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Examines the effects of the California Work Opportunity and Responsibility to Kids (CalWORKs) program on work activity participation rates of welfare recipients, welfare caseloads, and outcomes for welfare leavers. While the CalWORKs reforms appear to have been responsible for some of the uniform improvement in outcomes shown by the analysis, the robust economy and other policy changes were probably also important.
The Personal Responsibility and Work Opportunities Reconciliation Act of 1996 (PRWORA) fundamentally changed the American welfare system, replacing the Aid to Families with Dependent Children (AFDC) program with the Temporary Assistance for Needy Families (TANF) program. PRWORA deliberately and decisively shifted the authority to shape welfare programs from the federal government to the individual states. California's response to PRWORA was the California Work and Responsibility to Kids (CalWORKs) program-a "work-first" program that provides support services to help recipients move from welfare to work and toward self-sufficiency. To encourage prompt transitions to work and self-sufficiency, CalWORKs, like PRWORA, also imposes life-time limits on the receipt of aid by adults. Finally, CalWORKs devolves much of the responsibility and authority for implementation to California's 58 counties, increasing counties' flexibility and financial accountability in designing their welfare programs. The California Department of Social Services (CDSS)-the state agency responsible for welfare-contracted with RAND for an independent evaluation of CalWORKs to assess both the process and the impact of the legislation, at both the state and county levels.
An executive summary of RAND MR-1358-CDSS, Welfare Reform in California: Early Results from the Impact Analysis. The study examines the effects of the California Work Opportunity and Responsibility to Kids (CalWORKs) program on work activity participation rates of welfare recipients, welfare caseloads, and outcomes for welfare leavers. It describes outcomes under CalWORKs through approximately the summer of 2000 and begins the process of explaining the observed variation in outcomes through time, between California and other states, and among California's counties. Analyses of national data (administrative data on caseloads and national survey data on household income) and statewide data (on caseloads, employment, and earnings) show almost uniform improvement in outcomes in California since the implementation of CalWORKs. While the CalWORKs reforms appear to have been responsible for some of that improvement, the robust economy and other policy changes were probably also important. The rest of the nation has experienced similar improvements in outcomes.
In Welfare Reform, Jeffrey Grogger and Lynn Karoly assemble evidence from numerous studies to assess how welfare reform has affected behavior. To broaden our understanding of this wide-ranging policy reform, the authors evaluate the evidence in relation to an economic model of behavior.
The California Work Opportunity and Responsibility to Kids (CalWORKs) program is California's response to the welfare reforms Congress set in motion in 1996. The most visible features of this program are its emphasis on moving welfare recipients from reliance on government cash assistance to work and toward self-sufficiency; its use of time limits and participation requirements; its provision of certain services, such as child care and job search assistance, to make participation easier; and its devolution of program authority from the state to the county level. This executive summary focuses on the four themes that have emerged from the authors' work to date: (1) Organizations have changed in response to the expanded mission of CalWORKs, despite limited time for planning. (2) Implementation is under way, but recipient compliance is low. (3) Counties currently have sufficient funds, but this may change. (4) Achieving earnings needed to achieve self-sufficiency before time limits expire is a challenge.