Week Twelve: Viewing IGRs through the Welfare State

1. Week Twelve: Viewing IGRs through the Welfare State

2. Objectives for Class • Discuss the importance of welfare states • Consider the American experience • Evolution of IGRs and federalism • From AFDC to Welfare Reform • Housing and Social Services Case Study

3. Emergence of the American Welfare State • Responsiveness of the American federal system • Highlights intergovernmental competition • Diffusion and innovation • Citizenship rights • Path dependency • “I don’t study welfare, why should I care?”

4. Social Welfare Policy Context in Early 20th Century • Dual federalism • Weak governmental institutions, few resources • Heavy reliance upon local private charities • Outdoor relief v. cash assistance • Moral concerns about public assistance • Emphasis on economic development • Grass roots reform movement → White House Conference on the Care of Dependent Children in 1909

6. Responsiveness of System • Expanding the scope of conflict • Multiple access points • Laboratories of experimentation • Informal cooperation in dual federalism system

7. Intergovernmental Competition • Neighbors’ decisions to adopt • Neighbors’ decisions to set benefit levels • Neighbors’ decisions about residency requirements • Why not an immediate “race-to-the-bottom?”

9. Mothers’ Aid Benefit Levels in 1934

10. Length of Residency Requirements by Region

11. Mothers’ Aid Benefit Variation, 1919 & 1934

12. Citizenship and Program Benefits • Political v. civil v. social citizenship • Unidirectional v. reciprocal? • Program benefits deemed inadequate • Program benefits did expand in generosity • Program adoption v. program structure

14. Path Dependency • Inertial quality of public organizations • Regional and interstate variation present immediately • Variation in program structure persists into modern era • Importance of initial institutional arrangements

16. Aid to Dependent Children • Component of Social Security Act of 1935 • Federal match, mandatory participation, residency requirements • States and localities still retained much discretion • Needs standards, benefit levels, administration, “suitable home” • Between 1950s-70s – states became more constrained as ADC evolved into AFDC

17. ADC Program Variation, 1939-59

18. National AFDC Caseloads, 1939-59 (April)

19. National AFDC Spending, 1939-59 (April)

20. % Changes in AFDC Caseloads, 1939-59

21. % Change in AFDC Spending, 1939-59

24. Rising Social Welfare Spending in late-20th Century • Between 1970-90, state social service budgets soared – mostly on care for the elderly • Manipulate benefit levels • Cannot remove eligible people or deny eligible people benefits • What other levers/strategies are available? • Berkowitz: • Story of reform in this period of history echoes the story of reform today • Expanded federal presence in SSI and Food Stamps • Devolution is the one missing ingredient

25. Welfare Reform and Devolution: How Did We Get There?

26. 1980-96: Rise of Welfare as an Issue and Expanding State Autonomy • Prior to 1993 -- record caseloads, bad economy, and struggling state budgets • Family Support Act of 1988 • Growing capacity of states • Waiver program • Clinton “end welfare as we know it” • Favorable climate for reform • Momentum for devolution

27. PRWORA of 1996 • Greater state gov’t discretion • Work requirements • Time Limits • Cost savings • End entitlement to cash assistance • Immigrant bans • Maintenance of effort and contingency fund

28. What Were The Anticipated and/or Feared Outcomes of Welfare Reform?

29. PRWORA – What’s Happened? • Some immigrant provisions amended • No dramatic race-to-the-bottom • Changing environment for implementation • Shortage of workers and caseload decline • Edelman’s fears realized?

30. Cash Assistance Benefits, 1934 & 1998

31. Caseload Change in Detroit, 1992-2000 • Caseloads declined by 75 percent – welfare receipt still concentrated in central city • In 2000, half of recipients were new or returning to welfare • Caseload was comprised of older heads of household and larger families • Those closest to jobs were more likely to work and leave welfare – all things being equal

32. Issues to Consider as Re-authorization Approaches • Programs supporting marriage • Barriers to employment • Transportation issues • Exemptions and time limits • Grant levels, maintenance of effort, and contingency funds • State discretion over work activities

33. HASCO Case Study • Integrated program with case manager that coordinated services – local organizations would participate to help their clients receive Section 8 vouchers • Changes in HUD policy • Undermined partnerships, eliminated caseworker • Reduced # of participants, changed selection criteria

34. Questions to Answer in Groups • Why was the local program so successful? • Are there clear boundaries for “housing-related” services? • How should Holt respond to HUD’s directives? Choices? Tradeoffs? • How can you preserve the program? • What kinds of sacrifices can you be prepared to make? • Who should you seek out for assistance?

35. Readings for Next Week • Chapter Thirteen, Politics in the American States, Gray et al. (pp. 474-505) • “The Politics of Bread and Circuses,” Peter Eisinger