1. Texas Families First Task Force Meeting Presentation by Diane Rath Chair & Commissioner Representing the Public Texas Workforce Commission October 9, 2003

2. TWC 10/9/03 Family Support Act of 1988 1

3. TWC 10/9/03 Texas’ Welfare Population Mid-1990s before welfare reform 263,455 cases 721,705 recipients 212,788 adults 2

4. TWC 10/9/03 1995 State Welfare Law 1. Personal Responsibility Agreement Cooperate with child support Make sure children attend school Ensure children are immunized & get regular health screens & check-ups Do not abuse drugs or alcohol Obtain parenting skills training Participate in work or work activities 3

5. TWC 10/9/03 1995 State Welfare Law (continued) 2. Mandated work for all adults 3. Placed time limits on receipt of benefits – 1, 2, or 3 years based on person’s education & work history *implemented through waiver of existing federal law 4

6. TWC 10/9/03 1995 State Welfare Law (continued) Weak Penalties Not complying with work requirements - $78 Not cooperating with child support - $78 Not abusing drugs, alcohol - $25 Children not immunized or getting health screens - $25 5

7. TWC 10/9/03 1995 State Welfare Law (continued) 1. Welfare Reform DHS – eligibility only 2. Workforce Reform TWC created by merging 28 programs from 10 agencies All employment programs Enforce welfare work requirements 6

8. TWC 10/9/03 1996 Federal Welfare Law Created Temporary Assistance for Needy Families (TANF) block grant and a new welfare system Temporary assistance, not an entitlement Lifetime limit of 5 years All adults required to work unless caring for child under age 1 States must meet increasing work participation rates or lose 5% of federal block grant 7

9. TWC 10/9/03 Success of Federal Welfare Reform Dramatic Caseload Decline National52% Texas51% New York50% Wisconsin64% Florida70% 8

10. TWC 10/9/03 TANF Population 199519992003 Cases263,455124,183136,840 Adult Recipients 212,78890,71987,416 Child Recipients 508,917247,273273,680 9

11. TWC 10/9/03 Texas’ success might have been greater if we did not have waiver Waiver isolated Texas and allowed welfare recipients to delay taking responsibility to support their families 10

12. TWC 10/9/03 Age of Child Exemption Phased down to meet federal law requirements 12 states have 3-month exemption after birth of child 6 states have no exemption Texas is only large state with 1 full year exemption 11

13. TWC 10/9/03 DHS Exemptions from Work 1.Caretaker of child under age one — 4,165 2.Caretaker needed in the home to care for disabled adult—1,830 3.Single grandparent age 50 or over and caretaker of child under age three — 14 4.Caretaker disabled for more than 180 days — 7,476 12

14. TWC 10/9/03 DHS Exemptions from Work (continued) 5.Caretaker who is unable to work as result of pregnancy — 1,091 6.Caretaker age 60 or older — 234 *State law also exempts caretakers of disabled children —2,387 (August 2003 data) 13

15. TWC 10/9/03 Total Adults on TANF — 86,090 Total Exempted — 17,197 (20%) (August 2003 data) 14

16. TWC 10/9/03 Two-Parent Family Issue — another blow to family formation 15

17. TWC 10/9/03 TANF Reauthorization Issues Maintain current federal block grant Strengthen work requirements Full engagement – 40 hours/week Promote strong families Give states flexibility Show compassion to truly needy 16

18. TWC 10/9/03 Impact on Texas of TANF Reauthorization TANF Adults—82,540 TANF Adults Working—44,840 Exempt or Not Engaged in Work—37,700 (based on House-passed version) 17

19. TWC 10/9/03 TWC’s Success in Welfare Reform Won total of $70 million over 4 consecutive years in TANF High Performance Bonuses for excellence in job placement of TANF adults  New award of $19 million for Family Formation & Stability Legislature appropriates bonus funds 18

20. TWC 10/9/03 H.B. 2292 – Welfare Reform Strengthens state welfare law Pay for performance model Like real work environment Paid for work performed 19

21. TWC 10/9/03 TWC’s TANF Choices Employment Services Rule State & federal law direct TWC to define “engaged in work” Work First design Taking personal responsibility in order to obtain & retain work Child attending school Children getting immunized & health check-ups Adults not abusing drugs or alcohol Penalty for refusal to engage in work is loss of TANF & adult Medicaid benefits 20

22. TWC 10/9/03 Litigation CPPP vs. TWC 21

23. TWC 10/9/03 Medicaid Connection Federal welfare law allows states to terminate — TANF benefits for the entire family Medicaid for the adult When parents refuse to — Cooperate with child support Engage in work 22

24. TWC 10/9/03 Parents not taking Responsibility Refused to cooperate with child support – 6,834 adults Refused to meet work requirements – 23,550 adults (DHS Mgmt. Focus 7/03) 23

25. TWC 10/9/03 24

26. TWC 10/9/03 Child Care Issues Child care is vital work support Parent responsibility agreement Parent choice is basic tenet What is quality child care? Safe, healthy nurturing environment? Or culturally appropriate pictures on the wall? 25

27. TWC 10/9/03 Diane Rath, Chair Texas Workforce Commission 463-2800 diane.rath@twc.state.tx.us 26