Reform
Debating Welfare alternative approaches to reform
What problems did it address? A classic residual program -- means-tested, categorical, increasingly conditional and meager in terms of benefits...
The Function of the AFDC program:
1. AFDC addressed the economic needs of Families headed by able bodied & unemployed (or underemployed) women. 2. These families were deemed to be economically fragile because in most cases income from employment was limited or non-existant... a)No primary bread-winner in household [due to Death/Divorce/Separation from SPOUSE].
Welfare Politics: The intersection of diverse and incompatible
agendas
Support for Children (financial) The care of young children
What's the effect of work policies in welfare (pushing mom into
labor mrkt)
Family Formation changes
How are policies effecting decisions of women and men to marry /
raise kids together?
Work Incentives (how to get able bodied into labor
market)
The Conditions of the Low Wage Labor Market. The Needs of various populations (especially marginalized) in
changing Labor Markets
Disability issues in the new labor market.
The Supply of cheap labor
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AFDC to TANF: The Story of Overall government spending Welfare Reform
levels
Alternative Welfare Reform Strategies
1. Targeting within Universalism
Big broad programs: e.g. National health care
2. Changing the incentives to work
Targeted, discreet programs within the welfare
structure: e.g. transitional Medicaid.
3. Poverty Prevention and Rehabilitation (getting ready to work) 4. The "New Paternalism"
This approach is not purely aligned most
conservatives' view of Govt?
5. Deterrence (keeping people from turning to Gov't AFDC to TANF: The 4 before exhausting other sources of Welfare friends, Story family,
So... What did AFDC do about the income problems of Single Female Headed Families?
Originally:
1. Small monthly income grants: levels vary by
states, average is around $400/mo (family of 30 in today's dollars
2. In most states, eligibility for AFDC triggers
additional benefits
Medicaid Food Stamps (today: Supplemental Nutritional
Assitance Program "SNAP")
Access to limited child care .... HA! (this increased steadily in various welfare reforms)
Was AFDC a "Weak" Federal Program?
Criterion Location of Administration* Location of Funding If not totally fed, level of fed match Type of Benefit Weak Local (decentralized) Local or shared Low match (50%) In Kind AFDC Strong Federal (Centralized) Federal (centralized) High match (80%) Cash Often level of match varies by state avg. income But doesn't always apply (think of Medicare) Notes This is questioned by some.
Entitlement Status Level of Population covered If program categorical, what is target Pop?
NO Ent. Status Targeted/Means tested Marginalized people
Entitlement Universal "mainstream" or heroes (union workers, veterans)
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AFDC to TANF: The Story of Welfare Reform
Policy-as-Problem: Critiques of AFDC
From the Right: the problem is one of MORAL HAZARD
1. AFDC undermines the work ethic
a) Among welfare recipients... cash grant more
attractive than work, AND bundle of other benefits [mainly Medicaid, Food Stamps, and (for a lucky 1/3) housing subsidies...]
b) This hurts low wage employers, who lose
potential workers.
2. AFDC undermines marriage
Policy-as-Problem: Critiques of AFDC from the Left
Critique
Insufficient Support Poor Social Theory
Description
Benefits, even when combined with value of Food Stamps, are so low, they don't get family out of poverty
No Long Term Plan
Only alleviates poverty now, doesn't prevent it or address the future
Doesn't address the Underlying Factors driving Poverty
1.
2.
...difficulties for "welfare" moms to enter the labor market. a) Meager child care help b) Little or no transportation help c) Little Job Search / Interviewing ("self marketing") help ...the difficulties in moving UP in the Job Market (to better jobs) a) Education (GED, Community College ) b) Vocational Training c) Services to overcome various psychological barriers to work
Policy-as-Problem: Critiques of AFDC from Right and Left (in 1960s-1980s)
Still from the left...
AFDC introduces a number of "Negative Externalities"
High Effective "Tax" on Earned Income (b/c
of loss of means-tested benefits, like....
Benefits decrease as earned income goes up (few
"earnings disregards"
Getting a decent job often means you risk losing
eligibility not only for AFDC, but also Food Stamps, day care subsidies, transportation help, Medicaid, Housing aid (if one was in the lucky 1/3 that actually got it)
The Welfare Reform Dilemma: The intersection
What will be the effects of Welfare Reform on the following?
1. The financial support of Children in eligible families 2. The care of young children?
a) What will be the effect of work requirement policies (pushing
of diverse and incompatible concerns
mom into labor mrkt)?
3. Family Formation?
a) How will policies effecting decisions of women and men to
marry / raise kids together?
4. The perceived problem of "Dependency"?
a) Will policies reduce long term dependency on the Welfare
System?
b) if And so: what is the risk that policies simply increase women's
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dependency on men (especially abusive men)? Or: on low wage AFDC to TANF: employers? The Story of
Welfare Reform
AFDC was considered broken. So: what
do we DO about it? Alternative Welfare Reform Approaches 1. Targeting within Universalism
Big broad programs: e.g. National health care
2. Changing the incentives to work
Targeted, discreet programs within the welfare structure: e.g. transitional Medicaid.
3. Poverty Prevention and Rehabilitation (getting
ready to work)
4. The "New Paternalism"
This approach is not purely aligned most conservatives' view of Govt?
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5. Deterrence (keeping people from turning to Gov't before
exhausting other sources family,AFDC to TANF: Thepriv. friends, church, Story of Welfare charity)
An Imperfect Schema of the Impossible Task of Satisfying Everyone in Welfare Reform (note: Blue is liberal and Red is conservative)
Help the Kids! Get Mom to Work! Give the States Flexibility!
But
AND
AND
But don't let dads off the hook!
But don't neglect the kids!
But don't let them "race to the bottom"
But don't encourage more kids!
But don't increase the uninsured!
(esp. children)
But don't let them coddle the poor!
But don't encourage dependency!
DO IT CHEAP !
But not in a dead end job!
Yeah, but don't let `em hang out in "college" forever!
Sheeeshhh! But if someone's working toward a GED or AA or BA or certification of some kind, let them finish!
Mobility in job?
TANF can.... Push Recipients off the Rolls
Into the Job Market
Health Insurance? Other benefits?
(child care...)
Into a marriage or other dependent relationship Into Nothing (i.e. just kicked off)
Stability of job? Work conditions?
Or, with some creativity, it can mandate effort and activities
Remedial and or Higher Education Training
Other Services*
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AFDC to TANF: The Story of Welfare Reform
The agendas of welfare reform: Right, Left and Center
Substantive Issues
Time limits
Time limit (Total) ...until work mandate applies
Family Caps Education and Training
Vocational focus vs. Open Choice Degree of support for recipients Comm. Service Jobs Job Search Min hrs of work per week Unlimited Benefit duration Guaranteed Fed payment
Size of Cash Grants Eligibility Criteria
Narrow v. Wide* Varying conditions on receipt**
Work Supports
Asset building (car loans) Extended Medicaid Child Care Subsidies Transport Assistance (bus passes) Petty Cash for clothes, supplies. Counseling Drug & Alcohol Treatment.
Work Mandates:
Sanctions (for non compliance)
Job Search mandates Community Jobs mandates Kids (in school) mandates
Entitlement Status
Incentives: Reducing Births to Unmarried Mothers
SEE EXERCISE and
Counseling Unemployed Parent Initiatives***
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AFDC to TANF: The Story of Welfare Reform
"POLICY SMORGASBORD"
The agendas of welfare reform: Right, Left and Center
Administrative Issues
Devolution
Fed vs. State level Admin o Neutrality, professionalism, accountability (Fed) vs. Local knowledge, responsiveness (state / local) Degree of Fed oversight? o Degree of State Flexibility
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Purpose of Fed Oversight
is to advance .... Liberal Ends
o Fed guidelines establish min bens and work support levels o Fed guidelines establish min amount of moral and behavioral change efforts (work ethic, marriage, parenting)
Block Grant vs. Fed "match" Size of Grant "Maintenance of Effort" Level
Financing
Auspices of Service Delivery
Government Agencies Non Profit Organizations Open to Faith based NPO's? For Profit Organizations
Conservative Ends
AFDC to TANF: The Story of Welfare Reform
It's a Smorgasbord of Policy ideas! (Mostly TANF oriented)
Pro Labor Trade Policies
END ALL CASH ASSISTANCE
TIME L
IMITS
Natio Healt nal h C ar e
"M Inc arri en age tiv es "
Medicaid Extension
Parenting Skills Programs
Trade Adjustment or JOB RETRAINING
Transportation Assistance
in eM ! is Ra age W
B Tr asi ai c fo nin Wo g re r we , O rk ci pi lfar JT, en e ts
al qu y ! E a P
Job Search and other "DIVERSION" assistance
re Ca ies y Da bsid u S
Family CAPS
Community Work Experience Jobs
Adult Education Grants (basic Ed)
CK S! LO NT B A R G
D D OL ONE ice HI erv AS i c S s F l b b Pu Jo
ry to da rk nts an o me M W re ui eq R
Increased and Tougher Sanctions
Reduced Work Exemptions
TEEN PARENT assistance In-home only
Different Ways Welfare policies and programs might reduce welfare roles
Option 1: Make Welfare "Pay"
Time Limit Reduce Benefits
Option 4: Make WORK pay
Raise Min Wage Universal Nat. Health Care Managed "projobs" economic policies
Increase onerous rules & supervision
Mandate Comm Work
Universal Day Care
Off Welfare
..And obtaining sustenance through...
Welfare Recipient (H o H)
LABOR MARKET Other family & friends Marriage
Option 2: Help Recipient become more Competitive in Labor Market
Education Supported Work Experience
Option 3: Ease the Transition
Transportation Assistance Extend FS & Medicaid Job Search Counseling
Training
Income Disregards
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AFDC to TANF: The Story of Welfare Reform