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1994.01.27 : Welfare Reform Program in Florida

FOR IMMEDIATE RELEASE                   Contact:  David Siegel
Thursday, Jan. 27, 1994                           (202) 401-9215

     HHS Secretary Donna E. Shalala today approved a welfare reform
demonstration for the state of Florida which makes several major
changes to the Aid to Families with Dependent Children (AFDC)
program.

     "Over the past several months, our department has approved
nine other state welfare demonstrations as part of the
administration's commitment to state flexibility and
experimentation.  I am confident the Florida demonstration I am
approving today will add to our knowledge of how welfare can most
effectively be reformed," Secretary Shalala said.

     Under the demonstration, called a "Family Transition Program,"
certain welfare families in two Florida counties will be limited to
collecting AFDC benefits for a maximum of 24 months in any
five-year period.  Families that lose benefits because of this time
limit, and are unable to find employment, will be guaranteed the
opportunity to work at a job paying more than their AFDC benefits.

     Mary Jo Bane, assistant secretary for children and families,
said, "I am pleased we have worked with the state to develop a
program that implements a commitment to transitional welfare
followed by work." 

     Major elements of the demonstration include:

     o    A new requirement that will limit AFDC families to two  
          years of transitional benefits after which they will
          work. Exceptions to the rule will apply in cases where 
          recipients are not able to work or have very young
          children.  Also, families deemed to be at high risk of  
          long-term welfare dependency could receive benefits for
          36 months in a six-year period.  Families that lose
          benefits because of the time limit will enter a
          "transitional employment" program, in which they will be
          offered employment in private- or public-sector jobs.

     o    To encourage work, AFDC families will have the first $200 
          in monthly income, plus one-half of the remaining amount, 
          disregarded when AFDC benefits are calculated.  This
          represents a significant increase over current earnings 
          disregards.  

     o    Families will be able to accumulate up to $5,000 in
          assets as well as have up to $8,150 equity in a car so
          long as the vehicle is utilized primarily for
          self-sufficiency purposes.  Current law limits a family's
          assets and equity in one automobile to $1,000 and $1,500,
          respectively.

     o    Medical care and child care benefits will be extended for 
          families who are in transition from AFDC to self-
          sufficiency.

     o    Finally, AFDC parents will need to ensure that their    
          children have been immunized and are regularly attending 
          school.  Benefits can be reduced when either requirement 
          is not being met.

     Florida's demonstration will include a rigorous evaluation
using random assignment to control and experimental groups. 

     The Clinton administration has previously approved welfare
demonstrations for Colorado, Georgia, Illinois, Iowa,
Oklahoma, Vermont, Virginia, Wisconsin and Wyoming.  Most of the
demonstrations include some form of linkage between receipt of
welfare to enrollment in self-sufficiency activities.