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Welfar
7/8/99
Clinton-Gore Accomplishments
Reforming Welfare
On August 22, 1996, President Clinton signed the Personal Responsibility and Work
Opportunity Reconciliation Act, fulfilling his longtime commitment to 'end welfare as we
know it. As the President said upon signing, this legislation provides an historic
opportunity to end welfare as we know it and transform our broken welfare system by
promoting the fundamental values of work, responsibility, and family.'
TRANSFORMING THE BROKEN WELFARE SYSTEM
Overhauling the Welfare System with the Personal Responsibility Act: In 1996, the
President signed a bipartisan welfare plan that is dramatically changing the nation's welfare
system into one that requires work in exchange for time-limited assistance. The law contains
strong work requirements, performance bonuses to reward states for moving welfare
recipients into jobs and reducing illegitimacy, state maintenance of effort requirements,
comprehensive child support enforcement, and supports for families moving from welfare to
work -- including increased funding for child care. State strategies are making a real
difference in the success of welfare reform, specifically in job placement, child care and
transportation. In April 1999, the President unveiled landmark new welfare regulations that
will promote work and help those who have left the rolls to succeed in the workforce and stay
off welfare.
Law Builds on the Administration's Welfare Reform Strategy: Even before the Personal
Responsibility Act became law, many states were well on their way to changing their welfare
programs to jobs programs. By granting federal waivers, the Clinton Administration allowed
43 states -- more than all previous Administrations combined -- to require work, time-limit
assistance, make work pay, improve child support enforcement, or encourage parental
responsibility. The vast majority of states have chosen to build on their welfare
demonstration projects approved by the Administration.
Welfare Rolls Decline as More Recipients go to Work: In April 1999, the President
released state-by-state data (from December 1998) showing that welfare caseloads are at their
lowest level in 30 years and that the welfare rolls have fallen by nearly half since he took
office. Since January 1993, 29 states have had caseload declines of more than half and
nationwide the rolls have fallen by 46%, from 14.1 million to 7.6 million. This historic
decline occurred in response to the Administration's grants of federal waivers to 43 states,
the provisions of the new welfare reform law, and the strong economy. Information released
by the Department of Health and Human Services also shows that the percentage of welfare
recipients working has tripled since 1992, that an estimated 1.5 million people who were on
welfare in 1997 were working in 1998, and that all states met the first overall work
participation rates required under the welfare reform law.
MOVING PEOPLE FROM WELFARE TO WORK
Mobilizing the Business Community: At the President's urging, the Welfare-to-Work
Partnership was launched in May 1997 to lead the national business effort to hire people from
the welfare rolls. The Partnership began with 105 participating businesses, and in his 1999
State of the Union address, the President announced that the Partnership has grown to more
than 10,000 businesses. Since 1997, these businesses have hired over 410,000 welfare
recipients, surpassing the challenge the President set in May of 1998. The Partnership
provides technical assistance and support to businesses around the country, including: its toll-
free number 1-888-USA-JOB1, a web site, a quarterly newsletter, and a "Blueprint for
Business" hiring manual. The Partnership also published "The Road to Retention," a report
of companies that have found higher retention rates for former welfare recipients than for
other new hires, and strategies they used to achieve this success.
Connecting Small Businesses with New Workers and Creating New Entrepreneurs: The
Small Business Administration is addressing the unique and vital role of small businesses
who employ over one-half of the private workforce, by helping small businesses throughout
the country connect with job training organizations and job-ready welfare recipients. In
addition, SBA provides training and assistance to welfare recipients who wish to start their
own businesses. SBA provides assistance to businesses through its 1-800-U-ASK-SBA
number, as well through its network of small business development and women's business
centers, one-stop capital shops, Senior Corps of Retired Executives (SCORE) chapters,
district offices, and its website.
Mobilizing Civic, Religious and Non-profit Groups: Vice President Gore created the
Welfare-to-Work Coalition to Sustain Success, a coalition of national civic, service, and
faith-based groups committed to helping former welfare recipients succeed in the workforce.
Working in partnership with public agencies and employers, Coalition members provide
mentoring, job training, child care, transportation, and other support to help these new
workers with the transition to self sufficiency. Charter members of the Coalition include:
Alpha Kappa Alpha, the Boys and Girls Clubs of America, the Baptist Joint Committee,
Goodwill, Salvation Army, the United Way, Women's Missionary Union, the YMCA, the
YWCA, and other civic and faith-based groups.
Doing Our Fair Share with the Federal Government's Hiring Initiative: Under the
Clinton/Gore Administration, the federal workforce is the smallest it has been in thirty years.
Yet, this Administration also believes that the federal government, as the nation's largest
employer, must lead by example. In March 1997, the President asked the Vice President to
oversee the federal government's hiring initiative in which federal agencies committed to
directly hire at least 10,000 welfare recipients in the next four years. In April 1999, the
President announced that the federal government has hired 12,000 welfare recipients, meeting
the goal nearly two years ahead of schedule. As a part of this effort, the White House
pledged to hire six welfare recipients and has already exceeded this goal.
Funds to Help Move More People from Welfare to Work: Because of the President's
leadership, the 1997 Balanced Budget Act included $3 billion for Welfare-to-Work grants to
help states and local communities move long-term welfare recipients, and certain non-
custodial parents, into lasting, unsubsidized jobs. These funds can be used for job creation,
job placement and job retention efforts, including wage subsidies to private employers and
other critical post-employment support services. The Department of Labor provides
oversight, but most of the dollars are placed through the Private Industry Councils, in the
hands of the localities who are on the front lines of the welfare reform effort. In addition,
25% of the funds are awarded by the Department of Labor on a competitive basis to support
innovative welfare-to-work projects. The President announced the first round of 49
competitive grants in May, and the Vice President announced the second round of 75
competitive grants in November 1998. In January 1999, the Department of Labor announced
the availability of $240 million in competitive grants for FY 1999. These funds will support
innovative local welfare-to-work strategies for noncustodial parents, individuals with limited
English proficiency, disabilities, substance abuse problems, or a history of domestic violence.
The President's FY 2000 Budget proposes to invest $1 billion to extend the Welfare-to-Work
program to help more long-term welfare recipients and noncustodial parents in high-poverty
areas move into lasting unsubsidized employment. The initiative would provide at least $150
million to ensure that every state helps fathers play a responsible part in their children's lives.
Under this proposal, states and communities would use a minimum of 20% of their formula
funds to provide job placement and job retention assistance to low-income fathers who sign
personal responsibility contracts committing them to work, establish paternity, and pay child
support. This effort would further increase child support collections, which have risen 80%
since the President took office, from $8 billion in 1992 to $14.4 billion in 1998. Remaining
funds will go toward assisting long-term welfare recipients with the greatest barriers to
employment to move into lasting jobs. The reauthorized program also would double the
Welfare-to-Work funding available for tribes. The Administration's reauthorization proposal
is included in H.R. 1482 introduced by Congressman Cardin and S. 1317 introduced by
Senator Akaka.
Tax Credits for Employers: The Welfare-to-Work Tax Credit, enacted in the 1997 Balanced
Budget Act, provides a credit equal to 35% of the first $10,000 in wages in the first year of
employment, and 50% of the first $10,000 in wages in the second year, to encourage the
hiring and retention of long term welfare recipients. This credit complements the Work
Opportunity Tax Credit, which provides a credit of up to $2,400 for the first year of wages
for eight groups of job seekers. The Omnibus Budget Act of 1998 included an extension
through June 30, 1999 and the President's FY 2000 Budget proposes to extend both credits
for an additional year.
Welfare-to-Work Housing Vouchers: In 1999, the President proposed and Congress
approved $283 million for 50,000 new housing vouchers for welfare recipients who need
housing assistance to get or keep a job. Families will use these welfare-to-work housing
vouchers to move closer to a new job, to reduce a long commute, or to secure more stable
housing that will eliminate emergencies which keep them from getting to work every day on
time. Nearly all of these vouchers will be awarded to communities on a competitive basis, to
communities that create cooperative efforts among their housing, welfare and employment
agencies. The President's FY 2000 Budget provides $430 million for 75,000 welfare-to-
work housing vouchers, including $144 million in new funds for 25,000 additional vouchers.
Welfare-to-Work Transportation: One of the biggest barriers facing people who move
from welfare to work -- in cities and in rural areas -- is finding transportation to jobs, training
programs and child care centers. Few welfare recipients own cars. Existing mass transit does
not provide adequate links to many suburban jobs at all, or within a reasonable commute
time. In addition, many jobs require evening or weekend hours that are poorly served by
existing transit routes. To help those on welfare get to work, President Clinton proposed a
$100 million a year welfare-to-work transportation plan as part of his ISTEA reauthorization
bill. The Transportation Equity Act for the 21st Century (TEA-21) authorized $750 million
over five years for the President's Job Access initiative and reverse commute grants. Of this
amount, $50 million is guaranteed funding in FY 1999, rising to $150 million in 2003. The
Omnibus Budget Act included $75 million for this program in FY 1999, and in May, Vice
President Gore awarded $71 million of these funds to 179 communities in 42 states around
the country. The President's Budget proposes to double funding for FY 2000, bringing the
program to the authorized level of $150 million. The Job Access competitive grants will
assist states and localities in developing flexible transportation alternatives, such as van
services, for welfare recipients and other low income workers.
SUPPORTING WORKING FAMILIES
Expanding the Earned Income Tax Credit: Expansions in the EITC included in the
President's 1993 Economic Plan are making work pay for 15 million working families,
including former welfare recipients. A study conducted by the Council of Economic
Advisors reported that in 1997, the EITC lifted 4.3 million American out of poverty -- more
than double the number in 1993. The findings also suggest that the increase in labor force
participation among single mothers who received welfare is strongly linked to the EITC
expansion.
Improving Access to Affordable and Quality Child Care: Under the Clinton
Administration, federal funding for child care has increased by 70%, helping parents pay for
the care of about one million children. The 1996 welfare reform law increased child care
funding by $4 billion over six years to provide child care assistance to families moving from
welfare to work.
The President's budget proposes to expand the Child Care and Development Block Grant to
help working families struggling to meet the costs of child care. The President's proposal:
(1) increases funding for child care subsidies by $7.5 billion over five years, and these new
funds, combined with funds provided in welfare reform, will enable the program to serve an
additional 1.15 million children by FY 2004; (2) provides $3 billion over five years to
promote early learning; and (3) provides $173 million to improve child care quality.
Additional funds for subsidies are necessary because currently, only 1.25 million of the
approximately 10 million families eligible for assistance under federal law receive help.
The President's proposal also includes $5 billion over five years to expand the Child and
Dependent Care Tax Credit (CDCTC) to provide greater tax relief for nearly three million
working families paying for child care and eliminate income tax liability for almost all
families with incomes below 200% of poverty. Additionally, the proposal includes $1.3
billion to enable parents who have children under one year old to take advantage of the
CDCTC by allowing these 1.7 million families to claim assumed child care expenses of
$500. The President's plan also includes a new tax credit to businesses that offer child care
services to their employees. The President has proposed spending $600 million in FY 2000
to triple funding for the 21st Century Community Learning Center Program, which supports
the creation and expansion of after-school and summer-school programs to help roughly 1.1
million children each year. Finally, the President's proposal includes a significant new
investment in Head Start, our nation's premier early childhood development program, with
an additional $607 million in FY 2000 to reach 42,000 more children, enabling the program
to serve 877,000 low income children.
Providing Health Care to Low-Income Working Families. In passing welfare reform, the
President insisted on maintaining the Medicaid entitlement; indeed, he vetoed two welfare
bills that did not guarantee continued Medicaid coverage to all adults and children who were
then eligible. Beyond preserving Medicaid eligibility, the Clinton Administration has
accomplished the following to ensure that low-income families have access to health care.
Creation of the Children's Health Insurance Program. The President, with bipartisan
support from the Congress, created the Children's Health Insurance Program (CHIP).
The Balanced Budget Act of 1997 allocated $24 billion dollars over the next five
years to extend health care coverage to uninsured children through State-designed
programs. States project that they will ensure 2.5 million children when their new
CHIP programs are fully implemented.
Allowing States to Expand Medicaid to Cover Families. The welfare law allows states to
expand Medicaid coverage under section 1931 to families who earn too much to be
eligible for Medicaid but not enough to afford health insurance. These expansions
allow states to present Medicaid as a freestanding health insurance program for low-
income families an important step towards removing the stigma associated with the
program and reaching families who do not have contact with the TANF system.
Providing Medicaid Coverage to Low-income Two-Parent Families Who Work. In August
1998, the President eliminated a vestige of the old welfare system by allowing all
states to provide Medicaid coverage to working, two-parent families who meet State
income eligibility requirements. Under the old regulations, adults in two-parent
families who worked more than 100 hours per month could not receive Medicaid
regardless of their income level. Because the same restrictions did not apply to
single-parent families, these regulations created disincentives to marriage and full-
time work. Prior to eliminating the rule entirely, the Administration allowed a
number of states to waive this rule. The new regulation eliminates this requirement
for all States, providing health coverage for more than 130,000 working families to
help them stay employed and off welfare.
Transitional Medical Assistance (TMA). TMA provides time-limited Medicaid coverage to
low-income households whose earnings or child support would otherwise make them
ineligible for welfare-related Medicaid under state income eligibility standards. The
President's FY 2000 Budget would reduce burdensome reporting requirements,
including TMA eligibility procedures in the current Medicaid eligibility
redetermination process. The budget also exempts those states that have expanded
Medicaid coverage to families with incomes up to 185% of the federal poverty level
from burdensome TMA reporting requirements, providing states with additional
incentives to provide critical health care services.
Helping States Help Low-Income Families. In March 1999, the Administration released
new guidance encouraging States to reach out to children and families who are no
longer eligible for cash assistance but are still eligible for Medicaid or CHIP. It also
establishes that states must provide Medicaid applications upon request and process
them without delay. The guidance reiterates state responsibilities to establish and
maintain Medicaid eligibility for families and children affected by welfare reform,
and provides creative examples of the best way to liberalize eligibility.
Investing for the Future: In 1992, the President proposed to establish Individual
Development Accounts (IDAs) to empower low-income families to save for a first home,
post-secondary education, or to start a new business. The 1996 welfare reform law
authorized the use of welfare block grants to create IDAs. And last year, the President signed
legislation creating a five-year demonstration program. Households that are either eligible
for Temporary Assistance for Needy Families or qualify for the Earned Income Tax Credit
and have a net worth below $10,000 are eligible to participate in the demonstration. The FY
1999 budget includes $10 million to launch this initiative, and the President has proposed to
double the commitment to $20 million in FY 2000.
PROMOTING PERSONAL RESPONSIBILITY
Increasing Parental Responsibility and Enforcing Child Support: Tougher measures
under the Clinton Administration resulted in a record $14.4 billion in child support
collections in 1998, an increase of $6.4 billion, or 80% since 1992. Not only are collections
up, but the number of families that are actually receiving child support has also increased. In
1997, the number of child support cases with collections rose to 4.2 million, an increase of
48% from 2.8 million in 1992.
Improving the Collection System. A new collection system, proposed by the President in
1994 and enacted as part of the 1996 welfare reform law, has located over 1.2 million
delinquent parents in its first nine months of operation. With approximately one-third
of all child support cases involving parents living in different states, this National
Directory of New Hires helps track parents across state lines.
Tougher Penalties. In June 1998, the President signed the Deadbeat Parents Punishment
Act, a law based on his 1996 proposal for tougher penalties for parents who
repeatedly fail to support children living in another state or who flee across state lines
to avoid supporting them.
Increasing Paternity Establishments. Paternity establishment, often the crucial first step in child
support cases, has dramatically increased, due in large part to the in-hospital voluntary
paternity establishment program begun in 1994 by the Clinton Administration. In 1998, the
number of fathers taking responsibility for their children by establishing paternity rose to a
record 1.5 million, triple the 1992 figure of 512,000. In 1998, 40%, or 614,000 of all
paternities were established through the in-hospital program.
Increasing Collections. Finally, President Clinton has taken executive action, including: collections
from federal payments such as income tax refunds and employee salaries, and steps to deny
federal loans to delinquent parents. The federal government collected over $1.1 billion in
delinquent child support from federal income tax refunds for tax year 1997, a 70% increase
since 1992.
Breaking the Cycle of Dependency -- Preventing Teen Pregnancy: Significant
components of the President's comprehensive effort to reduce teen pregnancy became law when the
President signed the 1996 Personal Responsibility Act. The law requires unmarried minor parents to
stay in school and live at home or in a supervised setting; encourages "second chance homes" to
provide teen parents with the skills and support they need; and, provides $50 million a year in new
funding for state abstinence education activities. Since 1993, the Administration has supported
innovative and promising teen pregnancy prevention strategies, including working with boys and
young men on pregnancy prevention strategies. The National Campaign to Prevent Teen Pregnancy,
a private nonprofit organization, was formed in response to the President's 1995 State of the Union.
In 1997, the President announced the National Strategy to Prevent Teen Pregnancy. The first annual
report on this Strategy reported that HHS-supported programs already reach at least 31% or 1,470
communities in the United States. In April 1999, the Vice President announced new data showing
that we continue to make real progress in encouraging more young people to delay parenthood --
teen births have declined nationwide by 16% from 1991 to 1997, and have fallen in every state and
across ethnic and racial groups. In addition, teen pregnancy rates are at their lowest level in 20
years.
RESTORING FAIRNESS AND PROTECTING THE MOST VULNERABLE
The President made a commitment to fix several provisions in the welfare reform law that had
nothing to do with moving people from welfare to work. In 1997, the President fought for and
ultimately was successful in ensuring that the Balanced Budget Act protects the most vulnerable. In
1998, the President continued his proposals to reverse unfair cuts in benefits to legal immigrants.
The Administration's FY 2000 budget would build on this progress by restoring important disability,
health, and nutrition benefits to additional categories of legal immigrants, at a cost of $1.3 billion
over five years. The Administration's proposal is included in the Fairness for Legal Immigrants Act
of 1999 (S.792/H.R.1399) recently introduced by Senator Moynihan and Representative Levin. In
addition, Senators Chafee, McCain, Mack, Jeffords, Graham, and Moynihan introduced S. 1227, a
bipartisan bill similar to the Administration's proposal to restore health coverage to legal immigrant
children and pregnant women.
Disability and Health: The Balanced Budget Act of 1997 and the Noncitizen
Technical Amendment Act of 1998 invested $11.5 billion to restore disability and health
benefits to 380,000 legal immigrants who were in this country before welfare reform became
law (August 22, 1996). The President's FY 2000 Budget would restore eligibility for SSI
and Medicaid to legal immigrants who enter the country after that date if they have been in
the United States for five years and become disabled after entering the United States. This
proposal would cost approximately $930 million and assist an estimated 54,000 legal
immigrants by 2004, about half of whom would be elderly.
Nutritional Assistance: The Agricultural Research Act of 1998 provided Food
Stamps for 225,000 legal immigrant children, senior citizens, and people with disabilities
who enter the United States by August 22, 1996. The President's FY 2000 Budget would
extend this provision by allowing legal immigrants in the United States on August 22, 1996
who subsequently reach age 65 to be eligible for Food Stamps at cost of $60 million,
restoring benefits to about 20,000 elderly legal immigrants by 2004.
Health Care for Children and Pregnant Women: Under current law, states have
the option to provide health coverage to immigrant children and pregnant women who
entered the country before August 22, 1996. The President's FY 2000 Budget gives states
the option to extend Medicaid or CHIP coverage to low-income legal immigrant children and
Medicaid to pregnant women who entered the country after August 22, 1996. The proposal
would cost $325 million and provide critical health insurance to approximately 55,000
children and 23,000 women by FY 2004. This proposal would reduce the number of high-
risk pregnancies, ensure healthier children, and lower the cost of emergency Medicaid
deliveries.
Helping People Who Want to Work but Can't Find a Job: The Balanced Budget
Act, as amended by the Agricultural Research Act, also restored $1.3 billion in food stamp
cuts. The welfare reform law restricts food stamps to 3 out of every 36 months for able-
bodied childless adults, unless they were working. Acknowledging that finding a job often
takes time, the BBA provided funds for work slots and food stamp benefits to help those who
are willing to work but, through no fault of their own, have not yet found employment. In
addition, the BBA allows states to exempt up to 15% of the food stamp recipients (70,000
individuals monthly) who would otherwise be denied benefits as a result of the "3 in 36" limit.
07/30/99
11:55
RES EVAL MONITOR
94562223
NO. 823
001
DEPARTMENTO *
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-6000
1987 ( GHT
OFFICE OF POLICY DEVELOPMENT & RESEARCH. Room 8146
202/708-4230 tel
202/708-3141 fax
fax
cover
From the office of Xavier de Souza Briggs
Deputy Assistant Secretary
date:
7/30/99 Lisa GReen
to:
org:
NEC
fax:
202 ) 456 - 2223
pages:
8 (including this cover sheet)
comments
Should there be a problem in transmission, please call 202/708-4230.
07/30/99
11:55
RES EVAL MONITOR
94562223
NO.823
002
"NEXT STEP" IDEAS FOR W2W PARTNERSHIP (7-30-99)
Eli -
Two categories of challenge for participating business leaders:
1. (HIRING) "Move Up, Move In": challenge businesses to create both upward
mobility (job ladders) for those hired in entry-level jobs (skills, mentoring, etc.) and
to engage those moving up in recruiting strong entry-level employees - also in the
transition from welfare to work - who would replace the upwardly mobile. Each
"move up" creates a "move in" opportunity if the networks and referrals can be
built. Many successful businesses, especially in immigrant communities, rely on
these networks and "move up, move in" dynamics.
2. (BUSINESS PARTNERSHIPS) "Three C's: Capacity, Capital, and Contracts." Joint
ventures, supplier chains, and other business-to-business deals provide huge
potential for w2w hiring. The keys are building expertise (capacity), closing the
capital gap that faces businesses (that could be rich employment sources) seeking to
locate or expand in high welfare dependence areas, and letting contracts with
particular suppliers, where both buyer and supplier can emphasize w2w hiring (per
existing Partnership challenge). See attached material on L.A. and Milwaukee, as
well as summary of the HUD Community Empowerment Fund proposal to
stimulate more projects like the Cessna "learning and work" facility in Wichita that
you and the President visited. Business expansion and development can be carried
out with w2w in mind from the start. Cessna workers formerly on welfare are now
earning high wages for high skills. Public-private partnership made it happen. Also
see BusinessLINC, part of the New Markets Initiative (contacts: Michael Barr @
Treasury, Lisa Green @ NEC). The other proposals in the Initiative, including
HUD's America's Private Investment Companies, would, of course, create badly
needed jobs in areas where welfare recipients tend to be concentrated. Those
companies will need several things that Partnership participants can provide,
especially deals to finance and equity capital to finance with.
Hope this helps - Xav
CC: Lisa Green/NEC
07/30/99
11:55
RES EVAL MONITOR
94562223
NO. 823
003
Rebuild LA, Refocused: Following the April
target retail district through a mix of façade and
1992 nots in Los Angeles (LA), the then-Mayor of
street improvements, as well as business attrac-
Los Angeles, Tom Bradley, and Governor Pete
tion and retention efforts. In mid-1998, UCMS
Wilson initiated a five-year economic recovery ini-
began to work with ICIC to understand the local
tiacive called Rebuild LA (RLA). Two years into
economic base for attracting new businesses and
carrying out its mandate, RLA began to undertake
strengthening existing ones." To aid in developing
a very focused cluster strategy for developing LA's
a comprehensive strategy, ICIC piloted the "Port-
"economically neglected arcas" (areas with pover-
folio-Based Approach to Leverage Neighborhood
ty rates greater than 20 percent).
Competitive Advantage," which analyzes the
At the completion of its mandate in 1997,
local competitive advantages, local industry com-
RLA had identified six growth clusters in LA's
position, and relative position of the local enter-
neglecred areas. The clusters include biomedical
prises within each industry.
technologies, ethnic food processing, textile and
This approach creates an inventory of all
apparel production, plastics, toy industry, and
businesses in the target area and identifies the
household furniture manufacturing. RLA orga-
anchor and non-anchor businesses by their com-
nized and institutionalized three industry net-
posite share of area employment, income, rev-
works: the Biomedical Council of Southern Cali-
enue, and occupied real estate. Anchors are
fornia, the Food Industry Business Roundrable,
defined as those enterprises, for-profit or not-for-
and the Toy Association of Southern California.
profit, that account for the bulk of the economic
RLA also worked closely with existing trade
activity of the target area. Based on this analysis,
networks in the textile and apparel industry. A
Upham's Corner Main Street can identify strategic
1995 forum on capital access organized by RLA
opportunities that link the local anchors to
and the Association of Textile Dyers, and Printers
regional clusters, satisfy local unmer demand, and
and Finishers of Southern California resulted in a
put back into productive use local underutilized
local bank hiring a loan officer with expertise in
commercial real estate.
textiles. More recently, RLA has worked with the
Using this approach, UMCS identified the
LA Trade Technical College (LATTC) and the Tex-
Strand Theater (currently an underutilized live
tile/Clothing Technology Corporation to provide
performance theater) and America's Food Basker
customized or on-site training to apparel manu-
(a supermarket catering to surrounding ethnic
facturers. RLA was also able to secure a $200,000
populations) as two anchors offering the greatest
technology grant from IBM to establish an apparel
growth prospects to Upbam's Corner. Resource
20
technology resource center at the LATTC.
allocations around these anchors, along with
A great deal of justi-
RLA dissolved its operations in 1997 and
identifying new development opportunities for
fied criticism directed
at Rebuild LA (NAPA
transferred its staff and programs to the Commu-
underutilized commercial real estate, will yield the
1995) was based on
nity Development Technologies Center (CDTC).
greatest growth trajectory in terms of employ-
Its very poor perfor-
mance up to 1994.
The RLA work continues under a joint venture
ment, revenue, and wages (Figure 25).
Rebuild LA was fun-
between CDTC and LA Prosper, a nonprofit affili-
Although too early to evaluate its success, this
damentally reorga-
razed in 1994, taking
ate of the Los Angeles Community College Dis-
approach has several inherent strengths. First, it
on Dwo programs: (1)
trict. One project to emerge from this joint effort
provides objective discussion tools with which
creation and
strengthening of clus-
is the Sewn Products Incubator Network. The
local economic development practitioners and
ter networks and 2
EDA recently awarded a $400,000 planning grant
community groups can consider alternative
1 retall development
Initiative. For details
to support a feasibility study on the development
growth and resource allocation strategies. Second,
on the reorganiza-
and construction of a small-business incubator
it is highly flexible in terms of the economic space
tion, see Milken Insti-
Wte, 1997.
for start-up enterprises in the sewn products
TO which it can be applied. Although Upham's
Corner Main Street is primarily a retail district,
21
industry.
The ICIC affiliate
Upham's Corner Main Street in Boston: Like
the methodology can be applied as effectively to
Boston Advisors
the hundreds of Main Street initiatives across the
inner-city neighborhoods with manufacturing or
developed the frame-
work for this strategic
country, the Upham's Corner Main Street (UCMS)
other service economies.
approach, In partner-
works on improving the economic viability of its
ship with Andersen
Consulting.
ICIC Initiative for a Competitive Inner City
27
in partnership with PricowaterhauseCoopers
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1999 Social Compact Award
The Forerunner
in the Field
EATON
Eaton Navy Controls
Division is the leading
supplier of power
conversion instruments
CORPORATION
and controls for the U.S.
Navy's nuclear powered
ships and submarines.
NAVY CONTROLS
AS an industry leader,
Eaton NCD is providing
world-class service to
customers and is
DIVISION
achieving 10 percent
rates of annual growth.
Tapping into a
&
gold mine
business
opportunity: The
NORTHWEST
challenges
Eaton is entirely revolu-
fionizing ship propul-
SIDE COMMUNITY
sion systems with a new
solid state switch that
transmits power levels of
a million times greater
DEVELOPMENT
than earlier technology.
The widespread applica-
tion of this new technol-
CORPORATION
ogy represents a major
market opportunity for
Eaton NCD. To success-
fully pioneer this new
frontier, Eaton NCD
Marshalling the power of a Fortune 500
faces three challenges:
company to grow competitive
neighborhood market advantages
PROFILES PARTNERSHIP SUCCESS 71
20° N
ЯЙСРАЙ.
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TOTAL P.03
recruiting a highly
success. Located in one
hood instead of moving
talented group of
of Milwaukee's tough
elsewhere.
specialized engineers,
and tired industrial
developing a reliable
sections, the company
The Alliance
blue-collar work force to
knows that fostering
meet production targets,
local neighborhood
Eaton NCD recognizes
and establishing a
strength is critical,
the key to creating a
network of local
especially when the
solid neighborhood
suppliers to ensure
chief competitor is
foundation is partnering
efficiencies in design
located in Anaheim,
with a strong commu-
cycles and production
California. With deep
nity based organization
costs.
roots in the Milwaukee
- the Northwest Side
area, Eaton NCD has
Community Develop-
The Link from
chosen to invest in its
ment Corporation
Business to
facility and in the
(NWSCDC). Founded in
Neighborhood
vitality of the neighbor-
1983, NWSCDC IS one
of the most innovative
Strength
and successful
Eaton NCD's manage-
economic
ment sees community
37%
Discharged
success as funda-
mental to
5%
business
Promoted
Currently employed
Figure I
Welfare-co-Work success
22 SOCIAL COMPACT
RASZRA/.
ni
LOBHWAD
SOCIAL
FROM
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$93
$80
303
$65
479
development corpora-
tions in the country. Its
$49
436
mission is to enhance
$40
the quality of life for
406
$35
$30
neighborhood residents
390
and to spearhead
330
development activities
$ million
320
that create an environ-
1994
1995
1996
1997
1993
1999
2000
ment where businesses
Employees
can flourish.
Figure 2
Eaton NCD plant sales and employment
One of the NWSCDC's
first endeavors was to
found the Northwest
*
Industrial Council,
ment continue to be the
term vitality of the
Milwaukee's first
core activities of the
neighborhood. In the
geographically based
NWSCDC. Indicators of
immediate, Eaton NCD
business association
success: in a city that
and the NWSCDC
with over 80 members.
experienced a 26 percent
supported a community-
The NWSCDC also
job loss between 1970
based crime prevention
launched MetroWorks,
and 1995, the Northwest
program that has been
its small business
Side experienced job
important in enhancing
incubator that has
loss of less than 7
the safety and image of
assisted almost 90
percent.
the neighborhood and in
businesses and created
attracting a high-quality
nearly 300 jobs over the
Beginnings
workforce. With an eye
years. Commercial strip
towards the future
revitalization, job
Early activities of the
neighborhood employee
training and placement,
partnership addressed
base, the partnership
and business develop-
both the short and long
intervened with at-risk
10'd
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youth by creating the
and life skills" training
is recruiting entrepre-
financial performance
NOVA school for grade
provided by the
neurs to the area who
and attracting top-notch
7-12 students. The
NWSCDC. Of the
will provide customized
employees to its alliance
school-to-work program
original 23 candidates
products for Eaton
with NWSCDC. Eaton
keeps youth off the
selected from hundreds
NCD's highly special-
NCD's sales have grown
streets and teaches them
of applicants, 21
ized needs. Suppliers
170 percent since 1994
job skills in a highly
completed training and
located within the
and the work force has
supportive environment.
17 are still employed in
neighborhood can be
grown by 50 percent
well paying union jobs
linked directly with
during the same period.
Bold Visions for
at the Eaton NCD
Eaton NCD's computer
The company has gained
the Future
factory. The jobs offer
network, ensuring more
a reputation with its
genuine skill building
efficient and innovative
customers for highly
By the late 1990's, as
and advancement
product development.
reliable advanced
the nation took on
opportunities: one
technology products and
welfare reform,
graduate of the training
Eaton NCD attributes
the neighborhood has
NWSCDC and Eaton
program has been
much of its success
gained a reputation for
NCD joined forces to
promoted to a supervi-
providing world-class
prosperous businesses
pioneer sustainable job
sory position.
service to its customers,
and valuable job
training strategies.
maintaining outstanding
opportunities.
Working together with
Another dimension of
the Union and other
the partnership leverages
agencies, the partnership
both the NWSCDC's
developed a Mayoral
business relationships in
NORTHWEST SIDE
award-winning welfare-
the community and the
COMMUNITY
to-work program.
purchasing power of
DEVELOPMENT
Candidates are given 12
Eaton NCD, a Fortune
weeks of electronics
200 company. In
CORPORATION
assembly courses at a
linking Eaton NCD with
Community Reimestment at work
local college and two
existing local busi-
weeks of "employability
nesses, the partnership
Supplier Network Linleage
E.T.N
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WELFARE-TO-WORK TARGETED JOB CREATION INITIATIVE
HUD'S FY 2000 BUDGET REQUEST
The Welfare-to-Work Targeted Job Creation Initiative, funded with up to $75 million in
direct grants as part of the Community Empowerment Fund, is designed to help close the
"jobs gap" facing many communities. HUD's 1998 State of the Cities report indicated that
despite significant recent increases in job growth in many cities, there is still a sizable
mismatch between the number of low-skilled jobs available and the number of low-skilled
urban residents who need work-or who will need work over the next few years as TANF
time limits take effect. This initiative is designed to help close this gap, with special
emphasis on welfare recipients entering the workforce.
This targeted job creation initiative will support the expansion of businesses that emphasize
hiring of those in transition from welfare to work - projects like the state-of-the art Learning
and Work Complex opened by the Cessna company in a long-vacant industrial facility in
Wichita, Kansas. Funded with a HUD grant and a HUD-guaranteed loan, the complex is
helping TANF recipients prepare for well-paying manufacturing jobs. Of the 237 graduates
so far, 200 have moved into Cessna jobs that start at more than $10/hour, and 26 are
employed at other companies.
Like the Cessna project, communities competing successfully under this targeted job
creation initiative will combine the HUD incentives for business development with local
public and private supports - like job training, child care, and more - as needed. The
initiative will ensure that those facing the transition from welfare to work get jobs that pay
and that employers get the workers they need to be competitive.
Community Empowerment Fund
HUD's FY 2000 budget will fund the Community Empowerment Fund (CEF) at $125
million to substantially increase capital for business investment and job creation in
underserved inner city and rural areas. By combining $125 million in Economic
Development Initiative (EDI) grants with an estimated $625 million in Section 108
guaranteed private loans, the CEF will provide a total of $750 million in grants and low-cost
loans in these communities. The program is thus expected to leverage up to five times the
guaranteed loan amount in additional private sector financing, and this will create an
estimated 100,000 jobs through direct business development and other spill-over effects.
Job creation projects funded through the CEF will include: loans for business expansion and
modernization; start-up costs for new small and medium-sized businesses; preservation and
expansion of existing industrial facilities; and retail and commercial revitalization initiatives,
such as grocery stores and neighborhood shopping centers.
In FY 2000, the Community Empowerment Fund (CEF) will emphasize two priorities:
ensuring the success of welfare reform and connecting distressed areas to regional economic
growth.
well
Lisa Green
07/30/99 10:54:44 AM
Record Type:
Record
To:
Brian V. Kennedy/OPD/EOP, Melissa G. Green/OPD/EOP, Patrick M. Dorton/OPD/EOP
CC:
Subject: Welfare to Work Partnership Conference - August 3rd
As you probably know, the W-T-W Partnership Conference is taking place next Tuesday. I have gotten a
request from Eli Siegal (sp?) who heads up the Partnership, via Xav Briggs at HUD, to consider the
President making a New Markets challenge to private companies as part of his remarks at the
conference. I spoke briefly with Andrea Kane at DPC about this idea, and as I guessed she is open to a
few points being made about New Markets but is concerned that anything more would overshadow and
distract from the main message. I am going to speak with Eli later this morning, and will try to determine
exactly what he wants considered. From what I can gather, Eli feels he is getting resistance from DPC on
this suggestion. I have my own concerns about mixing the messages, and believe that Gene would
consider this somewhat of a dilution of the New Markets message. This is not really my issue area, but
because the W-T-W Partnership specifically involves private sector companies, there is a connection to
New Markets. For example, Cathy Bessant, from Bank of America, who was featured prominently as part
of the New Markets trip, will be part of the Roundtable/Town Hall that the President will moderate during
the conference.
Brian, is this your issue area?
Melissa and Brian, I'm wondering if either of you know if Gene has had any conversations with Bruce, or
given the conference any thought as it relates to New Markets. Also do you know if anyone else from
NEC is working on this conference with DPC? I think part of Andrea's relunctance to incorporate New
Markets into the conference and the President's remarks, is that we didn't incorporate much of W-T-W in
our tour. This wasn't so much a conscious decision, but more that we were just overwhelmed and private
sector partnerships involving W-T-W just didn't make into onto our screen. It is possible that the
President will talk about New Markets, whether or not we provide any talking points for DPC or the
speechwriters.
Melissa, if you talk with Gene today, and this ranks among the priorities of things you have time to
discuss with him, can you ask if he has an opinion on New Markets and W-T-W. Also as additional
context, at least one cabinet member, Alvarez, will be speaking at a session during the conference and
plans to talk about New Markets. My recommendation is that we keep references to New Markets at a
minimum during the conference so that we don't mix messages. but I'm not sure that Gene would agree.
Patrick, at a minimum we probably, need to provide some press guidance or contribute to DPC's press
guidance for the conference, addressing the inevitable question How does this effort relate to the
New Markets Initiative? If you agree, can you check with whomever is working on the conference from
Communications.
Andrea Kane
07/20/99:02 37074FM
Record Type:
Record
To:
Lisa Green/OPD/EOP@EOP
CC:
Subject: NM follow up
Unfortunately I have conflicts at 3 and 4 today so can't join your meetings, but I would like to suggest that
we include our FY 2000 welfare to work initiatives on the New Markets radar screen, and your paper, to
the extent you agree this makes sense. The Welfare to Work reauthorization, Access to Jobs
transportation grants, welfare to work housing vouchers, and extension of the WOTC and Welfare to Work
tax credits will all help connect individuals in high poverty urban and rural areas to employment, and can
support our efforts to encourage employers to invest in those communities. See attached welfare to work
budget 3 pager. Let me know what you think.
BUD0709.do
President Clinton's FY 2000 Budget:
Supporting Working Families and Helping People Move from Welfare to Work
Welfare-to-Work Reauthorization: In 1997, the President insisted that the Balanced Budget Act
provide $1.5 billion a year in FY 1998 and FY 1999 for states and local communities to help move long-
term welfare recipients in high poverty areas into jobs and help them succeed in the work force. In order
to ensure the success of welfare reform for individuals who face the greatest challenges, the President
proposes to reauthorize the Welfare-to-Work program in FY 2000, with several program modifications
including a stronger focus on increasing the employment of fathers so they can better meet their
responsibilities to their children. The President's budget seeks $1 billion to reauthorize the Welfare-to-
Work initiative, of which at least $150 million will be dedicated to fathers who agree to work, pay child
support, and become part of their children's lives again. Remaining funds will go toward assisting long-
term welfare recipients with the greatest challenges to employment move into lasting jobs, including
doubling the funds available for Native American tribes. The Administration's reauthorization proposal
is included in H.R. 1482 introduced by Congressman Cardin and S. 1317 introduced by Senator Akaka.
Welfare-to-Work Transportation: A significant barrier facing people who move from welfare to work,
in both cities and rural areas, is finding transportation to get to jobs and employment-related services.
The President's leadership on this issue helped secure funding through FY 2003 for Job Access grants to
assist states and localities in developing flexible transportation alternatives, such as van services, for
welfare recipients and other low income workers. The President's budget doubles funding for this
initiative, providing $150 million in FY 2000.
Welfare-to-Work Housing Vouchers: Last year's budget contained $283 million for 50,000 new
housing vouchers for welfare recipients who need housing assistance to get or keep a job. Families will
use these housing vouchers to move closer to a new job, to reduce a long commute, or to secure more
stable housing to eliminate emergencies that keep them from getting to work every day on time. The FY
2000 budget proposes $144 million for an additional 25,000 vouchers, increasing the total number of
welfare-to-work vouchers by 50 percent to 75,000 and bringing total funding to $430 million.
Employer Tax Credits: The President's FY 2000 budget extends for one year the Welfare-to-Work and
Work Opportunity Tax Credits to encourage more employers to hire welfare recipients and other
disadvantage individuals, at a cost of $528 million. Both credits are currently set to expire on June 30,
1999. The Welfare-to-Work Tax Credit provides a credit equal to 35 percent of the first $10,000 in
wages for the first year of employment and 50 percent of the first $10,000 in wages in the second year to
encourage the hiring and retention of long-term welfare recipients. The Work Opportunity Tax Credit
provides a credit of up to $2,400 for the first year of wages for eight groups of job seekers.
Welfare-to-Work Job Creation: To increase employment opportunities for low-income inner city and
rural residents, the President's FY 2000 budget includes $125 million in grants and $625 million in loan
guarantees for the Community Empowerment Fund to enhance business development and job creation in
these communities. Up to $75 million of the grants are targeted for a Welfare-to-Work Job Creation
Initiative which will support the most creative public/private partnerships to create or expand businesses
that provide jobs to families making the transition from welfare to work.
Child Support Enforcement: Since the President entered office, child support payments have increased
80 percent to a record $14.4 billion in 1998. Not only are collections up, but the number of families that
are receiving child support has also increased. Last June, the President signed legislation making certain
egregious child support violations federal felonies. To ensure that federal authorities have the resources
available to prosecute under these statutes, the Department of Health and Human Services will establish
investigative teams in five regions of the country to identify and investigate cases for prosecution.
These sites will serve 17 states plus D.C., which together have 63 percent of the nation's child support
cases. Moreover, to ensure U.S. Attorneys have the legal staff necessary to prosecute deadbeat parents,
the budget includes $34 million over five years, to fund an eightfold increase in the legal support staff
dedicated to child support.
Child Care: The President's budget includes significant new investments to make child care
better, safer, and more affordable for America's working families. First, the President's budget
proposes to expand the Child Care and Development Block Grant to help working families
struggling meet the costs of child care. The President's proposal: (1) increases funding for
child care subsidies by $7.5 billion over five years, and these new funds, combined with funds
provided in welfare reform, will serve an additional 1.15 million children by FY 2004; and (2)
provides $3 billion over five years to improve child care quality and promote early learning.
Additional funds for subsidies are necessary because millions of families eligible for child care
assistance currently do not receive any help: in FY 1997, states provided child care assistance
to only 1.25 million of the 10 million low-income children eligible.
The President's budget additionally includes $5 billion over five years to expand the Child and
Dependent Care Tax Credit (CDCTC) for nearly three million working families who pay for the
care of a child under 13 or a disabled dependent or spouse. Parents who stay at home with
infants under the age of one will also be able to claim assumed child care expenses of $500
under the CDCTC; this proposal will provide an average tax credit of $178 to 1.7 million
families, at a cost of $1.3 billion over five years. The President's plan includes a new tax credit
to businesses that offer child care services to their employees. Finally, the budget triples
funding for the 21st Century Learning Center Program, which supports creating and expanding
after-school and summer school programs throughout the country.
Social Services Block Grant: The Budget proposes to fund the Social Services Block Grant (SSBG) at
its fully authorized level of $2.38 billion. SSBG provides funding to States to support a wide range of
programs including child protection and child welfare, child care, as well as services focused on the
needs of the elderly and disabled. The flexibility of this grant permits States to target funds to meet the
specific needs in their communities.
Individual Development Accounts: Since 1992, the President has supported the creation of Individual
Development Accounts (IDAs) to empower individuals to save for a first home, post-secondary
education, or to start a new business. Last year, the President signed into law legislation creating a five-
year $125 million demonstration program and the FY 1999 budget included $10 million to launch this
initiative. The President's budget provides $20 million for IDAs in FY 2000.
Substance Abuse Treatment: SAMSHA's Targeted Capacity Expansion Grant program provides funds
to help communities address emerging substance abuse problems and unmet treatment needs. National
estimates show that approximately 20 percent of welfare recipients have a substance abuse problem, and
some states who have recently reviewed their welfare caseloads have even higher estimates. Last year,
one-third of these competitive grants focused on substance abuse treatment for women with children,
including those moving from welfare to work. The President's FY 2000 budget proposes $110 million
for Targeted Capacity Expansion grants, which is double the FY 1999 level of $55 million and will
provide treatment for another 21,000 individuals. The President's budget also funds the SAMSHA
Block Grant at $1.615 billion, $30 million or 2 percent above the FY 1999 level.
Transitional Medical Assistance: Transitional Medical Assistance (TMA) provides time-limited
Medicaid coverage to low-income households whose earnings or child support would otherwise make
them ineligible for Medicaid under state Medicaid income eligibility standards. The budget would
eliminate some reporting requirements that are burdensome to states and to families, allowing States to
check on TMA eligibility through regularly scheduled recertification procedures in the same manner that
they otherwise assure ongoing eligibility in the Medicaid program. The budget would also encourage
states to use existing options to expand Medicaid coverage to all low-income working families by
relieving states of TMA rules if they are otherwise providing coverage to low-income working families.
TANF Contingency Fund: The 1996 welfare reform legislation established a Contingency Fund to
assist States in meeting the need for welfare assistance during periods of economic downturn. The
President's budget proposes replacing the current capped Contingency Fund with a new uncapped fund
that could more effectively respond to state needs in the event of an unforeseen economic downturn.
Restoring Benefits for Legal Immigrants: The Administration's budget continues to build on the
progress of the last few years to restore important disability, health and nutrition benefits to legal
immigrants, at a cost of $1.3 billion over five years.
The budget restores eligibility for SSI and Medicaid to legal immigrants who enter the country after
August 22, 1996 if they have been in the U.S. for five years and become disabled after entering
the United States. This proposal costs approximately $930 million and assists an estimated
54,000 by 2004, about half of whom would be elderly.
The budget also allows elderly legal immigrants who were in the United States by August 22, 1996 to be
eligible for Food Stamps at a cost of $60 million. This provision makes an additional 15,000
legal immigrants eligible in 2004.
Finally, the President's budget allows states to provide health care benefits to legal immigrant children
and pregnant women, who entered the United States after August 22, 1996. Under this provision
approximately 55,000 children could be served by FY 2004 at a cost of approximately $220
million and 23,000 pregnant women could be served at a cost of $105 million by FY 2004.
The Administration's proposal is included in the Fairness for Legal Immigrants Act of 1999
(S.792/H.R.1399) recently introduced by Senator Moynihan and Representative Levin. In addition,
Senators Chafee, McCain, Mack, Jeffords, Graham, and Moynihan. introduced S. 1227, a bipartisan bill
similar to the Administration's proposal to restore health coverage to legal immigrant children and
pregnant women.
English Literacy / Civics Education Initiative: The President's Budget contains an adult literacy
initiative to help states and communities provide expanded access to high quality English language
proficiency instruction, linked to practical instruction in civics and life skills including how to navigate
the workplace, public education system, and other key institutions in American life. These Common
Ground Partnerships are designed both to help meet the extraordinary demand for English and civics
instruction among individuals with limited English proficiency and to demonstrate our shared
commitment to fully integrate new Americans into our social and civic life. States, community-based
organizations, local education agencies, and other non-profits will compete for grants to support English
proficiency and civics instruction. With $70 million, the initiative will be able to provide English
language and civics instruction to approximately 150,000 people in FY 2000. Overall, the President's
FY 2000 budget contains a $190 million increase for adult education and family literacy.
7/9/99
Heyman Stephen <[email protected]>
08/05/99 07:04:16 PM
Record Type:
Record
To:
See the distribution list at the bottom of this message
CC:
Mohib Mona <[email protected]>, Palast Geri <[email protected]>, Letourneau Darla
<[email protected]>
Subject: NGA Message Opportunities
Jon, Brian, Lisa, Carl and Melissa: When the President talks to the
Governors at NGA on Sunday, we understand that he is going to talk about the
progress we have made together on a bipartisan basis, etc., talk about the
tax bill, and then talk about the work that remains to be done. In that
framework, we think that there is a great message opportunity to talk about
Workforce issues and make three specific points:
1) August 7, 1999 is the one-year anniversary of enactment of WIA. This was
an important bipartisan accomplishment that the President fought for in
conjunction with our partners, the Governors and local government.
(2) On the three-year anniversary of Welfare Reform and the two-year
anniversary of Welfare-to-Work, we should reauthorize WtW to finish the job
of reforming welfare. WtW is also part of the New Markets message.
(3) Budget -- Now is not the time to cut investments in America's workers
and America's newly reformed workforce system.
We have prepared some message points (below) that we would greatly
appreciate your help in getting into his speech. Thanks for your help on
this.
WIA
Last year at this time I was honored to be able to to sign
the Workforce Investment Act into law. This landmark reform in our
employment and training system was the product of a bi-partisan process in
the Congress and was based on Federal, State and local efforts to build
One-Stop systems which all Americans can access to find or prepare for new
jobs.
The Governors were critical to this effort to prepare
America's workers and employers for the 21st Century. This is an example of
how we can do more together when we work together. We need more
bipartisanship like this in Washington. And I thank you for your
leadership.
But without essential investments, we cannot put in place
the world-class system of education, job training and employment
opportunities that American workers want and deserve. That's why my FY 2000
budget requested increases in funding for these programs to revitalize the
workforce system as envisioned by Congress when it enacted WIA.
This new legislation provides us with the foundation to
build upon. But that very foundation will be compromised if we cannot
recapture the bipartisan spirit of last summer and agree on a budget which
includes the essential investments in the system which Congress envisoned
when it passed the Workforce Investment Act. Let's work together to ensure
that these investments are preserved and that States and local communities
not lose this important opportunity for reform.
Welfare to Work
We must finish the job of welfare reform. We know that hardest job
remains because the hardest to serve remain. That is why I have requested
$1 billion for reauthorization of the Department of Labor's welfare to work
program. This program serves those hard to employ, long-term welfare
recipients and low income fathers to help move them from welfare to work to
self-sufficiency. The funds are targeted to those individuals who need the
most help transititioning, including long-term recipients whith low basic
skills, substance abuse or poor work histories. In welfare reform, we can
leave no one behind. Those individuals left on the welfare rolls will need
a sustained investment to help them become self-sufficient.
Message Sent To:
Carl Haacke/OPD/EOP
Lisa Green/OPD/EOP
Melissa G. Green/OPD/EOP
Brian V. Kennedy/OPD/EOP
Jonathan A. Kaplan/OPD/EOP
Lisa Green
08/02/99 05:59:18 PM
Record Type:
Record
To:
June Shih/WHO/EOP@EOP
CC:
Jonathan A. Kaplan/OPD/EOP@EOP, Patrick M. Dorton/OPD/EOP@EOP, Andrea Kane/OPD/EOP@EOP
Subject: Re:
Thanks for getting in the New Markets section. It sounds good.
If it's possible can you add the following in the second to last paragraph. This is not a
big issue -- but I think it might help to make the connection between New Markets to W2W.
"And finally, we must do more to bring jobs to people living in our hardest pressed
and underserved communities -- or New Markets where welfare recepients tend to be
concentrated. "
Thanks.
Forwarded by Lisa Green/OPD/EOP on 08/02/99 05:51 PM
Melissa G. Green
08/02/99 05:39:28 PM
Record Type:
Record
To:
Lisa Green/OPD/EOP@EOP, Jonathan A. Kaplan/OPD/EOP@EOP, Patrick M. Dorton/OPD/EOP@EOP,
Carl Haacke/OPD/EOP@EOP
CC:
Subject: Re:
Forwarded by Melissa G. Green/OPD/EOP on 08/02/99 05:39 PM
June Shih
08/02/99 02:55:14 PM
Record Type:
Record
To:
Melissa G. Green/OPD/EOP@EOP
CC:
Subject: Re:
3
Draft 8/2/99
Shih
PRESIDENT WILLIAM J. CLINTON
REMARKS FOR WELFARE TO WORK PARTNERSHIP
CHICAGO, ILLINOIS
AUGUST 3, 1999
Acknowledge: Eli Segal, Jerry Greenwald, Gov. Carper, Gov. Ryan, Mayor Daley,
Mayor Webb, Mayor Helmke, Mayor Morial, Mayor O'Neil; Sec. Herman; Sec. Slater; Sec.
Daley; Administrator Alvarez.
For six and a half years, we, the American people, have been on a remarkable crusade to
restore the dignity of work to families who had known little but the dependency of welfare. It is
a journey that has transformed our system of welfare into a system of work. And it is a journey
that is transforming our families and our nation, bringing a new generation of Americans into the
mainstream of American life.
The signs of this transformation are everywhere. Where children once waited alone to
catch the bus to school, parents are now joining them, waiting to catch the bus to work. Tax
preparation services are moving into abandoned storefronts, helping former welfare recipients
fill out the first tax return of their lives. And there are even more subtle and significant
changes taking place -- changes taking place in the human heart and human spirit. Mothers
are collecting their mail with a little more pride these days, expecting to see bank statements,
not welfare checks. Children are going to school with their heads held a little higher, their
eyes full of hope as they see firsthand that hard work does indeed lead to better lives.
It is difficult to remember, but just seven years ago when I ran for president, America was
out of work and out of ideas. Our economy was stagnant, burdened with crushing debt and
deficit. Interest rates were skyrocketing and unemployment was high. The American Dream
seemed to be drifting further and further out of reach. For some, our welfare system was Exhibit
A of America's decline. It had become a system that undermined our most cherished values of
work and family. As governor of Arkansas, I spent many hours in welfare offices, listening to
the stories of frustrated recipients. They told me that our welfare system wasn't working because
it kept welfare recipients from working.
I pledged to turn this country around, to restore America's most fundamental bargain with
our people: That every American who is willing to work and take responsibility should have the
opportunity to live the American Dream. I pledged to bring our people together, across all the
lines that divided us, into one strong community. And I pledged that if the American people
elected me to be their President, I would put my heart and soul into ending welfare as we know
it.
Today, America is working again. We have the longest peacetime expansion in history,
nearly 19 million new jobs, the lowest unemployment in a generation, the lowest minority
unemployment in recorded history. From a deficit of $290 billion, we are moving to a surplus of
$99 billion. Homeownership is at an all-time high.
And we have indeed ended welfare as we knew it. We have restored the value of work in
America. We raised the minimum wage and passed the Earned Income Tax Credit, telling
parents that if you work full-time, you do not have to raise your children in poverty.
When I took office, we gave 43 states waivers to try their own approaches to reforming
welfare and making work pay. And three years ago, we came together across party lines to pass
a landmark welfare reform bill. We said that no person could ever make welfare a way of life
again -- that everybody who can work, must work. But we also recognized that we could not
allow millions who had known nothing but years of dependency, people who had never even
seen their own parents go to work, much less fill out a W-2, to make the transition to work on
their own. So we made sure that there was extra support for child care, transportation and
housing, for children's health care and nutrition. With new tax credits and incentives, we
encouraged businesses to hire more welfare recipients.
Today, I am proud to announce that all 50 states - and the District of Columbia - have
met the work requirements we set in 1996. Four times as many welfare recipients are working
than when I first took office. We have cut our welfare rolls by nearly half, reducing the
percentage of Americans on welfare to its lowest level since 1967.
While some of the credit goes to our booming economy [10 percent], the Council of
Economic Advisers has found that welfare reform -- with its new emphasis on work -- has been
the single most important factor in the dramatic reduction in our rolls. Three quarters of the 6.8
million people who have left welfare since I took office did so after the welfare reform law was
signed in 1996.
The credit also goes to every single visionary business in this audience. When we
passed the law in 1996, I said that moving Americans from welfare to work would take the
committed effort of every sector of our society, not just government, but businesses,
faith-based organizations, community groups, private citizens. In 1997, my good friend Eli
Segal agreed to help rally the business community to the challenge of turning long-term
welfare recipients can be turned into full-time workers. Two and half years ago, he started
this partnership with just five companies. Today, he and Jerry Greenwald have built a
partnership that is 12,000 businesses strong. Last I heard, Jerry Greenwald was also running
United Airlines in his spare time. Members of the Welfare to Work Partnership, businesses
both large and small, have given 410,000 welfare recipients the opportunity to go to work.
More than 8 in 10 executives report that having great success hiring former welfare recipients
- they work hard, and stay in their jobs as long or even longer than other employees. In an
era of labor shortages, you are discovering a rich pool of untapped talent, people who are
good employees, and good for the bottom line.
I thank you for recognizing the important role you can play in extending the
opportunities of our time to all Americans. And I am proud to say that, with the
Vice-President's leadership, the federal government is also doing its part, hiring more than
14,000 people across the U.S., surpassing the goal of 10,000 hires we set two years ago
Over the past three years, we've proved that if you ask people to go to work, they'll go
to work. Now, we can see a day when every person on welfare can go to work and join the
mainstream of our society. Our welfare recipients are doing their part. Now we must do our
part and finish the job.
There will never be a better time. We are living in an era of unprecedented
prosperity. Our businesses are creating jobs faster than workers can fill them. So not only do
we have a precious opportunity, not only do we have the resources - we have a duty - to
extend the prosperity of our time to every single American. This is how I propose to finish
the job making welfare work for America.
First, to finish the job, we must continue to honor our bipartisan commitment to
welfare reform. In era of declining welfare rolls, there are some in Congress who already
want to declare an early victory and cut the Temporary Assistance for Needy Families block
grant. That would be a big mistake. We're within striking distance of our goal of moving
every American to work. But success is far from certain. We must help those who have
found new jobs to keep their jobs. We must make sure that families leaving welfare for work
continue to get the health care and nutritional benefits for their children. So I call on states to
take advantage of the new flexibility they have to use TANF funds to provide some of these
crucial services.
Next, to finish the job, we must strengthen our commitment to helping those still left
on the welfare rolls -- often families who face the most significant challenges -- move into the
mainstream world of work. I ask Congress to build on the Welfare-to-Work program we
established - with the strong support of our nation's mayors -- in the Balanced Budget Act of
1997. We must help those who are least prepared for the world of work - people who
perhaps never learned to read or are struggling to overcome drug addictions - to get the skills
they need to become self-sufficient. And we must help more low-income fathers find and keep
the jobs they need to honor their responsibility to their children. Today millions of children
are living in poverty because their fathers have failed to support them. Six years ago, we
strengthened our child support laws. Now my welfare to work plan will target funds for job
training and counseling to responsible fathers - and I ask Congress to pass it.
To finish job, we must strengthen our commitment to child care. For years, mothers
on welfare chose not to work because child care costs often dwarfed the size of their weekly
paychecks. With the 1996 welfare law, we began to change that, adding $4 billion to our
child care subsidy funds. But we have only met a fraction of the need. In 1997, just 1.25
million children of the 10 million children eligible for federal child-care support received
assistance. Our children deserve better. I ask Congress to pass my historic child care
initiative, with more child care subsidies and tax credits for needy families, new funds to
improve the quality of care.
To finish the job, we must strengthen our commitment to helping welfare recipients
commute, or move closer to work. I challenge to double our commitment to transportation
assistance and provide 25,000 new welfare-to-work housing vouchers.
To finish the job, we must increase the minimum wage to ensure work pays better than
welfare.
And I challenge all of you, the Welfare to Work Partnership to help finish the job.
Keep hiring more people off our welfare rolls - give them the chance to become good
employees and good citizens. Encourage more businesses to join your cause - recruit your
vendors and clients. And reach out to more small businesses - the firms that are creating the
most jobs in our new economy. And I ask you not to forget the low-income fathers in your
hiring efforts - they are crucial to making welfare reform work for our families. For our part,
I am working to the extend the Welfare-to-Work Tax Credit and Work Opportunity Tax Credit
to reward your vision and faith.
And finally, we must do more to bring jobs to people living in our hardest pressed
communities. Many of you know that last month, I traveled across the country to shine a
spotlight on our inner cities, rural areas and Indian reservations, places struggling in the
shadows of our prosperity. I went to places where unemployment and poverty were more than
double the nationwide average. I ask your help in passing my New Markets Initiative to spur
new private investment in these areas - to bring new businesses, new jobs and new hope into
these communities.
A wise man [Leo Tolstoy] once said that "Work is the true source of human
welfare." So in this era of unprecedented hope and prosperity, let us come together to lead
our fellow Americans to this vital source of welfare. We must not let this rare opportunity to
bring all Americans into the mainstream of our life slip away. Instead, let us seize it, let us
give every American the chance to work and live the American Dream. Let's make this
season, a true season of progress.
8/15 18/99
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