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Welfare reform is likely to have many effects on children and their families. Some of the effects are intended; others are unintended consequences of policies. Offering a pre-reform snapshot of what was occurring in three states among three programs central to welfare reform may shed light on some possible scenarios as reform proceeds. More important, our findings offer a baseline against which to measure the actual changes that will accompany reform. Although we have seen similarities in the results across states, we would hypothesize that it is unlikely that we will see similar changes in program utilization across the states given the differences. Each state will differ based on its program practice and policies, economy, demographic characteristics and other factors. Each state will have to tailor its plans accordingly.
After two and one-half years of reform, the nation's AFDC caseloads have dropped precipitously cut in half in many states. With the first five-year time limit approaching in 2002, policymakers will want to plan for the loss of the income assistance for those families remaining — those with the most severe obstacles to entering the workforce. States have responded quite differently to those who have left income maintenance programs as our findings around the use of transitional Medicaid suggest. Those making the transition to the workforce will also need support services, in part to address the needs of their children. Children's well being is and will remain at the forefront for policymakers. This report offers a framework for monitoring the response of the welfare system to changes in policy and economic conditions.
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