 | Samuel Goodstein Grand |
Dear Governor Engler,
Clearly, you consider welfare reform to be a critical issue. Indeed, your own welfare reform initiative has been praised by both Republicans and Democrats as a constructive measure; welfare rolls are shrinking, the poverty rate is falling and Michigan's economy is booming. So I begin this letter with the premise that you are very much interested in moving people from welfare to work. If this entails penalizing those who refuse to look for work, I can live with that. I do believe, however, that those who are actively searching for work should not be left in the lurch if their benefits expire under the new federal welfare law. I am not implying that the government should provide open-ended support for everybody; rather, I am saying that a person who is really trying to find work should not be left without either monetary assistance or a government-sponsored job or job-training. As you know, many people (even in times of economic prosperity) cannot find work; either they are not trained for the high-skill jobs that are available, or they face very stiff competition for low-skill jobs.
I write this letter with one very specific policy in mind: Beginning March 1 - under the new federal welfare law - childless, able-bodied people between the ages of 18 and 50 will be eligible to collect food stamps for only three months in any given three-year period, no matter how diligently they are seeking work (if recipients work 20 hours per week, they can continue to receive food stamps). Roughly one million food stamp recipients will be impacted by this law; their average yearly income is only 28 percent of the poverty-level income ($2,200) and almost one-third are between the ages of 40 and 50. Governors are given the opportunity to seek federal waivers to exempt economically depressed areas from this new law; Detroit qualifies for the federal waiver, and you could easily acquire it - you have decided not to. I ask you to reconsider your position; I ask you to be fair, to support those who are trying to help themselves and, yes, to have some compassion.
Lest you think this is an argument born of passion, without important factual justification behind it, I want to share three specific factors that make it absolutely crucial that you change your position.
No. 1: The congressional intent of this provision was that once recipients reached the three-month limit, they would either find work or would have the option to participate in food stamp workfare programs and continue to receive food stamps. This fact is clearly demonstrated in the congressional debate over the provision, when the sponsor - Rep. John Kasich (R-Ohio) - said: "So, if you are able-bodied, you go and you have to work to get your food stamps. Then of course if you cannot find a job then you do workfare. That is what it is." Unfortunately, these food-stamp workfare programs mentioned by Mr. Kasich are all but non-existent. Only 10 states have these programs, and the average enrollment in these states is 52 persons. Michigan, as you know, does not have such a program. Clearly, Congress never intended that people cut off from food stamps would go without stamps if they were either able to find work or were willing to participate in workfare programs.
No. 2: In most poor areas, there are far fewer low-skill jobs than there are applicants for these jobs. One study estimates that for every available fast-food job in Harlem, there are 15 applicants. Of those who were not hired, 73 percent had not found work one year later. This problem will only be exacerbated by the new welfare law, which will flood the labor market with low-income welfare mothers who have lost benefits and are seeking work.
No. 3: The new minimum wage law gives employers tax credits for hiring people recently dropped from welfare; it does not provide a tax credit for people who have lost their food stamps. Therefore, people who have recently lost food stamps will be at a competitive disadvantage versus other employment-seekers.
These three reasons make it absolutely imperative that you reconsider your position not to seek a waiver for Detroit. But an even more compelling reason is the fact that three-fourths of food stamp recipients leave the program after nine months, and only 13 percent of food stamp recipients are still receiving stamps after 18 months. Governor: in my mind, this means that food stamp recipients need time, job training and available jobs - not punishment.
There are few times in a politician's career that he or she can directly impact people's lives in a way that is so profound that it alters their daily existence - for better or worse. You have an opportunity to save people from starvation, to give people a chance. Governor: Even if you have to put on a tough face, please have some compassion.
- Sam Goodstein thanks the Center on Budget Policy and Priorities. Reach Sam over e-mail at faygo@umich.edu.