Temporary Cash Assistance and Welfare

Can Welfare Reform Work for Maryland?

May 2002

The federal welfare reform law expires on September 30, 2002, and therefore must be "reauthorized" by Congress. Reauthorization proposals that have been introduced would have a significant impact on Maryland and low-income Maryland families. Therefore, it is important for individuals and organizations who are concerned with state issues to be informed about this federal debate. This Maryland Policy Report provides information on several key policy issues under consideration.

Among the highlights:

Proposals by President Bush and Rep. Wally Herger would institute substantial new requirements on states and parents.

The work requirements in the Bush and Herger proposals may be unattainable for Maryland. The state would have to require virtually all adult recipients to participate in work activities for 40 hours per week.

The 40-hour requirement for parents would be difficult to achieve. Because the 40 hours would be spread across several activities, such as part-time work, vocational education, job search, community service, and treatment for a mental or physical impairment, meeting the requirement would be more difficult than having a 40 hour a week job. Managing transportation logistics (most recipients do not have cars) and getting young children to and from child care will require parents to be away from home significantly more than 40 hours in a week.

Failure of the state to meet the increased work requirements would result in millions of dollars in lost federal support and at the same time mandate millions of dollars of increases in state and local spending.

The Bush and Herger proposals provide no additional funding to pay for the required activities. Nor do they include additional funding for support services such as child care, even though the mandates in the law may result in an additional $20 million in child care costs once the work requirements are fully phased in.

A proposal by Maryland Rep. Ben Cardin would also require the state to place more recipients in work activities. However, the requirements in Cardin's proposal are more attainable for both states and parents. Further, Cardin's proposal increases federal and state funding to reflect inflation, provides more bonus, supplemental and grant funding for states, and more than doubles mandatory funding for the federal Child Care and Development fund.

As this Maryland Policy Report describes, some increase in state work requirements is warranted. In addition to providing reasonable work goals for states and parents, federal reforms also should include increased federal funding to help pay for the mandated programs and the subsequent child care and other support service needs.

Finally, reforms need to recognize that the families who are being served all have very low-incomes, often have pre-school aged children, lack transportation, and may have multiple barriers to full-time participation in the labor market. Prescriptive mandates from the federal government may limit Maryland's ability to address the individual needs of these parents. --MBTPI

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