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Governor: 'Time Has Come, Day Is Now' for CalWORKS Reckoning

By Dan Aiello
California Progress Report

At a press conference held in his capitol office yesterday, Governor Arnold Schwarzenegger announced, “The time has come and the day is now to reform [California’s welfare] programs.”

Mike Herald, the Legislative Advocate for the Western Center on Law & Poverty, and Frank Mecca, executive director of the County Welfare Directors of California, had just joined a few friends for lunch when Mr. Schwarzenegger began talking about his proposal to make the California Work Opportunity and Responsibility to Kids Program (CalWORKs) more efficient.

The governor was joined by Health and Human Services Agency Secretary Kim Belshe and John Wagner, director of Social Services, to talk about the governor’s “third option” proposal.

Schwarzenegger, referring to taxes and further program cuts as the first two budget options, said “We have a third option, which is to make government run more efficiently, and therefore we don’t have to raise the taxes,” he said.

“We were caught off-guard," said Herald. "We were watching it and we couldn’t believe how many factual errors there were in what he was saying” said Herald, who claimed his lunch partners tried at first “to write down the errors” but eventually stopped. “There were so many of them, we couldn’t keep up” he said.

“If you’re struggling, government should help,” Schwarzenegger told reporters. “But only if you’re helping yourself. I’m of the opinion that there ought to be some kind of safety net, but people ought to use and not abuse it.”

CalWORKs advocates like Mecca and Herald continue to defend the program as both relatively and historically successful, desperately needed during this recession and comparably efficient to other states. Both program advocates claim that up until recently Schwarzenegger’s administration thought so, as well, pointing to a letter last fall from Belshe to Senator Dianne Feinstein in which Belshe touts the success of California’s welfare-to-work program and its success in moving “more than 400,000 recipients beyond assistance” as evidence that the administration’s taste for CalWORKs blood is newly found.

On that point the administration claims the governor has proposed reforms to the program similar to those announced yesterday, “for at least the last five years.”

But yesterday the governor began his news conference by invoking the words of President Bill Clinton, believing the CalWORKs program should be "a second chance, not a way of life,” as he laid out his proposal to significantly reduce the length of time adults would be eligible to receive benefits while increasing client adherence to Federal requirements which advocates claim his own administration have called, “deeply flawed.”

The governor also criticized state’s current maximum benefit of $694 dollars, calling it “generous” and “the third highest in the nation,” and citing as significantly lower the monthly benefit in Texas ($275), Illinois ($432), Michigan ($492) and Florida ($303). Program advocates noted Schwarzenegger failed to acknowledge the relatively lower housing and living costs in those states, while pointing out that other states, like New York ($760), offer higher benefit amounts.

At one point during the news conference the governor repeated the claim he made in a Los Angeles Times Op Ed piece last week - that “only 22 percent” of the approximately 525,000 program recipients are “trying to get on their feet.”

It’s an allegation Herald argues is false.

“Once again today the governor upped the ante, claiming 80 percent of [program] recipients aren’t working,” Herald told the California Progress Report. “What we’re saying is that is just a misuse of the factual measure. The problem with that figure is that we know that 50 percent of the CalWORKs recipients have earnings from work, so how can 80 percent not be working? The notion that people are just sitting around doing nothing is just factually incorrect and he’s misleading the public when he says that.”

Current Federal work requirement guidelines established by the Bush administration do not recognize part-time work, which largely accounts for the discrepancy.

The governor also claimed that states like Massachusetts, “where,” he joked, “Uncle Teddy lives,” have had greater success at moving recipients into employment than California.

Herald calls the comparison, “apples and oranges,” claiming that a number of factors in a small new england state’s TANF (Temporary Assistance for Needy Families) program, its recipients and its caseload make a meaningful comparison impossible. Massachusetts recipients might not have the same language barrier issues, for example. “We have a lot of people with limited English proficiency and learning disabilities,” explained Herald. “I think it’s fair to say that we have a harder work load.” And while California requires single parents with children under two years of age to work 32 hours a week in order to meet their work obligation in the program, Massachusetts exempts them entirely, scaling up work hour requirements as the children grow; ages two to five, 20 hours; six to eight, 24 hours; nine and older, 30 hours (according to information handed out by the administration at the press conference.)

A major proposal in the governor’s plan announced yesterday was the reduction in the total length of time adults would be eligible to receive benefits, from the current five years to 24 months. Ms. Belshe explained that this reduction, when coupled with sanctions for recipient non-compliance to federal requirements (which advocates claim are difficult to maintain) and increasing recipient accountability from one to two face-to-face meetings per year, will save an estimated $753 million dollars in 2009-2010 and eventually save the general fund as much as $1.5 billion dollars.

“Other states impose swift penalty for non-compliance, California does not,” said Schwarzenegger. “Our welfare program ought to have mutual obligations. Both sides should have responsibilities.”

“The governor’s saying the program’s too liberal and we’re letting people stay on the program for ever and ever, but the facts tell a very different story,” Herald told the California Progress Report. “Under the old [Aid to Families with Dependent Children] AFDC program, half the people dropped off after 37 months,” said Herald, but in the new CalWORKs program, “half the people drop off after 20 months. That’s almost a 50 percent reduction.”

“Not only is the program performing very well,” said Herald, “but it simply is not the source of the state’s budget crisis. In fact, California spends 20 percent less in real dollars now than it did 15 years ago on welfare, and the state has not increased its general fund spending on CalWORKs since the program began in 1998.

“The caseload is increasing every year,” said Schwarzenegger, who claims the state is expecting a 50 percent increase in caseload due to the recession.

“The governor’s statement that it’s a budget problem and a growing caseload is just not accurate,” Herald responded, claiming California’s work participation rate by enrollees has continued to rise, “even in the worst economy in 70 years. One of the most disappointing things about the governor’s statements is that this is all very well known.”

The governor also believes that CalWORKs should impose stiff penalties on non-compliant recipients, noting that families with children have no incentive to comply with work requirements. “I propose that we cut services to the entire family,” said the governor, “if the parents are non compliant.”

Herald called that lack of incentive a “creation of Pete Wilson. He figured it was better to have a roof over the kids head then to have them in foster care.” Herald said the state spends “far less” than the $2.8 billion dollars of the combined funding source of the TANF funds because California counts millions from other programs toward its share of cost. The state receives $3.7 billion in federal matching dollars, which is fed directly into California’s economy as recipients pay for rent, food and clothing.

"It would be worse than a return to the bad old days, Herald told the Ventura County Star, claiming the governor's plan will "lead to massive homelessness and children being destitute,” and calling the proposal "worse" than the days of AFDC.

Posted on July 09, 2009

Comments

I'm one of those 80% that was not meeting guidelines. I was only working part-time because that's what I was offered. I was off of work by 6:30am in the morning and looking for other work. Times are hard, and what Arnold is suggesting is already being done. I was in Illinois before. What Arnold fails to mention is that in that state there is a 90 day wait to receive help. You must go homeless and stay on the streets until you haven't worked 90 days. I did come to Cali because I have family here and couldn't find a place to sleep. I had no food stamps in Illinois and my kids ate buttered noodless and hard boiled eggs with water for 2 weeks. To compare Illinois to California, if that's what he hopes this state will be like is disgusting. In Illinois I was told by the caseworker, if you're out of work, become a prostitute or start stripping. I had so many friends with college degrees losing work that they were resorting to this lifestyle, and becoming downright suicidal. Do what you must, but don't push women to exploit there bodies and risk there children. All the times I was appointed "driver" to pick my friends up, drunk and crying about what they had too do. Illinois is a horrible place. Everyday I'm on the computer searching for work, making new resumes as I need to tailor them to the work I'm requesting. I'm trying to get to school, but do to Ahnuld crappy cuts I cannot even get into classes. He proposes 2 years "and more" if you meet work requirements. Give me work and I'll do it, give me school and I'll do it. Stop wasting time and stop spreading lies, you have no idea what these programs are doing Ahnuld.

Posted by: Jennifer at July 9, 2009 08:16 AM

Jennifer,Arnie does not care about human life, all he cares about is $$$$$$$ if he would shift his budget reductions to contractors being overpaid for the jobs they do and how the sate gives out contracts, small business contracts are allowed to add 15% to parts and services and all the special intrest groups that have him in there pocket.

Posted by: socal at July 9, 2009 09:02 AM

If we were talking about a stimulus bill to give California Corporations $3.7 billion dollars in federal grants or tax credits the governor would be all for it, but giving that much to California's poorest residents and their children so they can survive, not thrive, well that's just beyond the pale. Does anyone think that $694 dollars a month is anyone's preferred way of life? And why doesn't California do what the governor suggests and follow Massachusetts lead by exempting parents of infants from the work requirements, and shouldn't the program recognize part time work when right now that's about all employers are offering as a way to avoid providing healthcare benefits?

Posted by: Terran at July 9, 2009 09:40 AM

CalWORKs puts approximately 34million per year into a small rural economy. This creates jobs and provides for a more "stable" economy. CalWORKs is NOT the problem for the Stat'e budget crisis. Poorly managed legislation and ill informed voters create a much bigger problem that simply accumulates over time. For example; the original budget proposal included "trimming the fat" as it were using prop 98 dollars and trailer bills that would increase "match funds" to local governments. This would have avoided property taxes in the long run. Since that time, the Govenor has removed such language from the budget and replaced it with "borrowing" money from local governments. Additionally, he proposed a 3% increase in personal taxes beginning 07/01/09. He also proposed a 24% quarterly tax for small businesses earning $600.00 per quarter. Essentially, it is the working class that was being targeted in the earliset budget. Now it is the working class and the working poor.
CalWORKs caseloads report an average of 68% of individuals "engaging in some form of income earning activity". While it may not be FULL TIME work, it is work and it does generate money for the economy. Lastly, California continues to rank 3rd hightest in the nation for unemployment and ongoing job loss. To add to this, businesses are closing at a staggering rate of 5 in every quarter (3 months). More and more businesses and manufacturing companies have chosen to build factories and facilities in other places which contributes to "low wage" earners in our State. While it may be true, California is a "welfare magnet", it also has lost its abilit for job sustainability and job creation. The Govenor has a responsibility to create jobs...not take them away. California has not applied for a Federal Enterprise Zone since late 2002. Enterprize zones are "tax exempt" areas that are designed to draw large businesses who must employ local workforce in order to take advantage of the tax break. The current legislature is "hoping" the Federal stimulous money (ARRA) funds will offset California's inability to create jobs and provide job training partnerships with colleges and local businesses. CalWORKs is just one mechanism that works with colleges and local businesses to provide such training and to create jobs. Again, CalWORKs is NOT the reason California is in a budget crisis. It is the inability of law makers and legislature to perform as voters have asked them to. Create jobs and stabalize our economy.

Posted by: Jferguson at July 9, 2009 04:20 PM

During the Governor's press conference, I invited a group of CalWORKs students in my office and observed their expressions and body language while they watched Schwarzenegger speak. The shock, worry, and disbelief mirrored my own.

As the CalWORKs Coordinator at a California Community College, I have been honored and privileged to guide and mentor a wide variety of parents on cash assistance achieve both their academic and career goals. A great percentage of those who have graduated are economically self-sufficient and leading lives filled with promise, pride, and hope.

They may have been poor in cash, but rarely were they poor in spirit.

Posted by: Vickie Hay at July 9, 2009 10:25 PM

They may have been poor in cash, but rarely were they poor in spirit.

Posted by: Vickie Hay at July 9, 2009 10:27 PM

they need to recognize part-time work and stop insisting on full-time work, even with the earnings fron part-time work a welfate check for 345.00 will be reduced to less than 50.00 dollars a month prompting the receiver to cancel aid.

Posted by: carmelita robertson at July 10, 2009 08:08 AM

When welfare to work means working in a government job,isn't that just more welfare? The current welfare to work program is a joke and only serves to make a more bloated government. Who is paying for those shiny new government jobs? This is why Arnie says it needs to be overhauled.

Posted by: Judicial Abuse at July 10, 2009 09:41 AM

I agree 100% w/Governor Schwarzenegger. If you want help, help yourself. And for the comment: Herald called that lack of incentive a “creation of Pete Wilson. He figured it was better to have a roof over the kids head then to have them in foster care.” I completely disagree. Being in foster care means having a roof over your head. I believe it is fair to state that if you are noncompliant, you lose your benefits, regardless of how many children you have. It should be black/white, if there are 'gray' areas what's the incentive for compliance?

Posted by: Gina at July 10, 2009 12:32 PM

What many of us said aloud during the press conference was that our county certainly does initiate an immediate sanction process for noncompliance. If I'm not mistaken when she spoke of sanctions, Ms. Belshe failed to mention that not only does the recipient lose the adult portion of the monthly benefit, they also lose all the supportive services that are paid by CalWORKs (i.e. childcare, transportation assistance, work clothes such as uniforms, etc.) Very few families can survive on the child-only portion of cash assistance, especially without the work/training support services. Overall, the greatest majority of families on cash assistance make every attempt and effort to fulfill the requirements and cooperate with the program.

The rhetoric being issued from the Governor's office surrounding welfare is reminiscent of Reagan's "Welfare Queen" myth. It is quite disappointing to see that urban legend resurrected and I hope the California public is able to see the truth through the smokescreen.

Posted by: Vickie Hay at July 10, 2009 07:04 PM

I have mixed feelings about this,I somewhat agree with MR. Governator but I don't think that "fraud" is the proper term but perhaps "abuse" of the welfare and calworks programs are a fact. During this time of a "recession" we need to keep the programs available or we will have tent cities next door to country clubs. To phase out the problem start at the core of the problem. Work on reducing teenage pregnancies,high school drop outs,etc.. i can go on and on..by the way where is the LOTTO money why are dedicated teachers now working at Mcdonalds? It's a Beautiful state but if we can't afford to live here we are going to "leave" here. It's a great country and we are free to go.

Posted by: Martha at July 11, 2009 11:57 PM

Posted by: Martha at July 12, 2009 12:00 AM

Exactly. If you can't afford to live somewhere, then you shouldn't. Go live in Texas or Florida where it was noted as being cheaper. Being unable to take care of yourself is not a problem the state should deal with.

I'd really like to live in downtown San Francisco. Guess what. I can't afford to, so I don't.

Be warned. No other state in the Union will baby you like California does. It's about time it figured out there's a reason.

Posted by: Chris at September 16, 2009 05:13 PM

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