Week Twelve: Viewing IGRs through the Welfare State

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Week Twelve Viewing IGRs through the Welfare
State
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Objectives for Class

• Discuss the importance of welfare states
• Consider the American experience
• Evolution of IGRs and federalism
• From AFDC to Welfare Reform
• Housing and Social Services Case Study

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Emergence of the American Welfare State

• Responsiveness of the American federal system
• Highlights intergovernmental competition
• Diffusion and innovation
• Citizenship rights
• Path dependency
• I dont study welfare, why should I care?

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Social Welfare Policy Context in Early 20th
Century

• Dual federalism
• Weak governmental institutions, few resources
• Heavy reliance upon local private charities
• Outdoor relief v. cash assistance
• Moral concerns about public assistance
• Emphasis on economic development
• Grass roots reform movement ? White House
  Conference on the Care of Dependent Children in
  1909

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Responsiveness of System

• Expanding the scope of conflict
• Multiple access points
• Laboratories of experimentation
• Informal cooperation in dual federalism system

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Intergovernmental Competition

• Neighbors decisions to adopt
• Neighbors decisions to set benefit levels
• Neighbors decisions about residency requirements
• Why not an immediate race-to-the-bottom?

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Mothers Aid Benefit Levels in 1934
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Length of Residency Requirements by Region
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Mothers Aid Benefit Variation, 1919 1934
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Citizenship and Program Benefits

• Political v. civil v. social citizenship
• Unidirectional v. reciprocal?
• Program benefits deemed inadequate
• Program benefits did expand in generosity
• Program adoption v. program structure

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Path Dependency

• Inertial quality of public organizations
• Regional and interstate variation present
  immediately
• Variation in program structure persists into
  modern era
• Importance of initial institutional arrangements

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Aid to Dependent Children

• Component of Social Security Act of 1935
• Federal match, mandatory participation, residency
  requirements
• States and localities still retained much
  discretion
• Needs standards, benefit levels, administration,
  suitable home
• Between 1950s-70s states became more
  constrained as ADC evolved into AFDC

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ADC Program Variation, 1939-59
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National AFDC Caseloads, 1939-59 (April)
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National AFDC Spending, 1939-59 (April)
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Changes in AFDC Caseloads, 1939-59
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Change in AFDC Spending, 1939-59
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Rising Social Welfare Spending in late-20th
Century

• Between 1970-90, state social service budgets
  soared mostly on care for the elderly
• Manipulate benefit levels
• Cannot remove eligible people or deny eligible
  people benefits
• What other levers/strategies are available?
• Berkowitz
• Story of reform in this period of history echoes
  the story of reform today
• Expanded federal presence in SSI and Food Stamps
• Devolution is the one missing ingredient

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Welfare Reform and Devolution How Did We Get
There?
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1980-96 Rise of Welfare as an Issue and
Expanding State Autonomy

• Prior to 1993 -- record caseloads, bad economy,
  and struggling state budgets
• Family Support Act of 1988
• Growing capacity of states
• Waiver program
• Clinton end welfare as we know it
• Favorable climate for reform
• Momentum for devolution

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PRWORA of 1996

• Greater state govt discretion
• Work requirements
• Time Limits
• Cost savings
• End entitlement to cash assistance
• Immigrant bans
• Maintenance of effort and contingency fund

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What Were The Anticipated and/or Feared Outcomes
of Welfare Reform?
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PRWORA Whats Happened?

• Some immigrant provisions amended
• No dramatic race-to-the-bottom
• Changing environment for implementation
• Shortage of workers and caseload decline
• Edelmans fears realized?

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Cash Assistance Benefits, 1934 1998
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Caseload Change in Detroit, 1992-2000

• Caseloads declined by 75 percent welfare
  receipt still concentrated in central city
• In 2000, half of recipients were new or returning
  to welfare
• Caseload was comprised of older heads of
  household and larger families
• Those closest to jobs were more likely to work
  and leave welfare all things being equal

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Issues to Consider as Re-authorization Approaches

• Programs supporting marriage
• Barriers to employment
• Transportation issues
• Exemptions and time limits
• Grant levels, maintenance of effort, and
  contingency funds
• State discretion over work activities

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HASCO Case Study

• Integrated program with case manager that
  coordinated services local organizations would
  participate to help their clients receive Section
  8 vouchers
• Changes in HUD policy
• Undermined partnerships, eliminated caseworker
• Reduced of participants, changed selection
  criteria

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Questions to Answer in Groups

• Why was the local program so successful?
• Are there clear boundaries for housing-related
  services?
• How should Holt respond to HUDs directives?
  Choices? Tradeoffs?
• How can you preserve the program?
• What kinds of sacrifices can you be prepared to
  make?
• Who should you seek out for assistance?

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Readings for Next Week

• Chapter Thirteen, Politics in the American
  States, Gray et al. (pp. 474-505)
• The Politics of Bread and Circuses, Peter
  Eisinger