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Date: Wednesday, Feb. 14, 1996 FOR IMMEDIATE RELEASE Contact: Michael Kharfen (202) 401-9215
HHS Secretary Donna E. Shalala today announced approval of the first waiver of federal welfare rules under the Clinton administration's Empowerment Zone/Enterprise Community initiative. The waiver was provided for Oakland, California.
"President Clinton is fulfilling his promise to help give communities the flexibility to revitalize and rebuild by reducing Washington red tape," said Secretary Shalala. "This demonstration will put welfare recipients to work improving their own community."
Oakland's Community Building Team (CBT) Demonstration Project is part of the Empowerment Zone/Enterprise Community (EZ/EC) initiative proposed by the Clinton Administration and approved by Congress in 1993. Vice President Al Gore chairs the Community Empowerment Board.
The EZ/EC program provides opportunities for designated cities and rural areas to develop innovative programs to bring economic self-sufficiency and revitalization to their most distressed areas. One of the benefits of the designation is the prompt waiver of federal regulations that might prevent creative and effective revitalization programs. In December 1994, Oakland was designated as an Enhanced Enterprise Community and granted $3 million in Social Services Block Grant funds to operate the CBT program.
Under the waiver of the Aid to Families with Dependent Children program, the CBT will provide stipends for welfare recipients. Participants will work on community service projects, and receive practical job experience and training, as well as formal education to help them to self-sufficiency.
"Oakland recognizes that strong families are crucial to build stable communities," said Mary Jo Bane, assistant secretary for children and families. "This waiver achieves the intent of the EZ/EC program for communities to develop solutions to their own problems."
The demonstration is expected to operate for 10 years.
Grantland Johnson, regional director for HHS Region IX, said: "The HHS regional office has worked closely with the state of California, Alameda County and the City of Oakland throughout the waiver process. Today's approval shows how quickly and effectively we can act when we work in partnership toward a common goal."
The EZ/EC program is jointly administered by the Department of Housing and Urban Development and the Department of Agriculture, with funding by HHS.