street NW
(T) (202)-512-7252
(F) not reported
Publications Department GAO Publications (info@gao.gov)
US Government Accountability Office
P.O. Box 37050
(T) (202) 512-6000
(F) (202) 512-6061

Populations Studied

Sample Size and Unit TANF programs and other programs affected by the implementation of PRWORA in 7 states at the county and state level.

Sites Studied

California
Connecticut
Louisiana
Maryland
Oregon
Texas
Wisconsin

Program Components, Policies, and Activities Evaluated

Other

  • To Be Determined

Employment activities

  • Job skills training
  • Job readiness activities
  • Job search
  • Job placement
  • On the job training
  • Work supplementation programs
  • Job development

Educational activities

  • Adult Basic Education (ABE) courses
  • GED courses
  • High school completion

Financial incentives

  • Earnings disregards
  • Elimination of 100 hour rule
  • Excluding the value of one vehicle
  • Increased asset limit
  • Individual Development Account (IDA)
  • Financial Incentives - misc.

Financial disincentives/Sanctions

  • Reduced benefits for non-compliance
  • Strengthened JOBS sanctions
  • Denial of benefits to persons convicted of felonies

Program requirements

  • Work requirement
  • Community or alternative work
  • Broadened JOBS participation requirement

Social/Support services

  • Child care
  • Transitional child care
  • Transitional health benefits
  • Transportation
  • Case management
  • Employment support for job retention
  • Multiple services in single location
  • Enhanced social and health services
  • Substance abuse/dependence treatment
  • Community/social services

Administration/Implementation

  • Changes in welfare office environment/culture
  • Simplification of program rules and procedures
  • Development of partnerships with private organizations
  • Program enforcement of sanctions
  • Administration/Implementation - misc.

Time limits

  • Time Limits - misc.

Family caps

  • Family Caps - misc.

Eligibility

  • Eligibility - misc.

Child support

  • Services to non-custodial parents

Diversionary activities

  • Diversionary activities - misc.

Post-Program activities

  • Post-Program Activities- misc.
Variation in program components across sites? Yes
Notes on program components Changes in eligibility: Implementation of the federal law that ends entitlement to welfare is monitored. Educational activities: Adult Basic Education (ABE) courses, GED courses, and high school completion will be studied. Employment activities: Activities related to job training and employment will be studied. Family Caps: Programs which restrict increases in welfare support when additional children are born into households that already receive support will be studied. Financial disincentives/sanctions: Each program’s methods of sanction enforcement is studied.

Financial incentives: Earnings disregards, elimination of the 100 hour rule, and increased asset limit. Program operations: States’ progress in implementing programs to meet the objectives of the federal welfare reform law is monitored. The development of partnerships with other organizations is examined. Related topics include privatizing services and employer incentives.

Program requirements: Implementation of the federal requirement to work for benefits is monitored. Social/Support services: Services such as child care, transportation, and post-employment services are studied. Modification of welfare offices is examined. Time limits: Implementation of the federal 5-year time limit is monitored.

Outcomes Assessed

Benefit termination

  • Due to time limit
  • Due to sanctions

Employment

  • Job readiness/training
  • Job attainment
  • Job retention
  • Employment - misc.

Income security

  • Welfare receipt

Family and relationship outcomes

  • Foster care

Compliance with federal requirements

  • Data reporting requirements

Sanctions

  • Sanctions - misc.

Program implementation

  • Program Implementation - misc.

Community Outcomes

  • Community economic development (e.g. labor market outcomes)

Types of Studies

Type Implementation/Process Study
Aim To determine how, and to what extent, states have used the flexibility provided by the law to change their assistance programs for needy families.

To measure how states vary in their approaches to serving needy families, as reflected by any major differences among them in how they allocate their TANF block grants and maintenance-of-effort funds.

To study what approaches states are using to provide work opportunities in an effort to reduce welfare dependence, and to what extent do states vary in their approaches.

To study the major implementation issues states have encountered in attempting to promote work and how they have addressed these issues.

 
Type Descriptive/Analytical Study
Aim To monitor states’ progress in implementing welfare reform programs.
 

Data Sources

Source Field Research
Title Key informant interviews with state officials, welfare office directors, supervisors, caseworkers, and members of community advisory and advocacy groups
Sample Characteristics/Data Collection Interviews with state officials and officials from at least two localities in each state.
Data collected May-October 1997.
Sites All sites.
Response Rate/Attrition Notes Not yet available.
Additional Execution Notes No notes reported.
 
Source Administrative data
Title Program output, including percentage change in size of caseloads, child support collections, child poverty rates, program participation rates, diversion rates, employment rates and average earnings of families receiving assistance, overall case closure rates, job placement rates
Sample Characteristics/Data Collection Data for each case study state at county and state level.
Collected 1995, 1996, and most current as of date of initial report.
Sites All sites.
Response Rate/Attrition Notes N/A
Additional Execution Notes No notes reported.
 
Source Secondary data
Title Case study supplementation. Studies from other organizations monitoring states’ welfare reforms, such as the Congressional Research Service (CRS), Urban Institute, Rockefeller Institute, and American Public Welfare Association. Work on states’ approaches to decrease teen births without increasing abortions will be in conjunction with the HEHS’ Health Services Quality and Public Health Issues group.
Sample Characteristics/Data Collection All sources of secondary data not reported.
Data collection schedule not reported.
Sites Specific sites not reported.
Response Rate/Attrition Notes N/A
Additional Execution Notes No notes reported.
 

Findings Available

Final Descriptive/Analytical Findings

Findings

06/18/98: Monitoring States' Welfare Reforms: Welfare Reform: States are Restructuring Programs to Reduce Welfare Dependence
Final Descriptive/Analytical Findings:

“Consistent with the thrust of a federal welfare reform law, states are moving away from a welfare system focused of entitlement to assistance to one that emphasizes finding employment as quickly as possible and becoming more self-sufficient. In the seven states GAO visited, welfare offices are generally being transformed into job placement centers, and in some instanced applicants are expected to engage in job search activities as soon as they apply for assistance. Adults with mental and physical impairments and those caring for small children are less likely than before to be exempt from participating in work activities, and adults who fail to participate as required are more likely to have their family’s assistance terminated. In the states GAO reviewed, the average proportion of adult participants required to participate in work activities increased from 44 percent in 1994 to 65 percent in 1997. In addition, to reinforce the expectation that welfare is temporary, states have established time limits on receiving cash assistance — in some cases shorter than 5 years — and have modified various policies to help make welfare recipients financially better off if they obtain jobs than if they do not. States have devised strategies to reduce the need for monthly cash assistance, such as providing one-time, lump-sum payments in lieu of monthly payments and enhancing their efforts to reduce the number of out-f wedlock pregnancies”(3).

“States have also modified their programs to better support welfare recipients in becoming more self-sufficient. In their efforts to change the culture of welfare offices, states are expanding welfare workers’ roles by shifting their priorities from determining eligibility and cash assistance levels to helping recipients obtain work and become more self-sufficient. At the same time, states are using some of the additional budgetary resources available under the welfare reform law to enhance support services, such as transportation and child care, for recipients participating in work activities and poor families who have found jobs and left the welfare rolls. In addition, states are working to enhance thei9r capacity to treat physical and mental health problems. In Oregon, state officials estimated about 50 percent of the welfare caseload requires drug or alcohol treatment. Moreover, some states have given local administrative entities greater flexibility to design welfare-to-work programs tailored to the needs of their recipients. Implementing all these changes has not been quick or easy: among the most challenging and widespread implementation issues reported by the state have been training staff to perform their new roles and finding ways to involve participants with multiple barriers to participation, such as mental and physical health problems and low literacy levels, in work activities” (4).

 

Recommendations

Monitoring States' Welfare Reforms: Welfare Reform: States are Restructuring Programs to Reduce Welfare Dependence (06/18/98)
“Nationwide, welfare dependence has decreased. Welfare caseloads decreased by 30 percent between January 1994 and September 1997 — and decreased by a larger percentage each year during this period. In addition, GAO’s analysis showed that the seven states reviewed have generally increased their job placement rates. While these results are promising, it is too early to draw definitive conclusions about the success of states’ programs because it is uncertain how states’ programs will perform as more recipients leave welfare to work and states face increasing proportions of recipients with multiple problems, or if the current strong economy undergoes a major downturn. Moreover, little is known about program impacts, such as the effect the programs have had on the well-being of children and families. Future monitoring of states’ programs will need to focus on areas such as job retention and earnings progression, children’s welfare, and family stability” (4).