Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - February 14, 2002
Contact: Ken Miller, 360-902-0580
Locke’s move responds to climbing welfare caseloads and more low-income working parents getting help with childcare costs.
“We’re focusing on welfare reform’s core mission of providing services that help struggling parents get and keep a job,” Locke said. “The current national economic recession demands that we remain flexible and shift funding when necessary. In order to keep the safety net intact for the poorest families – and continue childcare subsidies that help parents go to work – we cut back lower priority and less effective programs.”
The increased costs from childcare and welfare grants threaten to exceed available funds by $40-60 million over the next 18 months. The entire budget funding cash grants, childcare, job training and support services is about $900 million a year for WorkFirst, Washington’s welfare-to-work strategy.
The shortfall in the WorkFirst budget is unrelated to the $1.26 billion state general fund deficit. The welfare budget is comprised mostly of earmarked federal funds and the state’s share already is at the minimum required under federal law.
Two developments led to the spending shifts in WorkFirst:
The current statewide TANF caseload stands at 57,000. That reflects 41 percent fewer families on welfare than in 1997.
“It’s a difficult time and we’ve got to make some painful choices,” Locke said. “I have chosen to protect access to childcare for the lowest-income parents by adjusting program requirements and by cutting back on smaller, sometimes experimental programs that were well-intended and worthwhile – but no longer affordable.”
Locke’s revised budget cuts $54 million from WorkFirst projects that either have not started or which have not produced the results that were expected. The budget also cuts programs not closely related to WorkFirst’s core mission of raising family income through employment. Even with these cuts, nearly $20 million more will be available for childcare subsidies next year.
Projects that will be eliminated or scaled back include some community college training programs, post-employment services, alcohol/drug treatment, legal services and transportation. The “Job Success Coach Initiative” will be eliminated. Job coaches give personal guidance and encouragement to newly working clients to help them stay on the job and build a career plan.
Some training programs for childcare providers and efforts to expand care for special-needs and middle-school children also are slated for elimination or reduced funding.
Locke’s spending shifts allow continued access to the childcare subsidy program without capping enrollment or putting families on a waiting list. But to help cover the $300 million annual budget for the program, the state will lower eligibility for the subsidy from the current 225 percent of federal poverty level to 200 percent. The change will affect about 1,000 families with annual earnings between $29,260 and $32,917 for a family of three. They make up about 5 percent of all families receiving the subsidy.
In addition, parents’ financial contributions to their childcare costs will increase by $5 per month. Because these co-payments are based on a sliding scale, they will range from a minimum of $15 per month to approximately $300 per month, depending on income.
WorkFirst is jointly administered by four state agencies – the departments of Social and Health Services and Employment Security, the Washington State Board for Community and Technical Colleges and the Office of Trade and Economic Development.
WorkFirst Budget Reductions
Related Links:
- WorkFirst
- Department of Social and Health Services
- Employment Security Department
- Washington State Board for Community and Technical College
- Office of Trade and Economic Development
FOR IMMEDIATE RELEASE - February 14, 2002
Contact: Ken Miller, 360-902-0580
Gov. Locke adjusts welfare reform spending in response to climbing welfare caseloads
OLYMPIA – Gov. Gary Locke today announced shifts in welfare reform spending to protect the safety net for the poor, ensure a balanced budget and maintain access to childcare for struggling working families.Locke’s move responds to climbing welfare caseloads and more low-income working parents getting help with childcare costs.
“We’re focusing on welfare reform’s core mission of providing services that help struggling parents get and keep a job,” Locke said. “The current national economic recession demands that we remain flexible and shift funding when necessary. In order to keep the safety net intact for the poorest families – and continue childcare subsidies that help parents go to work – we cut back lower priority and less effective programs.”
The increased costs from childcare and welfare grants threaten to exceed available funds by $40-60 million over the next 18 months. The entire budget funding cash grants, childcare, job training and support services is about $900 million a year for WorkFirst, Washington’s welfare-to-work strategy.
The shortfall in the WorkFirst budget is unrelated to the $1.26 billion state general fund deficit. The welfare budget is comprised mostly of earmarked federal funds and the state’s share already is at the minimum required under federal law.
Two developments led to the spending shifts in WorkFirst:
- In August 2001, WorkFirst officials noted that 43,000 families – 2,000 more than expected – were receiving childcare subsidies. That trend alone pointed to a $35 million shortfall in the WorkFirst budget.
- Public assistance caseloads are rising due to the national economic recession. The number of families in Washington receiving Temporary Assistance for Needy Families (TANF, the federal welfare cash grant program) has grown during the last four months. The caseload increased by 500 in October, 450 in November, 1,800 in December and 1,000 in January.
The current statewide TANF caseload stands at 57,000. That reflects 41 percent fewer families on welfare than in 1997.
“It’s a difficult time and we’ve got to make some painful choices,” Locke said. “I have chosen to protect access to childcare for the lowest-income parents by adjusting program requirements and by cutting back on smaller, sometimes experimental programs that were well-intended and worthwhile – but no longer affordable.”
Locke’s revised budget cuts $54 million from WorkFirst projects that either have not started or which have not produced the results that were expected. The budget also cuts programs not closely related to WorkFirst’s core mission of raising family income through employment. Even with these cuts, nearly $20 million more will be available for childcare subsidies next year.
Projects that will be eliminated or scaled back include some community college training programs, post-employment services, alcohol/drug treatment, legal services and transportation. The “Job Success Coach Initiative” will be eliminated. Job coaches give personal guidance and encouragement to newly working clients to help them stay on the job and build a career plan.
Some training programs for childcare providers and efforts to expand care for special-needs and middle-school children also are slated for elimination or reduced funding.
Locke’s spending shifts allow continued access to the childcare subsidy program without capping enrollment or putting families on a waiting list. But to help cover the $300 million annual budget for the program, the state will lower eligibility for the subsidy from the current 225 percent of federal poverty level to 200 percent. The change will affect about 1,000 families with annual earnings between $29,260 and $32,917 for a family of three. They make up about 5 percent of all families receiving the subsidy.
In addition, parents’ financial contributions to their childcare costs will increase by $5 per month. Because these co-payments are based on a sliding scale, they will range from a minimum of $15 per month to approximately $300 per month, depending on income.
WorkFirst is jointly administered by four state agencies – the departments of Social and Health Services and Employment Security, the Washington State Board for Community and Technical Colleges and the Office of Trade and Economic Development.
WorkFirst Budget Reductions
Related Links:
- WorkFirst
- Department of Social and Health Services
- Employment Security Department
- Washington State Board for Community and Technical College
- Office of Trade and Economic Development
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