Volatility Common Among Welfare Caseloads; States Seek Immediate Action From Congress On Welfare Reauthorization

7/26/2002

From: NCSL Press Room, 303-228-8313, After July 27: Bill Wyatt, 202-624-8667

DENVER, July 26 -- The national decline in welfare caseloads that began in March 1994 has come to an end according to new data released today by the National Conference of State Legislatures (NCSL).

Twenty-nine states have experienced caseload increases of more than six percent over a six month period in the past two years while eight states have seen increases of more than 10 percent.

New York Senator Ray Meier, chair of NCSL's Human Services Committee, said the volatility in welfare caseloads further compounds the fiscal challenges that most states are facing.

"As state budgets continue to be stretched thin and without a firm commitment from Congress on welfare reform reauthorization, state lawmakers are going to be faced with tough decisions on how to provide support services to working families at the same level as they have in the past," he said.

The historic welfare reform law enacted in 1996 is scheduled to expire on October 1, 2002. With a crowded Senate calendar making scheduling floor consideration of a welfare reform reauthorization bill difficult and prospects of a conference with the House dimming, state lawmakers are eager to see the Temporary Assistance for Needy Families (TANF) program extended.

"The ball is clearly in Washington's court," said NCSL President-elect and Oklahoma Senator Angela Monson. "Through swift action to reauthorize the TANF program, Congress has an opportunity to provide a level of certainty to the nation's working families. If there is no reauthorization bill this year, the flexibility, innovation and quality of services states are able to provide are in serious jeopardy."

The administration has proposed increased work requirements for welfare recipients that states must meet or risk fiscal penalties from the federal government. However, state lawmakers contend new and inflexible work requirements could compromise the ability of states to allocate TANF resources to best serve families and focus on local needs.

"What troubles state legislators about the President's plan and the one passed by the House is not that it focuses on work but that it will stretch states' resources too thin," said Senator Meier.

The result of the increased work requirements, lawmakers predict, will be a shift to focusing on subsidized work activities or community work programs to reach these work rates, rather than helping recipients find private sector work or providing supports for working poor families.

"If our goals are personal and economic independence, then the place to find them is where Americans have historically found them, in private sector employment," says Meier. "In New York our caseload has not gone up in part because we target TANF to support private sector work. Our state earned income tax credit is a key example. These new requirements would limit these dollars and turn back our progress."

Additionally, Senator Monson pointed out that increasing the work rate requirements would also increase costs spent on child care programs for welfare recipients.

"The federal government must increase child care funding if they intend to increase work participation rates," she said.

The National Conference of State Legislatures is the bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories.

NCSL provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.