SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 644 words

COMMITTEE: HOUSE WAYS AND MEANS

HEADLINE: WELFARE TIME LIMITS AND WORK REQUIREMENTS

TESTIMONY-BY: BENJAMIN L. CARDIN,, REPRESENTATIVE IN CONGRESS FROM THE

AFFILIATION: STATE OF MARYLAND

BODY:
Opening Statement of

Benjamin L. Cardin, a Representative in Congress from the State of Maryland

Hearing on Implementation of Welfare Reform Work Requirements and Time Limits

March 7, 2002

Mr. Chairman, over the last six years, the percentage of welfare recipients who are working has tripled. Furthermore, the percentage of never-married mothers who are working has climbed from less than 50% to almost 70%. Many of the women in this group have left welfare for work. Obviously the strength of the economy over the last eight years, plus the work supports enacted by Congress over the last decade, especially the increase in the Earned Income Tax Credit, have substantially contributed to this trend. But I believe that welfare reform also has played a positive role in raising employment levels. Interestingly, States have managed to achieve this progress without massive work participation requirements coming from Washington. As we have heard before, and will hear again today, the caseload reduction credit greatly reduced or eliminated the Federal participation rates under TANF for every State.

This raises a key question. If welfare reform has been successful in promoting work without Federal work participation requirements,

why does the Administration believe that much stricter Federal requirements are now central to the continued success of welfare reform?

I do not have a problem with replacing the current caseload reduction credit with an employment credit. In legislation that I introduced earlier this year, I proposed just such a change in order to reward States for helping people leave welfare for work, rather than simply exiting the rolls. However, I am concerned that drastically increasing the work participation rates and hours on the States, as proposed by the Administration, could actually have a harmful impact on the States efforts to move welfare recipients into real jobs.

Forcing States to focus time, money and effort on enrolling welfare recipients in unpaid, short-term work experience programs could distract them from their efforts to move welfare recipients into long-term, wage-paying jobs. For example, States could be forced to cut child care assistance for former welfare recipients and the working poor in order to pay for the day care costs of participants in workfare programs, especially since the Administration's plan does not include a single dime of new money for child care.

Furthermore, research suggests that unpaid work experience programs are not particularly beneficial in promoting long-term employment compared to other activities. For example, a study conducted by the University of Washington found that State's workfare program was less effective in boosting future earnings of welfare leavers compared to vocational training or even simple job search activities.

Perhaps that is one of the reasons that so few States have implemented workfare programs over the last six years. I do not see any reason why the Federal government should demand they do so now.

Finally, before I conclude, let me say a word about the five-year limit on TANF benefits. I believe that time limits send an important and necessary message to welfare recipients, namely that they need to take responsibility for their lives and attempt to move toward self-sufficiency.

But once an individual heeds that call, and they begin working and doing everything else we are asking of them, I believe States should have the flexibility to provide a wage subsidy to that person with TANF funds, without that assistance counting toward the individual's time limit. Considering that many welfare recipients may find low-wage, less-than-full-time employment, we should not discourage States from providing wage supplements to make work pay and to help working families escape poverty.

Thank you.



LOAD-DATE: March 13, 2002