” Coalition of California Welfare Rights Organizations, Inc. 1901 Alhambra Blvd. Sacramento CA 95816 (916) 736-0616 (916) 736-2645 (fax) (916) 712-0071 (cell) CCWRO Welfare News CCWRO is an IOLTA funded support center serving IOLTA legal services programs in California. Types of Services Offered: Litigation, Co-Counseling, Fair Hearing, Representation, Consultation, Informational Services, Research Services, In-Depth Consultation and Welfare Training. Programs Covered: CalWORKs, Welfare to Work (WtW), Food Stamps, Media Cal, General Assistance & Refugee\/Immigrant Eligibility. Refugee\/Immigrant Eligibility. All Rights Reserved. Contributors: Kevin Aslanian, Grace Galligher, and Diane Aslanian. http:\/\/www.ccwro.org August 11, 2014 Issue #2014-08 Analysis of the Expanding Opportunities in America by Representative Paul Ryan Children and Families Con’t on page 2 On July 26, 2014, Representative Paul Ryan (Republican from Wisconsin) unveiled his plan entitled Expanding Opportunity in America . The plan would block grant various programs includ- ing SNAP and the Housing Assistance Program. This allows states to use the funds as they see fit. However, for the poor to receive benefits, families would have to enter into a so-called contract that contains work requirements and severe sanctions\/penalties that often result in economic child abuse . The Ryan Plan Falsely Presumes That Safety Net Programs Discourage Work The following programs would be block-granted: SNAP-Food Stamps – CalFresh TANF-AFDC-CalWORKs Section 8 Housing Choice Voucher Program Section 521 Rural Rental Assistance Section 8 Project-Based Rental Assistance Public Housing Capital and Operating Funds Child Care Development Fund Weatherization Assistance Program LIHEAP Community Development Block Grant WIA Dislocated Workers 0 50,000 100,000 150,000 200,000 250,000 Civilian nonins\/tu\/onal popula\/on Civilian labor force The Fundamental Problem that the Ryan Plan Overlooks is the Fact 1. Number of People in the USA Who Want to Work — 248,023 million 2. Number of Jobs in the USA – 156,023 million 3. SAD FACT: 156,023 jobs for 248,023 people. The plan is predicated on a long held FALSE propaganda piece of the far right that a family of three receives $25,000 a year from various govern- ment benefit programs. Representative Ryan compares the phantom $25,000 a year received by a welfare family to a family of three earning minimum wage that yields $15,000 a year. He concludes that beneficiaries receiv- ing $25,000 from safety net programs refuse to work minimum wage jobs because they will lose $10,000 a year. We challenge Mr. Ryan to find welfare families of three receiving benefits in the amount of $25,000 a year. According to Mr. Ryan, the $25,000 a year number assumes that a welfare family of three receives benefits from every governmental program in all, 92 programs. That assumption is sim- ply wrong. Most of these programs do not have open-ended funding. A clas- Source: Department of Labor http:\/\/budget.house.gov\/ http:\/\/budget.house.gov\/uploadedfiles\/expanding_opportunity_in_america.pdf http:\/\/www.bls.gov\/news.release\/empsit.t01.htm CCWRO Welfare News August 11, 2014 #2014-08 Page 2 Con’t on page 3 sic example is housing assistance; not every TANF recipient receives Section 8 housing assistance. Mr. Ryan and his staffers should have found this out during the time he spent last year traveling the county- learning from people fighting poverty on the front lines. Ryan Asserts that the Temporary Assistance for Needy Families Program Helps Poor Families And Reduces Poverty Ryan’s plan uses the ill-conceived Temporary As- sistance for Needy Families (TANF) block grant as an example of success. What he fails to disclose is the fact that while TANF’s predecessor, AFDC, 70% of the funds were used to assist poor fami- lies and only 30% as assistance to state and local officials . TANF reversed that on its head. TANF allows the use of 70% of the funds for state and local officials while a meager 30% is used to house and clothe needy families. TABLE #1 reveals how TANF resulted in less money for the needy families and children of America and loads of money for the state and local officials. Since the inception of TANF, the State of Califor- nia under Republican and Democratic governors have used over $12 billion from TANF\/TANF MOE to fund programs that are not means tested for impoverished families. The same is true for most states TANF has been godsend for many governors and state legislatures who fleece the TANF program without shame. Moreover, Mr. Ryan alleges that TANF has reduced poverty by asserting the poverty rate was 55% in 1992 under the AFDC Program and it was 39% in 2000. TANF was implemented in 1998-1999. Immediately prior to TANF’s implementation, the poverty rate was 29.9% in 1998. In 2012 the pov- erty rate was 30.9%. Moreover, TABLE #2 reveals that TANF has resulted in increased poverty for women with kids. The Ryan Plan Would Impose Accountability The plan would force the hungry and\/or homeless to sign a contract agreeing to meet measurable benchmarks for success as defined by the state and local welfare officials. Calling this instrument a contract reveals the true nature of Ryan’s intent. A contract is a product of a bargain between two (2) equal parties that can be in writing or orally. A starving family is not an equal party to a welfare department worker. A starving family cannot sanction the state and county officials for violating Year Total AFDC Expenditures Payments to Families Percentage of Total Payments Used for Families 1975 $9,494 ,000 $8,412,000 89% 1976 $10,745,000 $9,676 ,000 90% 1977 $11,565,000 $10,388 ,000 90% 1978 $11,839 ,000 $10,591 ,000 89% 1979 $12,129,000 $10,779,000 89% 1980 $13,435,000 $11,956 ,000 89% 1981 $14,493,000 $12,845,000 89% 1982 $14,613,000 $12,857,000 88% 1983 $15,437,000 $13,607 ,000 88% 1984 $16,069,000 $14,371,000 89% 1985 $16,359,000 $14,580,000 89% 1986 $17,195,000 $15,235,000 89% 1987 $18,456,000 $16,323,000 88% 1988 $19,016,000 $16,663,000 88% 1989 $19,657,000 $17,240,000 88% 1990 $21,200,000 $18,539,000 87% 1991 $23,029,000 $20,356,000 88% 1992 $25,087,000 $22,250,000 89% 1993 $25,242,000 $22,286,000 88% 1994 $26,098,000 $22,797,000 87% 1995 $25,553 ,000 $22,032,000 86% 1996 $23,677,000 $20,411 ,000 86% 1997 $19,603,000 $13,901 ,000 71% 1998 $23,942,000 $13,000,000 58% 1999 $27,008,000 $13,166 ,000 49% 2000 $28,290 ,000 $11,180,000 40% 2001 $28,500,000 $10,143 ,000 36% 2002 $28,372,000 $9,408 ,000 33% 2003 $29,057,000 $10,219,000 35% 2004 $28,542,000 $10,389,000 36% 2005 $28,440,000 $10,739 ,000 38% 2006 $28,446,000 $9,906,000 35% 2007 $30,006 ,000 $9,069 ,000 30% 2008 $30,990 ,000 $8,649,000 28% 2009 $33,517 ,000 $9,324 ,000 28% 2010 $35,848 ,000 $10,699 ,000 30% 2011 $33,324,000 $9,604,000 29% 2012 $31,358 ,000 $8,982,000 29% TABLE # 1 – TOTAL FEDERAL STATE AFDC\/TANF EXPENDITURES – FISCAL YEAR 1975 – in millions Source: Center on Budget Policies & Priorities and HHS Con’t from Page 1 CCWRO Welfare News August 11, 2014 #2014-08 – Page 3 the contract but the state can sanction the beneficiary for violating the contract. The beneficiary will naturally endure severe and often devastating sanctions for breaking the terms of the alleged contract. The basic idea is when the poor get help from the taxpayers; taxpayers should microman- age the use of that money. As the Washington Post points out, conservatives who hate nanny-stat- ism are the first to rail against the regulations that get in the way of busi- nesses. When farmer recipients, corporate welfare recipients, Wall-Street millionaire and billionaire welfare recipients get help from the taxpayers it must be hands-off, no strings attached to the use of government grants. For non-poor welfare recipients, Ryan and his supporters have adopted the live-and-let-live rule. Yet, when it comes to the poor, most conserva- tives lose their live-and-let live attitude. This is also true for the State of California. Annually, California sentenc- es over 500,000 children to be vulnerable to homelessness by subjecting them to economic child abuse through a variety of mean-spirited sanc- tions like the maximum family cap rules, truancy penalty rule, welfare- to-work sanctions, immunization sanctions, etc. Work Requirements For Food Stamps and Housing Programs For years, conservatives have tried to impose failed work requirements on programs other than TANF that serves the poor. Work programs have a history of imposing economic child abuse upon poor families through sanctions that conservatives adore. Although most states do not keep good data comparing the rate of welfare-to- work (WtW) sanctions to WtW participants losing TANF due to finding work, California does. The results are revealing the TANF WtW program is really the Welfare to Sanction (WtS) Program. Table #3 reveals the history of WtW and WtS in Cali- fornia. Conclusion The plan is very simple. Block granted assistance payments have been abused by states as evidenced by the TANF program. Give state and local officials more money and they will reduce the aid payment costs by taking it out of the mouths of impoverished families and children and using it to mostly line their own pock- ets and supplant state budgets. The TANF program is famous for penalizing poor children and families who do not obediently and without question obey the of- ten unreasonable demands of state and local officials running the program. Most, if not all state TANF programs, emphasize state sponsored economic child abuse and there are no civil or crimi- nal penalties for the perpetrators of the economic child abusers . This will be no different but it would also extend the punitive nature and the economic child abuse features of the TANF pro- gram to SNAP, housing assistance programs, energy assistance, Year Poverty rate for families with female head of household 2012 30.9% 2011 31.2% 2010 31.7% 2010 31.6% 2009 29.9% 2008 28.7% 2007 28.3% 2006 28.3% 2005 28.7% 2004 28.3% 2003 28.0% 2002 26.5% 2001 26.4% 2000 25.4% 1999 27.8% 1998 29.9% TABLE TABLE # 2 Source: CDSS WtW 25 reports January Percentage of Unduplicated Participants Whose Aid Stopped Due to Getting a Job Percentage of Unduplicated Participants Who Endures WtW Sanction and E c o n o m i c Child Abuse 2000 4% 18% 2001 4% 16% 2002 3% 19% 2003 4% 30% 2004 4% 38% 2005 3% 37% 2006 3% 32% 2007 3% 27% 2008 2% 25% 2009 2% 25% 2010 2% 25% 2011 2% 24% 2012 3% 28% 2013 3% 31% 2014 2% 38% Con’t from Page 2 http:\/\/www.cdss.ca.gov\/research\/PG276.htm http:\/\/www.washingtonpost.com\/national\/health-science\/paul-ryans-fiscal-policies-are-deeply-rooted-both-politically-and-personally\/2012\/08\/25\/79377ef2-ee16-11e1-b0eb-dac6b50187ad_story.html CCWRO Welfare News August 11, 2014 #2014-08- Page 4 Number of Unduplicated Participants During June, 2014 122,800 Gross Number of Unduplicated Participants Being Sanctioned During the month of June of 2014 62,734 Number of Participants Sanctioned During March of 2014 11,409 Percentage of Gross Unduplicated Participants being Sanctioned During June of 2014 60% Dollar Loss to CalWORKs Families Due to Sanctions this Month Estimates at $125 Per Sanction for During June of 2014 $9.3 million Number of Unduplicated Participants Who En- tered Employment That Resulted In Termination of CalWORKs During June of 2014 3,567 Percentage of Unduplicated Participants Who En- tered Employment That Resulted In Termination of CalWORKs During June of 2014 3% Taxpayer Cost Per Unduplicated Participants Who Entered Employment That Resulted In Termination of CalWORKs During June of 2014 $34,554.82 Number of Participants NOT Being Paid Transportation by the County During June, 2014 52,490 Percentage of Number of Participants NOT Being Paid Transportation by the County During June of 2014 43% Estimated Dollar Amount Poor Families Defrauded by Counties Not Receiving Transportation @ $100 Per Participant During June of 2014 $5.3 million 2013-2014 Welfare-to- Work Services Appropriation $1,479,084,400 million Source: CDSS Source: State Department of Social Services WtW 25 Report ACTIVIES June 2013 June 2014 P e r c e n t a g e Change Number of Unduplicated Participants 115,154 122,800 8% Number of Participants Already Being Sanctioned 52,796 62,734 16% Number of Unduplicated Participants Who Entered Employment That Re- sulted In Termination of CalWORKs 3,567 4,090 -15% Number of Participants Being Paid Transportation by the County 57% 53% 4% June 2014 California Welfare-to-Work SB 1041 Program Participant Impact Report June 2014 California Welfare-to-Work Program Outcomes Report ”