Evaluating Two Approaches to Case Management: Implementation, Participation Patterns, Costs, and Three-Year Impacts of the Columbus Welfare-to-Work Program. Components of the Cost Analysis


Figure 4.1 illustrates the elements of the cost analysis. For the two program groups, costs were calculated for two categories of activities and services: those provided to meet the JOBS requirements or to support JOBS participation and non-JOBS services and activities. Within each category, costs are further broken down by whether they were paid for by the welfare department or by non-welfare agencies. As represented in Figure 4.1, the total cost per program group member for employment-related services (box 3) is the sum of the welfare department's operating expense (for example, for case management, job search services, and associated overhead costs) and support services costs (box 1) and the expenses incurred by non-welfare agencies (for example, local adult education providers, community colleges, and vocational training institutes) to provide educational and training activities that met JOBS requirements (box 2). Non-JOBS costs (box 6) include child care expenditures paid by the welfare department for participation in programs other than JOBS (for example, transitional and at-risk child care) (box 4) and the costs of services that program group members received outside the JOBS program (box 5). Total JOBS and non-JOBS costs per program group member make up the total gross cost per program group member (box 7).

The sections of this chapter follow the flow of the diagram in Figure 4.1, beginning with the JOBS-related expenditures and ending with the net cost per program group member (box 11), which is calculated by subtracting the total cost for employment-related services per control group member from the total cost per program group member. The control group estimate represents costs that the government would have incurred in the absence of the JOBS program, and the net cost represents the cost of the JOBS program over and above control group costs.

Figure 4.1

Major components of Gross and Net Costs for employment-related services