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AS CONGRESS CONSIDERS REAUTHORIZATION, ACTUAL SUCCESS OF WELFARE REFORM ACT REMAINS UNCLEAR, BARNARD PROFESSOR ARGUES, WARNS LAW MAY HARM RECIPIENTS IN NYC IN WAKE OF SEPTEMBER 11

New York, N.Y., February 28, 2002— Claims of victory in welfare reform are premature according to Barnard College Professor Demetrios James Caraley. While politicians have benefited from the shrinkage in the welfare rolls, he says that many former recipients may actually be in worsened financial situations.

In addition, cuts to the number of people receiving cash assistance may create major problems for cities like New York. With a growing number of people on assistance who are unable to work because of health or other limitations, the city faces a potential crisis. When these people reach the time limits for assistance, they will fall even deeper into poverty, a circumstance exacerbated by the loss of jobs after September 11 and reflected in the growing number of the city’s homeless, Caraley says.

In the article in the Winter 2001-2002 issue of Political Science Quarterly, "Ending Welfare As We Know It: A Reform Still in Progress," Caraley addresses the Personal Responsibility & Work Opportunity Reconciliation Act (PRWORA) of 1996, which ended Aid to Families with Dependent Children and capped a recipient’s lifetime cash assistance at five years.

Since PRWORA’s passage, there has been a 40 percent drop (from 12.6 to 7.2 million recipients) in the average monthly number of people receiving cash assistance, which some legislators say is proof that the reform is a success.

But it is unclear how many people have left welfare only to attain low-paying jobs without benefits, he argues. Shrinking the rolls does not equal success, he argues; rather, that depends on whether the drop "represents actual gains in financial independence through the acquisition of good jobs."
He also points out that the number of women-headed families with children on the rolls has dropped only 20 percent, from 12.6 million to 10.1 million, over the same time period.

Rather than assuming all those off the rolls are now gainfully employed, Caraley points to three distinct outcomes for former welfare recipients: some people were "jolted out of their laziness and got normal employment"; others attained low-paying, low-skill jobs and temporarily left welfare but are likely to return to it because they will be unable to support themselves; and others have not been able to find and maintain jobs, so they are now in deeper poverty.

To combat these problems, Caraley suggests a variety of reforms including increased childcare funding, mandatory job training and job retention training, and reforming the ways in which time limits are handled in different states. For example, in 2001 he notes, Connecticut began counting even a single day on cash assistance as equal to one month toward an individual’s time limit.

While the truly needy and disabled welfare recipients may be suffering under the reforms, Caraley points out that politicians have been clear winners. Clinton was able to claim bipartisan policy success and to "take credit for the widely popular reform of an almost universally unpopular program." Governors also received $16.5 billion in block grants which they are able to spend largely at their own discretion. Though it is frowned on by Congress, many governors have used funds to pay for existing state programs, thereby freeing parts of the budget for tax cuts and other uses popular with voters.

Caraley is Professor of Political Science and the Janet H. Robb Professor of Social Sciences at Barnard College in New York City, an independent college for women affiliated with Columbia University. His research focuses on urban policy-making and government, congress, democratic political theory, and policy analysis. Caraley holds a B.A. and Ph.D. from Columbia University. His recent publications include: Critical Issues for Clinton's Domestic Agenda, Doing More With Less: Cutback Management in New York City, and City Governments and Urban Problems.

Contact: Laura Whitlock ’03, Office of Public Affairs, lw251@barnard.edu
Demetrios James Caraley, Dept. of Political Science, dc121@columbia.edu, 212-854-2158


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