On September 9, the Subcommittee on Employment and Training of the House Education and the Workforce Committee held a hearing on welfare reform to learn about successes in bringing down the TANF rolls, gathering information on unspent TANF and Welfare-to-Work funds and looking for answers on what needs to be done to complete the job of welfare reform.  Congressman Howard P. (Buck) McKeon (CA), Chair of the Subcommittee, said that the facts are clear -- welfare reform has been a success, yet a small segment of the welfare population has not faired well at all.  Under his leadership, the committee is looking for answers to help those on the rolls move into the workforce, retain their jobs and move up the economic ladder.

Though The Welfare to Work Program (WTW) and Temporary Assistance for Needy Families (TANF) are currently under the jurisdiction of the House Ways and Means, and the Senate Finance Committees, McKeon assured that his committee, which handles workforce policy, intends to address this challenge- because welfare reform has everything to do with work. Full Committee Chairman, Representative William F. Goodling (PA) echoed this point emphasizing the need for coordination between welfare reform efforts and the nations workforce development systems, which operate under the Workforce Investment Act of 1998 (WIA).  A key player in the passage of WIA, Goodling highlighted the critical need for coordination between HHS and DOL.

Coordination of WTW and WIA was well demonstrated at the hearing.  DOL Assistant Secretary Raymond Bramucci, and HHS Assistant Secretary Alvin Collins, presented a united front, both urging for changes in the existing WTW eligibility rules, the reauthorization of WTW and the need for an increase child care, health care, transportation and housing vouchers. Bramucci pointed out that the hardest jobs are retention and moving new welfare workers up from entry level  - not getting welfare recipients jobs. When asked about the spending levels Bramucci reported that the funds were allocated late -- most in the last quarter of 98.  Collins reiterated the Administration's position that unexpended funds should be left with the states. Bramucci assured the Committee that current Welfare to Work reauthorization bills, H.R. 1482 and S. 1317, capture all the necessary eligibility changes and propose to reauthorize the program at $1 billion for FY 2000.

Congressman Robert E. Andrews (NJ) hinted that the $3 billion authorized for WTW in 1997 could be at risk in the budget process.  Andrews urged that without additional investments there is a ceiling of how high new welfare workers can go based on skills, supports and moving up the economic ladder.  It would be a breach of trust to take away any part of the $3 billion to divert to other purposes.  Andrews called on his colleagues to ensure that this money is not rescinded, reprogrammed or reclaimed.   The biggest issue with expenditures is the eligibility problem.  Two-thirds of employers he has met with claim that their biggest challenge is finding workers.  With approximately 7,000 people in his district still on TANF, clearly there is a huge disconnect that must be addressed.

In terms of research, the GAO report has determined that job search combined with training is more effective. GAO also said that the welfare and workforce development systems are two separate worlds, with a new opportunity to coordinate under WIA.  The Heritage Foundation maintained that the success of welfare reform is not dependent on robust economy or skills level of welfare recipients but the "mother's work ethic and motivation level".  Wendell Primus, Center on Budget and Policy Priorities, who resigned from the Administration over the passage of the welfare reform law, reported that now is the time to redouble efforts.  Primus reported that the drop in TANF and Food Stamps is much steeper than can be explained in the increase in earnings.  In fact, The Conference of Mayors Status Report on Hunger and Homelessness indicated an average of a 14 percent rise from 1997 in emergency requests for food in 21 major cities.

Rodney Carroll, Chief Operating Officer of The Welfare to Work Partnership, reported on the leadership the business community has taken in welfare reform.  Twelve thousand employers have joined the Partnership to commit to hiring welfare recipients.   CEO's have reported job retention rates ranging from 70 to 92 percent on their hires from the welfare system.  Carroll called the success a "quiet revolution" and urged continued investments in the public/ private partnerships that are making welfare to work a success.