Date: August 14, 1995
For Release: Immediately
Contact: Michael Kharfen, ACF (202) 401-9215

HHS Approves Wisconsin Welfare Waiver

HHS Deputy Secretary Walter B. Broadnax today approved "Pay for Performance," a statewide welfare demonstration project for Wisconsin. This is the third waiver demonstration for Wisconsin approved under the Clinton administration.

"The Clinton administration is proceeding with welfare reform with innovative state demonstrations," said Deputy Secretary Broadnax. "Wisconsin is building on current projects to move people quickly from welfare to work."

Under the project, adult Aid to Families with Dependent Children (AFDC) applicants must meet with a financial planning specialist to explore alternatives to welfare. Failure to do so without good cause will result in denial of eligibility for AFDC benefits for all members of the family.

Individuals who still want to apply for AFDC after meeting with the financial planning specialist will be required to complete 60 hours of Job Opportunities and Basic Skills Training (JOBS) activities prior to receiving AFDC. At least 30 of the 60 hours must include contact with employers. Not completing this requirement without good cause will result in denial of AFDC benefits for all members of the family.

Once receiving assistance, recipients will be required to participate in JOBS for up to 40 hours per week. For each hour of non-participation, the AFDC grant will be reduced by the federal minimum wage. If the AFDC grant is fully exhausted, the remaining sanction will be taken against the Food Stamp allotment. If hours of participation fall below 25 percent of assigned hours without good cause, no AFDC grant will be awarded and the Food Stamp amount will be $10.

"Wisconsin's newest demonstration will test new strategies to end welfare as we know it, " said Mary Jo Bane, assistant secretary for children and families. "I look forward to the results."

Wisconsin originally submitted two waiver requests that the state and HHS agreed to combine into one waiver. The project will operate for five years and include a rigorous evaluation.

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