Performance Improvement 2004. The fiscal effects of welfare reform


Building on a four-state pilot project, case studies were conducted in 13 states to assess changes in social services spending and policies after welfare reform was implemented. Major findings were: (1) Overall State spending on social services increased (adjusting for inflation and changes in the poverty population); the median study State increased real spending per person in poverty by 7 percent between 1995 and 1999, with spending from both federal and State funds up over the period. (2) Between FY 1995 and 1999, every State in the study decreased assistance spending sharply, consistent with caseload declines; however, almost every State increased non-cash assistance social services spending to offset cash assistance decline. The total median increase was 36 percent for cash assistance and all other programs combined.

PIC ID: 7545
Agency Sponsor: ACF-OPRE, Office of Planning, Research and Evaluation
Federal Contact: Dubinsky, Michael, 202-401-3442
Performer: State University of New York at Albany, Albany, NY


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