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More work for welfare

More work for welfare. March 30, 2002 BY WENDY WENDLAND-BOWYER FREE PRESS STAFF WRITER http://www.freep.com/news/mich/work30_20020330.htm. Beginning April 1.

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More work for welfare

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  1. More work for welfare March 30, 2002 BY WENDY WENDLAND-BOWYER FREE PRESS STAFF WRITER http://www.freep.com/news/mich/work30_20020330.htm

  2. Beginning April 1 • Beginning Monday, most welfare recipients will have to work up to 40 hours a week in Michigan, putting the state at the forefront of a debate now raging in Washington. • The federal welfare law is up for reauthorization this year and the Bush administration is proposing making welfare recipients work 24 hours a week if they have a child under the age of 6, or 40 hours if their child is 6 or older. • In Michigan, welfare recipients will be among the first to be required to work up to 40 hours a week. But unlike the Bush administration plan, the state sets 40 hours as a goal that can include hours spent in job training or in school.

  3. Raising the bar • "When we started welfare reform way back when, it was voluntary that you do something. Then it became mandatory that you work," said Karen Smith, Michigan Family Independence Agency spokeswoman. "This is raising the bar again. . . . It is saying, 'Let's get you closer to the real world.' " • The 40-hour requirement is one of several changes taking effect Monday. People on welfare with disabled children will no longer be automatically exempt from having to work. If welfare recipients fail to comply with certain rules, they can be completely cut from public assistance within a month. Previously they lost 25 percent of their welfare check for four months before being cut.

  4. The Economics • Currently, single-parent welfare recipients are required by federal law to work a minimum of 20 hours a week if their child is under the age of 6 and 30 hours a week if their child is older. $ Net income Net income Welfare 128 148 168 Leisure

  5. Is this “good” • Depends on the utility function and child-care costs $ • We can draw several different scenarios Net income Net income Welfare 128 148 168 Leisure

  6. Individual Reviews • Caseworkers will review individual cases to determine what combination of work and job training they'll require, Smith said, adding that she understands that full-time jobs aren't always available.The FIA will also take less time to cut off welfare recipients who are not following certain rules. The move is to make the punishment happen closer to when the rule is broken. Smith said the change has been effective in several test sites. • Michigan had 77,207 welfare cases in February, and cut off 597 people for failing to meet a work requirement. The FIA cuts an average of 27 clients per month who fail to cooperate with efforts to collect child support.

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