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OCR Page 1 of 31Andrea Kane
07/07/2000 09:55 AM
Record Type:
Record
To:
[email protected] @ inet, [email protected], [email protected] @ inet
CC:
Margy Waller/OPD/EOP@EOP
Subject: participation rates
Participation Rate Summary: Here's a summary we've put together for internal purposes based on info
you've provided. Please review/fact check and let me know if you see any problems with it. Based on
how we did this last August, when we actually roll this out we'll probably focus primarily on the all family
rate.
All Families Participation Rates
Every state (as well as D.C. and Puerto Rico) met or exceeded the welfare reform law's overall work
requirement for FY 1999, which requires 35 percent of all families to have a parent working at least 25
hours per week. Nationally, 38 percent of all welfare recipient were working in 1999 (in work or
work-related activities that count toward the participation rate for the minimum required number of hours).
Even while caseloads declined by 18 percent from FY 98 to FY 99, the percentage of those on the rolls
engaged in work increased by 9 percent from the prior year.
Two-Parent Participation Rates
Not all state met the law's two-parent work rates, which require 90 percent percent of two parent families
to work at least 35 hours: of the 38 states that had two-parent families in their TANF program, 28 met or
exceeded the minimum requirement. The national average two-parent participation rate was 55 percent,
a 29 percent increase over the prior year. Fifteen states did not have any two-parent families in TANF
and were not subject to the work requirement. States who fail the two-parent rates are subject to a
penalty; however, they first have an opportunity to claim good cause and/or submit a corrective action
plan. Assuming the maximum possible penalty, adjusted for each states degree of compliance and the
size of their two-parent caseload, nine states (AL, AR, CO, DC, MN, NE, NM, NC, WV) could potentially
receive penalties ranging from $635 in D.C. to $171,620 in New Mexico. Nationally, two parent cases
account for less than 5% of total cases. CA accounts for 56% of the nationwide total, and two-parent
families make up 10% of that state's caseload. CA achieved a 54% participation rate, well above its
target of 37% after adjusting for caseload reduction.
Caseload Reduction Credit
All states (not Guam) had their minimum participation rate standard -- for all families and two-parent
families -- adjusted to reflect the caseload reduction credit. For FY 1999, the welfare law provides for a
reduction in the minimum work participation rate standard by the percentage point decline in a State's
average monthly assistance caseload between 1995 and 1998. However, 27 states met the all families
participation rate standard before applying a caseload reduction credit and 4 states met the two-parent
standard before applying a caseload reduction credit. Nationally, the caseload reduction credit between
95 and 98 was 35 percent for all families and 56 percent for two-parent families. Twenty-three states had
sufficient caseload reduction credits to reduce their all family participation rate standard to zero. Two
states had sufficient two-parent reductions to reduce their two-parent standard to zero (MO and WY).
Type of Work Activity
Similar to last year, about 70% of those counting towards the work rates were in unsubsidized
employment, and 86% were in a direct work activity (unsubsidized employment, subsidized public or
private employment, work experience or community service). The remainder fulfilled their participation
requirements through job search, education and training. A total of 885,464 adults (42% of all adults
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