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According to reports filed by the 46 states competing for the bonus, more than 1.3 million adults nationwide on welfare went to work in just the one year period, between Oct. 1, 1997 and Sept. 30, 1998. Retention rates were also promising: 80 percent of those who had jobs were still working three months later. The states also reported an average earnings increase of 23 percent for former welfare recipients from $2,088 in the first quarter of employment to $2,571 in the third quarter.

The high performance bonuses reward states for annual results in four categories: job placement, job success (measured by retention and earnings), biggest improvement in job placement, and biggest improvement in job success. The $200 million is allocated among the four categories, with the top 10 states in each category receiving an amount proportionate to their percentage of the Temporary Assistance for Needy Families (TANF) block grant.

The states ranked the highest in each category were Indiana (job placement), Minnesota (job retention and earnings), Washington (biggest improvement in job placement) and Florida (biggest improvement in job retention and earnings). The other states receiving bonuses are Arizona, California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Nevada, New York, North Dakota, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming.

Eleven states received bonuses in two categories and one state, Minnesota, was successful in three.

"We've always been clear that changing the culture of welfare means requiring work and rewarding success," Secretary Shalala said. "I'm very pleased that these states have demonstrated results in helping welfare recipients enter the workforce, and succeed there," she said. "The job retention rates and earnings increases, in particular, show us that there are promising strategies for helping low-income parents make the transition from dependence to self-sufficiency. I hope all states will use the lessons learned to invest in efforts that will help even more welfare recipients obtain, keep and earn more in their jobs," Shalala added.

The secretary also released new welfare caseload numbers showing 6.9 million recipients on welfare as of June 1999, a decrease of 7.2 million or 51 percent since 1993. The number of recipients as a proportion of the total U.S. population is now at 2.5 percent, the lowest since 1967.

The new regulation unveiled today proposes that new categories of awards be added for state performance beginning Oct. 1, 2000. The proposed regulation issued by the department retains the four work measures, but adds new categories for family formation; enrollment in Medicaid and the Children's Health Insurance Program (CHIP); and enrollment in the Food Stamps program. These new measures will promote the goals of the 1996 welfare law to provide assistance to needy families, promote work, and encourage the formation and maintenance of two-parent families.

"It is critical that we continue to focus on rewarding work over welfare, and as more low-income parents obtain their first jobs, that also means providing the critical work supports they need to complete the transition to self-sufficiency," said Olivia A. Golden, HHS assistant secretary for children and families. "Health care and nutritional assistance can help low-income working parents succeed on the job and at home, and make the next generation healthier too. It's also important to reward state policies that strengthen and support two-parent families."

In addition to the high performance bonuses, the 1996 welfare law also subjects states that fail to meet minimum work participation rates to a penalty of at least 5 percent of their annual TANF block grant. HHS announced earlier this year that all 50 states and the District of Columbia met the overall work participation rates for all families in 1998 while 28 of the 41 states subject to a separate two-parent family rate met it. The percentage of adults still on welfare who were working, including employment, work experience and community service, reached 27 percent, a nearly fourfold increase over the 7 percent recorded in 1992.

The health insurance and Food Stamps measures will reward states for the biggest improvement in eligible low-income families receiving these supports. In particular, states will be encouraged to simplify enrollment procedures and application forms for these programs, in order to make it easier for parents juggling work and child care to apply. Under the new family formation measure, states will compete for the biggest improvement in the number of children below 200 percent of poverty residing in married couple families. A total of $60 million will be available for these three measures, with $140 million for the work measures.

Families with incomes up to 130 percent of poverty or $18,044 for a family of three can be eligible for Food Stamps. Medicaid and CHIP eligibility rules vary from state to state, but families are generally eligible up to 185 percent of poverty, which for a family of three is approximately $25,678.

The tables on state awards and rates and new welfare caseload numbers can be found on the World Wide Web at: www.acf.dhhs.gov/news.

An actuality of Olivia A. Golden, HHS assistant secretary for children and families, regarding the high performance bonus awards is available on the internet at: www.os.dhhs.gov/news/press/1999pres/hpb.wav.

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