Your Turn

Welfare: Five reasons
why the system resists reform

By GARY MacDOUGAL

The human services systems in this country represent a $160 billion investment largely in the 10 percent to 12 percent of people who don't participate in the country's economic life —Americans in poverty. In Illinois, about 1.2 million of our citizens are in this dangerous situation. Each year we spend approximately $10 billion — almost one-third of the state budget — on welfare and other social service programs. Yet we fail to make progress in reducing dependency.

No state has found a way to solve the problem. True, some states, including Wisconsin and Michigan, have made changes that show promise. But systemic reform continues to elude policy-makers. Two years ago, Gov. Jim Edgar established a task force on human services reform and challenged the members to create a plan for real reform. And, for the most part, there is bipartisan agreement on principles: The system must be family-centered, prevention-oriented and linked to communities. Further, funding must be made flexible and program results need to be measurable.

Much progress has been made, but it is useful to understand why these big systems are so change-resistant. There are at least five important reasons:

• The federal government hinders common-sense change. States are hampered by administrative rules and accounting requirements created by Washington staffers with little knowledge of communities or of management. Talk to desk-bound caseworkers, and they will estimate that three-quarters of their time is spent on paperwork, and that three-quarters of the paperwork is not needed in order to serve clients. Because there are differences among states and among communities, we Illinoisans need the flexibility to design our own systems. In order for us to do that, federal dollars need to be delivered in block grants, with no strings attached. Without this flexibility, Illinoisans will be forced to waste time requesting waivers and following inefficient practices.

• There is a tendency for the media and the public to seize on simplistic solutions, such as "two years and out" and "no benefits for additional babies." While some of these notions make sense in some situations, they tend to be "top-down" solutions to problems that would be better addressed at the local level. The media love to sensationalize incidents, but are bored with systemic change. This means much hard work is needed to get the wide-ranging support necessary to sustain change momentum and to avoid further complicating the systems with top-down quick fixes. Considerable task force time is spent on this important challenge.

• It is difficult to form effective community leadership groups, especially those involving leaders of businesses, churches and schools, as well as those grass-roots citizens who have experienced the human services system. Nevertheless, the task force has been successful at attracting an outstanding community group at each of five test sites: Grand Boulevard in Chicago, DuPage County, Waukegan, Springfield and the Southern Seven counties. These groups are linked to their local political leaders and to relevant community organizations. The key to their long-term success will be their willingness to listen to their communities, identify local priorities and work effectively with the state.

• Change is threatening to those whose livelihoods depend on the system. For example, private organizations receive a large percentage of the $10 billion human services budget to provide everything from drug treatment to care for abused and neglected children. Some well-known service organizations receive the majority of their income from the state, and there is an understandable concern that Illinois might shift contracts to smaller community-based providers. Unions are also understandably concerned. The good news is that the state and the task force are committed to working with providers, unions and employees to ensure a constructive outcome for all. Multiple avenues for participation and dialogue have been opened.

• Given the inherent political pressures of the election cycle relative to the magnitude of the problem, there is a narrow window of time to firmly establish a new direction. As a result, paradigm shifts don't often happen in government. Fortunately, with Gov. Edgar serving a second term, and with a climate for real change in Washington, the odds of implementing long-term reforms are about as good as they can get. Still, it will be a monumental challenge to implement system-wide reforms in the next 30 months.

The goal is to reduce dependence on the system and ensure that a ladder of opportunity exists for disadvantaged people to improve their lives. Despite the barriers inherent in large-scale government organizations, Jim Edgar's administration is firmly committed to major change. It knows the solution lies with communities and is headed in the right direction. People are realizing that no one will know how much money is needed to improve the lives of our disadvantaged citizens until we learn how to invest our present resources with maximum effectiveness. The word "invest" is appropriate, because the return will come in the form of reduced prison, welfare and foster care costs.

Gary MacDougal is chairman of the Governor's Task Force on Human Services Reform. He is a trustee of the Annie E. Casey Foundation and former chair of the Russell Sage Foundation.

September 1995/Illinois Issues/37