Eight questions to ask about welfare reforms.

• Author: Tweedie, Jack

States have money. They have flexibility. But many are still struggling with how to use them to overcome the challenges remaining in welfare reform. Here are the questions legislators need to ask.

It's midterm examination time for welfare reform. Federal reforms created the Temporary Assistance for Needy Families (TANF) block grant in August 1996. Most state legislatures had adopted major reforms before that, and now every state has a new system focused on work. They've added time limits, work requirements and new sanctions while expanding support services to help recipients find and

keep jobs.

These kinds of reforms have been in place for over a year now, and it's time to take a look at how they are working.

THE GOOD NEWS

There are a number of good signs. Welfare policy has focused on helping recipients find jobs. In most places, expectations are clear: Cash assistance is temporary. Job search requirements, work participation requirements and time limits reinforce this new message.

Along with the emphasis on work, states also have recognized the necessity of helping clients overcome barriers that have kept them from employment such as child care and transportation.

Welfare agencies also have new partners. Some states made welfare part of their employment and labor agencies. In others, welfare and employment offices are located together. In many states, economic development, transportation and education departments have joined welfare agencies in helping recipients find jobs and keep them. New relations also have been forged between welfare programs and businesses and community organizations. States have contracted with local nonprofits to help train and place clients. And local employers are often asked what kinds of training are needed.

Helped by the strong economy in most states, many people have left the rolls for work. Nationwide, caseloads have dropped by more than 40 percent - that's 2 million families.

THE OTHER SIDE

The news is not all good, however. In several states, caseloads have stopped dropping or have started drifting up. In some places, reforms have not penetrated to the welfare office. Caseworkers still focus on determining eligibility and offer little assistance to clients looking for jobs or seeking help to overcome mental health or domestic violence problems.

And the caseload drop cannot be seen just as good news. While many recipients have found jobs, they usually earn $6 to $7 an hour. And many other families have left the rolls without jobs, raising questions about how they can support their families and whether they can sustain that support. In most states, officials do not even know what percentage of these people are working or what they are earning.

Finally, there's a dilemma in welfare financing. The bad news is that states have resources they are not using. They are still struggling with the flexibility that the new system gives them and almost every state has welfare money it hasn't yet spent. The good news is that most states have resources available to continue strengthening their programs. The structure of the TANF block grant puts states' welfare programs in a good financial position. States must maintain their spending to obtain...