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Welfare Reform: States' Early Experiences with Benefit Termination

General Information

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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 Iowa’s Limited Benefit Plan’s 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

  • Time Limits - misc.

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

  • Sanctions - misc.

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: HUD’s Multifamily Tenant Characteristics System (MTCS); HUD’s Tenant Rental Assistance Certification System (TRACS); SSA’s 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 family’s 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 family’s 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

Welfare Reform: States' Early Experiences with Benefit Termination (05/01/97)
"GAO is not making recommendations in this report"(8).
 

Existing Publications

05/01/97 Welfare Reform: States' Early Experiences with Benefit Termination GAO