APPENDIX 4 (continued)
VISIT TO WASHINGTON AND WISCONSIN 1-5 DECEMBER 1997
13. UNIVERSITY OF
WISCONSIN-MADISON,
LA FOLLETTE
INSTITUTE OF
PUBLIC AFFAIRS
The Committee was welcomed by Professor David Ward, the Chancellor
of the University of Wisconsin-Madison.
Professor Michael Wiseman described the evaluation and monitoring
being undertaken by the university: the Wisconsin Works Management
and Evaluation Project (W2-MEP).
W2 MEP was established by Governor Thompson in August 1996.
It was operated through a steering committee chaired by Ms Jean
Rogers. Professor Wiseman was the Vice-Chair. The Steering Committee
included agency personnel and people from outside State government.
According to Governor Thompson the Steering Committee was responsible
for 'making evaluation, feedback, and improvement essential elements
of the W2 strategy'. There had previously been a belief that the
monitoring arrangements were not adequate.
The current W2 MEP Projects were:
- Wisconsin's Special Sample (Part of the National
Survey of America's Families). This national sample was intended
to focus in Wisconsin on what was happening to people who have
left welfare; it allowed for comparison with other States. The
research had been expanded in Wisconsin to look at the various
reforms with a concentration of research in and around Milwaukee.
To date there had been a 70 per cent response rate with deliberate
over-sampling of the poor. Methodological worries about telephone
sampling had been dealt with by supplementing the telephone survey
with an in-person survey for families without telephones. The
Wisconsin samples were being compared with samples in neighbouring
Minnesota and Michigan. A total of 3,500 families with children
were to be studied.
- The Child Support Demonstration: child support was
regarded as essential for the work strategy for lone parent families.
Additionally, there were philosophical and moral issues about
the State providing when (usually) fathers could do or should
do. Wisconsin regarded itself as a leader in enforcement in child
support. It also was the leader in passing the full value of child
support to the lone parent. Wisconsin had obtained a waiver from
the federal government to allow for 100 per cent pass through
(disregard) for child support payments. Wisconsin was the only
State to allow this (32 States had no pass through, 17 States
allowed $50 per week, 1 State allowed $100 per week; only Wisconsin
allowed 100 per cent). This system would allow for genuine comparison
between the various States' approaches. It also added to Wisconsin's
image of contradictions, mixing toughness with generosity. Child
support was to be evaluated from September 1997 for 18 months
to 2 years.
- The Milwaukee Diversion and Exit study was a sample
of 750 family heads from three groups:
- recipients who have recently left AFDC;
- recent AFDC applicants who were 'diverted' before
beginning assistance;
- recent AFDC applicants who were not diverted.
- Longitudinal Administrative Database - this system
was intended to assist in trqcking family experience over time;
- Homeless Shelter Survey.
The reduction in caseload offered great opportunities for
Wisconsin and other states who had significantly reduced their
caseload. As the Federal TANF block grant was based on 1994 caseloads,
there was plenty of money to spend on the remaining people on
welfare. Of course, the group left on welfare would tend to be
the hardest group to re-engage with the workforce so the money
was needed for intensive, but worthwhile, investment in people.
At present it appeared that the reforms had not been associated
with an increase in poverty rates, despite the dramatic decline
in the numbers of families on benefit.
14. VISIT TO
DANE COUNTY
JOBS CENTER
Ms Mary Ann Cook
Mr Dan Kettle
Dane County is the area covering Madison, the State capital.
The Committee toured the building which combines several functions
including those of jobcentre and benefits office. The center had
a well appointed creche, and an "information plaza"
was being created. Members of the Committee talked informally
to a number of customers and staff at the center. Following the
tour, the Committee had brief discussions with Mr Jim Erlenborn,
the Executive Director of Employment and Training Associates,
and Ms Abigail Abelt, a freelance employment adviser.
The withdrawal of entitlement under TANF served in some cases
to focus the attention of the claimant, which would not have been
challenged by the open-ended eligibility under AFDC. Competitive
employment was not necessarily a realistic goal in all cases,
but there was a need to clarify and identify these groups. Although
the Federal legislation allowed up to 20 per cent of the baseline
caseload to be exempted from the work requirement, Wisconsin did
not operate any exceptions. There was an initial selection process
to identify how much help was needed by each group. The career
ladder had to be re-invented.
In a typical scenario, a claimant would be required to earn
her grant through taking a community service job placement. After
initial orientation, she would meet a counsellor and discuss how
to learn job skills. Thirty hours work were required a week, with
a little extra training. If someone admitted to a drug problem,
treatment would be regarded as part of the training. Social workers
could exercise some other leverage in the last resort. It was
necessary to discuss problems in the round. The process was called
joining forces for families. Social workers had better contacts
with neighbourhoods.
There had been dramatic changes for claimants. It was refreshing
for some of them. There was some concern about health care for
children and. An Institute for Research on Poverty study was under
way with interviews being conducted by graduate students to develop
a standardised questionnaire. There had been a real switch, so
that the welfare departments did not need to reach out to benefit
mothers as under the old AFDC system. Under W2 the mothers receiving
a grant were required to co-operate closely with the authorities.
There remained a question however over those children who
had finally been part of the caseload but who now had no interaction
with the system.
The cost of this kind of intensive case management was round
about $1,500 per person in terms of service staff support, in
addition to the cost of benefits and childcare subsidies.
Dane County was mainly a white collar community, with demand
for workers skilled in data processing, keyboard operations, filing
and office procedure. A curriculum entitled Tools for Tomorrow
helped people to learn about trades although it did not deter
qualifications. Health care and nursing homes were other growth
areas. COWS - The Committee of Wisconsin Strategies - found that
as more experienced office staff were absorbed by 'geek clubs'
sorting out colleagues' problems with personal computers, there
was a demand for people to come into the organisation to carry
out the more routine clerical tasks.
After a brief tour of the State Capitol, the Committee
paid a call on Dr Linda Stewart, the politically appointed head
(Secretary) of the Department of Workforce Development.
15. Dinner hosted by HM Consul General, Chicago
| Mr Gene Kussart | Executive Assistant, Wisconsin Department of Transportation
|
| Ms Sheenan Donoghue | Division of Equal Rights, Wisconsin Department of Workforce Development
|
| Ms Marlene Duffield | Division of Economic Support, Wisconsin Department of Workforce Development
|
| Senator Margaret Farrow |
|
| Mr Raymond Taffora | Partner, Michael, Best and Friedrich, Madison
|
| Mr and Mrs Michael Wiseman | LaFollette Institute of Public Affairs
|
| Ms Mary Ann Cook | Dane County Human Services, Economic Assistant and Works Division
|
| Mr Jay Hein | Hudson Institute (Madison Office)
|
| Mr Tom Corbett | Poverty Institute
|
16. MILWAUKEE
RESCUE MISSION
(JOY HOUSE)
The Milwaukee Rescue Mission was established in 1893 by
a group of churches to "win the lost for Christ, to edify
believers in Christ, and to meet the physical and spiritual needs
of those to whom we minister". The MRM is an evangelical,
Christian ministry, which receives no government funding. All
of the Mission's programs are funded through contributions of
businesses, churches, private foundations and individuals. For
the past century, MRM has provided for the needs of needy men
through its emergency shelter program and also through its Lifeskills
Program. The Lifeskills Program is a year long rehabilitation
program that provides job training, basic adult education, Christian
education, counselling and practical work experience for single
men. Upon completion of this program, Mission staff assist graduates
in finding jobs and permanent housing. Over 70 per cent of Lifeskills
graduates are employed and housed one year after graduation.
Traditionally a homeless shelter for men, MRM opened the
Joy House for homeless women and their children in 1991. The Joy
House provides safe shelter, food, clothing and direction to as
many as 100 different families in a typical month. With the advent
of welfare reforms in Wisconsin, the Joy House has established
the New Life Program to help mothers make the transition from
welfare dependence to independence. The program includes basic
adult education, job-readiness skills, and enforces necessary
life-skills, such as healthy living, parenting, time management
and money management. In the past five years, the Joy House has
grown from an overnight shelter for single women with a staff
of four, to a full service family shelter with a staff of 21.
The Milwaukee Rescue Mission also runs programs to serve
urban youth. These programe include one-on-one mentorship, summer
camp, teen programs and a successful basketball league.
The Committee toured Joy House and heard the testimony
of two single mothers about how Joy House had helped them and
their children.
17. UNIVERSITY
OF WISCONSIN-MILWAUKEE
CENTER FOR
OUTREACH AND
CONTINUING EDUCATION
| Mr John Pawasarat | Director, Employment and Training Institute
|
| Ms Mary Bills | Former President, Milwaukee Schools Board
|
| Mr John Birkholz | Head of Milwaukee Area Technical College
|
| Ms Lois Quinn | |
| Ms Ann Hendricks | |
| Ms Chera Roovers | |
The Institute had been evaluating the welfare population
over the past 10 years. In 1986, the Department of Health and
Social Services had invited bids to evaluate its projects of Workfare
and Learnfare. The Institute had won both bids.
The Learnfare project concerned reductions in welfare if
children were truants. The evaluation had concluded that Learnfare
had no effectiveness in reducing truancy. Research into workfare
initiatives, tying welfare to job training, counselling, and work
readiness skills, indicated that these programs were ineffective
during the period of a rapidly improving economy. Reductions in
welfare caseload in the late 1980sappeared to be entirely due
to the booming economy.
More recently, the Institute had been tracing the work outcomes
of those leaving welfare. There had been a sharp decline in welfare
numbers in Milwaukee and surrounding counties. They looked at
25,000 AFDC cases in December 1995 and tracked those that left
AFDC. The Report was entitled 'The Employer Perspective : Jobs
Held by the Milwaukee County AFDC Single Parent Population (January
1996 - March 1997)' - see Appendix 8.
Research had been carried out on women on welfare involving
1,551 (in depth) interviews with women to ascertain what training/support
needs had to be met before they entered the labour market. The
monitoring programme, providing direct contact and support, had
focussed on work ethics, personal skills, parenting skills, even
how to 'dress for success'. It was clear, although perhaps self-evident,
that the most important skills were basic literacy and maths because
without them, virtually no jobs were available. Some needed counselling
because of the high level of drugs, alcohol and violence in their
communities. Technical training for women lacking skills was alos
of crucial importance.
People could be categorised into four broad levels:
| Level 1 | ready for employment
|
| | |
| Level 2 | ready with minimal help
|
| | |
| Level 3 | Barrier to work |
| | |
| Level 4 | Severe, entrenched barriers to work
|
It was clear that the services for the women concerned were
not sufficiently planned and co-ordinated. What was needed for
reforms to work was an effective transport strategy and adequate
child care and, in the wider context, economic growth. Displacement
of jobs needed to be addressed and monitored. Tax credits should
be used as part of an effective strategy.
The issue of child care was the most important issue in welfare
reform and indeed for wider economic prosperity. The current child
care system could be described as being fast, cheap and out of
control. There was a danger of burn-out for people working in
child care. The need for child care forced some people to choose
schools a long way from home so that the long bus ride would provide
child care. Women from various governments and service agencies
had organised meetings to discuss the effects of W2, in particular
the cut-off periods and child care.
It was also important to recognise that race was an important
factor, often unspoken, in the welfare debate. Black people were
seen as 'the other', especially so in the heavily segregated city
of Milwaukee.
18. NEW HOPE
PROJECT, MILWAUKEE
| Mr David Riemer | Director of Administration, City of Milwaukee
|
| Ms Julie Kerksick | Executive Director, New Hope Project
|
Milwaukee's New Hope project had some similarities with the
State-wide W2 project, but also some important differences. Originally,
the New Hope project was a three year experimental programme that
began in August 1994 in two Milwaukee neighbourhoods. The W-2
model helped low-income custodial parents only, whether married
or unmarried, whereas the New Hope project assisted all low-income
adults, including non-custodial parents and non-parents.
Where W-2 offered employment assistance in the form of private
sector job placement, New Hope gave job search assistance. Both
schemes offered community service jobs as a fall-back, but New
Hope aimed to make these jobs as much like real work as possible.
Participants were paid a wage and received a paycheck on which
income taxes were payable (and therefore qualified for an EITC).
In W-2 participants worked off care grants, did not receive a
paycheck and were even paid if they missed work for a 'good cause'.
W-2 was deliberately designed not to qualify for EITC, but
the New Hope project had a different philosophy. New Hope jobs
paid a minimum wage (the W-2 grant was equivalent to the minimum
wage). New Hope was based on the premise that if community service
work was more like the private sector, people were more likely
to make the transition.
Although the State wanted people to move into the private
sector, the State legislature had refused to carry out an evaluation
comparing community service jobs that provide a grant (the basic
W-2 model) with those that pay a wage (the New Hope model) with
respect to which approach does better in producing private-sector
placements. Funds were being sought from an independent foundation
for a study which could randomly refer people to one or other
of the programmes in order to eliminate all other variables.
New Hope had designed an additional earnings supplement to
ensure that the reward from work including wage and EITCs would
be greater than the poverty line. The inter-play of different
Federal and State benefits and costs could impose marginal rates
of withdrawal of 70 per cent more - even up to 200 per cent at
the level of income where food stamps were withdrawn. The New
Hope supplement aimed at a maximum 70 cents in the dollar withdrawal
rate.
Child care vouchers and health care were important components
of both W-2 and New Hope. The State "Badger Care" scheme
was still awaiting Federal approval.
New Hope was a demonstration project run by a voluntary organisation
with strong bipartisan support. The motivation was an attempt
to illuminate the problems of the working poor and to identify
the barriers that prevented people entering the labour market.
There were still some gaps in the New Hope project. For example
those working less than 30 hours a week could lose health benefits.
A degree of job turnover and variation in effect was to be
expected. The New Hope project aimed to understand the labour
market, and to provide more intensive intervention when needed
to bring in people who did not respond at first.
The Committee held small group discussions with individual
claimants.
19. RACINE COUNTY
WORKFORCE DEVELOPMENT
CENTER
| Ms Jean Jacobson | County Executive
|
| Mr Bill Adams | Director, Racine County Human Services
|
| Ms Debbie Jossart | Director, Jobs Center
|
| Mr James Krivsky | Manager, Economic Support Programs
|
| Ms Carole Johnson | President, Gateway Technical College
|
| Mr Gordie Kacala | Director, Racine County Economic Development Corporation
|
| Mr Dennis Winchester | Vice President, Racine Area Manufacturers & Commerce
|
| Ms Ann Henderson | Vice President, Gateway Technical College
|
Racine County, on the edge of Wisconsin State, with a population
of 185,000 and an area of 360 square miles, comprised two cities
and nine towns divided into 31 districts which each selected a
supervisor to the County Board, of which Ms Jacobson was the elected
Executive. The Board's annual budget was $131 million.
The Workforce Development Center was located in a former
manufacturing facility. Its transformation had cost $15 million
as part of the revitalisation of the neighbourhood. It was conveniently
close to the bus lines on which many of its customers depended.
A secure unit for juvenile offenders was situated on the top floor
of the building.
AFDC had been replaced by three TANF programmes. In addition
to W-2, there was also Kinship care - a social work programme
to pay for pseudo foster care by a Good Samaritan relative - and
Caretaker Supplementation which particularly helped disabled individuals.
Part of the decline in AFDC rolls was because of these other programmes.
It was not all attributable to W-2 although the effects had been
dramatic. The fall since 1995 from 3,150 cases to about 950 cases
on the AFDC rolls was mirrored by the fall in the W-2 equivalent
caseload from 2,500 to 350. There had however recently been an
increase in the total caseload taking together childcare, food
stamps and healthcare. The latter had risen by 5 per cent. Part
of the reason was that the available jobs did not include health
cases among the so-called fringe benefits. Childcare comprised
25 to 30 per cent of the caseload in September 1997. The cost
of childcare had been budgeted as $60 million in 1997 and would
rise to $180 million in the 1998 budget.
The Workforce Development Center provided a comprehensive
employment service for all the community. This integrated approach
meant that welfare services were not stigmatised and employers
were keen to use the services to advertise jobs.
The Center replaced Jobservice and other partnerships including
Federal employment and training. It was an important principle
of the Center that staff and funding were combined and not just
co-located. The partnership for full employment model looked to
two groups of customers: jobseekers and employers. The needs of
employers and employees were given equal weight. The system allowed
for people to have as much or as little help as they needed. For
many people the centre was entirely self-service. The centre appeared
very popular with employers and was adding to the buoyant economy
in the area. Most of the reduction in caseload numbers was due
to people getting jobs, although some people might be being supported
by the families while others had left the State. Labour would
continue to be in demand as the workforce was ageing and welfare
workers would be needed to fill the gap. There was however a real
problem with skills shortage.
Racine County was running an experiment in improving relationships
of non-custodial parents with their children. There was a special
initiative working or helping the non-custodial parent to build
a relationship. It was a court ordered programme backed up by
the threat of jail for non-compliance. The initiative was run
as part of the W-2 legislation and contracted out, though not
offered on site.
The Committee then toured the Center, and looked at the
well-appointed creche and the personal computers available for
jobseekers to look for vacancies on the Internet. After the tour
the Committee re-assembled for further discussion.
Racine County, which was close to the State border, used
to experience in-migration of benefit claimants which had now
stopped. There appeared to be a certain amount of out-migration,
judging by the number of calls from other parts of the country
to verify claimants' details. Probably people were moving home
as they were encouraged to rely more on their family.
The local rate of unemployment was 3.8 per cent. The W-2
programme was designed to have the flexibility to respond to the
availability of employment based on economic needs. Projections
of the current patterns of employment indicated a continuing level
of demand as an aging skilled workforce neared retirement. The
State was working on a model to assess the community impact of
the reforms.
Gateway Technical College was helping with privately funded
initiatives to expand the quantity of child care places available.
Childcare payments were made at approved rates direct to the providers.
The Committee had been given a note of the scale of reimbursements
available. The approved rates covered 75 per cent of the places
available.
Crime rates were declining. Empty cells in jail were being
rented out like hotel rooms for paying guests to use as overnight
accommodation.
The W-2 reform did not just suddenly happen. People in the
community had known about it, and had responded by entering the
job market.
The EITC was part of a package of incentives, and could be
paid monthly to the employee. As far as employers were concerned,
getting a good employee was more important to them than qualifying
for tax credits. Companies were desperate for good young workers.
There had been a 5 per cent drop in the 18 to 24 year old cohort
as the baby boom generation dropped out of the baby rearing group.
The number one priority was having an active and available workforce.
The average age of tool and die makers was now 48, and employers
were worrying about how they could attract a new generation of
young skilled workers.
The reforms had been phased in, following welfare reform
activity over the past 10 to 15 years. There had there had been
a 27 month implementation stage. Under the old system, single
mothers in Wisconsin had been required to work when their youngest
child was six years old. The age had been racheted down incrementally.
Other parts of the nation had moved more suddenly, but Wisconsin
had started the process earlier and not moved all at once. Welfare
reform was a still and dynamic process.
Sanctions had been necessary. The caseload had remained steady
at around 3,000 until the past 2 years. The Center's customers
did not have a negative response. Most of them were enthused by
the intensive effort and support put into helping them into self-sufficiency
through work. Another side of the coin could be seen by the County's
Human Services Department, also located in the same building,
who included social workers looking after child welfare. They
had not observed any increase in child abuse or neglect, at any;
rate up to the present time. Experience had shown that most AFDC
recipients did in fact want to go to work.
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