FOR IMMEDIATE RELEASE CONTACT: John Truscott
December 29, 1998 (517) 335-6397
In a month when Michigan's welfare caseload dropped below 100,000 for the first time
since 1971 and two more Project Zero counties reached "zero" cases without
income, totaling five, Governor John Engler today announced Michigan's welfare reform
program also exceeded the federal "work participation rate" for fiscal year
1998.
"The great news is that welfare recipients are gaining independence by leaving
welfare for work and earning wages -- and doing so in big numbers," said Governor
Engler.
Michigan is outpacing the rates set for it by the federal government, which provides the
state's $775 million annual Temporary Assistance for Needy Families, or TANF, block grant.
The block grant supports Michigan's Family Independence Program, formerly AFDC.
For a single parent to meet TANF work participation rates, he or she must work 25 hours
each week while collecting benefits. For a two-parent family, they must work 35 hours per
week between them. The fiscal year 1998 rate for all families was 20 hours.
In fiscal 1998, 49.2 percent of all Michigan families met work participation rates, far
exceeding the federal standard of 30 percent.
Sixty-four percent of two-parent families receiving TANF funds worked 35 hours or more
each week, surpassing the adjusted work participation rate of 43 percent. The federal
welfare reform law allows states to adjust participation rates based on caseload
reduction.
"This is a reflection of the work done in local Family Independence Agency offices
and Work First offices," said Family Independence Agency Director Marva Livingston
Hammons.
"FIA and Michigan Works! agency workers are dedicated to the principle that welfare
is temporary relief, not a way of life. They help customers make the transition from
public assistance to work, from relying on state support to relying on their own
efforts."
There are two incentives for states to meet federal participation standards:
Meeting the standard means a state's "maintenance of effort" funding does not increase. Maintenance of effort funds are those states must contribute in order to receive their TANF grant.
Michigan contributes $468 million to capture its $775 million TANF grant. If the state did not meet participation standards, it would have to contribute an additional $31 million in state funds.
New "high performance bonus" funds will be awarded this year to the top 10 states that help welfare customers acquire jobs and income. Since participation standards are a reflection of state efforts to help welfare customers gets jobs and earn income, bonus funds will reward the highest performers.
The federal Department of Health and Human Services is making $200 million available in
high performance bonus money in fiscal year 1999. The department will rank states in order
of performance and the top 10 will qualify for bonus money. Based on a federal formula,
Michigan could qualify for as much as $38.7 million in bonus money.
"Independent of our participation percentages, the goal will remain the same:
jobs," said Doug Stites, chief operating officer of Michigan Jobs Commission.
"Work First programs have one goal in mind -- helping people move into the work
force, where they can ensure their future and contribute to Michigan's economic
life."
The Michigan Jobs Commission is the state's economic development agency and a partner with
the FIA in providing employment training and job services for welfare customers.
Through 25 Michigan Works! agencies around the state, Michigan Jobs Commission oversees
Work First services provided to TANF customers, including job search and
employment-related assistance.
For information on your local Michigan Works! agency, call 1-800-285-WORKS or visit
Michigan's Talent Bank / Job Bank on-line at: www.michworks.org
For more information, visit the Family Independence Agency website at www.mfia.state.mi.us