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Means Tested Programs B Welfare Source: Brookings.

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Presentation on theme: "Means Tested Programs B Welfare Source: Brookings."— Presentation transcript:

1 Means Tested Programs B Welfare Source: Brookings

2 Theme for Today as we move from TANF to Healthcare  Bi-polar (as in shifting back and forth) Tension between our values of: Personal Responsibility & Leave No One Behind

3 History of Government Assistance in the United States Commonly Known as Welfare Social Security Act of 1935 (Great Depression)  Social Security, pensions for elderly  Unemployment compensation  Aid to mothers with dependent children Later became AFDC (Aid to Families with Dependent Children) In 1996 it became TANF (Temporary Assistance to Needy Families under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996)

4 Data Source: Misra Moller and Karides 2003 Ideological Shifts in Media Discourse Over Time

5 Data Source: Misra Moller and Karides 2003 Ideological Shifts in Media Discourse Over Time

6 Welfare Proportion of the Budget Quiz Questions # 11 & 12 Devolution as Seen from the Budget Author(s): C. Eugene Steuerle, Gordon MerminC. Eugene SteuerleGordon Mermin Other Availability: PDF | Order Online | Printer-Friendly VersionPDFOrder OnlinePrinter-Friendly Version Published: January 01, 1997 Citation URL: Back Q 11 12

7 Food Stamps HUD SSI UI EITC “Welfare” As we will discuss, federal employees and railroad employees don’t participate in social security. VESID Public School College Loans One Stop Centers CDC FDA SCHIP Prescriptions for seniors

8 These are taxes to yourself – to pay for your personal insurance

9 Data Source: Misra Moller and Karides 2003 Dramatic caseload increases after 1988 caseload increases caseload increases Public perception: Welfare “out of control” “out of control”“out of control” Public opinion AFDC very unpopular seen as anti-work (no paid work requirement) (Quiz #20) andanti-work (no paid work requirement) (Quiz #20) and anti-family (encouraged single parenthood) Quiz Q 16 &18anti-family (encouraged single parenthood) Quiz Q 16 &18 The public was willing to accept almost any alternative to the status quo The public was willing to accept almost any alternative to the status quo shifted to overwhelming support for work requirements for custodial parents, shifted to overwhelming support for work requirements for custodial parents, Racial Tensions Why Welfare Reform Finally Passed

10 Data Source: Misra Moller and Karides 2003 Ideological Shifts in Media Discourse Over Time Source: Department of Health & Human Services, Administration for Children and Families, Characteristics and Financial Circumstances of TANF Recipients, 1998, and earlier reports. Race is determined based on the race of the adult recipient; in child-only cases, race is determined based on the youngest child in the unit. Q 2

11 Certain Groups are Over- Represented in Poverty Quiz questions: 1&2 Table 9.2: Who Are the Poor in the United States?

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13  Where the Welfare Queen Myth Started  During that election Reagan often recited the story of a woman from Chicago's South Side who was arrested for welfare fraud. "She has 80 names, 30 addresses, 12 Social Security cards and is collecting veteran's benefits on four non-existing deceased husbands. And she is collecting Social Security on her cards. She's got Medicaid, getting food stamps, and she is collecting welfare under each of her names." David Zucchino, a Pulitzer Prize-winning reporter, spent a year with two welfare mothers in Philadelphia and wrote "The Myth of the Welfare Queen." According to Zucchino, "[T]he image of the big- spending, lavish-living, Cadillac-driving welfare queen was by then thoroughly embedded in American folklore."

14 The 'Welfare Queen' Experiment How Viewers React to Images of African-American Mothers on Welfare By Franklin D. Gilliam, Jr. The Nieman Foundation for Journalism at Harvard University Vol. 53 No. 2 Summer 1999 True to form, exposure to the full confirmation of the script (i.e. black Rhonda) increased opposition to welfare spending by five percent and showed a 10 percent rise in an attribution of cause to individual failings.

15  First, broadcasters should be encouraged to more accurately reflect the real world of welfare. Most welfare recipients are children and most welfare recipients are not African-American.  Second, the knee-jerk response of simply showing more white women on welfare would not reduce polarizing racial effects. The evidence from this study suggests that exposure to white welfare mothers actually makes white viewers feel more negatively toward blacks.  Third, the welfare script, as seen frequently on broadcast news, contributes to racial hostility. The 'Welfare Queen' Experiment How Viewers React to Images of African-American Mothers on Welfare By Franklin D. Gilliam, Jr. The Nieman Foundation for Journalism at Harvard University Vol. 53 No. 2 Summer 1999

16 “What passed for debate sounded more like a chorus-exaggerating the burden of welfare programs on the federal budget and scapegoating the poor, the black, the foreign, the female and the young. Relatively powerless groups became the targets of politicians and most of the press, while their advocates were routinely excluded from or belittled in the discussion. Long- time critics of "welfare" from the women's movement, trade unions and the left were sidelined.”

17 CNN Video Clip: Note the main parts of welfare reform What are the main points of the reform?

18 Data Source: TANFAFDC  Entitlement Status States were not allowed to time limit beneficiaries States were not allowed to time limit beneficiaries  End Cash Entitlement Requirements Federal 5-Year Time Limit Federal 5-Year Time Limit

19 Data Source: TANFAFDC  Weakly Enforced Activity Requirements generally focused on education and training rather than work generally focused on education and training rather than work  Stringent Work Requirements Strongly enforced Strongly enforced Sanctions Sanctions

20 Data Source: TANFAFDC  Shared cost Federal (50%) Federal (50%) states (25%) states (25%) Local (25%) Local (25%)  Block Grant Funding Pre-set Amounts Pre-set Amounts

21  And What part is each of the following cartoons poking fun at as:  -impractical  -harsh  -distracting from the real problem

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25 Is the Reform a Success? Hard to Say Because… 1 Most Rhetoric is about adults, But most clients are kids. TANF Families Fiscal Years

26 Corporate Welfare Video =rHcLCSA75mE&feature=related n.asp =rHcLCSA75mE&feature=related

27 Eagan p.111 pp2 (6 lines from bottom) The ones driving welfare Cadillacs are not poor mothers but chairmen of the board. Corporate Welfare: A term that refers to government subsidies for businesses and wealthy individuals. (Eagan 108) Used by both Liberals and then Conservatives, but in slightly different ways… Spending for corporate welfare programs outweighs spending for low-income programs by more than three to one: $167 billion to $51.7 billion (source: Aid for Dependent Corporations, from the Corporate Welfare Project and How Much Do We Spend on Welfare?, from the Center on Budget and Policy Priorities, FY 95 figures)Center on Budget and Policy Priorities

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29 Egan:  Liberal Left (108) Argue for including tax expenditures in def. Because from budget perspective the same as if the gvt spent the $. Also, once added to tax code, not subject to annual budget review process & thus harder to remove  Conservative Policy Organizations (109) Argue to exclude tax expenditures from def. Because for them reduce tax expend- itures is the same as increasing taxes on business Broad Definition Narrow Definition CSRL estimate: $167 Billion Cato estimate: $65 Billion Why the difference of opinion? What are their interests? Compare Corp Welf to Welf for Poor Make Econ run efficiently

30 Average taxpayers pick up an expensive tab for corporate welfare expenditures. Government spending for corporate welfare programs far exceeds government spending for social programs. Spending for corporate welfare programs outweighs spending for low-income programs by more than three to one: $167 billion to $51.7 billion (source: Aid for Dependent Corporations, from the Corporate Welfare Project and How Much Do We Spend on Welfare?, from the Center on Budget and Policy Priorities, FY 95 figures)Center on Budget and Policy Priorities Total federal spending on a safety net for the poor costs the average taxpayer about $400 a year, while spending on corporate welfare programs costs the same taxpayer about $1400 a year. (source: CBO figures) Corporate welfare programs are protected at the expense of the poor and powerless. In the last Congress, spending for the needy absorbed the majority of spending cuts, while corporate welfare spending was barely touched. Over 90% of the budget cuts passed by the last Congress cut spending for the poor -- programs that ensure food for the needy, housing for the homeless, job training for the unemployed, community health care for the sick. (source: Center on Budget and Policy Priorities, Bearing Most of the Burden, 1996). Only 3.9% of total federal outlays go to programs that solely benefit poor people. Welfare programs for corporations do not play by the same rules as welfare for people. Welfare benefits for individuals and families are limited by strict eligibility requirements and time limits, while corporations get corporate welfare benefits regardless of wealth or accountability. Individuals and families must demonstrate need to receive benefits, while corporations with billions of dollars in annual income remain on the federal dole. Fact: Most social spending is in the form of discretionary spending, which is scrutinized in the annual budget negotiating process in Congress; most corporate welfare programs are in the form of tax expenditures, which go on and on since they are not subject to annual review by Congress.

31 In fiscal year 2002, the federal government spent about $93 billion on programs that subsidize businesses.

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34 Food Stamps HUD SSI UI EITC “Welfare” While Most of the talk is about “welfare” as you can see, we spend more on food stamps, Tax policy, and housing! So lets talk about them… VESID Public School College Loans One Stop Centers CDC FDA SCHIP Prescriptions for seniors

35 Beyond here fyi- go to Food Stamps

36 Focus on Work and Accountability Wednesday, June 28, 2006

37 Is the Reform a Success? Hard to Say Because… 1 Most Rhetoric is about adults, But most clients are kids. TANF Families Fiscal Years

38 Is the Reform a Success? Hard to Say Because… 2 Most Rhetoric is about adults, But most clients are kids. Source: Mark Rank One Nation, Underprivileged. Oxford University Press. P.103 Many people rely on welfare. Is being a welfare queen the norm?

39 Source: Mark Rank One Nation, Underprivileged. Oxford University Press. P.105

40 Is the Reform a Success? Hard to Say Because… 4 Does it Raise you Above Poverty? Source: Mark Rank One Nation, Underprivileged. Oxford University Press. P.103

41 Is the Reform a Success? Hard to Say Because… 4 Does it Raise you Above Poverty? Source: Mark Rank One Nation, Underprivileged. Oxford University Press. P.103

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44 Studying Actual Budget Usage Source: Edin and Lein

45 Studying Actual Budget Usage Source: Edin and Lein Working Welfare Reliant Quiz # 19

46 Is the Reform a Success? Hard to Say Because… 5 Was the Purpose to reduce expenditures? Source: Mark Rank One Nation, Underprivileged. Oxford University Press. P.103 The Washington Post National Weekly Edition p20

47 Less than 1% of federal budget (Nightengale and Haveman preface 1995) We’re spending less on cash Assistance:But more overall

48 Is the Reform a Success? Hard to Say Because… 6 Was the Purpose to Help the poor Or employers? Source: Mark Rank One Nation, Underprivileged. Oxford University Press. P.103 The Washington Post National Weekly Edition p20 6

49 *Bethlehem Steel *Exxon *J.C. Penney *Chase Manhattan Bank *the Lilly Endowment (corporate-sponsored foundation) *the Smith Richardson *Foundation (corporate- sponsored foundation) *the Rockefeller Brothers Trust (corporate-sponsored foundation) *the Earhart Foundation (corporate-sponsored foundation) American Enterprise Institute for Public Policy Research Douglas J. Besharov Charles Murray Lawrence Mead Lobbied for 5 yr time limit and work first policies Led charge against twin evils of "dependency" and "illegitimacy" Argued social programs overly permissive, regulate more tightly to enforce social obligations to work Donors $$$ Think Tanks Funded Researchers Ideas & Data

50 Corporate and Conservative Funders Think Tanks Researchers Ideas Referneces Used in the Creation of this Chart: Ellen Reese (Forthcoming) "Chapter 9: Making Welfare Good for Business: Businessmen, Corporate-Sponsored ThinkTanks, and the Contemporary Welfare Backlash" in Backlash Against Welfare Mothers: Past and Present., Department of Sociology University of California, Riverside. American Enterprise Institute for Public Policy Research. (2002) Web Site, Accessed October 23, 2002, Douglas J. Besharov (2002) Professional Profile, Accessed October 23, 2002, AEI, Charles Murray (2002) Professional Profile, Accessed October 23, 2002 Senior Fellow, AEI, The Heritage Foundation. (2002) Web Site, Accessed October 23, 2002, Robert E. Rector, Senior Research Fellow, The Heritage Foundation (2002) Professional Profile, Accessed October 23, 2002, Patrick F. Fagan William H. G. Fitzgerald Research Fellow In Family and Cultural Issues, The Heritage Foundation, (2002) Professional Profile, Accessed October 23, 2002, The Manhattan Institute for Policy Research (2002) Web Site, Accessed October 23, 2002, Hudson Institute (2002) Web Site, Accessed October 23, 2002, George Gilder’s Wealth and Poverty, (New York, New York: Basic Books, Inc. Publishers, 1981), A review by Rachel Heitmann,History 791, Readings Seminar, University of South Dakota, March 2001, Bethlehem Steel Exxon J.C. Penney Chase Manhattan Bank the Lilly Endowment (corporate-sponsored foundation) the Smith Richardson Foundation (corporate- sponsored foundation) the Rockefeller Brothers Trust (corporate- sponsored foundation) the Earhart Foundation (corporate-sponsored foundation) American Enterprise Institute for Public Policy Research Douglas J. Besharov Charles Murray Lawrence Mead Lobbied for 5 yr time limit and work first policies Led charge against twin evils of "dependency" and "illegitimacy" Argued social programs overly permissive, regulate more tightly to enforce social obligations to work The Heritage Foundation Joseph Coors (the beer baron) Roy Rogers (the film and television star and fast food entrepreneur) Richard Scaife (heir of the Mellon banking fortune) Patrick F. Fagan Marvin Olasky Robert Rector James Payne Urged work requirements and sanctions for "able bodied" to instill responsible behavior & self discipline Pushed for broad policy reforms to reinforce traditional 2-parent families & reduce need for welfare Championed "Compassionate Conservatisem" challenge and sprititual growth as anti-poverty components Suggested replacing government programs with private charities - expecting work in exchange for help. the Lynde and Harry Bradley Foundation (conservative foundation) the John M. Olin Foundation (conservative foundation) the Sarah Scaife Foundation (conservative foundation) Hudson Institute Michael J. Horowitz Advocated ending entitlement and replacing them with block grants, requiring strict performance standards for states, and against providing welfare to unwed teenage mothers living alone. the Bradley, Olin, and Smith Richardson Foundation (conservative foundation) The Scaife Foundation (conservative foundation) The Manhattan Institute Peter Cove Charles Murray George Gilder Asserted welfare only hurts poor by making them unwilling to work. The morality of capitalism. Founded America Works, favoring privatization and performance based contracting. Argued welfare should be abolished as detrimental to the poor, provide incentive to become reliant, discourage work and marriage. John Dilulio Pioneered faith-based policies and charitable choice in aid to poor.

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52 Four prominent Conservative Think Tanks: Hudson Institute The Heritage Foundation The Manhattan Institute American Enterprise Institute for Public Policy Research Think Tanks: A Major Source of Knowledge

53 Academic Publications ProducedCount Book14 Journal45 Testimony10 Bulletin, Memo, Report, Executive Summary of Newspaper Article36 Other Publication68 Total173 Publications Made by Identified Researchers Pertaining to Welfare Reform

54 Print Media Atlantic Commentary Los Angeles Times New Republic New York Times Newsday Tampa Tribune The Economist The Indianapolis Star The Public Interest The Times (London) Wall Street Journal Washington Post

55 Television and Radio ABC Good Morning AmericaPBS News Hour ABC NightlinePhil Donahue Show CBS 20/20 and Prime Time LiveDerek McGinty Show CNN Crossfire and Larry King LiveNews Hour CNN Crossfire and NewsroomThink Tank NBC Meet the Press and Today ShowCharlie Rose Nightline NPR All Things Considered PBS Firing LineDiane Rehm Show This WeekTalk of the Nation

56 Source: Timothy Bartik Jobs for the Poor: Can Labor Demand Policies Help?. New York: Russell Sage Foundation. P.24

57 Source: Timothy Bartik Jobs for the Poor: Can Labor Demand Policies Help?. New York: Russell Sage Foundation. P.73

58 Q 15

59 Is the Reform a Success? It depends on how you define success…

60 An alternative for the Final Paper Quiz Question # 7

61 Handouts

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66  End

67 Extra Material for Discussion

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70 Re Visit Quiz Question # 9

71 TANF Families Fiscal Years

72 Effect of the Caseload Reduction Credit FY 1997 – 2004 and FY 2007

73 TANF Families Required to Participate in Work Activities in FY 2004 (Hours reported for the prior month)

74 Welfare Mother Stereotypes

75 Where is Gender? Most TANF adult recipients were women. Men represented only ?? percent of adult recipients. Approx 70% of recipients are children (Watchdogs Q 1, NYS DSS)

76 Source: Brookings Back

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78 For Both Clients and States: Explain? (Source: The Economist October 11, 2003:13) Quiz # 15

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80 Source: Brookings TANF 1996

81 TANF 1996

82  Focus on understanding (not memorizing) the 11 Highlights

83 Highlights of TANF 1. Work Requirements: Recipients (with few exceptions) must work as soon as they are job ready or no later than two years after coming on assistance. 2. Work Activities: Activities that count toward a state’s participation rates (some restrictions may apply): unsubsidized or subsidized employment on-the-job training work experience community service job search – not to exceed 6 total weeks and no more than 4 consecutive weeks vocational training – not to exceed 12 months job skills training related to work satisfactory secondary school attendance providing child care services to individuals who are participating in community service. 3. Five-Year Time Limit: Families with an adult who has received federally funded assistance for a total of five years (or less at state option) are not eligible for cash aid under the TANF program.

84 Highlights of TANF 4. State Maintenance of Effort Requirement (MOE): The TANF block grant has an annual cost-sharing requirement for States, referred to as maintenance of effort or MOE. Every fiscal year each state must spend a certain minimum amount of its own money to help eligible families in ways consistent with the TANF program. 5. Penalties The Department of Health and Human Services (HHS) may reduce a state's block grant if it fails to do any of the following: satisfy work requirements comply with the five-year limit on assistance meet the state’s Contingency fund MOE requirement reduce recipient grants for refusing to participate in work activities without good cause maintain assistance when a single custodial parent with a child under six can not obtain child care submit required data reports comply with paternity establishment and child support enforcement requirements participate in the Income and Eligibility Verification System repay a federal loan on time use funds appropriately replace federal penalty reductions with additional state funds. 6. Personal Employability Plans: States must make an initial assessment of a recipient’s skills. States may develop personal responsibility plans for each recipient to identify the education, training, and job placement services needed to move into the workforce.

85 Highlights of TANF 7. Teen Parent Live-at-Home and Stay-in-School Requirement: Unmarried minor parents must participate in educational and training activities and live with a responsible adult or in an adult- supervised setting in order to receive assistance. 8. State Plans: HHS reviews state plans for completeness only. States must allow for a 45-day comment period on the state plan by local governments and private organizations and consult with them. The state plan must have objective criteria for eligibility and benefits that are fair and equitable. The plan must explain appeal rights. In order to remain eligible, i.e., continue to qualify to receive funding under TANF, States will need to submit TANF renewal plans during the applicable 27-month period described in section 402 of the Social Security Act. Only eligible States may receive a TANF block grant. 9. Job Subsidies: The law allows States to create jobs by taking money that is now used for welfare checks and using it to create community service jobs, provide income subsidies, or provide hiring incentives for potential employers. 10. Waivers: States that received approval for welfare reform waivers before January 1, 1997, have the option to operate their cash assistance program under some or all of these waivers until the waivers expire.

86 Highlights of TANF 11. Bonuses: The law includes provisions for two bonuses that may be awarded to States and territories in addition to their basic TANF block grant. TANF’s High Performance Bonus program provides cash awards to States for high relative achievement on certain measures related to the goals and purposes of the TANF program. The Department of Health and Human Services is required to award a Bonus to Reward Decrease in Illegitimacy Ratio to as many as five States (and three territories, if eligible) that achieve the largest decrease in out-of- wedlock births without experiencing an increase in their abortion rates above 1995 levels.

87  A great Place to Find Info on Some Social Welfar e Progra ms

88  Left off

89 1. Quiz – Overview and Misconceptions of Welfare 2. Attitudes about Welfare –Ideology 3. Race and Welfare 4. Welfare Reform 5. Why Judging Reform Success is So Complex

90 Two Views of Poverty The poor are victims of their circumstances and do not have opportunities to advanceThe poor are victims of their circumstances and do not have opportunities to advance The poor are responsible for their circumstances and do not take advantage of available opportunitiesThe poor are responsible for their circumstances and do not take advantage of available opportunities LiberalLiberal ConservativeConservative Source: Brookings ???

91 Starobin  Nanny State= social justice concern  Daddy State= public order concern  Minimal State= do as little as possible.

92 Two Views of Poverty The poor are victims of their circumstances and do not have opportunities to advanceThe poor are victims of their circumstances and do not have opportunities to advance The poor are responsible for their circumstances and do not take advantage of available opportunitiesThe poor are responsible for their circumstances and do not take advantage of available opportunities LiberalLiberal ConservativeConservative Source: Brookings ??? Source: Mark Rank One Nation, Underprivileged. Oxford University Press. P.80 LiberalLiberal ConservativeConservative ???  The emphasis of antipoverty policy in the U.S. has shifted between these two views  The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 emphasizes the____view Conservat ive

93 Support for Working Families Increases Dramatically, Source: Congressional Budget Office Spending in 1999 under: 1984 Law 1999 Law Source: Brookings The four purposes of TANF are: 1.assisting needy families so that children can be cared for in their own homes 2.reducing the dependency of needy parents by promoting job preparation, work and marriage 3.preventing out-of- wedlock pregnancies 4.encouraging the formation and maintenance of two- parent families. Source: Sawhill et al TANF 1996


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