- A parent earning minimum wage has a far higher family income after taxes and benefits than AFDC provided in the vast majority of cases. With food stamps and cash benefits, the average AFDC recipient (family of three) was 30 percent BELOW the federal poverty level. At minimum wage, that same family is 17 percent ABOVE the federal poverty level counting earnings, tax credits, and food stamps.
- W-2 makes an investment in getting people into work. Wisconsin recognizes that it costs more up front to move people into jobs than it does to hand out checks. Last year (1996-97), the state spent $451 million on AFDC.
This year, Governor Thompson is dedicating $645 million for a caseload that is one-third smaller. That is a spending increase of 45 percent. (This figure does not include Medicaid or food stamps.)
That budget provides for transportation, AODA treatment, education and training, child care, job access loans, financial and employment planning.
- W-2's paid work training levels pay $628/month for W2-Transition and $673 for Community Service compared to AFDC's $517 for family of three; $617 for a family of four.
- Employers are hiring people who are ready and willing to work. During the last 12 months, employers gave the state's job matching system 28,727 more job openings than in the previous 12 months - a 27 percent increase.Employers are eager: So far, over 750 employers answered Gov. Thompson's call to pledge to hire workers off welfare.
- No child care, no work. Safe and affordable child care must be available for any child under age 7 or there is no work requirement.
- The state is working closely with the W-2 agencies to ensure that families are receiving the assistance they need. If a W-2 agency fails to serve someone who is eligible for W-2, the agency will be fined $5,000 for each instance and must take corrective action to rectify the situation.
- There is a six-month transition period for full conversion to W-2 (until March 31, 1998).