Tag Archives: welfare

Cash Assistance Program Failing to Help Many Poverty-Stricken Michigan Families

Michigan's Cash Assistance Program is failing to Help Many Families in Poverty

The Michigan League of Human Services has released a new report showing that while Michigan’s economy is among the worst in the nation, the state is offering little by way of a safety net for those most effected by the economic crisis. According to the report, Michigan’s cash assistance program–the Family Independence Program (welfare) that exists to help families dealing with unemployment or unexpected life circumstances–is aiding only the poorest of the state’s poor.

Michigan Families Facing Tough Times

One doesn’t need to look too hard to realize that the economy in Michigan is awful. Hardly a day goes by without a news story about a factory closing, a change in the unemployment rate, homes being foreclosed, or a story about a job fair inundated with far more applicants than there are positions.

The Michigan League of Human Services puts this in perspective, writing:

“These are difficult times for Michigan. Our state’s unemployment rate has led the nation for much of the past several years, with massive job losses in a number of sectors. Ten percent of all families in Michigan and nearly one out of every five children are in poverty, and many other families are in an economically precarious position. Many families cannot afford rent or health insurance, and there has been a sharp increase in home foreclosures during the past several years.”

The report also says that many middle class families–not just the poorest families in the state–could benefit from an expanded safety net. The League writes that many families are just one layoff or one health crisis away from “financial disaster.”

Only a Portion of those in Need Receiving Assistance

The report shows that Michigan’s cash assistance program–the Family Independence Program–is only helping the poorest residents in the state. While family poverty is growing in the state, Michigan’s program allows only those living at more than 44% below the poverty level to receive assistance. Work requirements have also meant that many families earn “too much” to qualify for assistance, even though they live significantly below the poverty line.

In 2007, approximately 257,488 families were in poverty, but only 82,329 families–or 32% of poor families–received cash assistance. Benefits have also only increased a paltry $33 per month since 1993.

Cuts and “Welfare Reform” have Reduced Assistance

Over the years, the program was weakened both by state-level efforts aimed at reducing welfare roles, as well as the federal “welfare reform” efforts undertaken in the 1990s by Bill Clinton. Following the federal changes, Michigan has received only a fixed block grant that has remained the same each year. At the same time, the legislature has tightened qualifications and made it harder for families that need assistance to receive help.

Beyond cuts to cash assistance programs, there have been cuts and eliminations of other important programs:

  • The General Assistance grant, which covered rent for the otherwise homeless population, was eliminated in 1991;
  • The Michigan child care subsidy, to help provide child care for working poor parents, has been increased by only 8 cents an hour in 14 years;
  • State funding for emergency needs was slashed in 1992, and today covers less than a quarter of families than it did in 1990.

All of these cuts have made it so that many of Michigan’s families are facing incredibly difficult times. As cash assistance has fallen, there are fewer places for families to turn.

The report argues that the current situation is worse than the last time Michigan faced double-digit unemployment. In the early 1980s, Michigan’s cash assistance program covered three times as many workers and was worth more. At that time, the program could cover rent and other essentials, now it’s not even enough to cover rent.

Recent drops in caseloads–from 85,839 cases per month to 72,568 in 2008–are likely due to changes in policy including stricter job requirements and proof of citizenship requirements.

Opportunities for Improvements

The League is urging the state to use money from the economic stimulus package to forestall further cuts and extend help to those who need it.

It also warns against further “ill-advised tax decisions” like the ones that were put into place while the economy was thriving and argues that reducing the deficit by lessening the social safety net is the wrong way to go.

Welfare Rolls Cut by 13% in Michigan During Economic Crisis

Michigan is among 18 states that cut welfare assistance last year despite the continually worsening economy according to an analysis by The New York Times.

Michigan–which cut welfare rolls by 13% last year–was one of five states making double-digit cuts. This meant that welfare recipients decreased from 226,520 in 2007 to 196,775 as unemployment grew nearly 2% to 9.3%. Food stamp recipients–which are considered separate from the welfare program–grew by 6.4%.

Many are blaming the cuts on the “welfare reform” implemented by President Bill Clinton in the 1990s. At the time, many warned that the changes in welfare laws would have the worst impact once the economy declined from the relative prosperity of the 1990s. However, the system has gotten harder to use according to critics, making it difficult for those who need assistance to get it. Federal aid also remains fixed regardless of the number of recipients.

Recent changes to welfare laws have made it easier to meet statistical goals by removing people from the rolls. Michigan has also implemented tougher restrictions:

“Michigan also imposed new restrictions, forcing applicants to spend a month in a job-search program before collecting benefits. Critics say the up-front requirement poses obstacles to the neediest applicants, like those with physical or mental illnesses.

“I think that’s a legitimate complaint,” said Ismael Ahmed, director of the Michigan Department of Human Services, though he blamed the federal rules. The program “was drawn for an economy that is not the economy most states are in.”

Bill Clinton and Welfare Reform

bill clinton welfare reform graphic

When President Bill Clinton speaks in Grand Rapids next Monday at the Economics Club of Grand Rapids’ annual dinner, his policies will likely receive little critical examination in the corporate media. Like his signing of the North American Free Trade Agreement (NAFTA) or his Iraq policy, Clinton’s “welfare reform” initiative has received little critical review over the years. In 1996, Democratic President Bill Clinton signed the Personal Responsibility and Work Opportunity Reconciliation Act after years of campaigning and promising to “end welfare as we know it.” Clinton signed a Republican welfare reform bill in 1996 despite his criticisms that portions of it–specifically cuts in the food stamps program and denial of benefits to undocumented immigrants–were too harsh. Most importantly, the bill set work requirements for most welfare recipients and limited the length of time that they could receive assistance, making it a substantial change to the welfare system.

Clinton’s adoption of “welfare reform” as a major issue was a critical component of the Democrats’ shift to the right in the 1990s. While able to win two presidential elections by appealing to the center-right, Clinton’s “New Democrats” led what was essentially an attack on the working class with a “softer” face than that of the Republicans. Clinton’s welfare reform, the passage of the North American Free Trade Agreement (NAFTA), and promotion of a neoliberal economic agenda all had their most direct impact on working class Americans. Similarly, Clinton’s charisma and his repeated promises to the left silenced many critics, while he advocated policies that preempted Republican positions on a variety of issues.

In the months and years leading up to the passage of the welfare reform bill in 1996 (“The Personal Responsibility Act”), Clinton placed considerable emphasis on personal “responsibility” and in particular, the idea that welfare mothers needed to learn “responsibility.” Clinton’s rhetoric invoked the memory of President Ronald Reagan’s “welfare queens” who were allegedly living large off of government assistance. From his 1991 campaign promise to end welfare to his repeated lecturing of the poor in 1996 while pushing for welfare reform, Clinton made several such statements:

In May 1991, Clinton said “opportunity for all is not enough… For if we give opportunity without insisting on responsibility, much of the money can be wasted and the country’s strength can still be sapped. So we favor responsibility for all. That’s the idea behind national service. It’s the idea behind welfare reform.”

In June of 1996, Clinton said “First and foremost, community programs must stress abstinence and personal responsibility. A program cannot be successful unless it gives our children the moral leadership they need to say no to the wrong choices and yes to the right ones.”

In the Summer of 1996, Clinton said “A long time ago… I concluded that the current welfare system undermines the basic values of work, responsibility and family, trapping generation after generation in dependency and hurting the very people it was designed to help.”

At the time, the bill was the subject of considerable protest from welfare rights organizations, the liberal wing of the Democratic Party, “the left,” and Senator and self-proclaimed welfare policy expert Daniel Patrick Moynihan. Of course, as is so often the case, this opposition got little coverage in the media and instead reports of how much welfare reform would benefit the country carried the day.

This has continued up until the present day, with few media outlets critically examining welfare reform. In a review of press coverage on the tenth anniversary of welfare reform, Neil deMause wrote for Fairness and Accuracy in Reporting’s (FAIR) that since the passage of welfare reform the media has largely ignored the connections between welfare reform and poverty. deMause points out that while poverty rates did decline from 1996 to 2000, they grew again after 2000 when the economic “boom” of the 1990s ended. Instead of looking at how welfare reform has impacted the lives of those no longer on the welfare rolls, deMause argues that the media has either trumpeted the fact that welfare rolls have shrunken, or when admitting the ambiguity of welfare reform’s legacy, have asserted that it was not as bad as what critics expected.

Clinton himself has advanced a similar assessment of welfare reform, focusing his comments on the tenth anniversary of welfare reform on how many people were moved off welfare in a widely circulated op-ed in the New York Times. Clinton failed to ask the more important question of how people faired once they were off welfare. In his lengthy autobiography, My Life, Clinton gave the topic only minimal coverage–one paragraph in its hundreds of pages.

So, if Clinton and the media have not investigated welfare reform, what were its long-term effects? Unfortunately, because it moved much of the administration to the states it is often difficult to find specific numbers and many of the effects–particularly in the past five years–have gone unstudied. In 2006 on the tenth anniversary of welfare reform, child poverty was on the rise in the United States, a noteworthy fact when one considers that 70% of those affected by welfare reform were children. Since welfare reform in 1996, 2.5 million families have left the program. Welfare reform also disproportionately affected women (90% of federal welfare recipients were women at the time of its passage), with studies in 2003 showing that about 1 million single mothers formerly receiving assistance were neither working or receiving cash benefits from welfare, disability, or unemployment insurance and were not living with a partner who had income from those sources and that 20% of mothers removed from welfare rolls have been unable to find work. Those that have found work–according to media reports–tend to be stuck in low-wage jobs paying around $8 per hour, an amount that is more than what they would have earned in welfare benefits but far short of a living wage. Instead, welfare reform was a part of a shrinking social safety net and following welfare reform, only 50% of those eligible for assistance received it compared with 80% in the 1980s.

Various studies have shown that the results of welfare reform have been “mixed” at best–the number of people receiving assistance is down while various measures of poverty are up–with it being difficult to place blame on a specific program. In 2004, a study by the Center on Budget and Priority Policies that reviewed other studies found that poverty rates for families leaving welfare are high and that families that lose assistance because of time limits are more likely to experience hardship than those leaving for other reasons. In 2006, the Center for Law and Social Policy declared that “by any real measure of family well-being, low-wage workers are no longer able to achieve economic security by ‘working hard and playing by the rules’.” The Center cited studies showing that child poverty increased 12% from 2000 to 2004, that welfare workers struggle to obtain employment due to lower education levels, domestic violence, learning disabilities, and other reasons, and that 40% of low-income single mothers spend half of their income on childcare. In Michigan, a 2001 study reported that only 25% of women who left welfare were employed at “good jobs,” generously defined as paying $7 an hour with benefits or $8 without.

However, studies and statistics often miss the human aspect of how low-wage jobs and removal of welfare benefits effect women. Because of the emphasis on “work first,” working is often prioritized over parenting meaning that many single women face increased difficulties in the already hard work of parenting. The statistics do not show how women balance employment with the second job of parenting, a reality that often means little sleep and constant stress.

Michigan Legislature Passes Welfare Reform

After pushing for the passage of a bill that would “reform” the welfare system in Michigan for the past two years, Republican legislators in Lansing gained Democratic Governor Jennifer Granholm’s support yesterday for a bill that will limit welfare recipients to a lifetime limit of four years of assistance. The compromise was crafted by Grand Rapids Republican representative Jerry Kooiman and Ann Arbor Democratic representative Chris Kolb. Despite vetoing a bill last year that limited assistance to four years for being too harsh, Granholm has agreed to a deal on this bill citing a variety of provisions that will allegedly help to make sure that “no family, no children who need assistance will be arbitrarily removed from cash assistance.” The measure still includes penalties for recipients that violate provisions outlining work and educational requirements, but offers an additional year of assistance if they have not been “sanctioned” for violations and if the job market is down. The bill allows the director of the Michigan Department of Human Services create rules that would allow people with “extenuating circumstances” stay on welfare beyond four years and exempts people with disabilities, specific physical limitations, and chronic mental health from the lifetime limits. There are additional stipulations that will allow for the lifetime limit to be “paused” if the economy is particularly bad.

The welfare reform effort was led by Grand Rapids Republican representative Jerry Kooiman, who last year touted the plan as a way to “release people from poverty” and to “protect taxpayers” from people unnecessarily receiving a lifetime “handout.” Many in Kooiman’s district opposed the measure and accused him of ignoring the concerns of African-American constituents while he talked about the need for “tough love” for those on welfare. Senator Bill Hardiman of Kentwood—another strong supporter of the measure–was quoted by the Associated Press as saying that the bill will help those who have for “too long so many have been locked up in a cycle of dependency.” However, various studies have found that far from “freeing people from the grasp of poverty,” 60% of people who leave the welfare system in Michigan stay in poverty and that most find work in low wage jobs that make it difficult to pay bills and mortgages. Moreover, the idea that there are legions of “able-bodied” individuals that are “unwilling” to get a job–popularized by former President Ronald Reagan’s fictional “welfare queen” that drove a Cadillac and had collected $150,000 in unnecessary government assistance–is a myth and has contributed to the idea that people are poor because they are lazy. There are currently only 88,133 households receiving welfare payments in Michigan, down from a high of 241,157 in the early 1980s due to a bipartisan effort at both the federal and state level.