Tuesday, February 25, 1998

Governor
Tommy G. Thompson

Secretary
Linda Stewart



Contact
David Blaska
608/267-4400
e-mail: blaskd@mail.state.wi.us
fax: 608/266-1784


Welfare dependence down 23% in January
W-2 conversion almost complete

For the first month ever, the number of W-2 cases exceeded the number of AFDC. By the end of January, 12,127 families had been enrolled in W-2, up 20 percent.

In January, AFDC checks were issued to 7,797 families, down 39 percent from December. However, only 1,778 AFDC cases were open statewide (1,734 in Milwaukee County) in the most recent computer run, conducted on February 22.

Families in the first two, job-readiness training levels of W-2 receive a state subsidy check. Adding those to January’s remaining AFDC recipients totals 14,391 families dependent on cash assistance (Column #1 on Page 3). That’s a 23 percent improvement from December and is down 54 percent since W-2 went statewide five months ago. Taking the longer view, dependency has been reduced 85 percent since welfare reform began in Wisconsin in January 1987.

"Throughout Wisconsin, families whom the old system had given up on are making better lives for themselves with the help of the W-2 program and people who care," said Linda Stewart, Secretary of the Department of Workforce Development.

The Secretary again reminded parents that there will be no more AFDC after the March checks. As a practical matter, parents should enroll with their local W-2 agency by March 18 in order to get a W-2 check or, better yet, a job payroll check in April.

Milwaukee’s share of all W-2 cases rose to 70 percent from 66 percent in December and 64 percent in November.

Issuance of Food Stamps remained steady 78,844 cases, up just one case from December (and down 170 from September). Food Stamps are considered a reliable indicator of economic viability. Food Stamps remain an entitlement; recipients need not participate in W-2 to receive them.

  January December November October September
AFDC & paid W-2

14,391

18,655

23,328

27,377

31,476

Milwaukee

12,287

15,490

18,095

20,721

21,889

AFDC only

7,797

12,742

18,122

26,244

31,332

Milwaukee

7,503

11,421

14,648

20,430

21,844

Medical Assistance showed a small increase of 167 cases to a total of 145,195 in January.

Best Practices — Tecumseh Products Inc. hired eight people off welfare who completed a training program right at the small-engine factory. "I was one of those reluctant people, a critic, of hiring people off welfare. I thought they’d work a day or two and then leave. Now, I am convinced it works because of the success of some of the folks we’ve had working with us," says Dave Eberhardt, plant operations manager.

"I’m really impressed by their work ethic. "They show up on time, ready to work!" adds Don Denis, human resources manager. Ozaukee Express transports workers between Milwaukee and Ozaukee County.

A second 6½-week training session for 18 potential new employees will begin in early March.

W-2 placements
as of January 31, 1998

 

Total State

%

Milwaukee

%

Unsubsidized

4,228

34.9%

2,756

30.8%

Trial Job

81

0.7%

9

0.1%

Community Service

6,354

52.4%

5,463

61.0%

W2-Transitions

1,464

12.1%

727

8.1%

Total W-2

12,127

100.0%

8,955

100.0%

This chart represents a snapshot in time taken January 31. The chart on Pages 3 and 4 are cumulative totals of under which program payments were made. A person receiving an AFDC check on December 1 could be in W-2 by the end of the month.