"The 1996 welfare reform bill has proven to be highly successful. It has redefined welfare, changing it from a permanent lifestyle to a temporary program that helps families get back on their feet," Senator Collins said. " As with any major legislation, however, there are families who fall through the cracks. The ‘Building on Welfare Success Act' will help many of these families by providing them with more opportunity to get a good job and the education they need to make the transition from welfare to work."
Senator Collins added, "Education is often the key to families becoming self sufficient. So we must do what is necessary, such as provide more child care, to enable parents to attend school or technical training classes."
Senators Carper and Nelson, both former governors, joined Senator Collins in praising the 1996 welfare reform bill that has helped reduce welfare caseloads nationwide by nearly 50 percent. But the senators said that the 1996 bill, which must be reauthorized, could be improved and urged Congress to pass legislation to give states new work goals to meet and new resources to help move individuals from welfare to work.
"This is not a situation of ‘if it isn't broke, don't' fix it,' said Senator Carper. "It is more like, ‘if it isn't perfect, let's make it better'."
The bipartisan ‘Building on Welfare Success Act' would raise the current state work participation rate from 50 percent to 70 percent, require most welfare recipients to work at least 32 hours a week and eliminates the "caseload reduction credit" loophole in an effort to give states more incentive to put recipients to work. The bill would also invest nearly $6 billion in child care funding to help welfare recipients meet work requirements and permanently transition out of the welfare system.
"With a focus on requiring work and supporting families we can enhance welfare reforms and achieve even more, said Senator Nelson. "This legislation provides states with the flexibility and resources necessary to begin the next generation of welfare reform."
Major provisions of the legislation are as follows:
Increases Work Requirements - The bill would increase the state work participation rate by 5 percent each year until it reaches 70 percent in 2008. As for work requirements, the bill would continue the current 20-hour workweek for single parents with children under six. Families with children over six, would engage in work activity for 32 hours a week, and at least 24 hours must be in so-called "core activities," such as public and private sector work and vocational education.
Provides More Flexibility to States - The current caseload reduction credit is eliminated and replaced with an employment credit that rewards states for moving people back to work. States would also receive bonus credits if welfare recipients are placed in high-paying jobs, defined as 50 percent of the state's average wage. In addition, the bill would help states continue to provide more education and training to recipients, including allowing states to count up to 24 months of vocational training toward the work-participation rate. States can also count post-secondary education toward the work-participation rate.
Strengthens Families - The bill would provide $6 billion over the next five years for the Child Care Development Block Grant. The bill also sets a goal of reducing teen pregnancy rates by one-third over the next decade and would set aside $450 million for states to set up and implement pregnancy reduction programs. Finally, the bill incorporates legislation introduced by Senator Evan Bayh (D-Ind) on responsible fatherhood. This provision provides grants to states to promote responsible fatherhood through parenting and marriage promotion, as well as economic security.
Additional provisions of the bill would reauthorize the Transitional Medical Assistance program, which provides health coverage to former welfare recipients who are unable to purchase insurance and would provide $15 million annually to improve transportation access and assistance for low-income families. These funds could be used to help low-income families with children obtain dependable, affordable automobiles to improve their access to employment opportunities and educational training.