Wednesday, July 5, 2006
Contact: Jessica Robinson, 573-751-0290
Blunt Announces Lowest Number on Welfare in over a Decade
JEFFERSON CITY–Gov. Matt Blunt today announced that Missouri has dipped to its lowest point in well over a decade for individuals receiving Temporary Assistance for Needy Families (TANF) benefits, historically known as welfare.
The Department of Social Services (DSS) June report shows a total of 44,476 Missouri families currently receiving assistance, the lowest number since the inception of welfare reform in 1996 when 80,000 families were on the state’s welfare rolls.
“This is yet another indicator that Missouri and its economy are moving in the right direction,” Blunt said. “With unemployment at its lowest rate since 2001, a strong increase in revenue and more than 45,000 new jobs created since January 2005, families are becoming less dependent on public assistance and are more able to find family supporting jobs. My administration is committed to continuing our work to help move Missouri forward.”
In 1996, welfare was transformed under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). Under PRWORA welfare became the Temporary Assistance for Needy Families Program and became a block grant. The TANF grant provides time-limited cash assistance to needy families.
As with the previous system, families receive a monthly cash grant, but TANF required clients to develop a plan for entering the work force and becoming self-sufficient unless exempted by certain factors. TANF also limited the length of time a person could draw benefits to 60 months, a lifetime limit.
In 1996, the average cash grant to Missouri families was $236 per month; there have been no increase or decreases in maximum grant amounts since 1980. However, the reduction in caseload has dramatically reduced the total amount spent on cash benefits by the state. In 1996, Missouri spent over $257 million on cash assistance.
Last year Missouri spent just over $133 million. During the decade the state has reduced its spending on cash benefits by over $1.35 billion. These dollars have been reinvested to prepare individuals to enter the workforce.
The Missouri Department of Social Services and its partners have been leaders in welfare reform, earning the number one and two spots in job entry and receiving many high performance bonuses. Missouri has been nationally recognized for its community based approach, which relied heavily on local community partnerships to administer job preparation, job support and job readiness programs.
Since 2004, many workforce development activities have been transferred to the Department of Economic Development (DED), Division of Workforce Development. Under the Blunt administration, DSS and DED have forged a strong partnership and are working together to meet new requirements of the recently reauthorized program.
###