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Date: Thursday, March 28, 1996 FOR IMMEDIATE RELEASE Contact: Michael Kharfen (202) 401-9215
HHS Secretary Donna E. Shalala today announced approval of "Oregon Option," a statewide welfare demonstration project for Oregon. This is the second waiver demonstration for Oregon approved by the Clinton Administration, and the 58th welfare demonstration approved by the Clinton Administration overall.
The Oregon Option replaces Oregon's previously approved JOBS Plus demonstration.
The Oregon Option will test an innovative employment-focused approach to moving people from welfare to work. With its emphasis on involving the entire AFDC caseload in job-related activities, on providing supports for employment, and on defining success in terms of employment outcomes, this demonstration will help Oregon families become -- and stay -- self-sufficient.
"The Clinton administration and Oregon entered into an historic partnership through the Oregon Option to give the state increased flexibility in improving the lives of Oregon children and families," said Secretary Shalala. "The President is very pleased to build on the promise of the Oregon Option and the accomplishments of Governor Kitzhaber by approving this unique and innovative demonstration."
The Oregon Option will limit Aid to Families with Dependent Children (AFDC) recipients to 24 months of benefits in any seven-year period, with some exceptions. Nearly all recipients will be required to participate in the demonstration, and progressive sanctions will be imposed for failure to comply with requirements.
Eligible participants will be provided subsidized public or private employment for up to nine months at minimum wage or better. The subsidies will by funded by combining AFDC grants and cashed-out Food Stamp allotments. The state will provide supplemental payments if an individual's income is less than the combined AFDC and Food Stamp benefits. Participants will continue to be eligible for Medicaid and will receive workplace mentoring and support services. In addition, the state will pass on to families all child support payments it collects on their behalf.
Under the Oregon Option, Oregon will have increased incentives to move more people from welfare to work. If Oregon has reduced its annual AFDC expenditures by moving recipients from welfare to work, Oregon may use the additional federal matching funds for reinvestment in services that promote self-sufficiency, such as additional child care and JOBS services. Under a separate memorandum of understanding, Oregon will have flexibility to change quality control activities to measure self-sufficiency and child well-being, while maintaining fiscal accountability.
In order to promote parental responsibility, minor parents will be required to live at home with their parents or in another safe living environment as a condition of eligibility.
To ease the transition to independence, Oregon will extend child care eligibility an additional 12 months for recipients who get jobs but whose income remains below a level established by the state. In addition, AFDC eligibility will be expanded to more two-parent families by allowing mothers or fathers to work more than 100 hours a month. The Oregon Option also allows families to accumulate more resources by raising resource limits.
"With the Oregon Option, Oregon builds on the initial success of JOBS Plus by enhancing and extending its strengths to the entire state," said Mary Jo Bane, assistant secretary for children and families. "This innovative demonstration will make a real difference in moving people from welfare to work and in ending welfare as we know it for the people of Oregon."
The Oregon Option will operate for seven years and include a rigorous evaluation.