*This is an archive page. The links are no longer being updated.
1992.08.26 :  Michigan Welfare Demonstration

Contact:  Larry Dye  (202) 401-9215
August 26, 1992

     HHS Secretary Louis W. Sullivan, M.D., today approved 
Michigan's request to allow the state to begin a five-year,
statewide welfare reform demonstration project called "To
Strengthen Michigan Families." 
       "The Michigan welfare reform initiative is a
comprehensive, planned effort aimed at strengthening families and
promoting self-sufficiency," Sullivan said.  "The Bush
administration's policy is to continue encouraging states to take
innovative actions to improve the effectiveness of current
welfare practices."
       The HHS waivers will permit Michigan to:
       o  Extend eligibility for the Aid to Families with
     Dependent 
Children-Unemployed Parent (two-parent families) program to encourage
families to stay together;
       o  Encourage those on welfare to obtain and maintain employment 
     
by enhancing the earned income disregards. The first $200 plus 20
percent of the remainder of earnings by a welfare recipient will not
be counted against welfare benefits;
       o  Exclude all income earned by dependent children who are
students in welfare households from being counted against
calculated welfare benefits; and
       o  Allow non-custodial parents to participate in the Job
Opportunities and Basic Skills Training (JOBS) program.
     "We will continue to expedite review of welfare reform proposals
from states so that innovative approaches can be developed and tried,"
said Jo Anne B. Barnhart, assistant secretary for children and
families.  "We are here to make a long-term positive difference in the
lives of children and families."
       The Michigan program will also provide more support for AFDC
families through aggressive collection of child support payments. 
Non-custodial parents will be required to disclose their child support
obligations to employers for mandatory wage withholding.  Child
support obligations will also be reported to consumer-reporting
agencies at the time the order is established.  Hospitals will be
required to accept and record paternity acknowledgements as part of
the birth registration.
       The To Strengthen Michigan Families demonstration will begin 
Oct. 1, 1992, and operate for five years.  An evaluation of the
project by entities independent of the executive branch of state
government is required.
                                  ###