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Welfare Reform in St. Joseph County:
CHANGES & CHALLENGES
By Sue Christensen & Ann Rosen, June 1997
Understanding welfare reform is no easy task: the new
law has nine separate titles that deal with families and children.
It's further complicated by the fact that the implementation
process is still evolving. Even as the law is being enacted, changes are
continuing to be made at the federal, state and local levels. What are the
implications that these changes may have for communities --and for the families
that are most affected?
Clearly, the full extent and possible impact of welfare
reform cannot be captured in a few short pages. This overview is simply
a starting point to look at the changes being made and to consider some
of the challenges ahead.
 What is changing?
The Personal Responsibility and Work Opportunity Reconciliation Act of
1996 brings major changes in how welfare and related social services are
funded and administered. Under this legislation, Temporary Assistance for
Needy Families (TANF)--the piece commonly known as "welfare reform"
--replaces Aid to Families with Dependent Children (AFDC). Changes have
also been made in the Food Stamp, Supplemental Security Income, Child Support
Enforcement and Child Nutrition Programs, as well as in benefits to noncitizens.
Highlights of federal and state legislation are listed on the two charts
that follow. Some significant changes:
State control. States now have almost total control over
designing their public assistance programs within broad federal guidelines.
Entitlements. Rather than open-ended individual entitlements,
states now receive capped block grants for cash assistance to needy families.
Medicaid, however, remains an entitlement and is not linked to TANF eligibility.
Limits. In Indiana, adults receive a lifetime TANF limit
of two years; children can receive benefits for up to five years and requalify
as adults.
Personal Responsibility Agreement. Parents must sign a
statement assuring that their children will be immunized, attend school
and be raised in a safe and secure environment, and that parents will refrain
from substance abuse.
Who will be affected and when?
Welfare reform brings changes for just about everyone who has been receiving
benefits. For many, changes have already taken place. Others will be affected
as new regulations are implemented, redeterminations are made, or limits
are reached. Navigating the welfare reform maze to determine exactly who
is being affected--and when--is a challenge.
- During the past two years, TANF (AFDC) caseloads in St. Joseph County
have dropped from 3,408 in July 1995 to 2,767 in March 1997.
- In July 1995 Indiana started its "Welfare Reform Demonstration
Project." St. JosephCounty currently has 665 adult recipients whose
two-year clock started ticking as a result of this project. For 196 of
those, according to a recent FSSA report, the 2-year TANF limits will expire
between 8-1-97 and 12-31-97.
- As of June 1, 1997, 917 additional adults on TANF in St. Joseph County
were newly subjected to the 2-year limit.
- Starting October 1, 1996, childless adults between the ages of 18 and
50 stopped receiving food stamps at recertification if they weren't meeting
work requirements.
- By August 1, 1997, many children receiving SSI may lose benefits when
their cases are reviewed.
- By August 1997, many immigrants will lose eligibility for food stamps,
SSI and other benefits.
AN OVERVIEW OF MAJOR WELFARE CHANGES
TANF (Temporary Assistance to Needy Families):
Key areas: |
Federal legislation: |
Indiana legislation: (All aspects of federal legislation apply; this column lists explanations,
notes, or added restrictions pertaining to IN) |
Funding |
A state's funding is based on the combined expenditures for
AFDC, JOBS, Emergency Assistance, for a designated previous fiscal year.
States must maintain payments equal to 80% (75% if work requirements are
met) of what they were paying for welfare costs in 1994. |
Funding to Indiana is based on expenditures for fiscal year
1994, during a peak utilization period. Because the number of current TANF
recipients is much lower than in 1994, there will be excess dollars to channel
into other support services. |
Additional funding |
Contingency funds are available for states with limited funds
in case of economic downturns, population growth, etc. States that meet
TANF goals and reduce out-of-wedlock births are eligible for performance
bonuses. |
|
Work |
TANF recipients must participate in work activities after
two years on assistance. After receiving benefits for two months, a state
may opt to have unemployed recipients partipate in community service activities. |
All TANF applicants will be registered with Workforce Development
Employment Services. If employment of 20 hours/week or more is voluntarily
terminated, no TANF or Medicaid benefits will be available for 6 months
from quitting date. |
Special work rules |
States may limit work requirement to 20 hours/week for single
parents with children under age 6. States may exempt a single custodial
parent with a child age one or less from work for twelve months. |
As of 6/97, a single custodial parent with a child over 2
is required to participate in employment and training activities; age limit
will decrease every 6 months until by 12/98, only parents with infants under
12 weeks are exempt. |
Time limits |
Five year lifetime limit for TANF assistance to families with
children living with parents. (Children become eligible again when adults.)
States may exempt 20% of their caseload. |
Twenty-four month lifetime limit for adults. Extensions and
exceptions may be provided for individuals in certain situations. |
Family cap |
May deny TANF assistance to additional children that are born
or conceived while the parent is on TANF. |
With a few exceptions, no payment will be made for children
born 10 or more months from the date on which the family was authorized
to receive benefits. |
Medicaid |
States must provide Medicaid to those who would have been
eligible under the old AFDC guildelines and offer transitional Medicaid
benefits for TANF recipients leaving welfare for work or due to increased
child support. |
Individuals who voluntarily terminate employment or reduce
work hours will lose Medicaid eligibility for 6 months. |
Unmarried teens |
Must attend school or an alternative education or training
program. Must live at home or in an approved adult-supervised setting. States
may deny TANF assistance to unmarried teens and their children. |
To be eligible for TANF, a minor parent must be living with
a parent, stepparent, or grandparent or with an unrelated adult who holds
legal guardianship or custody of the minor parent. |
SSI:
Key areas: |
Federal legislation: |
Indiana legislation: |
Childhood disability definition |
Narrows the definition of childhood disability to be a "medically
determinable physical or mental impairment which results in marked and severe
functional limitation." The Social Security Administration must decide
what level of severity is required to meet this new definition. |
No state options allowed. Indiana families who currently have
children receiving SSI will be redetermined by August 1997. |
ALIENS:
Key areas: |
Federal legislation: |
Indiana legislation: |
SSI benefits |
Current and future legal immigrants are ineligible until they
become citizens. (Changes may be pending in Congress.) Refugees, persons
granted asylum and veterans may receive benefits for 5 years. |
No state options allowed. |
Food stamps |
Current and future legal immigrants ineligible until they
become citizens. Refugees, asylees and certain veterans are eligible for
5 years. |
No state options allowed. |
TANF, Medicaid and Social Services Block Grant (SSBG) |
States may provide or discontinue services for immigrants
who arrived prior to 8/96. Newly-arriving legal immigrants ineligible for
their first 5 years in the US. Refugees, asylees, veterans and Cuban-Haitian
immigrants are eligible. |
Indiana has chosen not to exercise the option to bar services
to immigrants here prior to 8/96. (Under federal legislation, all immigrants
are allowed to receive emergency Medicaid services, regardless of benefit
status.) |
CHILD CARE:
Key areas: |
Federal legislation: |
Indiana legislation: |
Fund consolidation |
Merges all AFDC-child care related funds (GCC, TCC, and At-Risk)
with the Child Care Development Block Grant (CCDBG). |
Indiana will transfer 30 percent of the Federal TANF grant
(the maximum allowed) to child care subsidies. |
Use of funds |
At least 70% of all mandatory funds must be used for child
care services for TANF recipients, work program partipants and those at
risk of going on welfare. States must ensure that a substantial portion
of the funds are used to provide assistance to low-income working families. |
State priorities for use of child care funds are: 1) families
on TANF, 2) families transitioning off TANF, 3) families partipating in
"Applicant Job Search" through local DFC, 4) families not on TANF,
but at-risk (150% of poverty), and 5) children with special needs who meet
income and eligibility guidelines. |
CHILD PROTECTION:
Key areas: |
Federal legislation: |
Indiana legislation: |
For-profit providers |
States are permitted to use Child Protection funds for for-profit
entities to care for children in foster care. |
|
Kinship care |
States shall consider giving preference to an adult relative
over a non-related caregiver when determining a foster care placement. |
State statute provides that a court "may place the child
with a suitable and willing blood or adoptive relative caretaker." |
FOOD STAMPS:
Key areas: |
Federal legislation: |
Indiana legislation: |
Work requirement |
Able-bodied childless adults between ages 18-50 may receive
food stamps for only 3 months in every 36 month period unless they are employed
or participating in a work program for an average of 20 hrs/week. |
Most able-bodied recipients age 16-60 are required to work,
register and participate in employment and training activities. |
Often lost in the rhetoric
is the most poignant and perplexing aspect of welfare reform-
the fact that two-thirds of those who receive AFDC benefits
are children.
-The Future of Children, Spring 1997
How will this work in St. Joseph County?
Local communities have been given some leeway by the state in determining
how they implement different aspects of welfare reform. In St. Joseph County,
there are a number of entities working to move welfare recipients to financial
independence. The key players and their roles:
Division of Families and Children assesses all new TANF applicants,
makes assignments to case management services either by DFC or outside sources,
and develops and manages contracts with other community groups for support
services to TANF recipients.
Workforce Development Services & Goodwill will provide case
management services for a portion of individuals on TANF and Food Stamps.
They will conduct assessments, help address barriers, develop employment/training
plans, make job placements and/or arrange for community service, and provide
ongoing support for up to six months following employment.
The St. Joseph County Voucher Agent will now administer all Child
Care Development Funds to TANF recipients and qualifying low income families.
What are the challenges?
As families move toward financial self-sufficiency, they may face one
or more barriers, some related to personal life and employment skills, others
involving community systems. One of the critical challenges to our community
is how to move beyond the identification of these barriers to the development
of proactive, coordinated and creative responses to address them.
Some of our major challenges:
Jobs:
It appears that because of increased state efforts, many individuals
with the capacity to work have already left the welfare roles. A high percentage
of current TANF recipients are unskilled, have no job history and -at best-a
high school education. Many will seek entry level, unskilled jobs that often
do not provide a living wage, lack health benefits, or are short-term. Some
will have difficulty retaining jobs. Another challenge is the capacity of
the local job market to absorb the numbers leaving welfare.
Child care:
Soon, our already-strained educare system will be faced with an influx
of children. As a result, three existing concerns-affordability, accessibility
and quality-will be magnified. Even with sufficient funding, the challenges
are significant, including care for infants and sick children, care during
nontraditional hours, and care in locations accessible to parents.
Transportation:
Many welfare recipients do not have reliable transportation, yet many
of the jobs currently available are not accessible by public transportation.
Bus routes don't serve all areas and bus schedules don't accommodate all
shifts. A further complication for some parents will be getting children
to and from day care.
Unknown outcomes:
The full impact of welfare reform on families and communities is largely
unknown and will require careful monitoring in a number of areas.
Some of the many questions:
- Will individuals be able to find and keep jobs?
- Will the health and well-being of children be compromised as a result
of these changes?
- Will there be any impact on adolescent pregnancy, low birth weight,
immunization rates or other health indicators?
- What will happen to children with disabilities who lose their SSI or
Medicaid coverage?
- Will school performance change?
- Will the need for shelter, food and other emergency services continue
to increase?
- Will the working poor be affected?
- Will there be a change in the incidence of domestic violence and child
abuse/neglect?
- How will we know if families or individuals fall through the cracks?
- How will we measure outcomes and learn from successes?
© 1997 by The Family Connection of St. Joseph County, Inc., 132
N. Lafayette Blvd., South Bend IN 46601. This Welfare Reform briefing paper
is the first of a planned series. It was developed by The Family Connection
with funding from Step Ahead of St. Joseph County. For copies, contact the
Step Ahead office, 219-283-8036. Copies may be made for noncommercial redistribution,
provided that acknowledgement is given to the authors and The Family Connection.
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