FOR IMMEDIATE RELEASE:
Tuesday, March 7, 1995
Contact: Michael Kharfen (202) 401-9215
HHS APPROVES OHIO WELFARE DEMONSTRATION 25TH STATE TO RECEIVE WELFARE
WAIVER
HHS Secretary Donna E. Shalala today approved "A State of Opportunity,"
a welfare demonstration project in Ohio designed to move welfare recipients
into jobs ensuring family stability and self-sufficiency. Ohio is the
25th state to receive approval to test innovative welfare reform strategies
under the Clinton administration.
"The Clinton administration has
now given half of all states the opportunity to test innovative welfare
reform approaches -- more than all previous administrations combined,"
said Secretary Shalala. "When these waivers are fully implemented,
some 6 million people representing 42 percent of all recipients will
be affected in an average month.
"This reflects our commitment to
state flexibility. It equally reflects our commitment to end welfare
as we know it and to create a system built on work and responsibility,"
Shalala said.
The Ohio demonstration has three components:
Families of Opportunity, Children of Opportunity, and Communities of
Opportunity.
Communities of Opportunity will operate
in up to five sites, primarily in Empowerment Zone/Enterprise Communities.
At these sites, the state will work with local business, industry and
community leaders to generate up to 2,500 wage-supplemented jobs during
the five-year life of the demonstration. These jobs are expected to
pay at least $8 per hour and provide the economic stability for a family
to leave welfare permanently. Wages will be partially subsidized using
funds that otherwise would have been paid as AFDC or Food Stamps.
Families of Opportunity increases opportunities
for families to attain independence and ensure stability. It expands
eligibility for two-parent families, extends transitional child care
for up to 18 months for those leaving welfare as a result of employment,
and increases the amount of earnings a family can retain before losing
AFDC eligibility. It will operate in ten counties.
Also under the Families of Opportunity component, a one-time cash bonus
of $150 will be paid when a child's paternity is established, and that
amount will not count against AFDC benefits. In addition, in calculating
AFDC benefits, the maximum value of a family-owned vehicle will be raised
from $1500 to $4500.
Children of Opportunity will operate
in two counties and will focus on education. Under this component, dependent
children between 6 and 18 will be required to attend school regularly.
Case management services will be available for families whose children
have problems with school attendance, and there will be financial penalties
for failure to comply.
"Ohio tests a number of promising
ways to strengthen families, including incentives to establish paternity
and ensure children regularly attend school," said Mary Jo Bane,
HHS assistant secretary for children and families. "Now with 25
states exploring creative ways to reform welfare, millions of families
are moving from dependency to real opportunity."
The project will operate for five years
and will include a rigorous evaluation.
###
Note: All HHS press releases, fact sheets and other press materials
are available at http://www.hhs.gov/news.
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