Status report

Jennifer Davis, a former Statehouse bureau chief for Illinois Issues, is a reporter for the Peoria Journal Star.

IS WELFARE-TO-WORK WORKING?

More people are leaving public assistance. But are they getting and keeping decent-paying jobs? And is it government's job to make sure they do?

Analysis by Jennifer Davis

Historic photographs of women at work in Illinois, courtesy of the Illinois State Historical Library

Wendy's. Burger King. Lums. Dunkin' Donuts. NaKisha Davis has "worked everywhere on Western Avenue." She's not bragging. Just frustrated with her fast-food career on this busy strip in Peoria. "I used to work 11 a.m. to 1 p.m.," she says. "That ain't enough hours." She does dream, though, about working one day with children. But there's a drug conviction in her past.

Western Electric Co.
On the job, Western Electric Co.

Tennille Reed laughs and mimics the professional script she used as a telemarketer for AT&T. Then she remembers her favorite job, the one she kept for a month. "You could just listen to your Walkman and do your work at your own pace," she says of unpacking Caterpillar parts for $5,15 an hour. Yet it's unlikely she could go back because she quit without notice after the boyfriend who babysat her kids went to jail.

These women, both 21, face some obvious obstacles to getting anything more than they've had: low-wage, low-skilled jobs. Davis can't drive. Reed is a high school dropout. So they depend on families and friends to help them get by. And it hasn't been easy. Even in this sum- mer's deadly heat, Davis lives with one fan because she doesn't have the extra $10 it would take to get a second one fixed.

At the least, both have been working. But if they slip in and out of the job market, or barely make ends meet, who, really, is responsible? Whose job is it nowadays to make sure people like NaKisha Davis or Tennille Reed get and keep decent-paying jobs?

Three years after welfare reform, that's anything but clear.

In 1996, Congress moved the nation across a momentous line, ending 60 years of social welfare policy and leaving in its place a slogan: welfare-to-work. The result is this: Families are no longer entitled to a basic level of income support. Instead, everyone is required to find work. And nobody will get financial help from the government for more than a total of five years. At the same

24 September 1999 Illinois Issues


time, the states, which shared responsibility for welfare programs, were given a freer hand in deciding how best to push their poorest citizens into self-sufficiency. Illinois approved some reforms in 1996, then retooled its program in 1997. (See Illinois Issues, May 1997, page 16, and July/August 1997, page 6.)

Are the reforms working? By preliminary accounts, they are.

Abbot Alkaloidal Co.

Clerk typists at Abbot Alkaloidal Co. (predecessor to Abbott Laboratories), Ravenswood, 1905. Dr. Wallace C. Abbott is the man at right. He was the founder of the company.

Nationwide, caseloads have dropped by more than 40 percent. As of the end of 1998, the most recent available national statistics, 2.2 million fewer U.S. families were on welfare. That's 6.5 million fewer individuals — the entire population of Missouri plus another million or so.

In Illinois, more than 97,000 people have left the welfare rolls since July 1997.

And more of them are working. The Welfare-to-Work Partnership conference in Chicago last month was an opportunity to mark the progress. President Bill Clinton flew in to congratulate some 12,000 businesses for hiring 410,000 welfare recipients.

"Over the past three years," he said, "we've proved that if you ask people

Women working

Typist. Seamtress. Airplane mechanic. The photographs of women at work, pages 24-30, come from the Illinois State Historical Library's collection, "On the Job in Illinois," a series compiled as part of the 1976 bicentennial celebration.

The photographs were collected from factories, utilities and other businesses and include a wide range of eras.

Where available, we supply the dates and locations of the images.

Illinois Issues September 1999 25


to go to work, they'll go to work."

Indeed, nearly four times more welfare recipients are working now than when Clinton took office. Nationwide, the percentage of Americans on welfare is at its lowest level since 1967.

Illinois Gov. George Ryan boasted recently, too. Last summer, five counties — Brown, Hardin, Moultrie, Putnam and Schuyler — reported that 100 percent of the individuals who had been receiving assistance were working. In Chicago, more than 50 percent of those receiving assistance from seven welfare offices had found jobs.

Certainly, the economy has helped. The nation, after all, is enjoying the longest expansion in history. And economic experts say a good job market is encouraging more people to look for work, many of them welfare recipients.

"People on welfare are getting a shot to be in a legitimate economy," says state Department of Human Services Secretary Howard Peters III. Still, he warns, "the shot may not be here for long."

In other words, it's likely to get harder from here. With an eye to a possible economic downturn, welfare officials hope to step up their push to get everyone, especially those facing multiple barriers, into the labor force. And because they could need it later, state politicians are paying close attention to a proposal by congressional Republicans to redirect $4 billion in federal funds unclaimed by states due to declining rolls — an idea backed by Illinoisan and U.S. House Speaker Dennis Hastert.

What's not getting a lot of official scrutiny are the statistics. There isn't, critics charge, adequate information to make a meaningful analysis of the states' welfare-to-work efforts.

How good are the jobs welfare recipients are getting? And what happens if someone leaves the rolls, walks into a job and walks back out the next day? Immediately after the reforms, many states set up studies to track the progress of welfare-to-work. Illinois did not.

Chicago Democratic state Sen. Barack Obama recalls this state's welfare officials initially balked at the idea. "They iust didn't want to spend the money It wasn't a sophisticated argument. I guess, painting their decision in the best light, they thought it would be better to devote money to actual services."

Peters had another concern. "What is tracking but taking someone by the hand and saying, 'I don't trust that you can find your way.' Why do we think [people] can't find us again? They found us the first time when they needed help. When I hear discussions on tracking people, it's based on the assumption that they can't pick themselves up. They aren't children and we ought not treat them as such."

Still, Dory Rand, a staff attorney with the National Center on Poverty Law in Chicago, believes there's a fundamental reason to assess what's

The National Center on Poverty Law tracks immigrants

The number of Illinois' noncitizens who are getting cash grants under federal and state welfare reforms has declined faster than it has for U.S.- born individuals, according to a study released last month by the National Center on Poverty Law.

The study, compiled by researcher Rob Paral, examined the number of foreign-born individuals enrolled in every major welfare program administered by the state. It was aimed at determining whether trends in immigrant use of welfare programs have become evident since the 1996 reforms, including limits on eligibility for noncitizens. For most programs, data was analyzed over a three-year period.

"One result of legislative overhaul," the report concluded, "has been widespread confusion among immigrants about their eligibility for benefits programs and fear that they may be determined to be a public charge."

Among the findings:
• Between January 1998 and April 1999, the decline among noncitizens getting cash grants fell 41.7 percent, compared to 25 percent among natives.

* The number of foreign-born and natives who are getting Medicaid health benefits but not Temporary Assistance to Needy Families grants rose, but not as much as for naturalized and native citizens. Between January 1998 and April 1999, use of that program by noncitizens increased by only 14.7 percent, while use among naturalized citizens grew by 63.5 percent and use among natives grew by 45.2 percent.

• The percentage of foreign-born adults and children using food stamps declined faster than for natives. Overall, the percentage of immigrants getting food stamps fell by 30.4 percent between October 1996 and April 1999, compared to a decline of 28.5 percent among natives.

• In contrast to all other programs, the foreign-born have increased their numbers in the Aid to the Aged, Blind and Disabled program, 0.7 percent between April 1996 and April 1999, compared to a decline of 19.9 percent for natives.

These increases, according to the study, may be explained in part by the heightened attention given to elderly immigrants in the wake of welfare reform, which terminated eligibility for federal Supplemental Security Income. Subsequent federal legislation restored eligibility to many of these immigrants, and the state targeted funding to groups helping elderly immigrants naturalize to keep their SSI benefits.
The Editors

26 September 1999 Illinois Issues


Using a press

happening as people move off welfare. "If the state is going to claim that their programs are a success, then I think they need to show it beyond declining caseloads," she says. "They need to show that people are not just leaving the rolls, but getting out of poverty."

Obama, too, believes raw data on declining caseloads doesn't tell the whole story. He successfully sponsored the only provision mandating tracking of Illinois' welfare recipients, and that only passed, he believes, because universities are footing the bill. "A large number of people," he says, "are being pushed into dead-end and low- income jobs or are being removed from the rolls because they've violated the rules we've set up."

Yet Peters has this question: "If we're not concerned about the jobs people not on welfare have, then why are we concerned about the jobs people on welfare have?"

Meanwhile, the state has released a study of 150,000 families who left welfare between July 1997 and June 1998. Most of the research was gleaned from computerized databases — public health immunization records, public aid child support enforcement cases, food stamp records — but there were also in-depth interviews with 1,200 individuals selected at random.

It tells us "the overall picture of life on welfare is not as attractive as life off welfare," says Peggie Powers, who designs and evaluates human services' programs. "We saw that evictions declined, utility shut-offs declined." Further, 79 percent of those interviewed said they were either satisfied or very satisfied with their jobs. "That's much higher than we imagined it would be. We also looked at wages and the number of hours worked because we had a foreboding early on that people might be piecing together two or three part-time jobs. We found that 87 percent to 90 percent — an extremely high percentage — had one job, working between 36 to 38 hours a week. That was very good news for us."

Nevertheless, the critical in-depth analysis just isn't there, argue such social policy researchers as Paul Kleppner of Northern Illinois Univer-

Illinois Issues September 1999 27


sity in DeKalb. Kleppner, along with colleagues at Northwestern University in Evanston and the Metro Chicago Information Center, undertook to see what happens after welfare, what kinds of jobs people are getting, what they're earning, what additional help they might need. (See May 1998, page 8.)

in Motorola's Augusta Blvd.

Production workers assemble push-button auto radio
tuners in Motorola's Augusta Blvd. facility in Chicago in 1939.

The results of an earlier Kleppner study were grim. In 1995, he found there weren't enough entry-level positions for all of the low-skill workers who would be looking for jobs. In the long run, he concluded, Illinois will be hard-pressed to make welfare-to-work a reality.

Indeed, even if the economy holds up, it gets harder from here. What about those who simply don't have the skills to hold any job, or suffer from drug abuse? What of those who can't make work pay enough to take care of children, or face transportation barriers? What of those who simply don't believe in themselves? (See April 1994, page 28.)

Under the welfare-to-work reforms, is government responsible for addressing these issues?

Obama says, "It's not hard to reduce the welfare rolls. Just cut people's benefits. Moving people from welfare to work is much more difficult.'"

"It's just about as tough as we thought it would be," says the coordinator of Chicago's welfare-to-work program. Jeff Marcella, who heads that effort in Mayor Richard Daley's workforce development office, has managed to help find jobs for 1,875 welfare recipients who face such challenges as substance abuse and domestic violence.

NaKisha Davis and Tennille Reed are not in the hardest-to-employ group. They have some skills and experience. They're literate and drugfree. And they've both just completed a four-week intensive job and life skills class offered by a private not- for-profit group working with the Illinois Department of Human Services.

Their Peoria class ended shortly before Clinton landed in Chicago. The next day, both women landed jobs:
Reed as a telemarketer selling magazines; Davis as an aide in a nursing home laundry room, where she hopes to prove herself so she can be included in a training program to become a nurse's assistant.

Of the eight who started the class, these two are the only ones who finished. One woman left because her job at a Peoria school cafeteria became full-time. The others — Robert, a functional illiterate, and four single mothers —just stopped attending.

Stacy Jackson, their teacher at the South Side Office of Concern, doesn't know why. She says when she has time, she'll try to find out. But every day, Jackson has to choose between searching for the five people who dropped out of her last class and helping the five new people walking through her door.

It is, at best, catch-as-catch-can.

28 September 1999 Illinois Issues


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