Negotiating Compromises between income provision (adequacy), work incentives, and cost minimization Today’s readings: DeParle, Ch 16: Boyfriends: Milwaukee,

Slides:



Advertisements
Similar presentations
Mike Blessee Angela Krause AP American Government Per.1 Social Welfare Vocabulary.
Advertisements

PAI786: Urban Policy Class 16: Welfare Programs and Principles of Welfare Policy.
1 Work Support Program An Individual Training Course for the Work Support Program.
Welfare Programs Lecture 17 Today’s readings: Schiller Ch 12, Welfare Programs Ehrenberg and Smith, “ Supply of Labor to the Economy, ” eReserves House.
Employment Benefits 1. Job Seeker’s Allowance 2. Working Tax Credits 3. Minimum Wage.
Expenditure Programs. Table 8.1 shows that welfare spending is a shared expense between the federal and state/local governments. Subsidized medical care.
TANF and W-2 Lecture 18 Today’s readings: Mead, Government Matters, Ch. 1, eReserves DeParle, Ch 15: Caseworker XM128W: Milwaukee,
Benefit Conditionality in the U.S. Welfare System and How it Applies to WIA Jason Turner, Heritage Foundation Former Chief Administrator of New York City’s.
Work Activities and TANF Elizabeth Lower-Basch Director Income and Work Supports.
1 TANF Temporary Assistance to Needy Families - replaced AFDC in 1996.
Sociology 1201 Week Four: Social class and public policy I. Low Income Budget II. Video: Let’s Get Married Groups So why has marriage become so uncommon?
Earned income tax credit (EITC) Lecture 20. Reading Assignment and Sources Reading Assignment: –Greenstein, “ The Earned Income Tax Credit: Boosting Employment,
What Did the 1990s Welfare Reform Accomplish? Rebecca M. Blank December 2003 (A topic closely related to Gene Smolensky’s past research and concerns)
Overview of Income Redistribution Programs
Earned income tax credit (EITC). Reading Assignment Greenstein, “ The Earned Income Tax Credit: Boosting Employment, Aiding the Working Poor, ”
Overview of Federal and State Welfare Programs April 24, 2008.
Diana Tania Fiorillo1 THE US EARNED INCOME TAX CREDIT, ITS EFFECTS, AND POSSIBLE REFORMS Bruce D. Meyer.
Welfare Programs Today’s readings: Schiller Ch 13, Welfare Programs House Ways and Means Committee 2004 Green Book,
Poverty, Welfare, and Women Chapter 12. Measuring Poverty Absolute Measure of Poverty –People living below a certain threshold Relative Income Poverty.
PPA786: Urban Policy Class 17: The New World of Welfare Policy.
Sociology 1201 Week Four: Social class and public policy Why has marriage become so uncommon and why does the government think it should get involved?
1 Public Hearings: May , 2013 Child Care Development Fund Massachusetts State Plan Federal Fiscal Years 2014 and 2015.
Chapter 12: Low-Income Assistance Chapter 12 Low-Income Assistance Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
IMPACTS OF A WORK-BASED POVERTY REDUCTION PROGRAM ON CHILDREN’S ACHIEVEMENT AND SOCIAL BEHAVIOR: THE NEW HOPE PROJECT Aletha C. Huston, Greg J. Duncan,
Welfare Reform Act Alex Holmes Jordan Harvey-Morgan Joe Davenport Reagan Churan September 27, 2010.
Texas Families First Task Force Meeting Presentation by Diane Rath Chair & Commissioner Representing the Public Texas Workforce Commission October 9, 2003.
Legislative Analyst’s Office Presented to: Ryan Woolsey, Fiscal and Policy Analyst CSDA/CWDA Policy Symposium March 4, 2015.
Government Subsidies and Income Support for the Poor
The Brookings Institution, Washington, D.C. Goals of Welfare Reform & Beyond: To identify the major issues and opportunities for improved.
Work Study Employment Kim Matison and Leanne Foster Financial Aid/Human Resources March 10, 2009.
EXPENDITURE PROGRAMS FOR THE POOR
Cash Versus Payment In Kind
The TANF Emergency Fund and Domestic Violence March 1, 2010 Elizabeth Lower-Basch Senior Policy Analyst.
McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. CHAPTER 13 EXPENDITURE PROGRAMS FOR THE POOR.
TANF Recipients Living with a Disability: Policy Framework, Prevalence and Service Strategies Presentation to the Consortium for Citizens with Disabilities.
Welfare and Welfare Reform. AFDC (Aid for Families with Dependant Children) Cash Welfare 87% of funds generally went to those who would be poor Targeted.
Welfare and Welfare Reform. AFDC (Aid for Families with Dependant Children) Cash Welfare 87% of funds generally went to those who would be poor Targeted.
Universal credit: what it means for parents moving into work and their children Mark Willis, September 2012.
Social Welfare Chapter 17. Majoritarian Politics Nearly everyone benefits, and nearly everyone pays The opinion of majoritarian politics never really.
Improving Work Supports Nancy K. Cauthen Deputy Director, National Center for Children in Poverty Agenda for Shared Prosperity: Alleviating Poverty Economic.
12 Years into TANF: Now What? A Discussion of the Current System and What Must Change Liz Schott and Danilo Trisi
USING THE TANF EMERGENCY CONTINGENCY FUND IN ARRA TO HELP POOR FAMILIES WITH CHILDREN Select Committee on Federal Stabilization Funds March 12, 2009 Celia.
Social policy in CA. Poverty Higher rate than the nation—about 13% Highest for foreign born Hispanic And female-headed families.
Keeping Budgetary Commitments to the Poor? Texas and the Welfare Block Grant, Eva De Luna Castro, Budget and Policy Analyst, CPPP
10/27/20151 Introduction to Family Studies Welfare Reform.
STATE TANF PROGRAMS TIP For additional advice see Dale Carnegie Training® Presentation Guidelines.
WorkFirst WorkFirst WorkFirst can help you support your family.
PPA786: Urban Policy Class 16: Welfare Programs and Principles of Welfare Policy.
Center on Budget and Policy Priorities cbpp.org 2015 Diaper Banks in America Conference Diaper Need and Poverty Policy Liz Schott
Domestic Policy Mr. Stroman AP Government. Social Welfare Domestic policy is often more contentious than economic policy, because it gets to the essence.
1 Participation Rate Basics. 2 The Agreement FEDERAL Federal government provides a TANF block grant to states = $562,340,120 Florida is also one of 17.
ork ork Work – Part 261 ä Individual Responsibility ä State Accountability ä Work Activities ä Caseload Reduction Credit ä Work Penalties ä Waivers ä.
Sociology 1201 Week Four: Social class and public policy I. Video: “Let’s Get Married” Groups So why has marriage become so uncommon? Do you approve of.
GOVERNMENT SUPPORT FOR FAMILIES AND INDIVIDUALS. 1. Most government programs providing benefits for citizens were developed during the NEW DEAL (Franklin.
3/8/20161 Family Sociology Welfare Reform. 3/8/20162 Families & Poverty  The percentage living below poverty has changed little over the past 20 years.
SNAP Policy Training: Able-Bodied Adults Without Dependents (ABAWDs) UNDERSTANDING THE NEW SNAP TIME LIMIT AND ITS IMPACT IN MARYLAND RACHEL TUCKER MARYLAND.
Negotiating Compromises between income provision (adequacy), work incentives, and cost minimization Today’s readings: DeParle, Ch 16: Boyfriends: Milwaukee,
Human Services and Social Polilcy HN 300 Unit 5 Seminar-Helping the Needy Madelyn Harvey, PhD.
PPA786: Urban Policy Class 17: The New World of Welfare Policy.
Welfare Assistance GOVT Module 16.
CalWORKs Support Services
Social Welfare Policymaking
Class 17: The New World of Welfare Policy
Overview of Income Redistribution Programs
Board of Early Education and Care Planning and Evaluation Committee
Chapter 18: Social Safety Nets
EXPENDITURE PROGRAMS FOR THE POOR
Welfare Assistance December 7, 2017.
USING THE TANF EMERGENCY CONTINGENCY FUND IN ARRA TO HELP POOR FAMILIES WITH CHILDREN Select Committee on Federal Stabilization Funds March 12, 2009.
EXPENDITURE PROGRAMS FOR THE POOR
Presentation transcript:

Negotiating Compromises between income provision (adequacy), work incentives, and cost minimization Today’s readings: DeParle, Ch 16: Boyfriends: Milwaukee, Spring 1999

Readings for Next time: Monday, November 16, 2009 See giving special attention to: –State Earned Income Tax Credits: 2009 Legislative UpdateState Earned Income Tax Credits: 2009 Legislative Update –November 10, 2009 –Policy Basics: State Earned Income Tax CreditsPolicy Basics: State Earned Income Tax Credits –Updated August 27, 2009 –Policy Basics: The Earned Income Tax CreditPolicy Basics: The Earned Income Tax Credit –December 17, 2008 DeParle, Ch. 17: Money: Milwaukee, Summer 1999

Today’s Topics How TANF negotiated the compromises between income provision (adequacy), work incentives, and cost minimization

Why is welfare so hard to reform? We can gain insight into the difficulty of reforming welfare by considering the implications of the break-even earnings formula: E B =G/t + D

Why is welfare so hard to reform?, cont. Traditionally, policy makers heed three goals: –Adequacy or income provision –Cost minimization –Encouraging independence through work

Why is welfare so hard to reform?, cont. Policy makers have three parameters they can alter to achieve these goals: –G, maximum guarantee –t, marginal tax rate –D, the earnings disregard Given the relationship of G, t, and D, at most two of the three goals can be achieved at any one time.

GtD Adequacy  Cost Minimization  Work incentives  E B = G/t + D

Why does welfare reform occur so regularly? Welfare reform appears perennially on the domestic policy agenda because our political parties differ in the emphasis they give the three goals. Traditionally, –Republicans pursued cost minimization and promoting work above adequacy –Democrats championed adequacy.

Why is welfare so hard to reform?, cont. Does TANF resolve the tradeoffs between the goals of: –Cost minimization –Income provision –Work incentives Recall that every State can devise its own program. The parameters, G, t, and D vary across states. For details of the States’ plans see the Office of Family Assistance: reports/annualreport6/chapter12/chap12.htm# reports/annualreport6/chapter12/chap12.htm#1995

TANF Cost Minimization Block Grants –States receive block grants for cash welfare, child care and job training. The federal guarantee of cash assistance (entitlements) to low-income mothers and children is ended. Basic Grants –States will receive a family assistance grant based on the amount of federal money spent on AFDC, JOBS, Emergency Assistance, and AFDC Child Care programs in FY 1994.

TANF Income Provision Maximum benefits –The value of G ranges from $164 in Alabama to $633 per month in Massachusetts. Time Limits –The federal guarantee of cash assistance to low- income mothers and children is ended –Recipients are ineligible to receive assistance (not limited to cash) for more than sixty months (five years). –States can exempt up to 20% of their families from the time limit if the family includes an individual who has been battered or subjected to extreme cruelty.

TANF Income Provision, cont. Family Cap –States have the option to deny cash assistance to children born to families already receiving aid. – reports/annualreport6/chapter12/chap12.htm#16http:// reports/annualreport6/chapter12/chap12.htm#16 Sanctions –If an individual in a family receiving assistance refuses to engage in required work, a State has the option to either reduce or terminate the amount of assistance payable to the family, subject to good cause.

TANF Income Provision, cont. “Generally, States that pay high benefits, take as their goal raising work levels, while those that pay low benefits usually prefer to reduce dependency.” –Lawrence M. Mead, Government Matters, p. 129

TANF Work Incentives: Carrots and Sticks Work Requirements –States must require a parent to work after two years of assistance. It is up to the States to determine what constitutes work (a job, job search, education, or training) and how may hours per week must be spent on the job. If an adult refuses to engage in work, the State is required to reduce the amount of aid or terminate aid, unless the parent cannot find childcare. –A State risks a fiscal penalty if it fails to meet certain participation rates. In 1997, 25% of all families must have a parent who works at least 20 hours each week. By 1999, 50 percent of parents must work at least 30 hours. Sanctions –If you don’t work, you lose benefits, period.

TANF Work incentives, cont. Once an individual is on the rolls, many states manipulate G, t and D to “make work pay” and to assist the transition from welfare to work. –Marginal tax rates range from 0% to 90%. They are often time limited. –Most States have a disregard (D). The range is from $90 to $250 dollars a month. –Example: Texas disregards $120 and 33.3% of the remainder for 4 months. (t =66.7%)

Conclusions By dramatically reducing case loads through diversion, sanctions, and job placement (and hence placing low priority on poverty reduction), TANF achieves cost minimization while maintaining work incentives and, in some States, adequacy for remaining families.