(WASHINGTON, D.C.) – Montana's Senator Max Baucus today passed out of his Finance Committee a bipartisan bill drafted by Senators John Breaux (D-La.) and Orrin Hatch (R-Utah) to overhaul America's welfare system by providing an additional $5.5 billion for child care so parents can stay off welfare and continue working.
Baucus, who as chairman of the Finance Committee has jurisdiction over welfare, passed out of his committee a bill that provides the additional child care money and builds on Montana's successful program that helps move people from welfare to work. Senate Majority Leader Tom Daschle, a member of the Finance panel, did not vote for the moderate bill, which also was supported by Republican Senators Frank Murkowski of Alaska and Olympia Snowe of Maine.
In 1996, Baucus voted to reform welfare by establishing the Temporary Aid for Needy Families (TANF) program, which limited the time that individuals could stay on welfare and placed an emphasis on moving individuals from welfare to work. This new measure would renew the TANF program and set the nation's welfare policies for the next five years.
"This bill is a first step in renewing and improving welfare so that the needy move from welfare to work," Baucus said. "The bill we passed today can and will be improved, and provides an additional $5.5 billion for child care so that parents can be sure their children are safe and secure when they go to work. And I'll work together with my Senate colleagues and the administration to pass a bill that does what's right for Montana and makes sure we can move people from welfare to work."
Baucus said he also is focusing on improving Montana's economy so that those on welfare can find good-paying jobs.
"I'll use my top priority of creating good-paying jobs and boosting Montana's economy to promote the good things Montana has done to help folks move off welfare and into jobs," Baucus said. "And as Finance Committee chairman I'll make sure that any welfare reform we pass is right for Montana."
Baucus noted that the 1996 welfare reform law by and large has worked well. In Montana, for instance, welfare caseloads declined more than 50 percent since welfare was reformed in 1996 through 2001. In 2000, 68.2 percent of Montana welfare recipients were involved in work activities. This rate was more than double the national average and placed Montana fifth out of all 50 states in work participation.
"But, despite our success, there is still more to be done," Baucus said in outlining his bill today. "President Bush put it well. While we are encouraged by the initial results of welfare reform, we are not content. After all, the goal is not simply to 'end welfare as we've known it.' Rather, as the President put it, the ultimate goal is to reach a 'post-poverty America.' So there's more to be done."
Baucus noted that his bipartisan bill will:
∙ Provide $5.5 billion in child-care grants over five years to ensure that those on welfare who find jobs can afford child care on a consistent basis. That funding will help states provide child care coverage to an additional 100,000 kids each year. "If we want to make a lasting difference, we need to provide some further help with child care, health care, and the other things that will help parents stay off welfare and in the job market," Baucus said.
∙ Strengthen and refine the work requirements. Drawing on the President's proposal, the Baucus bill increases the required work participation rates from 50 percent to 70 percent by 2007. The measure also increases the "base" work requirement from 20 to 24 hours per week. It requires states to implement "universal engagement" procedures to ensure every welfare recipient has a plan for leaving welfare for self-sufficiency and is following through on that plan.
∙ Allows recipients to participate in up to two years of vocational training, including community college programs that lead to an employment-related certificate.
∙ Continues transitional Medicaid coverage and simplifies its procedures so that those who leave welfare for work don't lose health coverage. The measure also gives states some additional flexibility and additional resources so they can continue and expand their creative work.
∙ Provides new resources to tribal governments, including a $75 million "Tribal TANF Improvement Fund." This is particularly important for Montana, Baucus said. In Montana about half of TANF recipients are Indians and reservations continue to struggle economically. "It's tough to go from welfare to work, when there simply isn't any work," Baucus said. "We need to do better and this proposal is a start."
"This bill is not perfect," Baucus said. "But I believe it reflects a reasonable middle ground among many competing perspectives. On the whole, it strikes a balance. We raise the bar, we keep costs moderate and we maintain state flexibility."