|
Welfare Reform: States' Early Experiences with Benefit Termination
General Information
View a brief abstract of this project.
View a complete, printer-friendly profile of this project.
| Evaluator(s) |
US Government Accountability Office, Health, Education, and Human Services Division
|
| Investigator(s) |
Margie Shields
(US Government Accountability Office, Health, Education, and Human Services Division)
Gale Harris
(US Government Accountability Office)
|
| Sponsor(s) |
US Senate Finance Committee
|
| Funder(s) |
US Government
|
| Subcontractor(s) |
Not applicable
|
| |
| Domain |
Income Security/TANF
|
| Status |
Completed (final report released)
|
| Duration |
Apr 1996 - Apr 1997
|
| Type |
Research and/or Program Evaluation
|
| Goal |
To review states early experiences with benefit termination provisions under waivers to provide information useful to other states as they implement the new law. Specifically, the project describes: 1)those families whose benefits have been terminated under waivers; 2) federal or state benefits that are available and are being received after termination; and 3) states experiences in implementing these provisions.
|
| Program/Policy Description |
To encourage welfare recipients to fulfill their obligations, the new federal law include provisions allowing states to terminate benefits to a family for failure to comply with work and other requirements. After no more than 24 months of receiving benefits, parents and caretakers must work for a minimum of 20 hours a week. States are allowed to deny benefits for reasons including failure to pay child support or establish paternity. States may also use their discretion in establishing criteria for exempting families from there requirements. Federal law also states that families may not receive benefits for longer than 5 cumulative years.
|
| Notes |
Data on nationwide terminations are limited to those state implementing waivers prior to passage of federal reform in August 1996.
|
| |
| Last Updated |
03/24/98
|
| Type of Summary |
Reviewed
|
| External Reviewer(s) |
Mark Nadel
(US Government Accountability Office)
|
| Contact(s) |
David Bixler (not reported)
US Government Accountability Office
441 G Street NW
(T) (202)-512-7201
(F) not reported
Margie Shields (not reported)
US Government Accountability Office, Health, Education, and Human Services Division
441 G Street NW
(T) (415)-904-2228
(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
| Target Population |
Former recipients ("leavers")
|
| Subgroups Analyzed |
Caseworkers/managers/administrators
|
| Sample Size and Unit |
2103 welfare recipient cases that have been terminated.
936 cases in Massachusetts terminated for failure to meet work, school attendance, or teen living arrangement requirements as of the end of June 1996.
408 cases in Iowa terminated for failure to meet Iowas Limited Benefit Plans Program requirements as of June 1996.
759 cases in Wisconsin terminated for failure to enroll in JOBS program or failure to meet work requirements for 3 consecutive months as of May 1996.
|
Sites Studied
Iowa
Massachusetts
Wisconsin
Program Components, Policies, and Activities Evaluated
Financial disincentives/Sanctions
- Strengthened JOBS sanctions
Program requirements
- Work requirement
- Community or alternative work
- School attendance
- Living arrangements for unwed pregnant or parenting minors
Time limits
Administration/Implementation
- Administration/Implementation - misc.
| Variation in program components across sites? |
Yes
|
| Notes on program components |
Financial disincentives/sanctions: Cases were terminated for various reasons, including failure to enroll in JOBS (Jobs Opportunities and Basic Skills Training) program, failure to meet work requirements, failure to comply with child support enforcement, failure to comply with teen school attendance requirements, and failure to comply with teen parent living arrangement requirements.
Program operations: States experiences with implementation of benefit termination provisions is studied.
Program requirements: Recipients are required to engage in work. Minors are required to attend school, and pregnant or parenting minors are required to live with a parent or guardian.
Time limits: Cases were terminated if they reached program time limits.
|
Outcomes Assessed
Benefit termination
- Due to time limit
- Due to sanctions
Income security
- Child support payments
- Earnings
- Food stamps receipt
- Medicaid receipt
- Welfare receipt
Attitudes towards work, welfare, and program
- Attitudes towards work, welfare, and program - misc.
Sanctions
Types of Studies
| Type |
Descriptive/Analytical Study
|
| Aim |
To determine the number of families whose welfare benefits were terminated under waivers implemented prior to federal reform and reasons for termination.
To determine the federal and state benefits received by families after welfare benefit termination.
To study states experiences in implementing benefits termination provisions.
|
| |
Data Sources
| Source |
Administrative data
|
| Title |
Federal databases: HUDs Multifamily Tenant Characteristics System (MTCS); HUDs Tenant Rental Assistance Certification System (TRACS); SSAs Supplemental Security Record (SSR)
State databases: AFDC, Food Stamps, Medicaid, child support enforcement, and child protective services.
|
| Sample Characteristics/Data Collection |
Data for 2103 cases matched from electronic databases.
Collected month preceding termination and 2-10 months after termination.
|
| Sites |
All sites.
|
| Response Rate/Attrition Notes |
N/A
|
| Additional Execution Notes |
For benefit and income matches, data obtained not only for AFDC recipients but also for household members not in the AFDC assistance unit who might have been receiving housing, SSI, or food stamp benefits or who might have recorded income from wages, pensions, or child support.
For most matches, heads of household and individual household members Social Security number were used. For state database matches, state identification or case numbers were also used.
|
| |
| Source |
Field Research
|
| Title |
In-person program staff interviews (semi-structured) to obtain description of program and discuss implementation issues
|
| Sample Characteristics/Data Collection |
Interviews conducted between June and November 1996.
|
| Sites |
All sites.
|
| Response Rate/Attrition Notes |
Reported response rate:
100%
|
| Additional Execution Notes |
No notes reported.
|
| |
| Source |
Field Research
|
| Title |
Program staff structured key informant interview via telephone to obtain nationwide data on number of cases terminated
|
| Sample Characteristics/Data Collection |
All relevant cases contacted.
Survey conducted between February and April 1997.
|
| Sites |
30 states with benefit termination waiver provisions.
|
| Response Rate/Attrition Notes |
Reported response rate:
100%
|
| Additional Execution Notes |
No notes reported.
|
| |
Findings Available
Final Impact Findings
Findings
|
05/01/97:
Welfare Reform: States' Early Experiences with Benefit Termination
|
|
Final Descriptive/Analytical Findings:
"So far, states have seldom used benefit termination provisions. Moreover, of the 18,000 families whose benefits were terminated under waivers through December 1996, more than 99% failed to comply with program requirements. Most terminations took place in Iowa, Massachusetts, and Wisconsin" (p4).
"Through June 1996, prior recipients failure to comply with new enrollment requirements accounted for over half the terminations nationwide. By the end of December 1996, failure to comply with work requirements increased by one-third and became the most significant reason for termination. Recipients explanations for this noncompliance included wanting to stay at home with their children and an unwillingness to do community service or work for low wages"(p4).
"Terminating a familys AFDC benefit represented the loss of a significant source of monthly income. Although more than 80% of the families in the cases GAO studied in Iowa, Massachusetts, and Wisconsin were subsequently found to have some source of support or had returned to welfare, the percentages of such families receiving food stamps and Medicaid declined significantly after termination. Before termination, the percentage of cases receiving these benefits ranged from 84 to 100 percent; after termination, it ranged from 26 to 61 percent. Many families did not take the steps necessary to continue to receive these program benefits after losing AFDC, even though the waivers provided for program eligibility to be unaffected unless other family circumstances changed"(p4).
"Officials in the three states studied generally believed their benefit termination provisions had improved program effectiveness by contributing to increases in work activity, job placements, and families moving off welfare more quickly. These officials emphasized that only a small percentage of the cases had been terminated. Nevertheless, they acknowledged that implementing these provisions had been challenging. For example, states had to develop systems to accurately track hours worked to monitor compliance and to correctly and adequately notify recipients of pending termination actions. In addition, states had to provide certain activities and services before they could terminate a familys benefits. These states experiences with benefit termination provisions under waivers highlight the challenges all states may face in implementing similar provisions of the new welfare reform law"(p4).
|
| |
Recommendations
Existing Publications
| 05/01/97 |
Welfare Reform: States' Early Experiences with Benefit Termination
|
GAO
|
|