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THE STATE OF AMERICA'S CHILDREN YEARBOOK ]998 meet work requirements or follow various other program rules, such as signing a personal responsibility contract. About two-thirds of states will terminate cash benefits for the whole family if a parent does not participate in work activities, even though federal law mandates only a cut in assistance. In the second quarter of 1997, failure to comply with program rules accounted for about 40 percent of all cases closed, and one in five states cited noncompliance as the reason for closing more than half of the cases. A May 1997 study from the General Accounting Office (GAO) reported on benefit terminations in states operating welfare demonstration programs before the new law was implemented. These terminations involved losses ofassistance not because of time limits, which had not yet taken effect, but because of penalties for noncompliance. Of 18,OqO terminations in 33 states, 13,000 occurred in just three-Iowa, Massachusetts, and Wisconsin. Ofthe Massachusetts families who lost aid, only 48 percent received income afterward from the three most common sources of cash income: earnings, pensions, or child support. Only 23 percent specifically had earnings, which could have been generated by anyone in the household, not necessarily the parent. It is worth noting that about halfofthese 23 percent had income from earnings before leaving welfare, combining cash aid.with low wages. That is, only a little more than one in 10 actually moved from welfare to new earnings, whether their own or someone else's. These findings do not encourage optimism that children and families will rise out of poverty when they leave welfare. In the rush to reduce caseloads, states have in some cases been too quick to terminate benefits when families are really complying with the rules. When Wisconsin began implementing its welfare changes in late 1996 and early 1997, about half the appeals for restoration of benefits were successful. In other states, such as South Dakota and Tennessee, anecdotal evidence suggests that some parents who have sought outside help after losing assistance have had their benefits restored. When families do not follow the rules, early evidence indicates there are factors making compli- ance difficult. Minnesota asked its welfare case managers to assess whether their clients who had been receiving aid for at least two years had any of a long list of "barriers to employment": illiteracy, physical or mental disability, substance abUSe, experience of family violence, and so forth. They found that 34 percent of the caseload had at least one of those barriers, and 16 percent had more than one. Among families penalized for noncompliance, however, barriers to employment were far more prevalent-between two-thirds and threequarters of the families had at least one. And not surprisingly, mothers suffering from depression, caring for a child with a disability, or trying to escape from an abusive partner were more likely to miss appointments or work or to refuse to cooper: ate in establishing paternity. Time limits. About three-quarters of the states have set a lifetime limit of 60 months on benefits-the maximum allowable using federal TANF funds. Eleven of these states have chosen shorter time limits followed by periods of ineligibility, but families are allowed to accumulate 60 months of benefits in a lifetime. (For example, benefits may be collected two years out of every five, up to a cumulative maximum of five years.) Another nine states have opted for lifetime limits short!,:r than five years. (See box l.l for more details.) Although federal dollars cannot be used for aid to families beyond the 6Q-month lifetime limit (with 20 percent of the caseload allowed to be exempt), some states have established exempt categories offamilies and have committed state dollars to pay for their benefits. For instance, Illinois and parts of Maine are using state funds to provide cash aid in every month that families work at wages low enough to qualify for partial assistance. These months therefore do not count toward the time limit. New Jersey gives state-funded benefits to families with an incapacitated parent or primary caregiver. Maine and Wyoming assist families in which the parent or caregiver is pursuing education or training, including postsecondary study. In marked contrast to the states that have sought to preserve aid to certain families, Indiana 8 CHILDREN'S DEFENSE FUND

FAMILY INCOME Box 1.1 W.lfare TI•• U......... Ch.I._ e 1996 welfare law allows recipients ofTemporary Assistance for Needy Families (TANF) to ~ collect federally funded benefits for a maximum of 60 months. States can, however, use state funds or waivers to extend benefits; they can also set shorter lifetime limits and/or restrict the number of consecutive months during which recipients may collect assistance. About three-quarters of all states have chosen lifetime limits of 60 months, although some impose earlier restrictions, as detailed below. Time triggers for states are as follows: • 12 months: TextlS (with no statutory lifetime limit) restricts aid to 12, 24, or 36 months for adults, depending on work experience and education, followed by 60 months ofineligibility for the adult; makes exceptions in cases ofhardship. • 18 months: Tennessee (with a 6O-month lifetime limit) restricts aid to 18 consecutive months followed by three months of ineligibility, with countywide extensions when unemployment is twice the state average. • 21 months: Connecticut sets a 21-month lifetime limit, with extensions possible. • 24 months: Arkansas and Idaho set 24-month lifetime limits. Arizona (with a 6Q.month lifetime limit) restricts aid to 24 of 60 months for adults, with extensions possible; families receive reduced aid after 24 months. Florida (with a 48-month lifetime limit) restricts aid to 24 of 60 months, or 36 of 72 for long-term recipients and parents under age 24 with poor job skills. Illinois (with a 6Q.month lifetime limit) restricts aid to 24 cumulative months for families whose youngest child is 13 or older, followed by 24 months of ineligibility. Indiana sets a 24-month lifetime limit for adults in state work programs, with extensions possible; after adults lose aid, families receive reduced benefits until the 6Q.month lifetime limit is reached. Louisiana (with a 6Q.month lifetime limit) restricts aid to 24 of 60 months. Massachusetts (with no lifetime limit) restricts aid to 24 of 60 months. Nebraska (with no lifetime limit) restricts aid to 24 of48 months, with extensions possible. Nevada (with a 6Q.month lifetime limit) restricts aid to 24 months followed by 12 ofineligibility. North Carolina (with a 6Q.month lifetime limit) restricts aid to 24 cumulative months, followed by 36 of ineligibility; allows variation in pilot counties. Oregon (with no lifetime limit) restricts aid to 24 of84 months. South Carolina (with a 6Q.month lifetime limit) restricts aid to 24 of 120 months. Virginia (with a 6Q.month lifetime limit) restricts aid to 24 months, followed by 12 of Medicaid, child care, and transportation aid, followed by 24 of ineligibility. • 36 months: Missouri sets a 36-month lifetime limit for adults who have completed self-sufficiency agreements, after which the family may receive reduced benefits until the 6Q.montb lifetime limit is reached. New Mexico sets a 36-month lifetime limit. Ohw (with a 6Q.month lifetime limit) restricts aid to 36 cumulative months followed by 24 months ofineligibility, with extensions possible. Utah sets a 36-month lifetime limit, with extensions possible for part-time workers. • 48 months: Delflware sets a 48-month lifetime limit. Georgia sets a 48-month lifetime limit for household heads and spouses; reduces benefits to others after 48 months. (continued on the following page) CHILDREN'S DEFENSE FUND 9

FAMILY<br />

INCOME<br />

Box 1.1<br />

W.lfare TI•• U......... Ch.I._<br />

e 1996 welfare law allows recipients ofTemporary Assistance for Needy Families (TANF) to<br />

~<br />

collect federally funded benefits for a maximum of 60 months. States can, however, use state<br />

funds or waivers to extend benefits; they can also set shorter lifetime limits and/or restrict the<br />

number of consecutive months during which recipients may collect assistance. About three-quarters<br />

of all states have chosen lifetime limits of 60 months, although some impose earlier restrictions,<br />

as detailed below.<br />

Time triggers for states are as follows:<br />

• 12 months: TextlS (with no statutory lifetime limit) restricts aid to 12, 24, or 36 months for<br />

adults, depending on work experience and education, followed by 60 months ofineligibility for<br />

the adult; makes exceptions in cases ofhardship.<br />

• 18 months: Tennessee (with a 6O-month lifetime limit) restricts aid to 18 consecutive months<br />

followed by three months of ineligibility, with countywide extensions when unemployment is<br />

twice the state average.<br />

• 21 months: Connecticut sets a 21-month lifetime limit, with extensions possible.<br />

• 24 months: Arkansas and Idaho set 24-month lifetime limits. Arizona (with a 6Q.month lifetime<br />

limit) restricts aid to 24 of 60 months for adults, with extensions possible; families receive<br />

reduced aid after 24 months. Florida (with a 48-month lifetime limit) restricts aid to 24 of 60<br />

months, or 36 of 72 for long-term recipients and parents under age 24 with poor job skills.<br />

Illinois (with a 6Q.month lifetime limit) restricts aid to 24 cumulative months for families<br />

whose youngest <strong>child</strong> is 13 or older, followed by 24 months of ineligibility. Indiana sets a<br />

24-month lifetime limit for adults in state work programs, with extensions possible; after adults<br />

lose aid, families receive reduced benefits until the 6Q.month lifetime limit is reached. Louisiana<br />

(with a 6Q.month lifetime limit) restricts aid to 24 of 60 months. Massachusetts (with no<br />

lifetime limit) restricts aid to 24 of 60 months. Nebraska (with no lifetime limit) restricts aid<br />

to 24 of48 months, with extensions possible. Nevada (with a 6Q.month lifetime limit) restricts<br />

aid to 24 months followed by 12 ofineligibility. North Carolina (with a 6Q.month lifetime limit)<br />

restricts aid to 24 cumulative months, followed by 36 of ineligibility; allows variation in pilot<br />

counties. Oregon (with no lifetime limit) restricts aid to 24 of84 months. South Carolina (with<br />

a 6Q.month lifetime limit) restricts aid to 24 of 120 months. Virginia (with a 6Q.month lifetime<br />

limit) restricts aid to 24 months, followed by 12 of Medicaid, <strong>child</strong> <strong>care</strong>, and transportation<br />

aid, followed by 24 of ineligibility.<br />

• 36 months: Missouri sets a 36-month lifetime limit for adults who have completed self-sufficiency<br />

agreements, after which the family may receive reduced benefits until the 6Q.montb<br />

lifetime limit is reached. New Mexico sets a 36-month lifetime limit. Ohw (with a 6Q.month<br />

lifetime limit) restricts aid to 36 cumulative months followed by 24 months ofineligibility, with<br />

extensions possible. Utah sets a 36-month lifetime limit, with extensions possible for part-time<br />

workers.<br />

• 48 months: Delflware sets a 48-month lifetime limit. Georgia sets a 48-month lifetime limit for<br />

household heads and spouses; reduces benefits to others after 48 months.<br />

(continued on the following page)<br />

CHILDREN'S DEFENSE FUND 9

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