1 The first annual report was produced under the oversight of a bipartisan Advisory Board on Welfare Indicators, which assisted the Secretary in defining welfare dependence, developing indicators of welfare dependence, and choosing appropriate data. Under the terms of the original authorizing legislation, the Advisory Board was terminated in October 1997, prior to the submission of the first annual report.
2 Appendix D provides more information on the use of individuals, rather than families or households, as the unit of analysis for most of the statistics in this report.
3 This 30.1 percent includes 21.7 percent in unsubsidized employment and 8.5 percent in work preparation activities (including subsidized jobs, on-the-job training, work experience or community services). The earnings of those in unsubsidized employment would be correctly captured as income from work in national surveys. Any welfare benefits associated with work experience, community service programs or other work activities, however, would be counted as income from welfare in most national surveys, a classification incompatible with the Advisory Board’s proposed definition.
4 The effects of food and housing benefits are shown separately from the effect of federal taxes in Figure ECON 4 in Chapter III. Prior to 1993, including the effect of federal taxes increased poverty. Since 1993, federal taxes and tax credits (including refunds through the Earned Income Tax Credit) have had the net effect of reducing poverty rates.