Understanding CalWORKs - California Center for Research on ...

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<strong>CalWORKs</strong> Grant CutThe maximum monthly grant <strong>for</strong> a family of three wasreduced in July 2009 from $723 to $694 (the sameamount that was provided in 1989). When adjusted <strong>for</strong>inflation, a <strong>CalWORKs</strong> grant in 2009 was worth only54.2 percent of its value 20 years ago.Source: <strong>Cali<strong>for</strong>nia</strong> Budget Project. (2009). Uncharted waters:Navigating the social and economic context of <strong>Cali<strong>for</strong>nia</strong>’s budget.Retrieved from: http://www.cbp.org/documents/090311_unchartedwaters_signedbudget.pdfMost striking <strong>for</strong> this period is the 48 percent increase intwo-parent families on <strong>CalWORKs</strong>. During the same time,one-parent families increased by 18.2 percent, child-onlycases by 14.6 percent, timed-out cases by 8.1 percent, andSafety Net cases by 5.8 percent. The spike in two-parentfamilies applying <strong>for</strong> aid is attributed to job layoffs orreductions in hours <strong>for</strong> one or both parents. 25State Budget CutsIn 2009, there were significant budget cuts to <strong>CalWORKs</strong>.• The February 20, 2009 budget agreement (SB3X 6)reduced <strong>CalWORKs</strong> grants by 4 percent, <strong>for</strong> areduction of $146.9 million in FY 2009-10. 26• The February budget agreement also suspended theJuly 2009 cost-of-living adjustment (COLA) <strong>for</strong><strong>CalWORKs</strong> grants, <strong>for</strong> a reduction of $79.1 million(a COLA was last granted in 2004).• The FY 2009-10 budget (enacted July 2009) cutsapproximately $528 million from the <strong>CalWORKs</strong>program, of which $375 million was from the countysingle allocation. 27• The FY 2009-10 budget agreement also permanentlyeliminated the statutory COLA <strong>for</strong> <strong>CalWORKs</strong>grants, effective July 2010. 28Challenges Faced by CountiesCounty advocates highlight a number of challenges in themanagement and implementation of <strong>CalWORKs</strong>:• The TANF block grant from the federal governmentcontinues to be based on 1996 funding levels.• The DRA of 2005 increased requirements <strong>for</strong>reporting <strong>CalWORKs</strong> outcomes (e.g., monthlycaseload reviews and work verificationdocumentation), but did not provide additionalfunding to meet those goals.• Since 2001, state funding that covers counties’ actualoperating costs to administer human servicesprograms, or the “cost of doing business” (e.g.,wages/benefits, rent/utilities, inflation), has beenfrozen, creating an estimated annual $1 billioncounty human services funding deficit. At a timewhen local revenues are declining, counties mustnow spend more of their own local funds tomaintain services.*• The hardest-to-serve clients, who have remained inthe program, have more barriers to employment andrequire more resources to address those barriers.• Budget cuts in mental health and substance abusetreatment services have left some <strong>CalWORKs</strong>participants without sufficient support to enablethem to participate in the program.• A younger applicant population with no marketableskills is applying <strong>for</strong> <strong>CalWORKs</strong>, requiring countiesto redesign operational procedures to meet theirunique needs.• Highly skilled middle-class workers who have beenlaid off are coming onto welfare <strong>for</strong> the first time,and counties are having to adjust <strong>CalWORKs</strong>orientations, job search curricula and other servicesto meet their needs.• There is limited training available <strong>for</strong> county staffto acquire the new skills they need to work withnew populations.*County Welfare Directors Association of <strong>Cali<strong>for</strong>nia</strong> and <strong>Cali<strong>for</strong>nia</strong>State Association of Counties. (2009). Human services in a time ofeconomic crisis. An examination of <strong>Cali<strong>for</strong>nia</strong>’s safety-net programsand related economic benefits <strong>for</strong> communities. Retrieved from:http://www.cwda.org/publications/chhs.phpSources: Personal Communications: December 18, 2009, K. Harwell,Community Services Agency, Stanislaus County; December 7, 2009, A.Dodson, <strong>Cali<strong>for</strong>nia</strong> Welfare Directors Association; December 10, 2009, D.Ladd, Employment and Eligibility Branch, <strong>Cali<strong>for</strong>nia</strong> Department ofSocial Services.36 www.ccrwf.org
Impacts on County Service DeliveryIncreased Costs <strong>for</strong> GrantsRising caseloads lead to increased grant expenditures, andcounties are responsible <strong>for</strong> 2.5 percent of all aid payments.This increased cost comes at a time when local discretionaryrevenue has been significantly impacted due to decreases inlocal sales tax and property tax revenues.Cuts to County ServicesIn 2009, over one-fourth of counties reported reducing theirWTW services. Cutbacks occurred in employment training,job search, career education, and job placement services,along with program service reductions in domestic abuseprevention, learning disability and psychiatric evaluations,and substance abuse treatment. Some counties have reducedor eliminated assistance to families who are homeless or atrisk of homelessness. 29About 20 percent of <strong>Cali<strong>for</strong>nia</strong> counties have closed officesites or reduced office hours, further decreasing access toservices. 30 Hiring freezes and furloughs have reduced stafflevels, creating long delays in handling the increased volumeof applications <strong>for</strong> services.Between FY 2004-05 and FY 2007-08, counties cut $37million in contracts with community-based partners thatprovide substance abuse treatment, job training, and otherservices to WTW participants. 31 Statewide surveys ofcounties in late 2008 and early 2009 indicated a sharp risein demand <strong>for</strong> other health and human services <strong>for</strong> which<strong>CalWORKs</strong> recipients are eligible, notably Food Stamps,Medi-Cal, and homeless assistance. 32EVALUATING THE SUCCESSOF <strong>CalWORKs</strong>When <strong>CalWORKs</strong> was launched in <strong>Cali<strong>for</strong>nia</strong> in 1998,CDSS contracted with the RAND Corporation as part ofthe Statewide <strong>CalWORKs</strong> Evaluation to monitor theprogram’s success and impacts. RAND subsequentlyconducted multi-year evaluation studies, with reportsreleased from 1998 to 2004. Early evaluation studies foundincreased employment and earnings among <strong>for</strong>mer<strong>CalWORKs</strong> participants who received post-employmentservices during the first two years of follow-up. 33Since 2004, <strong>Cali<strong>for</strong>nia</strong> has not had the funding to invest insubstantive program evaluation. Consequently, policymakersand program managers have limited evaluation data availableto assess the current program.*Conclusions from National EvaluationsTaken together, national evaluations conducted duringthe first decade of welfare re<strong>for</strong>m reached the followinggeneral conclusions:• Many TANF recipients obtained employment andleft the program;• Most families who exited TANF <strong>for</strong> work had lowearnings and were not able to increase their wagessignificantly over time; and• Many families unable to obtain stableemployment face serious and numerous barriers.Source: Parrott, S., Schott, L., et al. (2007). Implementing the TANFchanges in the Deficit Reduction Act: “Win-Win" solutions <strong>for</strong> familiesand states. <strong>Center</strong> on Budget and Policy Priorities and <strong>Center</strong> <strong>for</strong> Lawand Social Policy. Retrieved from: http://www.clasp.org/admin/site/publications/files/0339.pdfExamples of questions that lack statewide evaluationdata include:• Do <strong>CalWORKs</strong> recipients benefit from theprogram – and if so, how?• Are <strong>CalWORKs</strong> work preparation activities buildinglong-term, marketable skills?• Do sanctions compel compliance or make it moredifficult <strong>for</strong> clients to stabilize their lives?Basic research on <strong>CalWORKs</strong> has also been cut. The WelfarePolicy <strong>Research</strong> Project at the <strong>Cali<strong>for</strong>nia</strong> Policy <strong>Research</strong><strong>Center</strong>, University of <strong>Cali<strong>for</strong>nia</strong> at Berkeley, was responsible<strong>for</strong> research and data collection on <strong>CalWORKs</strong> until recentstate budget cuts eliminated the program.* The state of Minnesota has conducted significant research on a welfare-to-work model that has many parallels to <strong>CalWORKs</strong>. Like <strong>CalWORKs</strong>, theMinnesota model combined work-focused activities and financial incentives, such as the earned income disregard. A long-term evaluation of theMinnesota program found improved family earnings, reduced poverty, and increased child well-being, including better school per<strong>for</strong>mance and fewerbehavioral problems. More in<strong>for</strong>mation can be retrieved from: http://www.mdrc.org/publications/411/full.pdfwww.ccrwf.org37
Page 2: Kate Karpilow, Ph.D.Executive Direc
Page 7 and 8: Family FormationTANF includes polic
Page 9 and 10: Child-Only CasesChild-only cases ar
Page 11 and 12: THE CALIFORNIAPROGRAMTwo recent wav
Page 13 and 14: Table 2: Region 1 CountiesAlamedaCo
Page 15 and 16: Table 4: Comparison of Federal and
Page 17 and 18: • age 60 or older;• disabled;
Page 19 and 20: When a family, without good cause,*
Page 21 and 22: PUBLIC AND PRIVATE AGENCIESCounties
Page 23 and 24: local One-Stop employment centers,
Page 25 and 26: Plans include:• activities and se
Page 27 and 28: CalWORKs legislati
Page 30 and 31: Congress under ARRA. In FY 2010-11,
Page 32 and 33: MENTAL HEALTH ANDSUBSTANCE ABUSE SE
Page 34 and 35: PROFILE OF CalWORKs</strong
Page 36 and 37: Other Issues Among CalWORKs
Page 40 and 41: CHILDREN and SERVICESIncrease in Ch
Page 42 and 43: 13 Ibid.14 Califor<
Page 44: About CCRWFThe Cali

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