Social Welfare Policy Chapter 17 American Government 2006 Edition (to accompany Comprehensive, Alternate, Texas, and Essentials Editions) O’Connor and Sabato Pearson Education, Inc. © 2006

What is Public Policy? Pearson Education, Inc. © 2006

The Policy-Making Process Public Policy An intentional course of action followed by government in dealing with some problem or matter of concern. Based on law. Authoritative and binding on people. Those who do not comply can be penalized. The impact or meaning of a policy depends on whether it is vigorously enforced, enforced only in some instances, or not enforced at all. Pearson Education, Inc. © 2006

Theories of Public Policy Elite Theory Chosen few or elite make all important decisions in society. Unequal distribution of power is normal and inevitable. Other views Bureaucratic Theory Interest Group Theory Pluralist Theory Pearson Education, Inc. © 2006

How do public policies get established? Pearson Education, Inc. © 2006

A Model of the Policy-Making Process Sequence of stages or functional activities. Policies do not just happen; rather they are the products of a predictable pattern of events. Problems must first be recognized and defined. A problem that disturbs or distresses people gives rise to demands for relief, often through governmental action. Pearson Education, Inc. © 2006

Stages of the Public Policy Process Pearson Education, Inc. © 2006

A Model of the Policy-Making Process Problem must get on the governmental agenda. Formulation of alternatives for dealing with the problem. Policy adoption is the formal enactment or approval of an alternative. Budgeting provides financial resources to carry out the approved alternative. Policy implementation is the actual administration or application of the policy. Policy evaluation determines the policy’s actual accomplishments, consequences, or shortcomings. Pearson Education, Inc. © 2006

Problem Recognition and Definition Not everything qualifies as a problem deserving of government intervention. Perceptions of government responsibility play a role. These have changed over time. Usually there is not a single agreed-on definition of a problem. Political struggles may occur at this stage. Pearson Education, Inc. © 2006

Agenda Setting Agenda Systemic Agenda A set of issues to be discussed or given attention. Systemic Agenda All public issues are viewed as requiring governmental attention; a discussion agenda. Governmental (Institutional Agenda) The changing list of issues to which governments believe the should address themselves. Pearson Education, Inc. © 2006

Getting on the Congressional Agenda President is an important agenda-setter for Congress. Interest groups are major actors and initiators in the agenda-setting process. Major problems that evolve from crisis or other extraordinary event may receive automatic agenda status. Individuals may also push issues to the congressional agenda. Private citizens, members of Congress, other officials Agenda setting is a competitive process. Pearson Education, Inc. © 2006

Policy Formulation The crafting of appropriate and acceptable proposed courses of action to ameliorate or resolve public problems. Routine formulation A repetitive and essentially changeless process of reformulating similar proposals within an issue area that is well established on the government agenda. Analogous formulation Handles new problems by drawing on experience with similar problems of the past. Creative formulation Involves attempts to develop new or unprecedented proposals that represent a departure from existing practices. Pearson Education, Inc. © 2006

Policy Adoption The approval of a policy proposed by the people with the requisite authority, such as a legislature. Major legislation requires much negotiation, bargaining, and compromise. Complex legislation takes time to pass. Legislation passed is often incremental. Pearson Education, Inc. © 2006

Budgeting Most policies require money in order to be carried out. A policy can be nullified by a refusal to fund. Noise Control Act Having the potential to curb funding can be a powerful tool for congressional committee chairs. Pearson Education, Inc. © 2006

Policy Implementation The process of carrying out public policy through governmental agencies. Some are enforced by other means such as the courts. Product liability Product dating Pearson Education, Inc. © 2006

Techniques used by Administrative Agencies Authoritative techniques Rests on the notion that people’s actions must be restrained by government in order to prevent or eliminate activities or products that are unsafe, evil or immoral. Incentive techniques Encourage people to act in their own best interest by offering payoffs or financial inducements to get them to comply. Capacity techniques Provide people with information, education, training or resources that will enable them to participate in desired activities. Hortatory techniques Encourage people to comply with policy by appealing to their better instincts. “Just Say No.” Pearson Education, Inc. © 2006

Policy Evaluation The process of determining whether a course of action is achieving its intended goals. Important players in this process Congressional committees Presidential commissions Private research organizations General Accountability Office (GAO) Evaluation research and studies can stimulate attempts to modify or terminate policies and restart the policy process. Pearson Education, Inc. © 2006

Roots of Social Welfare Policy Early 19th century attitudes toward social welfare were focused on belt-tightening and charity. NO governmental intervention. Late 19th century Farmers and rural Americans sought help Failing commodity prices; exploitation of railroads 1890s severe economic depression Acceptance and expectance of government intervention Pearson Education, Inc. © 2006

Social Security Costs and Revenues, 1970-2080 Pearson Education, Inc. © 2006

Income Security Great Depression Social and economic thinking began to change f Idea that government could and should be used as a positive influence in society FDR elected in 1932 Unemployment extremely high; bad for economy Created Civil Works Administration by executive order to put people to work Creation of Social Security 1935 law established old-age insurance (Social Security) and assistance for the needy, children, and others, and unemployment insurance. Pearson Education, Inc. © 2006

Health Care National health insurance considered at time Social Security legislation was passed AMA strongly opposed it; so it was omitted 1945 Truman put health insurance on the national policy agenda again. First idea received favorably by public. AMA opposed again. Fearful of regulation. Medicare introduced by Johnson Provide hospital care for the elderly already covered by Social Security. Wilbur Mills (D-AR) Chair Ways and Means Expanded policy: included Medicaid Pearson Education, Inc. © 2006

Growth in Medicare Expenditures Pearson Education, Inc. © 2006

Public Education Until the 20th century, public education had been almost the exclusive province of the state and local governments. Responsibility for public education Vested in the local community 1944 GI Bill began federal government’s involvement in helping people pay for education beyond high school. Reliance on local property taxes to fund schools Disparities among different districts Today federal government assumes more responsibility for public education than it has in the past. Pearson Education, Inc. © 2006

Social Welfare Policies Today: Income Security Programs Protect people against loss of income due to retirement, disability, unemployment or deal or absence of family breadwinner. Non-means-based programs Social insurance Old age, survivors and disability insurance Unemployment insurance Means-tested programs May either come as cash or in-kind benefits, such as food stamps. Supplemental Security Income Family and Child Support Pearson Education, Inc. © 2006

Recipients of Social Insurance Programs, 2001 Pearson Education, Inc. © 2006

Welfare Reform of 1996 Personal Responsibility and Work Opportunity Reconciliation Act of 1996 Required single mothers with a child over five years of age to work within two years of receiving funds Included a provision that unmarried mothers under the age of 18 be required to live with an adult and attend school in order to receive welfare benefits Set a five-year lifetime limit for aid from block grants Pearson Education, Inc. © 2006

Welfare Reform of 1996 Personal Responsibility and Work Opportunity Reconciliation Act of 1996 Included a requirement that mothers must provide information about a child’s father in order to receive full welfare payments Cut off food stamps and SSI for legal immigrants Cut off cash welfare benefits and food stamps for convicted drug felons Limited food stamps to three months in a t hree year period for persons 18 to 50 years old who are not raising children and not working. Pearson Education, Inc. © 2006

Earned Income Tax Credit Program Designed to help the working poor Helps them by subsidizing their wages and provides an incentive for people to go to work. Results in a net cash rebate for many low-income tax payers who pay no federal income tax. Created in 1975 – Senator Russell Long (D-LA) Pearson Education, Inc. © 2006

Food Stamp Program Initial program was an effort to expand the domestic market for farm commodities. Provided the poor with the ability to buy more food, thus increasing demand for American agricultural produce. 1939-1943 Made permanent in 1964 Extended nationwide in 1974 Benefits low income families. Combats hunger and reduce malnutrition. Food stamps went to over 21 million beneficiaries in 2003 at cost of $2.9 billion. Average participant’s monthly disbursement: $84 in food stamps Pearson Education, Inc. © 2006

The Effectiveness of Income Security Programs Entitlement programs Income security programs to which all those meeting eligibility criteria are entitled. Spending for such programs is mandatory. Funds must be provided for them unless laws creating the programs are changed. Difficult to control spending for this reason. Often a matter of considerable debate. Range of such programs are characteristic of all democratic industrial societies. Pearson Education, Inc. © 2006

The Rising Cost of Entitlement and Other Programs Pearson Education, Inc. © 2006

Health Care U.S. government spends billions on health Medicare Part A: automatic at age 65 Part B: optional; covers payment for items not covered by part A. Financed by a payroll tax of 1.45 percent paid by both employees and employers on the total amount of a person’s wages. Medicaid Provides comprehensive health care to all who qualify as needy. In 2002, Medicaid served over 40 million people at a cost of 284 billion. Jointly financed by national and state governments Some variation by state in terms of who is covered Aids Funding High Cost of Health Care Pearson Education, Inc. © 2006

Medicare and Medicaid Costs Pearson Education, Inc. © 2006

Public Education 2003, national, state and local governments in U.S. collected more than $400 billion to spend on public education (K-12). 50% from state governments 43% from local governments 7% from the national government Great variation across states in spending per student. Pearson Education, Inc. © 2006

Public Education: Voucher Plans and Charter Schools Based on idea that free market competition can improve the quality of American education Better performing schools expand while badly performing schools are closed. But some say it would undermine public education. Popular opinion, especially among minorities, has fueled the drive for voucher programs. Pearson Education, Inc. © 2006

Public Education: Voucher Plans and Charter Schools Permit some institutions (those with charters) to operate beyond the reach of school boards. Break the monopoly exercised by centralized school boards and allow students as well as parents to exercise choice. Freer to choose what to teach, what to spend money on, and whom to hire. Numbers have increased. Opposition comes from teachers unions; focus on hiring of under-qualified teachers. Numbers of private education companies (for profit) had questionable practices. Pearson Education, Inc. © 2006