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1994.03.14 : South Dakota Welfare Demonstration Waiver

FOR IMMEDIATE RELEASE                   Contact:  David Siegel
Monday, March 14, 1994                            (202) 401-9215


             WELFARE WAIVER APPROVED FOR SOUTH DAKOTA

     HHS Secretary Donna E. Shalala today approved a demonstration
in South Dakota that will encourage welfare recipients to undertake
employment or education activities to enable them to move from
dependency to self-sufficiency.

      "The Clinton administration continues to encourage
flexibility and initiative in state welfare programs.  Today, I am
approving South Dakota's welfare demonstration which emphasizes
employment and education activities for recipients in the Aid to
Families with Dependent Children program," Secretary Shalala said.

     The demonstration, called the "Strengthening of South Dakota
Families Initiative," will assign AFDC participants to either an
employment or education track.  Individuals who enroll in the
employment track will receive up to 24 months of AFDC benefits;
participants in the education track will receive up to 60 months of
AFDC benefits. 

     Upon completion of either track, participants will be expected
to find employment or, failing that, to enroll in approved
community service activities.  Individuals who refuse to perform
the required community service without good cause will have their
benefits reduced until they comply.

     In addition, in conformance with the food stamp program, AFDC
benefits can be denied to any family in which an adult parent quits
a job without good cause.  The sanction period will last three
months, or until the parent acquires a comparable job.

     The demonstration also enacts new rules pertaining to the
employment and earnings of children receiving AFDC.  Under current
law, income earned by children can reduce the family's overall AFDC
payment.  The South Dakota demonstration will disregard such
earnings for children who are attending school at least part-time. 

Children will be permitted to have a savings account of up to
$1,000.

     Additionally, AFDC children 14 and over, who are employed
part-time, will be permitted to own an automobile worth up to
$2,500.  

     Mary Jo Bane, HHS' assistant secretary for children and
families, said the South Dakota demonstration "is another good
example of state initiative in encouraging AFDC families to engage
in activities that will help them get ready for employment."

     The South Dakota demonstration will involve a rigorous
evaluation, utilizing random assignment to experimental and control
groups.