Welfare Reform that Really Works #6

MASSACHUSETTS: "NO FEAR REFORM"

Charlie Baker, Secretary of the Office of Administration and Finance, Commonwealth of Massachusetts, gave this "call to arms" at a December 1996 American Legislative Exchange Council conference:

Don't be afraid of welfare reform. Opponents will say that you should be afraid for all kinds of reasons that superficially seem to make sense. But welfare reform is the most significant social policy development that's taken place in the second half of the 20th century in this country. It is up to us to make sure that the vision and objective of welfare reform--to reduce illegitimacy, to encourage work, to reduce dependency and encourage self-sufficiency--don't get lost in the babble which is associated with changing the status quo.

A Proven Track Record

The Massachusetts AFDC caseload is at the lowest level it's been since the 1970s--down 23,500 cases (20%) since welfare reform began in February 1995. That number has been falling every month, and reflects true caseloads reductions--recipients are not rotating back on the caseload.

Initial Success with Two-Parent Families

In October 1993, Massachusetts began requiring Community Service Work from anyone who was part of a two-parent family on public assistance. Arguably, with two parents in a family, one of them ought to be able to do 30 hours of Community Service Work a week. More importantly, community service jobs eventually lead to paid employment. As evidence, two years after Massachusetts began the work requirement for two-parent families, no two-parent family on public assistance in 1993 was still receiving assistance--not one.

Supervisors are Critically Important

The best training for a job is a job. And community service jobs, where recipients often have their first contact with a supervisor, help generate a work performance history. The supervisor is now the person who can vouch for the employee--to promptness, willingness to work, work attitude, etc. With such a reference, many employers are willing to risk employing people transitioning from welfare to work.

Community Service Jobs

Doing business with the Commonwealth (Massachusetts contracts for over $1 billion-worth of services) means providing community service jobs as well. The philosophy and enforcement communicate clearly that the Commonwealth wants community businesses to help people--help them develop a work routine and mindset, a sense of dignity, and then move on to an unsubsidized job.

Child Care Issues

Because work is the most important issue, Massachusetts has funded additional child care-- $65 million in FY95 for child care for people transitioning off public assistance and low income working parents.

Understandably, Massachusetts' child care needs are expanding exponentially. Governor Weld's FY97 budget includes an additional 2500 child care slots. The thirteen state Child Care Resource and Referral (CCRR) agencies are working to provide support services to the state's in-home and in-home/relative care. Providers comply with an Office of Children health and safety checklist, subject to review by the Department of Public Welfare. Also, statutes are currently being updated to allow for 10 vs. 6 children in family day care homes.

Expanded Medical Care

Recently, Massachusetts expanded the Children's Medical Security Plan to cover the 160,000 low income children (birth to eighteen) who do not qualify for Medicaid. The plan has a sliding copay, based on family size and income, and is financed by the state tobacco tax.

The new program also creates prescription drug assistance for low income seniors, covering approximately 65,000 elderly.

"Gloom and Doom" is Not Reality

Massachusetts is doing far more of the things that lead people to work--job search, community service and work support--than when they began welfare reform. Yet the sirens of "decimating community centers, overloading shelters, starving children, abused children, and blowing social service caseloads 'to the moon'" are silent. It simply hasn't happened. Social service caseloads have remained remarkably constant. There has been no evidence of the predicted devastation. Challenges exist, and they are being faced head-on.

Massachusetts is evidence that when a state has the courage to take the federal mandate and "run with it," great things can happen. Welfare needs reform more than virtually anything else in government. States can make it work and see it succeed.

Winston Churchill said it best: "The only thing we have to fear is fear itself."

Prepared by Karen Woods, Research Analyst, (360)956-3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org