What is Welfare?

Welfare 

The word alone gives some people the creeps. 

Many people are unhappy with the welfare system, claiming that too many individuals are abusing the welfare program by not applying for jobs, having more children just to get more aid, and staying unmarried so as to qualify for greater benefits.

The Original Welfare

In fact, that’s exactly how welfare was originally designed in 1930. There was no limits to how long families and individuals in need of aid would receive assistance as long as they demonstrated little or no income.

Welfare Reform

That all ended in 1996 when President Clinton and the Republican Congress passed a welfare reform law.

Now, to help overcome the former problem of unemployment due to reliance on the welfare system, all recipients of welfare aid must find work within two years of receiving aid, including single parents who are required to work at least 30 hours per week opposed to 35 or 55 required by two parent families. Failure to comply with work requirements could result in loss of benefits.  And, individuals can receive benefits for no more than five years in their lifetime.

Work activities are defined as work, training, or some combination that will help individuals gain experience and skills they will need to succeed on their own.

Welfare is a Success Story - Sort of

Welfare caseloads have declined by more than 50% over the first 10 years of welfare reform.

In 1996, 486,985 individuals received welfare. By 2007 that number has declined to 229,256, a 55% reduction. Three-quarters of welfare recipients are children.

The state has reduced its spending on welfare payments, which includes some child care, from $675 million in 1994-95 to $488 million in 2006-07, a 28% reduction in nominal dollars, and a 45% cut in inflation adjusted dollars. It is expected to decline further to $301 million in 2007-08.

Although Welfare is Declining, Poverty is increasing

By contrast, the poverty rate in Pennsylvania increased from 8.6% to 11.2 % between 2000 and 2005. Over the same period, the child poverty rate climbed from 11.6% to 16.9%.

The High Price of Welfare Checks and Balances

Despite the facts, people still believe that welfare fraud is out of control and the state is paying a hefty price to police a program that has proven to already be under control. 

• Finger imaging is projected to cost more than $55 million for upfront and implementation expenses. 
• Elimination of on-line program enrollment will require more than 200 additional staff at the Department of Public Welfare at a cost of $12 million annually. 
• Initial drug testing of all applicants and random drug testing of 20% of the caseload will cost $7 million and annual testing is estimated to cost $8 million. 
• New county based income verification systems will cost $2.3 million. 
• A new photo ID system for Electronic Benefits Cards (EBT) is projected to cost the Commonwealth $1.35 million and have a total price tag of $2.26 million.

Challenges for the Eligible Poor

The proposed policies create high hurdles to poor and low-income families trying to apply for and receive welfare-related assistance and stigmatize individuals who rely on safety-net programs to supplement poverty level incomes, stave off hunger, or provide access to medical care.

Welfare, or income maintenance programs, bring single mothers into the mainstream, and encourage work, training, and self-reliance, rather than discourage it. The proposed new welfare policies exploit prejudices and misperceptions of welfare programs, reflecting little of the realities of welfare implementation in Pennsylvania in 2007.

Original or Reform?

So, for those of you who feel that people on welfare programs should use them as they were originally intended, please go back and read the second paragraph. 

Originally, welfare had no provisions to stop people from living their entire life on the dole if they desired to. The reforms of 1996 has put a stop to long term abuse and fraud, but more people are impoverished than ever. 

To make matters worse, Pennsylvania has just reduced dollars to help people on welfare find work. (See What Welfare Reductions Reduce)

What Welfare Really Is

Welfare-related programs provide essential health, nutrition, and other safety-net services to some of Pennsylvania’s most vulnerable residents, including children, older, and disabled Pennsylvanians to improve the quality of life and living standards for the poor and underprivileged. 

Welfare help is usually extended to people groups other than just the poor and underprivileged such as the elderly, the disabled, students, and unpaid workers, such as mothers and caregivers.

The system isn’t perfect but it isn’t nearly as bad as most perceive it. 

Sources: www.welfareinfo.org & The Pennsylvania Budget and Policy Center.