 National Association of Counties * Washington, D.C. Vol. 31, No. 9 * May 10, 1999 Previous story | Table of Contents | Next story Administration's bill introduced to By Cynthia Kenny
Rep. Benjamin L. Cardin (D-Md.) has introduced the Administration's bill to add $1 billion to the welfare-to-work (WtW) program and extend it for one year, through FY00. The bill, H.R. 1482, retains the key principles of the existing program, including its focus on serving welfare recipients who are the hardest to employ. However, the bill also makes several changes to the program, including relaxing rigid eligibility criteria and allowing localities to utilize funds for skill training and remedial education. It was introduced April 20. The WtW program was initially authorized for two years under the Balanced Budget Act of 1997. Of the $3 billion in original funding, 75 percent went to states as formula grants. States were then required to distribute 85 percent of these funds to service delivery areas (SDAs), the local entities that administer programs under the Job Training Partnership Act (JTPA). The remaining 25 percent of funds were reserved for competitive grants to a variety of organizations. Since the program’s inception, SDAs have had trouble spending formula funds because of difficulty identifying welfare recipients who meet what county officials say are overly restrictive eligibility criteria. NACo’s employment and human services steering committees passed a joint resolution in February urging Congress to simplify these criteria. Currently, the law requires that at least 70 percent of WtW funds be spent on long-term welfare recipients – those receiving assistance at least 30 months. In addition, these individuals must have two of three barriers to employment: (1) lack of a high school diploma/GED and low reading or math skills (2) the need for substance abuse treatment in order to become employed and (3) a poor work history. Because many people will not admit to the need for substance abuse treatment and because local data is insufficient to pinpoint individuals that have two of the three employment barriers, counties have had trouble identifying eligible welfare recipients. "We have to simplify the original eligibility criteria mandated by Congress, so we can help those who need it the most," said Labor Secretary Alexis Herman in a statement the day the bill was introduced. "Right now, if you have a high school diploma but you can’t read, we can’t serve you." Under H.R. 1482, welfare recipients would still have to be long-term recipients, but they would only need to have one, not two, barriers to employment. In addition, the bill changes the definition of the first barrier. Currently, a recipient must lack a high school diploma/GED and have low reading or math skills. Under Cardin's bill, a recipient must lack a diploma/GED or have low skills. In another major change from current law, H.R. 1482 would allow localities to provide job training and basic education to welfare recipients. The welfare-to-work program now is focused exclusively on finding people jobs. This provision in the legislation was not proposed by the Administration but by Cardin. It was also recommended in NACo’s joint steering committee resolution. County officials point out that welfare recipients who are the hardest to serve are also those who most need training and education. H.R. 1482 places a greater focus on noncustodial parents of children on public assistance. At the Administration’s urging, the legislation requires that at least 20 percent of formula funds be targeted at noncustodial parents. According to the Labor Department, most children on welfare live with a single parent, and only about 20 percent receive child support. The vast majority of noncustodial parents of these children are either unemployed or employed in intermittent, low–wage jobs. Under H.R. 1482, noncustodial parents must enter into an individual responsibility contract with the local WtW program and state child support agency. To receive employment services, noncustodial parents must agree to cooperate in establishing paternity, establishing or modifying a child support order and making regular child support payments. The legislation also boosts the percentage of funds reserved for Indian tribes (from one to three percent) and adds new categories of people who may be served by the WtW program. These include welfare recipients with disabilities, recipients who are homeless, recipients who are victims of domestic violence and children aging out of foster care. Prospects for passage of the legislation are unclear. Some members of Congress have argued that the welfare-to-work program is no longer necessary because welfare rolls have dropped nationally and states have unspent TANF funds. In response, Herman has stressed that funds are still needed for the hardest to serve, which is why 46 states applied for formula funds, despite the required 50 percent match. In addition, in the two rounds of competitive grants awarded thus far, more than 1,400 applications were submitted seeking $5 billion – more than 10 times the amount available for these grants.
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