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1994.02.21 : Grant to Help Welfare Recipients Keep Jobs

FOR IMMEDIATE RELEASE                   Contact:  David Siegel
Friday, Jan. 21, 1994                             (202) 401-9215
          

               SHALALA ANNOUNCES FIRST GRANTS TO HELP
                  WELFARE RECIPIENTS KEEP NEW JOBS


     HHS Secretary Donna E. Shalala has announced a commitment of
$2.8 million to fund and study innovative services to help former
welfare recipients keep and succeed in jobs.  

     Four states -- California, Illinois, Oregon and Texas are
receiving federal funds for the demonstration.  Federal funding is
also supporting an evaluation of the effectiveness of the programs.

     "Most people on welfare find work after brief periods of
assistance," said Secretary Shalala.  "One of the greatest
challenges for our present welfare reform effort is designing
strategies to help people hold onto the jobs they get.

     "Welfare reform efforts generally focus on helping people get
jobs.  We have learned, however, that helping them to keep the jobs
is equally important.  These are the first grants nationally to
study the effectiveness of such services."  

     States receiving awards will be offering a wide array of
services including case management, assistance with time and money
management, and links to child care and other support services. 
Case managers will also provide information about the Earned Income
Tax Credit, recently expanded with leadership from the Clinton
administration, to provide essentially a 40 percent pay supplement
for the working poor.

     "Supporting work and low income workers is a top priority in 
welfare reform," said Mary Jo Bane, co-chair of the Working Group on
Welfare Reform, Family Support and Independence.  "The Earned Income
Tax Credit was a critical first step in welfare reform, because it
ensures that most parents who work full time will not have to raise
their children in poverty.  These projects will help us explore what
else people need to make a successful transition from welfare to
jobs that support their families."

     Recent research reveals rapid movement between welfare and
work.  More than half of all women applying for welfare leave within
a year.  By the end of two years, the percentage who have left
increases to 70 percent.  However, most people do not stay off
welfare.  Up to 70 percent of those who leave will eventually
return.


                              - More -
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     "With an expanded EITC, the president's commitment to a system
of universal health coverage, and a commitment to expanding child
care opportunities, we believe we can dramatically reduce the number
of people returning to the welfare system," said Bane.  "Our vision
of welfare is a transitional program helping people go to work.  
Services that help people stay at work are critical to that
mission."

     Each demonstration site will tailor its demonstration to match
its experience in running welfare-to-work programs as well as to the
needs of its local residents.  The projects will be implemented in
Riverside County, California; Chicago, Ill.; Portland, Ore.; and San
Antonio, Texas.  The Illinois Department of Public Aid was selected
as the "lead" state agency and will manage the contract for the
evaluation of the projects in each of the four states.  The projects
will operate until July 29, 1996.



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