CalWORKs 101: Key Facts About Californias Welfare- 1107 9th Street, - - PowerPoint PPT Presentation

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CalWORKs 101: Key Facts About Californias Welfare- 1107 9th Street, - - PowerPoint PPT Presentation

CalWORKs 101: Key Facts About Californias Welfare- 1107 9th Street, 1107 9th Street, Suite 310 Suite 310 to-Work Program Sacramento, Sacramento, California 95814 California 95814 (916) 444-0500 (916) 444-0500 www.cbp.org www.cbp.org


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1107 9th Street, Suite 310 Sacramento, California 95814 (916) 444-0500 www.cbp.org cbp@cbp.org 1107 9th Street, Suite 310 Sacramento, California 95814 (916) 444-0500 www.cbp.org cbp@cbp.org

CalWORKs 101: Key Facts About California’s Welfare- to-Work Program

A PRESENTATION BY SCOTT GRAVES, SENIOR POLICY ANALYST November 2012

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First, Some Context

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As a Result of the Great Recession, Poverty Has Increased Dramatically

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4 12.9% 12.7% 12.2% 16.9% 12.8% 11.3% 12.3% 15.0% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Percentage of People With Incomes Below the Federal Poverty Line

Approximately One Out of Six Californians Were Living in Poverty in 2011

Change in California's Poverty Rate Between 2010 and 2011 Was Not Statistically Significant

California US

Source: US Census Bureau

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5 22.0% 16.4% 18.1% 24.3% 20.6% 16.3% 17.4% 21.9% 15% 17% 19% 21% 23% 25% 27% 29% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Percentage of Children Under Age 18 in Families With Incomes Below the Federal Poverty Line

Nearly One Out of Four California Children Were Living in Poverty in 2011

Change in California's Child Poverty Rate Between 2010 and 2011 Was Not Statistically Significant

California US

Source: US Census Bureau

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California’s Families Continue To Face a Tough Job Market

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7 July 2007 15,212,200 February 2010 13,842,300 September 2012 14,347,900 13,500,000 14,000,000 14,500,000 15,000,000 15,500,000 Seasonally Adjusted Number of Nonfarm Jobs

California Still Has a Deep Hole in Its Job Market

Source: Employment Development Department

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8 4.9% 5.4% 6.7% 6.8% 6.2% 5.4% 4.9% 5.4% 7.2% 11.3% 12.4% 11.7% 10.6% 9.6% 8.7% 7.8% 7.1% 6.7% 6.7% 0% 2% 4% 6% 8% 10% 12% 14% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 California Unemployment Rate

California's Annual Jobless Rate Is Projected To Drop Below 10 Percent in 2013

Note: 2012 through 2018 are projected. Source: Legislative Analyst's Office and US Bureau of Labor Statistics

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The Great Recession Hit Single Mothers Particularly Hard

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10 55.8% 50.0% 55.0% 69.8% 69.2% 56.8% 30% 40% 50% 60% 70% 80% Employment Rate for Unmarried California Women With Children

The Share of California's Single Mothers With Jobs Has Fallen to Its Lowest Level Since 1995

Source: CBP analysis of US Census Bureau data

California implements welfare reform

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Key Facts About the CalWORKs Program

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Most Californians Who Receive CalWORKs Cash Assistance Are Children

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13 Children 78.4% Adults 21.6%

Nearly Four Out of Five Californians Who Receive CalWORKs Cash Assistance Are Children

Number of Individuals Receiving CalWORKs Cash Assistance in August 2012 = 1,362,339

Source: Department of Social Services

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Most Single-Parent Households That Receive CalWORKs Cash Assistance Are Headed by Women

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15 Households Headed by Women 91.7% Households Headed by Men 8.3%

More Than 90 Percent of Single-Parent Households Receiving CalWORKs Cash Assistance Are Headed by Women

Heads of Household in Single-Parent Families Receiving CalWORKs Cash Assistance in Federal Fiscal Year 2011 = 205,269

Source: Department of Social Services

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The Number of CalWORKs Families Dropped Steeply After Welfare Reform and Then Increased Beginning in 2007 Due to the Great Recession

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17 March 1995 932,345 July 2007 454,956 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 Number of Families Receiving AFDC/CalWORKs Cash Assistance

After Declining for Many Years, the Number of Families Receiving CalWORKs Cash Assistance Increased Steadily Beginning in 2007 Due to the Great Recession

Source: Department of Social Services and US Department of Health and Human Services

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The CalWORKs Caseload Has Declined Over the Past Year

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19 June 2011 597,723 August 2012 563,347 450,000 475,000 500,000 525,000 550,000 575,000 600,000 625,000 Number of Families Receiving CalWORKs Cash Assistance

The Number of Families Receiving CalWORKs Cash Assistance Began a Sharp Decline After June 2011

Source: Department of Social Services

Drop reflects the impact

  • f an 8 percent grant cut

and other CalWORKs reductions implemented

  • n July 1, 2011.
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CalWORKs Provides Modest Cash Assistance

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21 $1,364 $633 $694 $638 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Maximum AFDC/CalWORKs Grant for a Family of Three

Purchasing Power of CalWORKs Grants Has Dropped by More Than Half Since 1989-90

Maximum Grant if Grant Had Been Adjusted for Inflation Each Year Actual Maximum Grant

* Maximum grant as of the enacted budget. Note: Maximum grants are for high-cost counties beginning in 1996-97. Previously, maximum grant levels did not vary by county. Source: CBP analysis of Department of Finance and Department of Social Services data

Loss of purchasing power since 1989-90 = 53.2%

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22 40.1% 72.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% Maximum CalWORKs Grant Maximum CalWORKs Grant Plus CalFresh Food Assistance Maximum CalWORKs Grant and CalFresh Assistance as a Percentage of the 2012 Federal Poverty Line

Combining CalWORKs and CalFresh Assistance Still Leaves Families Well Below the Federal Poverty Line

CalWORKs Program CalFresh Program

Note: CalWORKs grant is for a family of three living in a high-cost county. Source: Department of Social Services, Legislative Analyst's Office, and US Department of Health and Human Services

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23 $19,812 $16,428 $17,170 $19,090 $9,000 $12,000 $15,000 $18,000 $21,000

Families Currently Lose CalWORKs Cash Assistance Well Before Their Incomes Reach the Poverty Line

CalWORKs Income Limit for a Family of Three Federal Poverty Line for a Family of Three

* Enacted. Note: CalWORKs income limits are for high-cost counties. Source: Department of Social Services and US Department of Health and Human Services

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CalWORKs Provides Job-Related Services To Help Families Move Toward Self-Sufficiency

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25 $8,273 $484 $229 $809 $3,339 $955 $993 $588 $0 $2,000 $4,000 $6,000 $8,000 $10,000 Cash Assistance Welfare-to-Work Services Child Care Administration AFDC/CalWORKs Spending (2012-13 Dollars in Millions)

Since the Mid-1990s, Spending on Welfare-to-Work Services and Child Care Have Both Increased, While Spending on Cash Assistance and Administration Have Dropped, After Adjusting for Inflation

1996-97 2012-13 Enacted

Note: Spending includes federal, state, and county dollars. Source: Department of Finance and Department of Social Services

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26 84.5% 4.9% 2.3% 8.3% 56.8% 16.3% 16.9% 10.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Cash Assistance Welfare-to-Work Services Child Care Administration Expenditures as a Percentage of Total AFDC/CalWORKs Spending

Since the Mid-1990s, Welfare-to-Work Services and Child Care Have Both Increased Substantially as a Share of Total Welfare Spending, While the Share Going to Cash Assistance Has Dropped

1996-97 2012-13 Enacted

Note: Spending includes federal, state, and county dollars. Source: Department of Finance and Department of Social Services

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Spending on CalWORKs Has Declined Sharply Since California Implemented Welfare Reform in the 1990s

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28 $9,795 $5,876 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 1996-97 2012-13 Enacted AFDC/CalWORKs Spending (2012-13 Dollars in Millions)

Welfare Spending in California Fell by More Than One-Third From 1996-97 to 2012-13, After Adjusting for Inflation

Note: Spending includes federal, state, and county dollars. Source: Department of Finance and Department of Social Services

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  • 40.0%

55.4%

  • 50%
  • 30%
  • 10%

10% 30% 50% 70% 1996-97 to 2012-13* Percent Change (2012-13 Dollars)

Welfare Spending in California Has Dropped Substantially Since 1996-97, While Total Spending Has Increased by More Than Half, After Adjusting for Inflation

AFDC/CalWORKs Spending Total Spending Through the State Budget

* 2012-13 enacted. Note: AFDC/CalWORKs spending includes federal, state, and county dollars. Total spending includes federal dollars and state General Fund, special fund, and bond fund dollars. Source: Department of Finance and Department of Social Services

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Spending on CalWORKs Now Accounts for Less Than 3 Percent of the State Budget

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31 6.8% 2.6% 0% 1% 2% 3% 4% 5% 6% 7% 8% 1996-97 2012-13 Enacted AFDC/CalWORKs Spending as a Percentage of Total Spending Through the State Budget

Welfare Spending as a Share of Total Spending Fell by More Than Half From 1996-97 to 2012-13

Note: AFDC/CalWORKs spending includes federal, state, and county dollars. Total spending includes federal dollars and state General Fund, special fund, and bond fund dollars. Source: Department of Finance and Department of Social Services