SECTION 7. AID TO FAMILIES WITH DEPENDENT CHILDREN AND TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TITLE IV-A) CONTENTS Overview Aid to Families With Dependent Children Basic Federal Rules Brief History Interaction of AFDC With Other Benefit Programs Participation in Multiple Means-Tested Programs National AFDC Data: Expenditures, Benefits, and Caseloads, Fiscal Years 1970-96 State AFDC Data: Benefits, Expenditures, and Caseloads Financing of AFDC National Data: Characteristics of AFDC Recipients State Data: Characteristics of AFDC Recipients Waivers from Federal AFDC Law Section 1115 Demonstration Projects AFDC Quality Control The Job Opportunities and Basic Skills Training Program (JOBS) Purpose and Administration Employability Plan and Case Management JOBS Activities Exemptions, Child Care, and Participation Requirements Targeting of JOBS Funds Funding of JOBS and Supportive Services Indian Tribes and JOBS Welfare-to-Work Efforts: Some Assessments Emergency Assistance Temporary Assistance for Needy Families (TANF) Basic Outline of Program TANF Funding TANF for Indians State TANF Plans State TANF Data Welfare-to-Work Grants Funding of Welfare-to-Work Grants Use of Welfare-to-Work Funds Welfare Dynamics Duration on Welfare Exits and Returns to Welfare Intergenerational Patterns of Welfare Use Adolescent and Out-of-Wedlock Childbearing and Use of AFDC Trends Over Time First Births to Unmarried Women Links to AFDC Use Legislative History References OVERVIEW Aid to Families with Dependent Children (AFDC), established in the depression year of 1935 as a matching grant program to enable States to aid needy children without fathers at home, was repealed 61 years later by Public Law 104-193. Effective July 1, 1997 (earlier in most States, by their choice) AFDC was replaced by a block grant to States for Temporary Assistance for Needy Families (TANF). The new block grant also replaced two AFDC-related programs: Job Opportunities and Basic Skills Training (JOBS), which provided education, work, and training for AFDC adult recipients, and Emergency Assistance for Needy Families (EA). This section describes the programs in this order: AFDC, JOBS, EA, and TANF. It concludes with discussions about welfare dynamics and adolescent and nonmarital childbearing. In recent years, AFDC law (title IV-A of the Social Security Act) entitled States to unlimited Federal matching funds for State-set benefits and their administration, EA, and child care for AFDC recipients and for former recipients who worked their way off the program. It offered capped entitlement funds for JOBS and ``at-risk'' child care, which subsidized care for families needing it to avert AFDC eligibility. In contrast, TANF provides a fixed block grant based on recent Federal funding for the replaced programs ($16.5 billion annually through fiscal year 2002) plus expanded child care funding in a new child care block grant. In its peak year, fiscal year 1994, AFDC served an average of 5 million families, more than 1 in every 7 U.S. families with children. The fiscal year 1994 AFDC Program cost $14.2 billion in Federal funds, slightly less than 1 percent of the Federal budget, plus $11.9 billion in State and local funds. TANF greatly enlarges State discretion in operating family welfare, and it ends the entitlement of individual families to aid. Under TANF, States decide what categories of needy families to help (AFDC law defined eligible classes and required States to aid families in these classes if their income was below State-set limits). Under TANF, States decide whether to adopt financial rewards and penalties to induce work and other desired behavior. Also, States set asset limits (AFDC law imposed an outer limit) and continue to set benefit levels. Attached to the TANF Block Grant are some Federal conditions. For instance, to receive full grants States must achieve minimum work participation rates and spend a certain sum of their own funds on behalf of eligible families (``maintenance- of-effort'' rule). They must require recipients to work in order to continue receiving aid after, at most, 24 months of benefits. TANF also contains prohibitions. For example, States may not use TANF funds for a family with a member who already received 60 months of TANF aid as an adult. Table 7-1 summarizes some major differences between old and new cash welfare programs for families with children. TABLE 7-1.--SOME KEY DIFFERENCES: AFDC/EA/JOBS AND TANF ---------------------------------------------------------------------------------------------------------------- AFDC/EA/JOBS (old law) TANF (new law) ---------------------------------------------------------------------------------------------------------------- Federal funding Unlimited for AFDC and EA. Capped entitlement Fixed grant, plus extras (for for JOBS. (Federal share of AFDC and JOBS population growth/low Federal costs varied inversely with State per capita spending per poor person, loan income.) funds, contingency funds, bonuses for performance and reducing out-of-wedlock births), and (2 years only) welfare-to- work grants. State funding Matching required for each Federal dollar. States must spend 75 percent of ``historic'' level (100 percent for contingency funds) and must provide matching for contingency funds. Categories eligible Children with one parent or with an Set by State. incapacitated or unemployed second parent. Income limits Set by State. Set by State. Benefit levels Set by State. Set by State. Entitlement States required to aid all families eligible TANF expressly denies entitlement under State income standards. to individuals. Work requirement JOBS Program had participation requirements, By 2002, States must have 50 but participation did not require work. percent of their caseload in specified work activities. Exemptions from work Parents (chiefly mothers) with child under age None, but States may exempt requirement 3 (under age 1, at State option). single parents caring for child under 1. Work trigger None. Work (as defined by State) required after maximum of 2 years of benefits. Time limit for benefits None. 5-year limit (20 percent hardship exceptions allowed). ---------------------------------------------------------------------------------------------------------------- AID TO FAMILIES WITH DEPENDENT CHILDREN Basic Federal Rules AFDC payments were allowed for needy children who were deprived of parental support or care because their father or mother was absent from the home continuously, incapacitated, deceased, or unemployed. Payments also were permitted for the child's needy caretaker relative (usually the mother), for another person in the home deemed essential to the child's well-being, and for a pregnant woman in her third trimester of pregnancy. Eligibility for AFDC ended on a child's 18th birthday, or at State option upon a child's 19th birthday if the child were a full-time student in a secondary or technical school and might reasonably be expected to complete the program before reaching age 19. Ineligible for AFDC were illegal aliens, strikers, recipients of Supplemental Security Income (SSI), and children for whom foster care payments were made. States were allowed to deny AFDC for the child of an unmarried parent under age 18 (and that parent) unless they lived in an adult-supervised supportive arrangement. States also could treat minor mothers as ``adult caretakers'' of their own children and permit them to head their own AFDC household. Federal law set outer income and resource limits for AFDC eligibility and required that all income received by an AFDC recipient or applicant be counted against the AFDC grant except income explicitly excluded by definition or deduction. The law required States to count as available to the child part of the income of a stepparent in the home and (if the child's own mother were a minor) part of the income of a grandparent living in the home. Under court rulings, States were required to provide aid to all persons who were in classes eligible under Federal law and whose income and resources were within State- set limits. Thus, an individual's entitlement to AFDC varied from State to State. As a condition of AFDC eligibility, a parent was required to assign child support and spousal support rights to the State and to cooperate in establishing paternity of a child, obtaining child support payments, and identifying a third party who might be liable to pay for medical services for the child. As another condition of AFDC eligibility, Federal law required most able-bodied parents to participate in the JOBS Program unless their youngest child was under 3 years old, and it allowed States to mandate JOBS participation of parents with children as young as 1. At the same time, States were required to guarantee care for an AFDC child under age 13 if it were needed to permit the parent to work, train, or attend school. Federal funds paid from 50 to 78 percent of fiscal year 1996 AFDC benefit costs in a State (55 percent on average) and 50 percent of administrative costs in all States. AFDC was a voluntary program for States and was operated in all 50 States, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. Although American Samoa was authorized to participate, it did not. To operate AFDC, States needed approval by the Department of Health and Human Services (DHHS) of written AFDC plans. They were required to operate the program statewide and apply their need standards uniformly within the State or locality to all families in similar circumstances. States were permitted to adopt separate urban and rural benefit schedules and to vary benefits by region, with differences usually reflecting shelter costs. The law required State plans to provide an opportunity for a fair hearing for those whose claims were denied. States were at liberty to pay as much in benefits as they chose, or as little, with one exception. Medicaid law forbade them to reduce AFDC ``payment levels'' below those in effect on May 1, 1988 (or, if higher, those effective on July 1, 1987). After October 1, 1990, State AFDC Programs were required to offer AFDC to children in two-parent families who were needy because of the unemployment of one of their parents (AFDC-UP). Eligibility for AFDC-UP was limited to families whose principal wage earner was unemployed (working fewer than 100 hours monthly) but who had worked at least 6 of the last 13 quarters, or engaged in school or training for 4 of these quarters. States were required to provide Medicaid to families enrolled in AFDC and to provide transitional Medicaid benefits of up to 12 months for those who lost AFDC eligibility as a result of increased hours of, or increased income from, employment (these provisions apply also to the new TANF Program). States also were required to provide subsidized child care for up to 12 months to families who lost AFDC eligibility as a result of employment. Table 7-2 summarizes enrollment and spending trends during AFDC's 61-year history. When the program began, benefits were allowed only for children (not their parents), and it was called Aid to Dependent Children. In the early years enrollment was less than 1 percent of the U.S. population; in the peak year (fiscal year 1994) it reached 5.5 percent of the population. Program growth was most rapid in the 1960s and 1970s. This was the period of Great Society initiatives, including establishment of Medicaid, which increased the value of AFDC. The proportion of U.S. families with children who were enrolled in AFDC more than doubled from fiscal year 1960 to fiscal year 1970 (from 3.1 to 6.6 percent) and rose by three- fourths again in the next decade (to 11.5 percent). Adjusted for price inflation (expressed in fiscal year 1996 dollars), benefit expenditures climbed from $5.4 billion in fiscal year 1960 to $16.8 billion in fiscal year 1970. Average AFDC benefits, again in fiscal year 1996 dollars, peaked at $734 monthly in fiscal year 1970. Thereafter, food stamps, funded 100 percent by Federal dollars, became a nationwide income supplement for AFDC families. Brief History Purpose Federal law gave three purposes of AFDC: to encourage the care of needy children in their own homes (original 1935 purpose), to strengthen family life (added in 1956), and to promote family self-support (1956). Optional coverage Initial eligibility was limited to needy children (under age 16 and with only one able-bodied parent at home). Congress later allowed States to aid these other persons with AFDC funds: --the needy mother or other caretaker relative, effective in 1950; --child of an unemployed parent and that parent (AFDC- Unemployed Parent), effective in 1961; --second parent in a family with an incapacitated or unemployed parent, effective in 1962; --``any other individual'' in the home deemed essential to the child, known as the ``essential person'' option, effective in 1968; and --an unborn child, in last trimester of mother's pregnancy, effective in 1981. TABLE 7-2.--AFDC SUMMARY DATA, SELECTED FISCAL YEARS, 1936-96 -------------------------------------------------------------------------------------------------------------------------------------------------------- Measure 1936 1940 1950 1960 1970 1980 1990 1994 1995 1996 -------------------------------------------------------------------------------------------------------------------------------------------------------- Benefit expenditures (millions of dollars) \1\................ 23 123 520 1,021 4,082 11,540 18,539 22,797 22,032 20,411 In 1996 dollars \2\....................................... 260 1,373 3,419 5,407 16,803 22,445 22,414 24,082 22,643 20,411 Federal share (percent).................................. 7 33 44 60 54 54 55 55 55 54 Administrative cost (millions of dollars) \3\................. 0.4 9.5 40 109 881 1,479 2,661 3,301 3,521 3,266 In 1996 dollars \2\....................................... 4.5 106 263 577 3,627 2,877 3,217 3,487 3,619 3,266 Federal share (percent)................................... 34 40 50 50 65 51 51 51 50 50 Average monthly no. (thousands) \4\ Families.................................................. 162 372 651 803 1,909 3,574 3,974 5,046 4,869 4,553 With unemployed parents............................... (\6\) (\6\) (\6\) (\6\) 78 141 204 363 335 302 Recipients................................................ 546 1,222 2,233 3,073 7,429 10,497 11,460 14,226 13,619 12,649 Children.................................................. 404 895 1,661 2,370 5,494 7,220 7,755 9,590 9,275 8,673 Average AFDC family size \5\.................................. 3.37 3.28 3.43 3.83 3.89 2.94 2.88 2.82 2.80 2.78 Average monthly family benefit................................ 28 28 67 106 178 269 389 376 377 374 In 1996 dollars \2\....................................... 322 312 440 559 734 523 470 397 387 374 AFDC enrollment, as percent of U.S. families with children............................... NA 2.1 3.2 3.1 6.6 11.5 12.3 14.8 14.2 13.3 Total population.......................................... 0.4 0.9 1.5 1.7 3.7 4.6 4.6 5.5 5.2 4.8 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Benefit expenditures for 1936-60 are from U.S. Department of Health and Education (DHEW), Expenditures for Public Assistance Payments and for Administrative Costs, by Program and Source of Funds, Fiscal Years 1936-70 NCSS Report F-5; 1936 data are for 5 months only. Later data are from table 7-3, prepared by the U.S. Department of Health and Human Services (DHHS), but unlike that table, exclude foster care payments made in 1980. \2\ The Consumer Price Index (CPI-U) for all Urban Consumers was used to adjust current dollars for inflation. \3\ For years before 1980, administrative costs include some expenditures for services. \4\ Enrollment data for 1936-60 are December numbers from the 1970 Social Security Annual Statistical Supplement (table 136). For later years data are fiscal year monthly averages from table 7-5, prepared by DHHS, but, unlike that table, exclude foster care recipients in 1980. \5\ Calculated by dividing total recipients by the number of families. This understates actual family size for 1936-50 because the mother or other care giver was not included as a recipient until after fiscal year 1950. \6\ Program did not exist. NA--Not available. Source: Congressional Research Service. Mandatory coverage Beginning in 1984, Congress required States to aid certain parents: --second parent in families with an incapacitated or unemployed parent, effective in 1984 (previously, some States did not cover the spouse of an incapacitated or unemployed parent); --families of unemployed parents, effective in October 1990. (States that previously did not offer AFDC-UP were allowed to limit it to 6 months yearly.) Age of eligible child Congress gave States the option of aiding children older than 15 as follows: children aged 16 and 17 if regularly attending school, effective in 1940; students aged 18-20 in high school or a course of vocational or technical training, 1964; and students aged 18-20 in college or university, 1965. However, in 1981, Congress ended a child's eligibility on his 18th birthday or at State option, if he were still in high school, on his 19th birthday. Treatment of income of family members In 1981 Congress required States to treat a portion of the income of an AFDC child's stepparent (living in the same home) as available to the child. Congress required that any parent and brother or sister of a needy child who lived in his home (except for SSI recipients) must be included in the AFDC assistance unit of the child and, thus, share income with the family, effective in 1984. Name of program Effective in 1962, Congress changed the name of the program from ``Aid to Dependent Children'' to ``Aid to Families with Dependent Children.'' Social services In 1962, Congress increased the Federal reimbursement rate for social services to AFDC families and opened up eligibility for services to former and potential AFDC families. The matching rate was raised to 75 percent (previously services were reimbursed at a 50 percent rate, along with other administrative costs). Table 7-2 shows the resulting rise in the overall Federal share of AFDC administrative costs in fiscal year 1970. Later, in 1975, Congress replaced open-ended funding for social services with a block grant in a new title XX of the Social Security Act. This removed social services from the AFDC administrative cost account. Foster care Effective in 1962, Congress authorized payments for foster care for AFDC-eligible children. This policy responded to a ruling by the Secretary of Health, Education, and Welfare (now DHHS) that States would no longer be permitted to deny AFDC to a needy child on the basis of ``unsuitable'' home conditions; States were to continue aid to the child in the home while making arrangements for the child to live elsewhere. In 1980, Congress established a program of adoption assistance and foster care for welfare children in a new part IV-E of the Social Security Act (see section 11). Work requirements Seeking to halt the rise in welfare rolls and responding to the growing numbers of working mothers, Congress ordered States, effective in 1968, to set up a work or training program called Work Incentive (WIN) for ``appropriate'' AFDC recipients. In 1971, Congress required WIN assignment of mothers with no child below age 6. The Family Support Act of 1988 replaced WIN with the Job Opportunities and Basic Skills Training Program (JOBS) in a new part IV-F of the Social Security Act. This legislation required States, to the extent resources allowed, to engage most mothers with no child below age 3 in education, work, or training under JOBS. Work rewards Beginning in 1969, States were required to permit an AFDC child who was a student to retain all part-time earnings without reducing the family's benefit check. When setting up WIN to take effect in 1968, Congress offered permanent disregard of a portion of earnings as a financial reward for earnings of AFDC adults. Previously only work expenses were deducted from adult earnings counted against the AFDC check in most States. The new law required States also to disregard the first $30 earned monthly and one-third of remaining earnings. The result was that working recipients would not lose AFDC eligibility until gross earnings were 150 percent of their basic benefit plus $30 monthly plus 150 percent of expenses. In 1981, Congress repealed the permanent work incentive bonus (disregard of one-third of every extra dollar), confining it to the first 4 months of a job. After 4 months of a job, States were to disregard a standard allowance only plus actual child care expenses, up to a ceiling. For instance, after 12 months on a job, a standard sum of $75 monthly (later raised to $90) was to be disregarded. In deciding eligibility of applicants, States were to count all earnings except the standard allowance and child care costs. In 1981, Congress also imposed a Federal gross income limit (150 percent of the need standard, later raised to 185 percent). In 1988, Congress required States not to count as income against the AFDC grant any earned income credit (EIC) payments received by an AFDC working parent and to disregard these payments as a resource for 2 months. Welfare-to-work programs In 1981, Congress gave States authority to design and test their own ``welfare-to-work'' WIN Programs. Further, it authorized job search, work relief (Community Work Experience Programs--CWEP) and subsidization of a job with the AFDC benefit (work supplementation). The Family Support Act of 1988, which established the JOBS Program, greatly enlarged funding for welfare-to-work efforts; it also required all States, at least for part of the year, to offer aid to families of unemployed parents. Child support enforcement When the Child Support Enforcement Program was enacted in 1975 as a new part IV-D of the Social Security Act, Congress required AFDC applicants and recipients to assign child support or spousal support rights to the State and to cooperate with the State in establishing paternity and in obtaining support payments. In 1984 Congress required States to ``pass through'' to the AFDC family up to $50 monthly collected in child support, adding it to the family's unreduced AFDC benefit. Funding In the 1935 act, Congress set the Federal share of AFDC payments at 33 percent, up to individual payment maximums of $18 for the first child and $12 for additional children. Thus, for the first child, the maximum Federal share was $6. Subsequently matching maximums were increased and based on average spending per recipient. In 1956, variable matching rates were established, providing more generous Federal reimbursement for States with lower per capita income. But these variable rates applied only to average expenditures, up to a ceiling, above specified amounts per recipient. In 1965, when Medicaid was established, Federal matching for every AFDC dollar became available. States that implemented Medicaid were allowed to use its open-ended matching formula for total AFDC benefits as well. Medicaid matching rates, inversely related to State per capita income, have a statutory floor of 50 percent and a ceiling of 83 percent. In fiscal year 1997 the actual top rate is 77.09 percent, in Mississippi. A special matching rate of 75 percent and funding ceilings applied to AFDC in Guam, Puerto Rico, and the Virgin Islands. Waivers from AFDC law Section 1115 of the Social Security Act, established in 1962, allowed waiver of specified parts of AFDC law (namely, provisions setting forth requirements for State plans) in order to enable a State to carry out a project that the Secretary judged likely to promote the objectives of AFDC. Presidents Reagan, Bush, and Clinton all promoted use of waivers for State experimentation. The Reagan administration established an interagency low-income opportunity board to promote and facilitate waivers; the Clinton administration approved waivers from more than 40 States, many of them for statewide reforms, before passage on August 22, 1996 of the law repealing AFDC. Interaction of AFDC With Other Benefit Programs Medicaid States were required to provide Medicaid to AFDC recipients and to offer 12 months of transitional medical coverage to those who lost AFDC eligibility because of earnings. During the second 6 months of transitional coverage, States could limit the scope of benefits; they also could impose a monthly premium on families whose income, net of necessary child care expenses, exceeded 100 percent of the Federal income poverty guidelines. The monthly premium could not exceed 3 percent of the family's gross income. States also were required to provide Medicaid coverage to all members of AFDC-UP families during months when they were not paid cash benefits because of a State-imposed time limit (described above under Brief History). States were permitted to offer Medicaid to ``medically needy'' families whose income was above AFDC limits but not more than one-third above the maximum AFDC payment for a family of their size. (``Medically needy'' income limits for aged and disabled persons also were based on 133\1/3\ percent of AFDC maximum payment levels for their size of ``family.'') Food stamps All AFDC families were income-eligible for food stamps unless they lived in a larger household, and more than 85 percent of AFDC families usually received food stamps. The Food Stamp Program treated AFDC as countable cash income. For every extra dollar of AFDC income, food stamps were reduced by about 30 cents; at the same time, when AFDC payments declined, food stamps were increased by about 30 cents per lost AFDC dollar. Thus, if an AFDC recipient were penalized by one dollar for violating a program rule, food stamps reduced the net loss to 70 cents. The interaction between AFDC and the Food Stamp Program had important financial implications for States. If a State wanted to increase the income of its AFDC recipients, it had to increase AFDC by $1.43 to obtain an effective $1 increase in the recipient's total income ($1.00/0.7 = $1.43). Earned income credit (EIC) Parents with earnings below specified limits, including those who leave welfare with a job, are eligible for a cash supplement from the U.S. Treasury in the form of an earned income credit (EIC). For tax year 1997, the maximum credit for a tax filer with one child is $2,210. For two or more children the maximum credit is $3,656 ($305 monthly rate), received for earnings between $9,140 and $11,930. At higher levels credits are phased out. For families with more than one child, the EIC ends at adjusted gross income of $29,290. EIC is a refundable credit; persons with income below the taxation threshold receive the credit as a direct payment from the U.S. Treasury. Federal law required that EIC payments be ignored as income (and for 2 months as a resource) in determining AFDC eligibility and benefits, but the new welfare law permits States to decide treatment of EIC by TANF. Food stamps, Medicaid, Supplemental Security Income (SSI), and some housing programs must ignore EIC as income. Child support enforcement As a condition of AFDC eligibility, families and applicants were required to assign their rights to child or spousal support to the State and to cooperate with the State in establishing the paternity of a child born outside of marriage and in obtaining support payments. (TANF law prohibits aid for a person who has not assigned support rights to the State and sets minimum penalties for failure to cooperate with child support.) Child support payments made on behalf of an AFDC child were paid to the child support agency rather than directly to the family. If the child support collection were insufficient to disqualify the family from AFDC, the family received its full monthly AFDC grant plus the first $50 of the child support payment for that month. The law required States to disregard this $50 in making AFDC benefit calculations. In some of the States with need standards above maximum benefits, additional amounts of child support were disregarded. The remainder of the monthly child support payment was distributed to reimburse the State and Federal Governments in proportion to their assistance to the family. If the family's income, including the child support payment, were sufficient to make the family ineligible for AFDC, future child support payments were made by the noncustodial parent to the family, usually through an intermediary such as the local child support agency or office of the court clerk. Social Security In AFDC, Social Security benefits were treated as unearned income; thus, AFDC benefits were reduced by $1 for each dollar of Social Security benefits. Under 1984 law, Social Security survivor benefits received by one AFDC child were counted as income available to other family members. Supplemental Security Income (SSI) The SSI recipient (whether a child or an adult) was not regarded as a part of the AFDC unit. Thus, his needs could not be taken into account in determining the AFDC benefit level. Nor could any of his income or resources (including non-SSI income) be counted as available to the AFDC family. Interaction example Table 7-3 and chart 7-1 illustrate the interaction of the old AFDC Program with food stamps, Medicaid, and the earned income credit (EIC) for a mother with two children at various earning levels, as of January 1997. The example assumes the family lives in Pennsylvania, which still was operating AFDC at the start of 1997. Calculations are made after the mother has been working for 4 months and has lost the disregard of one- third of ``residual'' earnings, those remaining after subtraction of a $120 standard allowance. Other benefit programs AFDC enrollment qualified children for free school meals (if their school had a meal program). Mothers enrolled in AFDC automatically met income standards for benefits from the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). AFDC recipients also were eligible for help from the Job Training Partnership Act (JTPA). States could grant automatic eligibility for the Low-Income Home Energy Assistance Program (LIHEAP) to AFDC families. However, not all AFDC families received benefits from these programs (see tables 15-1 through 15-3). Some AFDC families received housing subsidies (which reduce the family's rent to 30 percent of countable income). Thus, if a family's AFDC benefit rose (or fell), its public housing or section 8 TABLE 7-3.--EARNINGS AND BENEFITS FOR A MOTHER OF TWO CHILDREN WITH DAY CARE EXPENSES AFTER 4 MONTHS ON JOB, JANUARY 1997--(PENNSYLVANIA) -------------------------------------------------------------------------------------------------------------------------------------------------------- Taxes Food ----------------------------------------- Work ``Disposable'' Earnings EIC AFDC \1\ stamps \2\ Medicaid Social Federal expenses \4\ income \5\ Security income \3\ State income -------------------------------------------------------------------------------------------------------------------------------------------------------- 0............................ 0 $5,052 $2,746 Yes............. 0 0 0 0 $1,798 $2,000....................... $800 4,892 2,434 Yes............. $153 0 0 $600 9,373 4,000........................ 1,200 3,292 2,554 Yes............. 306 0 0 1,200 9,540 5,000........................ 2,000 2,492 2,614 Yes............. 383 0 0 1,500 10,223 6,000........................ 2,400 1,692 2,674 Yes............. 459 0 0 1,800 10,507 7,000........................ 2,800 892 2,734 Yes............. 536 0 0 2,100 10,790 8,000........................ 3,200 0 2,822 Yes \6\......... 612 0 0 2,400 11,010 9,000........................ 3,600 0 2,642 No \7\.......... 689 0 0 2,700 11,853 10,000....................... 3,656 0 2,462 No.............. 765 0 0 3,000 12,353 12,000....................... 3,641 0 2,102 No.............. 912 0 0 3,600 13,231 15,000....................... 3,009 0 1,562 No.............. 1,148 0 $420 4,200 13,803 20,000....................... 1,954 0 0 No.............. 1,530 0 560 5,200 14,664 30,000....................... 0 0 0 No.............. 2,295 $1,560 840 5,400 19,905 50,000....................... 0 0 0 No.............. 3,825 4,944 1,400 5,400 43,431 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Assumes these deductions: $120 monthly standard allowance (which would drop to $90 after 1 year on the job) and child care costs equal to 20 percent of earnings, up to maximum of $350 for two children. \2\ Assumes these deductions: 20 percent of earnings, $134 monthly standard deduction and child care costs equal to 20 percent of wages, up to maximum of $320 for two children. (If family also received the maximum shelter deduction, food stamp benefits would be $75 higher monthly.) \3\ Head of household rates for 1997. The dependent care tax credit reduces tax liability at earnings of $15,000 and above. \4\ Assumed to equal 10 percent of earnings up to maximum of $100 monthly, plus child care costs equal to 20 percent of earnings up to a maximum of $350 for two children. \5\ In addition, the benefits from Medicaid could be added, but are not, since the extent to which they increase disposable income is uncertain. \6\ Family would qualify for Medicaid for 12 months after leaving cash welfare. State must offer Medicaid to all children up to age 6 whose family income is not above 133 percent of the Federal poverty guideline (ceiling of $17,769 for a family of three in 1997) and to children over age 6 born after September 30, 1983 (up to age 13\1/3\ in January 1997) whose family income is below the poverty guideline ($13,330 for a family of three). \7\ After losing her Medicaid transitional benefits, to regain eligibility mother must spend down on medical expenses to State's medically needy income limit ($5,604 for a family of three in September 1996). Source: Congressional Research Service. housing subsidy generally declined (or rose) by 30 cents per dollar of the AFDC change. Although the law permitted AFDC State programs to count a family's housing subsidy as income to the extent that it duplicated the amount for housing in the AFDC maximum payment schedule, all but four States ignored housing subsidies (October 1990 data). If the AFDC grant included a sum designated for actual housing costs, the family in subsidized housing was required by law to pay that amount as rent even if it exceeded 30 percent of countable income. CHART 7-1. DISPOSABLE INCOME AT VARIOUS WAGE LEVELS, MOTHER OF THREE, PENNSYLVANIA, JANUARY 1997 Note: ``Net wages'' equal gross earnings minus taxes and assumed work expenses, shown in table 7-3. Food stamps, AFDC, and the dependent care tax credit all take account of child care costs. Source: Congressional Research Service. Participation in Multiple Means-Tested Programs In 1995, according to unpublished data from the Current Population Survey conducted by the U.S. Bureau of the Census (1996a), 4.5 million households included a member who received AFDC (or State/local general assistance (GA)). These cash welfare benefits averaged $3,935 per household ($328 monthly). The annual value of noncash needs-tested benefits received by members of some of these households were: --Food stamps, average household value $2,306 (received by 82.6 percent of the AFDC/GA households); --Free or reduced-price school lunches, average value $622 (54.4 percent of the households); --Housing assistance, average value $2,650 (28.6 percent of the households); --Supplemental Security Income (SSI) cash aid, average household value $5,380 (15.4 percent of the households); and --Medicaid, average ``fungible'' value $2,057 (97.5 percent of the households). The Census Bureau calculates the fungible value of Medicaid by counting Medicaid benefits to the extent that they free up resources that could have been spent on medical care. The Census Bureau (1996b) also reports (unpublished table based on the Current Population Survey) that in 1995, 71.1 million persons, 27 percent of the population, lived in households in which a member received means-tested cash aid (excluding EIC payments) or noncash aid. By form of aid, they numbered: cash welfare (AFDC, GA, or SSI) 27.2 million persons, 10.3 percent of the population; food stamps, 28.0 million persons, 10.6 percent; Medicaid, 47.2 million persons, 17.9 percent; public or subsidized housing, 11.7 million persons, 4.5 percent. National AFDC Data: Expenditures, Benefits, and Caseloads, Fiscal Years 1970-96 This section presents a statistical picture of AFDC in its last 27 years, from fiscal year 1970 to fiscal year 1996. In this period total expenditures for benefits rose by 400 percent (table 7-4), but more than three-fourths of this increase was caused by price inflation. In constant value (fiscal year 1996) dollars, benefit spending rose by 21 percent (table 7-2). Administrative costs rose by less than the inflation rate and declined as a share of total program costs--from 18 percent in fiscal year 1970 to 14 percent in fiscal year 1996 (and were relatively lower in the 1980s). Part of the decline represents a change in composition of administrative costs; until fiscal year 1976 they included spending for social services. The relative cost of aid for unemployed parent families versus single-parent families is shown in table 7-5. In fiscal year 1970, when the two-parent program was optional, 5.7 percent of benefits were paid on behalf of unemployed parent families; in fiscal year 1996 when the program was mandatory, 9.7 percent. This table also shows the rise in child support collections used to reimburse AFDC benefit payments. In fiscal year 1976, the first year of the Child Support Enforcement Program, these collections represented 3.1 percent of Federal- State benefit payments; in fiscal year 1996, 11.1 percent. Table 7-6 shows that the average monthly number of AFDC families more than doubled from fiscal year 1970 to fiscal year 1990 and reached an all-time peak of 5 million in fiscal year 1994. As a share of all U.S. families with children under age 18 (table 7-2), AFDC families climbed from 6.6 percent in fiscal year 1970 to a record high of 14.8 percent in fiscal year 1994. In the last decade, AFDC monthly benefits averaged $378 per family, $132 per recipient. In current dollars, family benefits set record highs of $389 in fiscal years 1990 and 1992, but in constant value (fiscal year 1996) dollars, they peaked in fiscal year 1970 at $734 (table 7-7). The maximum AFDC payment for a family of four in the median State (ranked by size of benefit) fell more than 50 percent in real value from 1970 to 1996, from $910 to $450 in 1996 dollars. Part of the decline was offset by the availability of food stamps, which are indexed for price inflation. TABLE 7-4.--TOTAL, FEDERAL, AND STATE AFDC EXPENDITURES, FISCAL YEARS 1970-96 \1\ [In millions of dollars] ---------------------------------------------------------------------------------------------------------------- Federal share State share Total Fiscal year ----------------------------------------------------------------------------- Benefits Administrative Benefits Administrative Benefits Administrative ---------------------------------------------------------------------------------------------------------------- 1970.............................. $2,187 \2\ $572 $1,443 $186 $4,082 \2\ $881 1971.............................. 3,008 271 2,469 254 5,477 525 1972.............................. 3,612 240 2,942 241 6,554 NA 1973.............................. 3,865 313 3,138 296 7,003 610 1974.............................. 4,071 379 3,300 362 7,371 740 1975.............................. 4,625 552 3,787 529 8,412 1,082 1976.............................. 5,258 541 4,418 527 9,676 1,069 1977.............................. 5,626 595 4,762 583 10,388 1,177 1978.............................. 5,701 631 4,890 617 10,591 1,248 1979.............................. 5,825 683 4,954 668 10,779 1,350 1980.............................. 6,448 750 5,508 729 11,956 1,479 1981.............................. 6,928 835 5,917 814 12,845 1,648 1982.............................. 6,922 878 5,934 878 12,857 1,756 1983.............................. 7,332 915 6,275 915 13,607 1,830 1984.............................. 7,707 876 6,664 822 14,371 1,698 1985.............................. 7,817 890 6,763 889 14,580 1,779 1986.............................. 8,239 993 6,996 967 15,235 1,960 1987.............................. 8,914 1,081 7,409 1,052 16,323 2,133 1988.............................. 9,125 1,194 7,538 1,159 16,663 2,353 1989.............................. 9,433 1,211 7,807 1,206 17,240 2,417 1990.............................. 10,149 1,358 8,390 1,303 18,539 2,661 1991.............................. 11,165 1,373 9,191 1,300 20,356 2,673 1992.............................. 12,258 1,459 9,993 1,378 22,250 2,837 1993.............................. 12,270 1,518 10,016 1,438 22,286 2,956 1994.............................. 12,512 1,680 10,285 1,621 22,797 3,301 1995.............................. 12,019 1,770 10,014 1,751 22,032 3,521 1996.............................. 11,065 1,633 9,346 1,633 20,411 3,266 ---------------------------------------------------------------------------------------------------------------- \1\ The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 repealed the AFDC Program as of July 1, 1997. \2\ Includes expenditures for services. NA--Not available. Note.--Administrative costs include child care administration, work program, ADP, FAMIS, fraud control, SAVE and other State and local administrative expenditures. Benefits include AFDC-Basic and AFDC-UP expenditures; child support reimbursement is not included. Numbers may not add due to rounding. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 7-5.--FEDERAL AND STATE AFDC BENEFIT PAYMENTS UNDER THE SINGLE PARENT AND UNEMPLOYED PARENT PROGRAMS, FISCAL YEARS 1970-96 \1\ [In millions of dollars] ---------------------------------------------------------------------------------------------------------------- Single Unemployed Child Fiscal year parent \2\ parent support \3\ Total \4\ ---------------------------------------------------------------------------------------------------------------- 1970............................................................ $3,851 $231 0 $4,082 1971............................................................ 4,993 412 0 5,405 1972............................................................ 5,972 422 0 6,394 1973............................................................ 6,459 414 0 6,873 1974............................................................ 6,881 324 0 7,205 1975............................................................ 7,791 362 0 8,153 1976............................................................ 8,825 525 $286 9,064 1977............................................................ 9,420 617 423 9,614 1978............................................................ 9,624 565 472 9,717 1979............................................................ 9,865 522 597 9,790 1980............................................................ 10,847 693 593 10,947 1981............................................................ 11,769 1,075 659 12,185 1982............................................................ 11,601 1,256 771 12,086 1983............................................................ 12,136 1,471 865 12,742 1984............................................................ 12,759 1,612 983 13,388 1985............................................................ 13,024 1,556 901 13,679 1986............................................................ 13,672 1,563 951 14,284 1987............................................................ 14,807 1,516 1,071 15,252 1988............................................................ 15,243 1,420 1,197 15,466 1989............................................................ 15,889 1,350 1,287 15,952 1990............................................................ 17,059 1,480 1,416 17,123 1991............................................................ 18,529 1,827 1,603 18,753 1992............................................................ 20,130 2,121 1,822 20,429 1993............................................................ 19,988 2,298 1,963 20,323 1994............................................................ 20,393 2,404 2,060 20,737 1995............................................................ 19,820 2,212 2,165 19,867 1996............................................................ 18,438 1,973 2,270 18,141 ---------------------------------------------------------------------------------------------------------------- \1\ The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 repealed the AFDC Program as of July 1, 1997. \2\ Includes payments to two-parent families where one adult is incapacitated. \3\ Total AFDC collections (including collections on behalf of foster care children) less payments to recipients. \4\ Net AFDC benefits--gross benefits less those reimbursed by child support collections. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 7-6.--HISTORICAL TRENDS IN AFDC ENROLLMENTS AND AVERAGE PAYMENTS, FISCAL YEARS 1970-96 \1\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Average monthly number of: (in thousands) Average monthly -------------------------------------------------------------------- benefit Fiscal year Unemployed Unemployed ------------------ Families \2\ Recipients \2\ Children \2\ parent parent families recipients Family Recipient -------------------------------------------------------------------------------------------------------------------------------------------------------- 1970............................................................. 1,909 7,429 5,494 78 420 $178 $46 1971............................................................. 2,532 9,556 6,963 143 726 180 48 1972............................................................. 2,918 10,632 7,698 134 639 187 51 1973............................................................. 3,123 11,038 7,965 120 557 187 53 1974............................................................. 3,170 10,845 7,824 95 434 194 57 1975............................................................. 3,342 11,067 7,928 101 451 210 63 1976............................................................. 3,561 11,339 8,156 135 593 226 71 1977............................................................. 3,575 11,108 7,818 149 659 242 78 1978............................................................. 3,528 10,663 7,475 127 567 250 83 1979............................................................. 3,493 10,311 7,193 113 504 257 87 1980............................................................. 3,642 10,597 7,320 141 612 274 94 1981............................................................. 3,871 11,160 7,615 209 881 277 96 1982............................................................. 3,569 10,431 6,975 232 976 300 103 1983............................................................. 3,651 10,659 7,051 272 1,144 311 106 1984............................................................. 3,725 10,866 7,153 287 1,222 322 110 1985............................................................. 3,692 10,813 7,165 261 1,131 339 116 1986............................................................. 3,747 10,995 7,294 253 1,101 352 120 1987............................................................. 3,784 11,065 7,381 236 1,035 359 123 1988............................................................. 3,748 10.920 7,326 210 929 370 127 1989............................................................. 3,771 10,935 7,370 193 856 381 131 1990............................................................. 3,974 11,460 7,755 204 899 389 135 1991............................................................. 4,375 12,595 8,515 268 1,148 388 135 1992............................................................. 4,769 13,625 9,225 322 1,348 389 136 1993............................................................. 4,981 14,144 9,539 359 1,489 373 131 1994............................................................. 5,046 14,226 9,590 363 1,509 376 134 1995............................................................. 4,869 13,619 9,275 335 1,383 377 135 1996 \3\......................................................... 4,553 12,649 8,673 302 1,241 374 134 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 repealed the AFDC Program as of July 1, 1997. \2\ Includes unemployed parent families. \3\ Preliminary data. Note.--AFDC benefit amounts have not been reduced by child support collections. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 7-7.--HISTORIC TRENDS IN AVERAGE AFDC PAYMENTS AND IN MAXIMUM BENEFITS FOR A FAMILY OF FOUR IN THE MEDIAN STATE, CURRENT AND CONSTANT DOLLARS, \1\ SELECTED FISCAL YEARS 1970-96 ---------------------------------------------------------------------------------------------------------------- Fiscal year AFDC payments ----------------------------------------------------------------------- 1970 1975 1980 1985 1990 1992 1994 1995 1996 ---------------------------------------------------------------------------------------------------------------- Average monthly benefit per family...... $178 $210 $274 $339 $389 $389 $376 $377 $374 In fiscal year 1996 dollars......... 734 631 533 495 470 435 397 387 374 Average monthly benefit per person...... 46 63 94 116 135 136 134 135 134 In fiscal year 1996 dollars......... 189 189 183 169 163 152 142 139 134 Maximum benefit in July for a family unit of four with no income in the median State (ranked by benefit size) \2\.................................... 221 264 350 399 432 435 435 435 450 In fiscal year 1996 dollars......... 910 793 681 582 522 486 460 447 450 ---------------------------------------------------------------------------------------------------------------- \1\ The constant dollar numbers were calculated by use of the Consumer Price Index for all Urban Consumers (CPI- U). \2\ Among the 50 States and the District of Columbia. Note.--AFDC benefit amounts have not been reduced by child support enforcement collections. Source: Family Support Administration, U.S. Department of Health and Human Services. Median State benefits provided by the Congressional Research Service (CRS). Table prepared by CRS. State AFDC Data: Benefits, Expenditures, and Caseloads Maximum benefits, by State, January 1997 By January 1, 1997 more than half of the States had TANF plans in effect. Table 7-8 shows maximum AFDC/TANF benefits for a one-parent family of three persons by State at the start of 1997. All but four jurisdictions retained their July 1, 1996 AFDC maximum benefit schedule. Maryland and Vermont increased benefits; California and the District of Columbia reduced benefits. Maximum cash benefits in Alaska ($923) were almost eight times as large as in Mississippi ($120). Addition of food stamps narrowed the range. Combined benefits for an Alaskan family of three with no countable income ($1,246) were somewhat less than triple those of a comparable family in Mississippi ($435). Table 7-9 presents maximum AFDC/TANF benefits, as of January 1, 1997, for families of one to six persons. Generally, the amounts shown applied both to one- and two-parent families, but some States paid higher amounts to the latter group. For average size families (three persons) with no countable income, benefits in the median State averaged $126 per recipient. For units of one person (a child with an ineligible caretaker, or a pregnant woman), the median State paid a maximum of $214. Per recipient amounts declined with family size: four-person units, $114 per recipient; five-person units, $105; and six-person units, $97. AFDC coverage of children, by State, selected years Table 7-10 (columns 1-5) presents the percentage of children enrolled in AFDC by State for selected years. It shows wide variation among States. For example, the share of all children receiving AFDC ranged in 1970 from 3.1 percent in New Hampshire to 16.8 percent in the District of Columbia. The differences reflect disparities in income eligibility limits, which are set by States, and economic and demographic conditions. For decennial census years (1970, 1980, and 1990), table 7-10 (columns 6-8) compares AFDC child enrollment to the number of children in the State who meet the Census Bureau's definition of poverty. For the United States, this ratio rose from 59 percent in 1970 to 67 percent in 1990. For some States the ratio of AFDC children to poor children exceeded 100 percent, even though effective AFDC income eligibility limits were below poverty thresholds in virtually all States. The probable explanation is that AFDC eligibility was based on monthly income and circumstances in contrast to the count of poor children, which depends on annual money income. The result is that some families, poor enough to qualify for AFDC at some time during the year, might have had money income in other parts of the year that brought their total up to or above the poverty threshold. TABLE 7-8.--NEED STANDARD AND MAXIMUM AFDC/TANF AND FOOD STAMP BENEFITS, ONE-PARENT FAMILY OF THREE PERSONS,\1\ JANUARY 1997 -------------------------------------------------------------------------------------------------------------------------------------------------------- Gross income Combined AFDC benefits limit (185 100 percent Maximum Food stamp Combined benefits as a as a percent State name percent of of ``need'' AFDC grant benefit \3\ benefits percent of of 1997 need \2\ 1997 poverty poverty standard) guidelines \4\ guidelines \4\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama................................................ $1,245 $673 $164 $315 $479 43 15 Alaska \5\............................................. 1,955 1,057 923 323 1,246 90 66 Arizona................................................ 1,783 964 347 315 662 60 31 Arkansas \5\........................................... 1,304 705 204 315 519 47 18 California............................................. 1,360 735 565 261 826 74 51 Colorado \5\........................................... 779 421 356 315 671 60 32 Connecticut............................................ 1,613 872 636 239 875 79 57 Delaware \5\........................................... 625 338 338 315 653 59 30 District of Columbia \5\............................... 1,317 712 398 311 709 64 36 Florida................................................ 2,002 1,082 303 315 618 56 27 Georgia \5\............................................ 784 424 280 315 595 54 25 Guam \5\............................................... 1,245 673 673 434 1,107 100 61 Hawaii \5\............................................. 2,109 1,140 712 472 1,184 93 56 Idaho \5\.............................................. 1,833 991 317 315 632 57 29 Illinois \5\........................................... 1,830 989 377 315 692 62 34 Indiana................................................ 592 320 288 315 603 54 26 Iowa................................................... 1,571 849 426 302 728 66 38 Kansas................................................. 794 429 429 302 730 66 39 Kentucky............................................... 973 526 262 315 577 52 24 Louisiana.............................................. 1,217 658 190 315 505 45 17 Maine.................................................. 1,023 553 418 305 723 65 38 Maryland............................................... 956 517 377 315 692 62 34 Massachusetts.......................................... 1,045 565 565 261 826 74 51 Michigan: Washtenaw County.................................. 1,151 622 489 292 752 68 41 Wayne County...................................... 1,084 586 459 284 772 70 44 Minnesota \5\.......................................... 984 532 532 271 803 72 48 Mississippi............................................ 681 368 120 315 435 39 11 Missouri............................................... 1,565 846 292 315 607 55 26 Montana................................................ 1,032 558 438 299 737 66 39 Nebraska............................................... 673 364 364 315 679 61 33 Nevada................................................. 1,423 769 348 315 663 60 31 New Hampshire.......................................... 3,210 1,735 550 265 815 73 50 New Jersey \5\......................................... 1,822 985 424 303 727 65 38 New Mexico \5\......................................... 720 389 389 314 702 63 35 New York: (New York City).................................... 1,067 577 577 257 834 75 52 (Suffolk County)................................... 1,301 703 703 219 922 83 63 North Carolina......................................... 1,006 544 272 315 587 53 24 North Dakota \5\....................................... 797 431 431 301 732 66 39 Ohio................................................... 1,758 950 341 315 656 59 31 Oklahoma............................................... 1,193 645 307 315 622 56 28 Oregon................................................. 851 460 460 292 752 68 41 Pennsylvania \5\....................................... 1,136 614 421 304 725 65 38 Puerto Rico \5\........................................ 666 360 180 NA 180 16 NA Rhode Island \5\....................................... 1,025 554 554 264 818 74 50 South Carolina......................................... 999 540 200 315 515 46 18 South Dakota........................................... 938 507 430 301 731 66 39 Tennessee.............................................. 1,252 677 185 315 500 45 17 Texas.................................................. 1,389 751 188 315 503 45 17 Utah................................................... 1,051 568 426 302 728 66 38 Vermont................................................ 2,226 1,203 639 238 878 79 58 Virgin Islands \5\..................................... 555 300 240 405 645 58 22 Virginia \5\........................................... 727 393 354 315 669 60 32 Washington \5\......................................... 2,281 1,233 546 266 812 73 49 West Virginia \5\...................................... 1,833 991 253 315 568 51 23 Wisconsin.............................................. 1,197 647 517 275 792 71 47 Wyoming................................................ 1,247 674 360 315 675 61 32 ------------------------------------------------------------------------------------------------ Median AFDC State \6\.............................. ........... ........... 377 315 692 62 34 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ In most States these amounts apply also to two-parent families of three (where the second parent is incapacitated or unemployed). Some, however, increase benefits for these families. \2\ In States with area differentials, figure shown is for area with highest benefit. \3\ Food stamp benefits are based on maximum AFDC/TANF benefits shown and assume deductions of $384 monthly ($134 standard household deduction and $250 maximum allowable deduction for excess shelter cost) in the 48 contiguous States and the District of Columbia. In the other four jurisdictions these maximum allowable food stamp deductions are assumed: Alaska, $663; Hawaii, $546; Guam, $573; and the Virgin Islands, $302. If only the standard deduction were assumed, food stamp benefits would drop by about $75 monthly in most of the 48 contiguous States and in the District of Columbia. Maximum food stamp benefits from October 1996 through September 1997 are $315 for a family of three, with these exceptions: (urban) Alaska, $401; Hawaii, $522; Guam, $464; and the Virgin Islands, $495. \4\ The 1997 poverty guidelines for a family of three are: $1,111 per month for the 48 contiguous States and the District of Columbia; $1,389 for Alaska; and $1,278 for Hawaii. \5\ These jurisdictions did not yet have TANF plans in effect on January 1, 1997. \6\ Ranked by size of maximum benefit among the 50 States and the District of Columbia. NA--Not available. Note.--Puerto Rico does not have a Food Stamp Program; instead a cash nutritional assistance payment is made. Source: Table prepared by the Congressional Research Service from information provided by a telephone survey of the States. TABLE 7-9.--MAXIMUM AFDC/TANF BENEFITS BY FAMILY SIZE, JANUARY 1997 ---------------------------------------------------------------------------------------------------------------- Size of filing unit (family) State ----------------------------------------------------- 1 2 3 4 5 6 ---------------------------------------------------------------------------------------------------------------- Alabama................................................... $111 $137 $164 $194 $225 $252 Alaska \1\................................................ 514 821 923 1,025 1,127 1,229 Arizona................................................... 204 275 347 418 489 561 Arkansas \1\.............................................. 81 162 204 247 286 331 California \2\ \3\........................................ 279 456 565 673 767 861 Colorado \1\.............................................. 214 280 356 432 512 590 Connecticut \2\........................................... 402 513 636 741 835 935 Delaware \1\.............................................. 201 270 338 407 475 544 District of Columbia \1\.................................. 251 312 398 486 561 660 Florida................................................... 180 241 303 364 426 487 Georgia \1\............................................... 155 235 280 330 378 410 Guam \1\.................................................. 420 537 673 776 874 985 Hawaii \1\................................................ 418 565 712 859 1,006 1,153 Idaho \1\................................................. 205 251 317 382 448 513 Illinois \1\ \2\.......................................... 212 278 377 414 485 545 Indiana................................................... 139 229 288 346 405 463 Iowa...................................................... 183 361 426 495 548 610 Kansas \2\................................................ 267 352 429 497 558 619 Kentucky.................................................. 186 225 262 328 383 432 Louisiana \2\............................................. 72 138 190 234 277 316 Maine..................................................... 198 312 418 526 632 739 Maryland.................................................. 167 295 377 455 527 579 Massachusetts \3\......................................... 383 474 565 651 741 832 Michigan: Wayne County........................................... 276 371 459 563 659 792 Washtenaw County....................................... 305 401 489 593 689 822 Minnesota \1\............................................. 187 437 532 621 697 773 Mississippi............................................... 60 96 120 144 168 192 Missouri.................................................. 136 234 292 342 388 431 Montana................................................... 261 349 438 527 615 703 Nebraska.................................................. 222 293 364 435 506 577 Nevada.................................................... 229 289 348 408 468 528 New Hampshire............................................. 414 481 550 613 673 754 New Jersey \1\............................................ 162 322 424 488 522 616 New Mexico \1\............................................ 231 310 389 469 548 627 New York: New York City........................................... 352 468 577 687 800 884 Suffolk County.......................................... 446 576 703 824 949 1,038 North Carolina............................................ 181 236 272 297 324 349 North Dakota \1\.......................................... 223 333 431 517 591 653 Ohio...................................................... 203 279 341 421 493 549 Oklahoma.................................................. 190 238 307 380 445 509 Oregon.................................................... 310 395 460 565 660 755 Pennsylvania \1\ \2\...................................... 215 330 421 514 607 687 Puerto Rico \1\........................................... 132 156 180 204 228 252 Rhode Island \1\.......................................... 327 449 554 632 710 800 South Carolina............................................ 119 159 200 241 281 321 South Dakota.............................................. 304 380 430 478 528 578 Tennessee................................................. 95 142 185 226 264 305 Texas..................................................... 78 163 188 226 251 288 Utah...................................................... 246 342 426 498 567 625 Vermont \2\............................................... 438 539 639 719 805 861 Virgin Islands \1\........................................ 120 180 240 300 360 420 Virginia \1\ \2\.......................................... 220 294 354 410 488 534 Washington \1\............................................ 349 440 546 642 740 841 West Virginia \1\......................................... 149 201 253 312 360 413 Wisconsin \2\............................................. 248 440 517 617 708 766 Wyoming \2\............................................... 195 320 360 390 450 510 ----------------------------------------------------- Median State \4\...................................... 214 310 377 455 527 579 ---------------------------------------------------------------------------------------------------------------- \1\ These jurisdictions did not yet have TANF plans in effect on January 1, 1997. \2\ These States (like Michigan and New York) have regional or urban/rural benefit schedules. Amounts shown are for highest benefit area. \3\ Benefit amounts are higher than shown for persons exempt from work. \4\ Median State among 50 States and the District of Columbia, ranked by benefit size. Source: Table prepared by Congressional Research Service on the basis of a telephone survey. TABLE 7-10.--AFDC COVERAGE OF CHILDREN, BY STATE, SELECTED YEARS 1970-96 ---------------------------------------------------------------------------------------------------------------- Percent of all children receiving AFDC children as a AFDC percentage of poor State ---------------------------------------- children ----------------------- 1970 1980 1990 1995 1996 1970 1980 1990 ---------------------------------------------------------------------------------------------------------------- Alabama......................................... 8.8 11.0 8.8 8.1 7.4 30.6 36.4 36.5 Alaska.......................................... 5.3 8.4 7.8 12.3 12.6 37.6 52.4 68.4 Arizona......................................... 7.0 5.6 9.0 11.4 10.3 39.6 25.3 40.9 Arkansas........................................ 6.0 9.2 8.3 7.1 6.4 19.6 29.8 32.9 California...................................... 14.4 15.6 17.1 21.1 20.4 115.2 77.3 93.7 Colorado........................................ 7.4 6.8 8.1 7.6 6.8 58.8 43.3 53.1 Connecticut..................................... 6.6 11.7 11.0 14.5 13.6 86.3 80.7 102.9 Delaware........................................ 8.5 14.5 9.0 9.7 9.0 69.6 70.6 75.1 District of Columbia............................ 16.8 39.9 30.6 42.7 44.0 75.4 123.9 120.2 Florida......................................... 8.4 8.4 9.4 13.2 11.5 44.6 34.8 50.3 Georgia......................................... 10.6 10.3 12.1 14.2 12.8 44.7 37.4 60.0 Hawaii.......................................... 7.1 14.9 10.6 14.3 14.4 69.6 78.8 91.7 Idaho........................................... 4.8 4.6 3.7 4.8 4.6 38.2 22.2 23.0 Illinois........................................ 8.3 14.9 15.0 15.5 14.4 76.7 80.9 87.9 Indiana......................................... 3.6 7.4 7.3 8.8 6.9 39.2 46.1 51.4 Iowa............................................ 5.1 9.0 9.0 9.1 8.2 51.4 57.8 62.6 Kansas.......................................... 6.1 7.9 8.0 7.9 7.0 51.4 49.5 56.3 Kentucky........................................ 8.7 11.3 12.4 13.2 12.4 35.4 41.1 50.1 Louisiana....................................... 12.8 12.0 16.4 14.0 13.1 43.2 41.5 52.2 Maine........................................... 9.4 12.4 11.6 12.3 11.8 65.9 54.8 84.1 Maryland........................................ 8.0 12.8 10.9 12.0 10.9 71.2 78.8 96.8 Massachusetts................................... 9.0 15.2 12.6 12.4 10.7 102.4 89.0 95.3 Michigan........................................ 7.0 18.0 17.6 15.7 13.9 74.3 105.1 94.8 Minnesota....................................... 4.9 8.2 9.6 9.1 9.3 51.8 59.6 75.3 Mississippi..................................... 12.1 16.0 17.4 14.0 12.7 29.7 41.8 51.7 Missouri........................................ 7.8 10.6 10.8 12.7 11.6 53.1 54.7 60.6 Montana......................................... 4.7 6.1 8.5 9.3 8.8 35.8 31.8 41.8 Nebraska........................................ 4.7 5.8 6.9 6.5 6.1 38.9 35.1 49.9 Nevada.......................................... 6.1 4.6 5.5 7.7 6.5 69.3 32.3 41.5 New Hampshire................................... 3.1 6.2 3.9 6.2 5.4 39.0 45.7 52.3 New Jersey...................................... 10.9 16.1 12.0 11.0 9.8 120.3 90.7 106.0 New Mexico...................................... 10.5 9.3 8.5 13.5 13.0 40.0 32.2 30.6 New York........................................ 13.8 16.3 15.7 18.0 17.0 109.8 68.3 82.3 North Carolina.................................. 5.7 8.6 9.6 12.0 10.4 24.9 34.5 55.6 North Dakota.................................... 3.8 4.7 6.0 5.7 5.4 23.6 23.7 34.8 Ohio............................................ 5.9 12.3 15.0 14.6 13.4 60.0 73.1 84.0 Oklahoma........................................ 8.9 7.8 9.3 9.7 8.4 46.2 37.0 42.9 Oregon.......................................... 8.2 8.4 8.5 9.0 7.4 77.0 52.6 53.7 Pennsylvania.................................... 9.2 13.9 12.5 13.9 12.7 85.5 77.0 79.9 Rhode Island.................................... 9.9 15.2 13.6 17.0 16.6 84.6 84.1 98.4 South Carolina.................................. 5.0 11.8 8.8 10.0 9.5 17.8 42.4 41.7 South Dakota.................................... 5.4 6.3 6.8 6.0 5.8 29.1 24.1 33.4 Tennessee....................................... 8.7 9.5 12.0 14.6 13.7 36.1 35.4 57.2 Texas........................................... 6.0 5.4 9.0 9.9 8.9 23.9 22.1 36.9 Utah............................................ 6.0 5.0 4.9 4.6 4.0 56.7 32.1 39.1 Vermont......................................... 5.7 10.3 9.7 11.5 10.7 50.0 51.7 80.3 Virginia........................................ 4.8 8.3 7.0 8.0 7.0 27.2 41.4 52.7 Washington...................................... 7.6 9.5 12.0 13.1 12.3 78.7 62.1 82.3 West Virginia................................... 11.8 10.9 15.6 15.6 14.6 49.3 44.9 59.5 Wisconsin....................................... 4.0 11.3 12.4 10.8 9.1 45.1 80.2 83.7 Wyoming......................................... 3.7 3.4 7.1 7.3 6.8 31.4 31.3 49.3 --------------------------------------------------------------- U.S. total.................................. 8.8 11.7 12.2 13.5 12.6 58.9 56.3 66.7 ---------------------------------------------------------------------------------------------------------------- Table prepared by Congressional Research Service. Data sources: AFDC enrollment--1970, July 1970 numbers; 1980, December 1980 numbers; fiscal year monthly averages for 1990, 1995 and 1996. All AFDC data are from the U.S. Department of Health and Human Services and its predecessor; 1970 and 1980 data include foster care children. Population data are from U.S. Census Bureau. Poor children are those whose family money income for the preceding year--1969, 1979, and 1989, respectively--fell short of the poverty threshold. Numbers of all children are from decennial census publications for 1970, 1980, and 1990; 1995 data are July 1, 1994 estimates; 1996 data are July 1, 1996 estimates. Administrative costs and AFDC enrollment, by State, fiscal year 1996 Costs of administering AFDC benefits in fiscal year 1996 varied widely among the States, as shown by table 7-11. Per family they ranged from a low of $227 (less than $20 monthly) in Louisiana to a peak of $1,583 in Oregon. Administrative costs exceeded $1,000 per family in 12 other States: Delaware, Kansas, Maryland, Massachusetts, Minnesota, Nebraska, New Hampshire, New Jersey, New York, Oklahoma, Utah, and Wisconsin. This table also shows that more than half of the fiscal year 1996 AFDC caseload lived in six States: California, 20 percent; New York, 10 percent; Texas, 6 percent; Illinois, Florida, and Ohio, 5 percent each. TABLE 7-11.--AVERAGE MONTHLY NUMBER OF AFDC FAMILIES AND RECIPIENTS, TOTAL BENEFIT PAYMENTS AND ADMINISTRATIVE COSTS AND AVERAGE PAYMENT PER FAMILY AND RECIPIENT, FISCAL YEAR 1996 ---------------------------------------------------------------------------------------------------------------- Total Average Average Average monthly Total Admin. assistance monthly monthly payment per admin. cost per State payments caseload \1\ recipients \1\ ------------------- cost \2\ AFDC (mill.) (thous.) (thous.) Family Recipient (mill.) family \3\ ---------------------------------------------------------------------------------------------------------------- Alabama...................... $75.1 42 105 $148 $59 $22.0 $520 Alaska....................... 107.4 12 36 731 247 10.0 819 Arizona...................... 228.3 63 172 300 111 47.5 749 Arkansas..................... 51.6 23 58 189 74 13.2 581 California................... 5,907.5 896 2,626 549 187 587.6 656 Colorado..................... 129.2 35 99 304 109 23.1 653 Connecticut.................. 322.9 58 162 463 166 31.5 543 Delaware..................... 34.7 10 23 279 124 12.0 1,157 District of Columbia......... 120.8 26 70 391 143 22.6 877 Florida...................... 679.7 212 561 267 101 131.6 621 Georgia...................... 384.8 130 353 246 91 60.2 462 Guam......................... 14.1 2 8 550 150 1.6 741 Hawaii....................... 173.3 22 67 657 217 9.8 447 Idaho........................ 30.1 9 23 278 109 8.8 974 Illinois..................... 832.9 224 655 310 106 119.7 534 Indiana...................... 153.5 53 148 242 86 29.7 562 Iowa......................... 131.1 33 89 333 122 19.7 600 Kansas....................... 97.9 25 68 324 119 25.4 1,012 Kentucky..................... 191.4 72 175 222 91 32.5 453 Louisiana.................... 130.1 71 236 154 46 16.0 227 Maine........................ 98.6 20 56 401 147 6.3 309 Maryland..................... 285.2 74 204 321 116 89.2 1,203 Massachusetts................ 559.9 88 237 528 197 93.0 1,053 Michigan..................... 778.8 178 527 365 123 159.8 898 Minnesota.................... 332.6 58 171 476 162 62.1 1,066 Mississippi.................. 67.8 48 129 118 44 16.7 349 Missouri..................... 254.0 83 232 256 91 24.4 295 Montana...................... 45.5 11 31 350 121 6.9 640 Nebraska..................... 53.5 14 39 315 115 21.5 1,521 Nevada....................... 48.4 15 38 272 107 14.4 972 New Hampshire................ 49.8 10 24 435 171 12.1 1,267 New Jersey................... 462.5 112 288 344 134 150.6 1,345 New Mexico................... 152.7 34 101 376 126 15.7 465 New York..................... 2,929.3 433 1,189 563 205 550.7 1,271 North Carolina............... 299.6 113 278 221 90 68.7 607 North Dakota................. 21.0 5 13 358 131 4.6 941 Ohio......................... 762.8 207 546 308 116 90.0 435 Oklahoma..................... 121.9 39 105 262 97 42.5 1,095 Oregon....................... 154.5 33 87 385 148 52.9 1,583 Pennsylvania................. 821.9 190 544 360 126 102.1 537 Puerto Rico.................. 63.4 51 155 104 34 14.6 287 Rhode Island................. 125.3 21 58 492 179 10.1 476 South Carolina............... 100.9 46 119 184 71 31.5 688 South Dakota................. 21.6 6 16 300 110 4.3 711 Tennessee.................... 189.8 99 260 160 61 38.9 393 Texas........................ 496.0 255 684 162 60 104.4 409 Utah......................... 64.2 15 40 363 133 22.4 1,514 Vermont...................... 55.6 9 25 512 183 6.1 673 Virgin Islands............... 4.2 1 5 249 70 0.7 502 Virginia..................... 199.2 65 162 256 103 38.5 593 Washington................... 584.8 99 274 493 178 78.4 792 West Virginia................ 101.5 37 95 231 89 11.5 315 Wisconsin.................... 291.0 60 170 404 142 91.6 1,526 Wyoming...................... 16.7 5 13 295 109 3.8 806 ---------------------------------------------------------------------------------- U.S. total............... 20,411.1 4,553 12,649 374 134 3,265.9 717 ---------------------------------------------------------------------------------------------------------------- \1\ Preliminary data. \2\ Administrative costs include child care administration, work program, ADP, FAMIS, fraud control, SAVE, and other State and local administrative expenditures. \3\ Average annual administrative cost per family. Source: Administration for Children and Families, U.S. Department of Health and Human Services. AFDC-unemployed parent families, by State, fiscal year 1996 The distribution of unemployed-parent (AFDC-UP) families was very uneven among States (table 7-12). More than half (54 percent) of these families were in California. Two-parent families accounted for 18 percent of the California caseload, but only 7 percent of the national total. Need standards and maximum benefits, by State, selected years From 1970 to 1997, AFDC benefit levels declined in real value in all States (but rose in Puerto Rico); in the same period need standards declined in real value in all but 11 States (tables 7-13 and 7-14). In the median State, ranked by size of benefit level, maximum AFDC benefits fell 50 percent in this period, from $751 (expressed in January 1997 dollars) to $377. As noted earlier, some of the benefit erosion was offset by expansion of the Food Stamp Program, which provides 100- percent federally funded benefits that are adjusted for price inflation. TABLE 7-12.--AFDC-UP RECIPIENTS OF CASH PAYMENTS AND AMOUNTS OF PAYMENTS BY STATE, FISCAL YEAR 1996 ---------------------------------------------------------------------------------------------------------------- Average monthly UP money Average Average number payment per: State payments number of of recipients ------------------ (thousands) families \1\ \1\ Family Recipient ---------------------------------------------------------------------------------------------------------------- Alabama........................................... $108 83 355 $108 $25 Alaska............................................ 16,869 1,810 8,338 777 169 Arizona........................................... 5,635 1,251 5,465 376 86 Arkansas.......................................... 934 240 963 324 81 California........................................ 1,228,319 161,782 657,970 633 156 Colorado.......................................... 1,704 444 1,538 320 92 Connecticut....................................... 21,265 3,253 13,543 545 131 Delaware.......................................... 433 115 446 314 81 District of Columbia.............................. 997 145 693 572 120 Florida........................................... 11,889 2,640 10,423 375 95 Georgia........................................... 1,167 325 1,282 299 76 Guam.............................................. 1,764 189 1,038 779 142 Hawaii............................................ 15,211 1,614 7,345 785 173 Idaho............................................. 1,221 293 1,240 347 82 Illinois.......................................... 39,354 9,840 41,724 333 79 Indiana........................................... 4,895 1,333 5,669 306 72 Iowa.............................................. 13,337 3,122 12,528 356 89 Kansas............................................ 5,211 1,151 4,515 377 96 Kentucky.......................................... 9,917 3,046 11,136 271 74 Louisiana......................................... 542 217 1,092 208 41 Maine............................................. 10,394 1,650 6,835 525 127 Maryland.......................................... 2,050 460 1,975 371 86 Massachusetts..................................... 20,027 2,647 11,258 631 148 Michigan.......................................... 105,268 19,700 84,975 445 103 Minnesota......................................... 27,011 3,948 18,923 570 119 Mississippi....................................... 54 33 130 136 34 Missouri.......................................... 4,221 1,105 4,064 318 87 Montana........................................... 5,317 934 4,072 474 109 Nebraska.......................................... 2,978 644 2,745 385 90 Nevada............................................ 1,059 279 1,071 317 82 New Hampshire..................................... 718 130 558 459 107 New Jersey........................................ 14,989 2,865 12,078 436 103 New Mexico........................................ 7,643 1,191 5,575 535 114 New York.......................................... 108,901 17,788 72,439 510 125 North Carolina.................................... 6,709 2,190 8,288 255 67 North Dakota...................................... 420 73 355 479 99 Ohio.............................................. 54,534 12,053 47,933 377 95 Oklahoma.......................................... 1,024 261 977 328 87 Oregon............................................ 12,017 2,181 8,753 459 114 Pennsylvania...................................... 29,824 6,402 26,793 388 93 Rhode Island...................................... 3,284 485 1,965 564 139 South Carolina.................................... 531 181 816 244 54 South Dakota...................................... 156 35 192 367 67 Tennessee......................................... 3,321 1,392 5,290 199 52 Texas............................................. 14,047 5,934 23,925 197 49 Utah.............................................. 455 101 452 377 84 Vermont........................................... 6,861 1,257 4,987 455 115 Virgin Islands.................................... 0 0 0 0 0 Virginia.......................................... 2,745 516 2,099 444 109 Washington........................................ 102,560 14,123 59,891 605 143 West Virginia..................................... 15,148 4,447 16,794 284 75 Wisconsin......................................... 28,033 3,676 17,723 635 132 Wyoming........................................... 227 53 229 356 83 ------------------------------------------------------------- U.S. total.................................... 1,973,298 301,628 1,241,463 545 132 ---------------------------------------------------------------------------------------------------------------- \1\ Preliminary data. Source: Administration for Children and Families, U.S. Department of Health and Human Services. Total AFDC benefit expenditures, by State, selected years Total AFDC benefit expenditures by State for fiscal years 1990-96 are presented in table 7-15. Nationally benefit outlays rose from $18.5 billion in fiscal year 1990 to an all-time peak of $22.8 billion in fiscal year 1994, then declined to $22.0 billion and $20.4 billion in the next 2 years. Measured in 1996 value dollars, U.S. benefit spending increased from $22.4 billion in fiscal year 1990 to a peak of $24.1 billion in fiscal year 1994, as shown on table 7-2. AFDC benefit outlays in fiscal year 1996 were smaller than in fiscal year 1994 in all jurisdictions except: Guam (up 16.5 percent); Hawaii (6.3 percent); Nevada (0.6 percent); New Mexico (6.1 percent); New York (0.6 percent); and the Virgin Islands (20.0 percent). Financing of AFDC Federal funding shares The Federal share of a State's AFDC benefit payments was determined by the matching formula specified for Medicaid in title XIX of the Social Security Act. Within limits, the Federal Medicaid matching rate is inversely related to State per capita income squared. If State per capita income equals the national average, the Federal share is 55 percent; if State per capita income is not more than 5.4 percent above average, the share is between 50 and 55 percent; if State per capita income is below average, the share is above 55 percent. Thus, Federal matching for AFDC benefit payments varied from State to State, ranging from 50 percent in 11 States and the District of Columbia to 78.07 percent in Mississippi in fiscal year 1996, the last full year of AFDC. Table 7-16 presents State Medicaid matching rates for selected fiscal years 1984-98. It shows that California, Colorado, Washington, and Wyoming, which received the minimum 50 percent Federal share in 1984-85, now receive a higher match rate because their comparative per capita income position has declined. Mississippi's relative position improved, reducing the Medicaid rate to 77.22 percent for fiscal year 1997. TABLE 7-13.--AFDC NEED STANDARD FOR A THREE-PERSON FAMILY BY STATE, SELECTED YEARS 1970-97 -------------------------------------------------------------------------------------------------------------------------------------------------------- Percent July July July July January January January January January change in State 1970 \1\ 1975 1980 1985 1990 \2\ 1994 \2\ 1995 \2\ 1996 \2\ 1997 \2\ real value, 1970-97 \3\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama............................................. $184 $180 $192 $384 $578 $673 $673 $673 $673 -10 Alaska.............................................. 350 350 457 719 846 975 1,022 1,028 1,057 -26 Arizona............................................. 212 233 233 233 621 964 964 964 964 11 Arkansas............................................ 149 245 234 234 705 705 705 705 705 16 California.......................................... 351 316 480 587 694 715 715 730 735 -49 Colorado............................................ 193 217 290 421 421 421 421 421 421 -47 Connecticut......................................... 283 346 475 569 649 680 872 872 872 -24 Delaware............................................ 245 245 266 287 333 338 338 338 338 -66 District of Columbia................................ 229 286 394 654 712 72 712 712 712 -24 Florida............................................. 189 195 195 400 838 991 991 1,050 1,082 40 Georgia............................................. 177 193 193 366 414 424 424 424 424 -41 Guam................................................ NA NA 261 265 330 330 330 330 673 NA Hawaii.............................................. 226 428 468 468 964 1,140 1,140 1,140 1,140 24 Idaho............................................... 238 345 371 554 554 991 991 991 991 2 Illinois............................................ 232 261 288 657 777 890 936 963 989 5 Indiana............................................. 272 307 307 307 320 320 320 320 320 -71 Iowa................................................ 247 309 360 497 497 849 849 849 849 -16 Kansas.............................................. 243 321 345 391 409 429 429 429 429 -57 Kentucky............................................ 208 185 188 197 526 526 526 526 526 -38 Louisiana........................................... 172 164 402 579 658 658 658 658 658 -6 Maine............................................... 277 277 415 510 652 553 553 553 553 -51 Maryland............................................ 249 259 270 455 548 507 517 517 517 -49 Massachusetts....................................... 268 259 379 439 539 579 579 565 565 -48 Michigan: Washtenaw County................................ NA NA NA 592 611 587 587 587 622 NA Wayne County.................................... 219 333 425 557 575 551 551 551 586 -34 Minnesota........................................... 256 330 417 528 532 532 532 532 532 -49 Mississippi......................................... 202 241 220 286 368 368 368 368 368 -55 Missouri............................................ 285 325 312 312 312 846 846 846 846 -27 Montana............................................. 221 201 259 428 434 511 530 541 558 -38 Nebraska............................................ 281 279 310 350 364 364 364 364 364 -68 Nevada.............................................. 269 279 285 285 550 699 699 699 769 -30 New Hampshire....................................... 262 308 346 389 506 1,648 1,674 2,034 1,735 62 New Jersey.......................................... 302 310 360 404 424 985 985 985 985 -20 New Mexico.......................................... 167 197 220 258 264 357 381 389 389 -43 New York: New York City................................... 279 332 394 474 577 577 577 577 577 -49 Suffolk County.................................. NA NA NA 579 703 703 703 703 703 NA North Carolina...................................... 168 183 192 492 544 544 544 544 544 -21 North Dakota........................................ 232 283 334 371 386 409 431 431 431 -54 Ohio................................................ 207 346 346 652 739 879 901 924 950 13 Oklahoma............................................ 179 217 282 471 471 471 645 645 645 -12 Oregon.............................................. 229 369 282 386 432 460 460 460 460 -51 Pennsylvania........................................ 265 296 332 614 614 614 614 614 614 -43 Puerto Rico......................................... 180 108 102 180 180 360 360 360 360 -51 Rhode Island........................................ 229 278 340 409 543 554 554 554 554 -41 South Carolina...................................... 162 178 187 187 419 440 440 524 540 -18 South Dakota........................................ 264 289 321 329 377 491 507 507 507 -53 Tennessee........................................... 179 179 179 339 387 426 500 583 677 -7 Texas............................................... 198 155 155 494 574 574 751 751 751 -7 Utah................................................ 223 327 480 693 516 552 568 568 568 -38 Vermont............................................. 287 402 670 883 973 1,124 1,148 1,173 1,203 3 Virgin Islands...................................... NA 131 209 209 300 300 300 300 300 NA Virginia............................................ 240 298 344 393 393 393 393 393 393 -60 Washington.......................................... 258 315 458 777 907 1,158 1,178 1,252 1,233 17 West Virginia....................................... 220 275 275 497 497 497 991 991 991 10 Wisconsin........................................... 214 383 522 628 647 647 647 647 647 -26 Wyoming............................................. 246 240 315 360 360 674 674 674 674 -33 --------------------------------------------------------------------------------------------------- Median State \4\................................ 232 279 321 401 539 579 645 645 586 -38 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Data on three-person families were not published or reported before 1975. Thus, the 1970 data were derived by reducing the reported four-person need standard by the proportional difference between three- and four-person AFDC need standards as shown in the July 1975 DHEW reports. \2\ CRS survey data. \3\ Real percentage change, calculated assuming a January 1997 CPI-U value of 159.1 relative to the July 1970 value of 39.0. \4\ Among 50 States and the District of Columbia, ranked by size of need standard. NA--Not available. Source: Table compiled by the Congressional Research Service (CRS) on the basis of data from the Department of Health and Human Services and CRS. TABLE 7-14.--AFDC MAXIMUM BENEFIT FOR A THREE-PERSON FAMILY BY STATE, SELECTED YEARS 1970-97 -------------------------------------------------------------------------------------------------------------------------------------------------------- Year ------------------------------------------------------------------------------------------------------------- Percent State change in July July July July January January January January January January real value, 1970 \1\ 1975 1980 1985 1990 \2\ 1992 \2\ 1994 \2\ 1995 \2\ 1996 \2\ 1997 \2\ 1970-97 \3\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama................................... $65 $108 $118 $118 $118 $149 $164 $164 $164 $164 -38 Alaska.................................... 328 350 457 719 846 924 923 923 923 923 -31 Arizona................................... 138 163 202 233 293 334 347 347 347 347 -38 Arkansas.................................. 89 125 161 192 204 204 204 204 204 204 -44 California................................ 186 293 473 587 694 663 607 607 607 565 -26 Colorado.................................. 193 217 290 346 356 356 356 356 356 356 -55 Connecticut............................... 283 346 475 569 649 680 680 680 636 636 -45 Delaware.................................. 160 221 266 287 333 338 338 338 338 338 -48 District of Columbia...................... 195 243 286 327 409 409 420 420 420 398 -50 Florida................................... 114 144 195 240 294 303 303 303 303 303 -35 Georgia................................... 107 123 164 223 273 280 280 280 280 280 -36 Guam...................................... NA NA 261 265 330 330 330 330 330 673 NA Hawaii.................................... 226 428 468 468 602 666 712 712 712 712 -23 Idaho..................................... 211 300 323 304 317 315 317 317 317 317 -63 Illinois.................................. 232 261 288 341 367 367 367 377 377 377 -60 Indiana................................... 120 200 255 256 288 288 288 288 288 288 -41 Iowa...................................... 201 294 360 360 410 426 426 426 426 426 -48 Kansas.................................... 222 321 345 391 409 422 429 429 429 429 -53 Kentucky.................................. 147 185 188 197 228 228 228 228 262 262 -56 Louisiana................................. 88 128 152 190 190 190 190 190 190 190 -47 Maine..................................... 135 176 280 370 453 453 418 418 418 418 -24 Maryland.................................. 162 200 270 329 396 377 366 373 373 377 -43 Massachusetts............................. 268 259 379 432 539 539 579 579 565 565 -48 Michigan: Washtenaw County...................... NA NA NA 447 546 489 489 489 489 489 NA Wayne County.......................... 219 333 425 417 516 459 459 459 459 459 -49 Minnesota................................. 256 330 417 528 532 532 532 532 532 532 -49 Mississippi............................... 56 48 96 96 120 120 120 120 120 120 -47 Missouri.................................. 104 120 248 274 289 292 292 292 292 292 -31 Montana................................... 202 201 259 354 359 390 401 416 425 438 -47 Nebraska.................................. 171 210 310 350 364 364 364 364 364 364 -48 Nevada.................................... 121 195 262 285 330 372 348 348 348 348 -30 New Hampshire............................. 262 308 346 389 506 516 550 550 550 550 -49 New Jersey................................ 302 310 360 404 424 424 424 424 424 424 -66 New Mexico................................ 149 169 220 258 264 324 357 381 389 389 -36 New York: New York City......................... 279 332 394 474 577 577 577 577 577 577 -49 Suffolk County........................ NA NA NA 579 703 703 703 703 703 703 NA North Carolina............................ 145 183 192 246 272 272 272 272 272 272 -54 North Dakota.............................. 213 283 334 371 386 401 409 431 431 431 -50 Ohio...................................... 161 204 263 290 334 334 341 341 341 341 -48 Oklahoma.................................. 152 217 282 282 325 341 324 324 307 307 -50 Oregon.................................... 184 337 282 386 432 460 460 460 460 460 -39 Pennsylvania.............................. 265 296 332 364 421 421 421 421 421 421 -61 Puerto Rico............................... 43 43 44 90 90 180 180 180 180 180 3 Rhode Island.............................. 229 278 340 409 543 554 554 554 554 554 -41 South Carolina............................ 85 96 129 187 206 210 200 200 200 200 -42 South Dakota.............................. 264 289 321 329 377 404 417 430 430 430 -60 Tennessee................................. 112 115 122 153 184 185 185 185 185 185 -60 Texas..................................... 148 116 116 167 184 184 184 188 188 188 -69 Utah...................................... 175 252 360 376 387 402 414 426 426 426 -40 Vermont................................... 267 322 492 583 662 673 638 650 656 639 -41 Virgin Islands............................ NA 131 209 171 240 240 240 240 240 240 NA Virginia.................................. 225 268 310 354 354 354 354 354 354 354 -61 Washington................................ 258 315 458 476 501 531 546 546 546 546 -48 West Virginia............................. 114 206 206 249 249 249 249 253 253 253 -46 Wisconsin................................. 184 342 444 533 517 517 517 517 517 517 -31 Wyoming................................... 213 235 315 360 360 360 360 360 360 360 -59 ------------------------------------------------------------------------------------------------------------- Median State \4\...................... 184 235 288 332 364 372 366 377 389 377 -50 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Data on three-person families were not published or reported before 1975. Thus, the 1970 data were derived by reducing the reported four-person maximum benefit amount by the proportional difference between three- and four-person AFDC maximum benefit as shown in the July 1975 DHEW reports. \2\ CRS survey data. \3\ Real percentage change, calculated assuming a January 1997 CPI-U value of 159.1 relative to the July 1970 value of 39.0. \4\ Among 50 States and the District of Columbia. NA--Not available. Source: Table compiled by Congressional Research Service (CRS) on the basis of data from the U.S. Department of Health and Human Services and CRS. TABLE 7-15.--TOTAL AFDC BENEFIT EXPENDITURES BY STATE, FISCAL YEARS 1990-96 [In millions of dollars] ---------------------------------------------------------------------------------------------------------------- Fiscal year State ----------------------------------------------------------------------------------- 1990 1991 1992 1993 1994 1995 1996 ---------------------------------------------------------------------------------------------------------------- Alabama..................... $61.5 $67.5 $85.1 $95.5 $91.9 $82.6 $75.1 Alaska...................... 59.5 76.8 96.3 110.6 112.5 107.3 107.4 Arizona..................... 138.4 177.8 242.6 268.7 265.9 251.2 228.3 Arkansas.................... 57.0 60.0 61.1 59.8 57.4 48.8 51.6 California.................. 4,954.9 5,519.8 5,828.3 5,855.0 6,088.3 6,125.4 5,907.5 Colorado.................... 136.7 149.9 162.5 164.0 158.2 142.8 129.2 Connecticut................. 295.2 347.2 376.9 386.3 397.0 383.1 322.9 Delaware.................... 28.7 32.6 37.3 39.7 39.7 36.4 34.7 District of Columbia........ 84.0 97.5 102.4 112.6 126.3 124.1 120.8 Florida..................... 417.5 515.1 733.1 804.7 806.2 763.8 679.7 Georgia..................... 320.7 376.4 420.3 432.1 427.9 414.4 384.8 Guam........................ 5.0 7.1 7.8 9.2 12.1 13.7 14.1 Hawaii...................... 98.8 107.9 125.3 143.4 163.0 172.8 173.3 Idaho....................... 19.5 22.2 24.0 28.5 30.3 31.6 30.1 Illinois.................... 838.7 892.2 882.6 882.9 913.5 882.1 832.9 Indiana..................... 169.9 193.2 218.2 224.8 228.2 196.6 153.5 Iowa........................ 152.4 160.2 164.3 163.3 169.2 149.4 131.1 Kansas...................... 105.1 108.7 119.2 125.9 123.1 113.6 97.9 Kentucky.................... 179.1 204.1 213.1 210.0 198.3 182.6 191.4 Louisiana................... 188.0 188.1 181.8 176.9 168.4 151.1 130.1 Maine....................... 101.3 113.2 118.3 117.1 107.5 101.1 98.6 Maryland.................... 295.8 330.4 333.3 316.5 313.8 307.9 285.2 Massachusetts............... 630.3 665.6 750.9 749.9 729.7 646.1 559.9 Michigan.................... 1,211.3 1,184.1 1,162.0 1,190.1 1,132.2 999.8 778.8 Minnesota................... 355.0 370.7 387.0 384.0 379.4 356.0 332.6 Mississippi................. 86.3 87.9 88.8 86.9 81.7 75.1 67.8 Missouri.................... 228.0 250.6 273.9 283.8 286.9 275.6 254.0 Montana..................... 40.4 42.0 45.7 49.1 48.9 48.3 45.5 Nebraska.................... 58.6 61.2 65.3 65.6 61.6 56.7 53.5 Nevada...................... 27.2 32.1 41.0 44.0 48.1 51.6 48.4 New Hampshire............... 31.8 45.3 54.4 56.0 61.9 56.9 49.8 New Jersey.................. 451.4 488.7 527.2 538.2 531.3 509.8 462.5 New Mexico.................. 60.6 86.2 105.9 119.1 143.9 154.1 152.7 New York.................... 2,254.4 2,480.9 2,944.3 2,658.4 2,913.1 3,042.3 2,929.3 North Carolina.............. 246.7 303.6 335.3 353.4 352.5 334.4 299.6 North Dakota................ 24.3 25.0 27.5 28.1 25.6 22.6 21.0 Ohio........................ 877.2 935.1 984.0 980.5 1,015.8 849.1 762.8 Oklahoma.................... 132.1 152.2 169.2 172.0 165.2 152.0 121.9 Oregon...................... 145.2 177.2 200.1 202.4 196.7 180.8 154.5 Pennsylvania................ 798.3 827.3 906.1 917.7 934.8 904.7 821.9 Puerto Rico................. 71.5 75.2 75.3 76.8 73.9 68.3 63.4 Rhode Island................ 99.0 117.2 128.4 134.2 136.0 133.6 125.3 South Carolina.............. 95.7 107.4 119.2 118.0 115.1 107.1 100.9 South Dakota................ 21.7 23.6 25.2 25.0 24.6 22.7 21.6 Tennesee.................... 167.9 196.6 205.8 219.8 215.1 198.7 189.8 Texas....................... 415.9 473.3 516.5 532.3 544.3 519.8 496.0 Utah........................ 64.1 70.7 75.5 78.0 77.3 69.7 64.2 Vermont..................... 48.1 54.6 67.0 65.7 64.9 61.9 55.6 Virgin Islands.............. 2.9 3.3 3.5 3.5 3.5 4.3 4.2 Virginia.................... 177.4 199.6 224.8 231.2 253.0 222.4 199.2 Washington.................. 437.9 485.8 605.9 605.5 609.9 605.7 584.8 West Virginia............... 110.0 113.6 120.1 121.6 125.9 108.9 101.5 Wisconsin................... 440.4 447.1 453.3 441.2 424.7 389.4 291.0 Wyoming..................... 19.3 24.9 27.2 26.5 21.4 20.8 16.7 ----------------------------------------------------------------------------------- U.S. total.............. 18,538.5 20,356.2 22,250.5 22,286.0 22,797.4 22,031.6 20,411.1 ---------------------------------------------------------------------------------------------------------------- Source: Administration for Children and Families, U.S. Department of Health and Human Services. For the outlying areas--Guam, Puerto Rico and the Virgin Islands--75 percent Federal matching was provided for AFDC benefits, but the law imposed a ceiling on total Federal funds for AFDC and several other programs, including Aid for Aged, Blind, or Disabled Adults. The ceilings were as follows in fiscal year 1996: Puerto Rico, $82 million; Guam, $3.8 million; and the Virgin Islands, $2.8 million (see section 12 for additional information on the territories). The Federal Government paid 50 percent of the costs of administering the AFDC Program in all jurisdictions. Non-Federal funding As shown in tables 7-17 and 7-18, some States required their localities to finance a portion of the non-Federal share of AFDC benefit payments and/or administrative costs. National Data: Characteristics of AFDC Recipients This section and the next section on characteristics of AFDC families by State use two main sources of data. For years 1967-79, the sources were individual sample surveys of similar design conducted to gather information from agency case files. For 1983 and later years, data were derived from the National Integrated Quality Control System's (NIQCS) monthly sample of cases. The five subsections of text that explain selected aspects of AFDC recipients as revealed in national data are followed by the five tables (7-19 through 7-23), that contain the detailed data summarized by the text. Characteristics of AFDC families, selected years The nature and size of AFDC families changed sharply over the years. Table 7-19 shows that the average AFDC family shrank from 4 to 3 persons from 1969 to 1979, and declined even further, to 2.8 persons in 1994-95. In 1969, one-half the AFDC families had more than two children; in 1995, only one-fourth. In 1969, 27 percent of the children had unwed parents, 94 percent had two living parents, but only 16 percent lived with both parents. By 1995, the share of children with unwed parents had more than doubled, to 57 percent (no marriage tie replaced divorce or separation as the primary cause of a parent's absence), and although 98 percent of the children had two living parents, only 12 percent lived with both parents. The share of AFDC mothers with a high school degree increased from 20 percent of those whose educational status was known to 45 percent over the 27-year period; the share with some college increased from 3 percent of those whose educational status was known to 15 percent. The table shows a continued increase in the share of AFDC households that include a nonrecipient (48 percent in fiscal year 1995 compared with 33 percent in 1969). TABLE 7-16.--FEDERAL MEDICAID MATCHING RATES, SELECTED FISCAL YEARS 1984-98 ---------------------------------------------------------------------------------------------------------------- Fiscal year State ------------------------------------------------------------------------------- 1984-85 1988 1990 1992 1994 1996 1997 1998 ---------------------------------------------------------------------------------------------------------------- Alabama......................... 72.14 73.29 73.21 72.93 71.22 69.85 69.54 69.32 Alaska.......................... 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Arizona......................... 61.21 62.12 60.99 62.61 65.90 66.85 65.53 65.33 Arkansas........................ 73.65 74.21 74.58 75.66 74.46 73.61 73.29 72.84 California...................... 50.00 50.00 50.00 50.00 50.00 50.00 50.23 51.23 Colorado........................ 50.00 50.00 52.11 54.79 54.30 52.44 52.32 51.97 Connecticut..................... 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Delaware........................ 50.00 51.90 50.00 50.12 50.00 50.33 50.00 50.00 District of Columbia............ 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Florida......................... 58.41 55.39 54.70 54.69 54.78 55.76 55.79 55.65 Georgia......................... 67.43 63.84 62.09 61.78 62.47 61.90 61.52 60.84 Guam \1\........................ 75.00 75.00 75.00 75.00 75.00 75.00 75.00 50.00 Hawaii.......................... 50.00 53.71 54.50 52.57 50.00 50.00 50.00 50.00 Idaho........................... 67.28 70.47 73.32 73.24 70.92 68.78 67.97 69.59 Illinois........................ 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Indiana......................... 59.93 63.71 63.76 63.85 63.49 62.57 61.58 61.41 Iowa............................ 55.24 62.75 62.52 65.04 63.33 64.22 62.94 63.75 Kansas.......................... 50.67 55.20 56.07 59.23 59.52 59.04 58.87 59.71 Kentucky........................ 70.72 72.27 72.95 72.82 70.91 70.30 70.09 70.37 Louisiana....................... 64.65 68.26 73.12 75.44 73.49 71.89 71.36 70.03 Maine........................... 70.63 67.08 65.20 62.40 61.96 63.32 63.72 66.04 Maryland........................ 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Massachusetts................... 50.13 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Michigan........................ 50.70 56.48 54.54 55.41 56.37 56.77 55.20 53.58 Minnesota....................... 52.67 53.98 52.74 54.43 54.65 53.84 53.60 52.14 Mississippi..................... 77.63 79.65 80.18 79.99 78.85 78.07 77.22 77.09 Missouri........................ 61.40 59.27 59.18 60.84 60.64 60.06 60.04 60.68 Montana......................... 64.41 69.40 71.35 71.70 71.05 69.38 69.01 70.56 Nebraska........................ 57.13 59.73 61.12 64.50 61.98 59.49 59.13 61.17 Nevada.......................... 50.00 50.25 50.00 50.00 50.31 50.00 50.00 50.00 New Hampshire................... 59.45 50.00 50.00 50.00 50.00 50.00 50.00 50.00 New Jersey...................... 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 New Mexico...................... 69.39 71.52 72.25 74.33 74.17 72.87 72.66 72.61 New York........................ 50.88 50.00 50.00 50.00 50.00 50.00 50.00 50.00 North Carolina.................. 69.54 68.68 67.46 66.52 65.14 64.59 63.89 63.09 North Dakota.................... 61.32 64.87 67.52 72.75 71.13 69.06 67.73 70.43 Ohio............................ 55.44 59.10 59.57 60.63 60.83 60.17 59.28 58.14 Oklahoma........................ 58.47 63.33 68.29 70.74 70.39 69.89 70.01 70.51 Oregon.......................... 57.12 62.11 62.95 63.55 62.12 61.01 60.52 61.46 Pennsylvania.................... 56.04 57.35 56.86 56.84 54.61 52.93 52.85 53.39 Puerto Rico \1\................. 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 Rhode Island.................... 58.17 54.85 55.15 53.29 53.87 53.84 53.90 53.17 South Carolina.................. 73.51 73.49 73.07 72.66 71.08 70.77 70.43 70.23 South Dakota.................... 68.31 70.43 70.90 72.59 69.50 66.66 64.89 67.75 Tennessee....................... 70.66 70.64 69.64 68.41 67.15 65.64 64.58 63.36 Texas........................... 54.37 56.91 61.23 64.18 64.18 62.30 62.56 62.28 Utah............................ 70.84 73.73 74.70 75.11 74.35 73.21 72.33 72.58 Vermont......................... 69.37 66.23 62.77 61.37 59.55 60.87 61.05 62.18 Virgin Islands \1\.............. 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 Virginia........................ 56.53 51.34 50.00 50.00 50.00 51.37 51.45 51.49 Washington...................... 50.00 53.21 53.88 54.98 54.24 50.19 50.52 52.15 West Virginia................... 70.57 74.84 76.61 77.68 75.72 73.26 72.60 73.67 Wisconsin....................... 56.87 58.98 59.28 60.38 60.47 59.67 59.00 58.84 Wyoming......................... 50.00 57.96 65.95 69.10 65.63 59.69 59.88 63.02 ---------------------------------------------------------------------------------------------------------------- \1\ Federal funds limited. Source: Federal Register. TABLE 7-17.--FINANCING OF NON-FEDERAL SHARE OF AFDC BENEFIT PAYMENTS FOR STATES USING STATE AND LOCAL FUNDS, AUGUST 1996 ------------------------------------------------------------------------ Percent Percent State State funds local funds ------------------------------------------------------------------------ California \1\.............................. 95.00 5.0 Colorado.................................... 57.30 42.7 Indiana..................................... 60.00 40.0 Minnesota \2\............................... 85.00 15.0 Montana \3\................................. 66.60 33.3 New Jersey.................................. 75.00 25.0 New York \4\................................ 50.00 50.0 North Carolina \5\.......................... 50.00 50.0 North Dakota \5\............................ 75.00 25.0 Ohio \6\.................................... 36.07 4.0 Wisconsin \7\............................... 100.00 ............ ------------------------------------------------------------------------ \1\ Counties pay up to 100 percent of some types of emergency assistance costs. \2\ Counties finance 90 percent of the non-Federal costs of the Emergency Assistance Program. \3\ For all cases in State-administered counties and Indian cases in State-supervised counties, State funds only. \4\ For persons with State residence. For persons without State residence, for persons eligible for public assistance and care under AFDC and who are released from a State mental hygiene facility after a stay of 5 or more years, and for Indians living on reservations, State pays 100 percent of assistance. \5\ State pays 100 percent for Indians living on reservations. \6\ Percentage of total costs before deduction of Federal share. \7\ State pays State costs and up to 100 percent of local costs. Localities pay foster care and institutional costs in excess of State appropriations. Source: Administration for Children and Families, U.S. Department of Health and Human Services. The share of families reporting some earnings was 10 percent in 1995, the highest since the 1981 law repealed a financial incentive for work, but well below the January 1973 rate of 16 percent. Nine percent of the mothers reported having a job (5 percent said they had part-time jobs); compared with 14 percent in 1979. Of AFDC families, 77 percent said they had no income other than AFDC. Some studies suggest that the actual percentage of AFDC mothers with other income is higher than table 7-19 shows. The Institute for Women's Policy Research (IWPR) studied data for mothers from four panels of the Survey of Income and Program Participation (SIPP), those for 1984, 1986, 1987, and 1988. The data set comprised women who were single mothers for at least 12 out of 24 survey months and who received AFDC benefits for at least 2 of the 24 months. On average, women in the sample received AFDC for 18 months. The study found that 43 percent of the mothers worked at least 300 hours during the 2 years: 20 percent combined work with welfare part of the time; the remaining 23 percent ``cycled'' between work and welfare. In all, 57 percent did not work: 26 percent were totally dependent on means-tested benefits and 31 percent ``packaged'' AFDC with income from other family members (Spalter-Roth et al., 1995). Other research has found that many welfare mothers make ends meet by supplementing AFDC with unreported earnings and contributions. In a study of single AFDC mothers in four sites (Chicago, Boston, San Antonio, and Charleston), Edin (1995) found that 46 percent engaged in covert work to meet their expenses. Further, 86 percent received covert contributions from family or friends, boyfriends, absent fathers, or from other sources. The mothers obtained covert earnings by working for cash or under a false identity in the informal economy (39 percent of the sample) or by selling sex, drugs, or stolen goods (8 percent). TABLE 7-18.--FINANCING OF NON-FEDERAL SHARE OF COSTS OF AFDC ADMINISTRATION FOR STATES USING STATE AND LOCAL FUNDS, AUGUST 1996 ------------------------------------------------------------------------ State Percent State funds Percent local funds ------------------------------------------------------------------------ Alabama................... 100 percent.......... Small unspecified portions for goods and facilities. Arkansas.................. 100 percent in 50 25 counties counties; lesser participate in proportion in 25 maintenance costs. counties. California \1\............ 100 percent of State 30 percent of local costs; 70 percent of costs. local costs. Colorado.................. 60 percent........... 40 percent. Indiana................... 100 percent of State 50 percent or more of costs, plus up to 50 specified local percent of specified costs. local costs. Iowa...................... 100 percent of State 100 percent of local and district costs. costs. Maryland.................. 100 percent of State 100 percent of local budgeted positions. and nonbudgeted positions. Minnesota................. Varies with State 100 percent. appropriations. Mississippi............... Varies according to Varies according to county population. county population. Missouri.................. 100 percent.......... Varies on basis of voluntary contributions. Montana \2\............... 66.66 percent........ 33.33 percent. Nebraska.................. Varies............... Local funds used for some travel, rent, and equipment. New Jersey................ 100 percent of State 100 percent of local costs. costs. New York.................. 50 percent (or 100 50 percent. percent for Indians living on reservations). North Carolina............ 100 percent of State Portion of local costs and varying costs not covered by proportion of local State appropriation. costs, based on prior actual expenditures. North Dakota.............. 100 percent of State 100 percent of local costs. costs if able. Ohio...................... 45.5 percent \3\..... 4.5 percent. South Dakota.............. 100 percent of State 100 percent of local costs. costs. Virginia.................. 60 percent........... 40 percent. Wisconsin................. 100 percent of State Any costs in excess costs and up to 100 of State percent of local appropriation. costs. ------------------------------------------------------------------------ \1\ Counties pay 100 percent of non-Federal share of costs for emergency assistance cases involving removal of a child from the home. \2\ State pays all administrative costs in State-administered counties. \3\ Percentage of total cost before deduction of Federal share (50.0 percent). Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 7-19.--AFDC CHARACTERISTICS, SELECTED YEARS 1969-95 -------------------------------------------------------------------------------------------------------------------------------------------------------- May January May March Characteristic 1969 1973 1975 1979 1983 \1\ 1986 \1\ 1988 \1\ 1990 \1\ 1992 \1\ 1994 \1\ 1995 \1\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Average family size (persons).................. 4.0 3.6 3.2 3.0 3.0 3.0 3.0 2.9 2.9 2.8 2.8 Number of child recipients (percent of AFDC cases): One........................................ 26.6 NA 37.9 42.3 43.4 42.7 42.5 42.2 42.5 42.6 42.4 Two........................................ 23.0 NA 26.0 28.1 29.8 30.8 30.2 30.3 30.2 30.0 30.4 Three...................................... 17.7 NA 16.1 15.6 15.2 15.9 15.8 15.8 15.5 15.6 15.5 Four or more............................... 32.5 NA 20.0 13.9 10.1 9.8 9.9 9.9 10.1 9.6 9.6 Unknown.................................... ....... NA ...... ....... 1.5 0.8 1.7 1.4 0.7 2.1 2.2 Basis for eligibility (percent of children): Parents present: Incapacitated............................ \2\ 11. 7 10.2 7.7 5.3 3.4 3.2 3.7 3.6 4.1 3.9 4.3 Unemployed............................... \2\ 4.6 4.1 3.7 4.1 8.7 7.4 6.5 6.4 8.2 8.7 7.8 Parents absent: Death.................................... \2\ 5.5 5.0 3.7 2.2 1.8 1.9 1.8 1.6 1.6 1.7 1.8 Divorce or separation.................... \2\ 43. 3 46.5 48.3 44.7 38.5 36.3 34.6 32.9 30.0 26.5 25.4 No marriage tie.......................... \2\ 27. 9 31.5 31.0 37.8 44.3 48.9 51.9 54.0 53.1 55.7 57.4 Other reason............................. \2\ 3.5 3.6 4.0 5.9 1.4 2.4 1.6 1.9 2.0 2.0 2.1 Unknown.................................. ....... ....... ...... ....... 1.7 ........ ........ ........ 0.9 1.4 1.2 Education of mother (percent of mothers): \3\ 8th grade or less.......................... 29.4 NA 16.7 9.5 NA 4.8 5.5 5.8 4.9 4.0 5.7 1-3 years of high school................... 30.7 NA 31.7 20.8 NA 14.3 14.7 16.5 18.8 17.6 16.5 High school degree......................... 16.0 NA 23.7 18.8 NA 17.3 17.5 19.3 22.4 24.1 25.9 Some college............................... 2.0 NA 3.9 2.7 NA 3.4 3.9 5.7 6.8 7.7 8.3 College graduate........................... 0.2 NA 0.7 0.4 NA 0.5 0.6 0.4 0.5 0.5 0.6 Unknown.................................... 21.6 NA 23.3 47.8 NA 59.7 58.3 52.3 46.6 46.0 43.0 Age of mother (percent of mothers): \3\ Under 20................................... 6.6 NA 8.3 \4\ 4.1 \4\ 3.6 \4\ 3.3 \4\ 3.4 7.9 7.6 6.3 6.1 20-24...................................... 16.7 NA (\5\) \6\ 28. 0 \6\ 28.6 \7\ 33.6 \7\ 32.2 \6\ 23.8 24.5 24.6 24.6 25-29...................................... 17.6 NA (\5\) 21.4 23.8 \8\ 20.0 \8\ 19.4 24.6 23.3 22.6 22.2 30-39...................................... 30.4 NA 27.9 27.2 27.9 30.1 31.5 32.0 32.7 34.9 34.9 40 or over................................. 25.0 NA 17.6 15.4 15.7 13.0 13.4 11.7 11.8 11.5 12.2 Unknown.................................... 3.6 NA 3.0 4.0 0.3 ........ ........ ........ 0.1 ........ ........ Ages of children (percent of recipient children): Under 3.................................... 14.9 NA 16.5 18.9 22.5 21.9 21.1 24.2 24.6 23.8 22.3 3-5........................................ 17.6 NA 18.1 17.5 20.1 21.1 21.0 21.5 21.7 22.1 22.6 6-11....................................... 36.5 NA 33.7 33.0 31.5 32.4 33.3 27.5 32.4 31.7 32.7 12 and over................................ 31.0 NA 30.9 29.8 25.5 24.3 22.4 21.3 21.2 22.2 22.0 Unknown.................................... ....... NA 0.8 0.9 0.3 0.1 1.3 0.0 0.0 0.3 0.3 Mother's employment status (percent): \3\ Full-time job.............................. 8.2 9.8 10.4 8.7 1.5 1.6 2.2 2.5 2.2 3.3 3.8 Part-time job.............................. 6.3 6.3 5.7 5.4 3.4 4.2 4.2 4.2 4.2 4.6 5.2 Presence of income (percent of families): With earnings.............................. NA 16.3 14.6 12.8 5.7 7.5 8.4 8.2 7.4 8.9 9.7 No non-AFDC income......................... 56.0 66.9 71.1 \9\ 80. 6 \9\ 86.8 \9\ 81.3 \9\ 79.6 \9\ 80.1 \9\ 78.9 \9\ 77.5 \9\ 77.0 Median months on AFDC since most recent opening 23.0 27.0 31.0 29.0 26.0 27.0 26.3 23.0 22.5 22.8 23.5 Race (percent of parents): \10\ White...................................... NA 38.0 39.9 40.4 41.8 39.7 38.8 38.1 38.9 37.4 35.6 Black...................................... 45.2 45.8 44.3 43.1 43.8 40.7 39.8 39.7 37.2 36.4 37.2 Hispanic................................... NA 13.4 12.2 13.6 12.0 14.4 15.7 16.6 17.8 19.9 20.7 Native American............................ 1.3 1.1 1.1 1.4 1.0 1.3 1.4 1.3 1.4 1.3 1.3 Asian...................................... NA NA 0.5 1.0 1.5 2.3 2.4 2.8 2.8 2.9 3.0 Other and unknown.......................... 4.8 1.7 2.0 0.4 NA 1.4 1.9 1.5 2.0 2.1 2.2 Incidence of households (percent): Living in public housing................... 12.8 13.6 14.6 NA 10.0 9.6 9.6 9.6 9.2 8.3 8.0 Participating in food stamp or donated food program................................... 52.9 68.4 75.1 75.1 83.0 80.7 84.6 85.6 87.3 88.6 89.0 Including nonrecipient members............. 33.1 34.9 34.8 NA 36.9 36.7 36.8 37.7 38.9 46.4 48.3 Father's relationship to youngest child (percent): No father.................................. NA NA NA 84.7 89.8 91.2 91.6 92.0 89.4 89.4 90.2 Natural father............................. NA NA NA 9.6 NA NA NA NA NA NA NA Adoptive father............................ NA NA NA 0.0 NA NA NA NA NA NA NA Stepfather................................. NA NA NA 5.6 NA NA NA NA NA NA NA -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Data are for the Federal fiscal year October-September. All percentages are based on the average monthly caseload during the year. Hawaii and the territories are not included in 1983. Data for 1986 include Hawaii, but not the territories. Data after 1986 include the territories and Hawaii. \2\ Calculated on the basis of total number of families. \3\ For years after 1983, data are for adult female recipients. \4\ Under age 19. \5\ The percentage for 20-29 year olds was 43.1. \6\ The ages were 19-24 in 1979, 1983 and 1990. \7\ In 1986 and 1988 this age group was 19-25. \8\ In 1986 and 1988 this age group was 26-29. \9\ State collected child support directly beginning in 1975, removing one source of non-AFDC income. \10\ For 1983, 12.6 percentage points where race was unknown were allocated proportionately across all categories. NA--Not available. Note.--In 1995, 1.8 percent of AFDC cases had zero children (they were expectant mothers). Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 7-20.--EMPLOYMENT STATUS OF AFDC MOTHERS AND TENURE OF AFDC FAMILIES, \1\ SELECTED YEARS 1979-95 -------------------------------------------------------------------------------------------------------------------------------------------------------- Percent of total caseload ------------------------------------------------------------------------------------------------------- Employment status March 1979 \2\ May 1982 1983 \3\ 1986 \3\ 1988 \3\ 1990 \3\ 1991 \3\ 1992 \3\ 1994 \3\ 1995 \3\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Employment status of mother (or other caretaker): \4\ No mother (caretaker)....................... 8.3 12.2 8.7 ........ ........ ........ ........ ........ ........ ........ Full-time work, 30 or more hours per week... \5\ 8.0 \5\ 1.3 1.5 1.6 2.1 2.5 2.2 2.2 3.2 3.7 Part-time work, fewer than 30 hours per week \5\ 5.0 \5\ 4.3 3.4 4.2 4.2 4.2 4.2 4.2 4.5 5.1 Incapacitated............................... 6.0 NA 4.1 3.4 3.8 ........ ........ ........ 4.1 4.7 At school or training....................... 2.6 NA 2.0 1.9 2.2 11.5 12.5 16.1 13.8 13.9 On layoff................................... 0.5 NA 0.8 0.2 0.2 0.2 0.1 0.2 0.2 0.2 Seeking work................................ 9.1 NA NA 27.3 27.6 \6\ 10.5 \6\ 11.2 \6\ 11.8 1.7 1.7 Other--needed at home or not actively seeking work............................... 60.5 82.2 64.8 58.3 55.5 \7\ 68.6 \7\ 68.8 \7\ 65.1 71.7 70.2 Unknown..................................... ........... ......... ........ ........ ........ 2.6 0.8 0.6 0.7 0.4 Number of months on AFDC since most recent opening: Zero months................................. ........... ......... ........ ........ ........ ........ ........ ........ 2.8 2.6 1-6 months.................................. 16.4 20.0 18.9 17.2 18.2 19.8 20.4 19.0 19.5 18.6 7-12 months................................. 12.5 12.4 13.1 12.6 13.2 14.4 14.8 15.2 13.8 12.9 13-24 months................................ 16.7 16.2 16.6 17.2 17.3 18.4 19.2 19.3 18.0 17.2 25-36 months................................ 11.4 12.6 12.0 11.8 11.2 11.9 12.2 12.8 11.8 12.4 37-60 months................................ 15.3 14.2 15.4 14.9 15.0 13.7 12.8 14.1 15.4 15.9 61+ months.................................. 26.9 23.5 23.7 25.9 24.9 21.7 20.5 19.6 18.6 20.3 Unknown..................................... 0.8 1.1 0.3 0.4 0.2 (\8\) 0.1 0.1 0.1 0.1 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ See text about difference in data sources for 1979 and 1983 and later years. Note.--1982 data are from interim study. \2\ Source: Committee staff tabulation of March 1979 AFDC recipients' data base. \3\ Fiscal year average monthly: 1983 data does not include Hawaii or the territories; 1986 data does not include the territories; 1988-95 data includes the territories and Hawaii. \4\ Since 1986, the data are percent of female adult recipients. \5\ Full-time work, 35 hours or more per week; part-time work, fewer than 35 hours per week. \6\ For 1990-92, unemployed, not on layoff or strike. \7\ For 1990-92, not employed, not participating in any educational or training activities. \8\ Less than 0.05 percent. NA--Not available. Source: Based on National Integrated Quality Control System's monthly sample of cases surveyed by the U.S. Department of Health and Human Services. TABLE 7-21.--PERCENTAGE OF AFDC FAMILIES WITH VARIOUS SOURCES OF NON-AFDC INCOME, \1\ SELECTED YEARS 1979-95 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Percentage of caseload with income type Average monthly amount for those with income type ------------------------------------------------------------------------------------------------------------------------------------ Income source Fiscal year Fiscal year March May -------------------------------------------------- March May ------------------------------------------------- 1979 \2\ 1982 1986 \3\ 1990 \3\ 1992 \3\ 1994 \3\ 1995 \3\ 1979 1982 1986 \3\ 1990 \3\ 1992 \3\ 1994 \3\ 1995 \3\ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Earned income: Mother (or caretaker relative)........................... 12.0 5.3 6.2 6.9 6.1 7.0 7.9 $382 $261 $264 $318 $330 $379 $412 Father (or spouse of caretaker relative)................. 0.6 0.4 1.0 1.1 1.1 1.6 1.6 323 244 271 332 325 434 473 Children (14 or older)................................... 0.1 (\4\) 0.3 0.3 0.2 0.4 0.3 206 398 323 301 358 300 438 Other adults............................................. 0.1 NA 0.2 0.1 0.1 0.1 0.1 265 NA 420 285 252 392 300 Public service........................................... 0.1 NA NA NA NA NA NA 246 NA NA NA NA NA NA OASDI...................................................... 3.1 2.5 2.0 2.4 2.1 2.3 2.6 134 145 207 235 226 248 235 Veterans' benefits......................................... 0.4 NA 0.2 0.2 0.1 0.1 0.1 128 NA 139 135 182 352 332 Other government income.................................... 0.4 0.4 0.3 0.3 0.7 0.9 0.8 143 134 131 105 96 129 295 Unemployment compensation.................................. 0.7 1.0 0.7 0.6 0.9 1.0 0.6 238 255 289 310 354 349 387 Workers' compensation...................................... 0.1 (\4\) 0.1 0.1 0.1 1.0 0.6 237 200 299 396 348 360 389 Deemed income.............................................. 0.2 0.3 0.1 0.1 0.2 1.0 0.6 63 159 153 132 186 349 387 Contributions from other persons........................... 0.6 0.9 NA 1.5 1.6 1.0 0.6 72 79 NA 105 109 349 387 Other cash income:......................................... 1.9 2.5 \5\ 2.0 \5\ 2.0 \5\ 4.2 9.6 9.7 81 251 128 105 162 410 417 SSI (Federal)............................................ NA NA 3.0 1.1 1.3 1.3 1.3 NA NA 334 442 436 742 707 Other public assistance or State SSI..................... NA NA 1.1 0.6 0.3 8.5 8.5 NA NA 374 299 315 352 368 In-kind income............................................. 0.4 NA NA \6\ 0.0 NA NA NA 71 NA NA \6\ 125 NA NA NA ------------------------------------------------------------------------------------------------------------------------------------ U.S. total........................................... 19.4 NA 18.7 19.9 21.1 22.5 22.7 299 NA 228 239 246 282 304 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ \1\ See text about differences in data sources for 1979, 1983, and later years. Data for 1982 are from interim study. \2\ Source: Committee staff tabulation of March 1979 AFDC recipients' data base. \3\ Fiscal year average monthly. Data for 1986 does not include the territories. The 1988-95 data include both Hawaii and the territories. \4\ Less than 0.05 percent. \5\ Includes Federal SSI, State SSI, general assistance, income from assets and property and other unearned income. \6\ EIC. NA--Not available. Source: Based on National Integrated Quality Control System's monthly sample of cases surveyed by the U.S. Department of Health and Human Services. TABLE 7-22.--DISREGARDED INCOME FOR AFDC FAMILIES, \1\ SELECTED YEARS 1979-95 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Percent of caseload with disregard Average amount for those with disregard ------------------------------------------------------------------------------------------------------------------------------------------------------ Disregards Fiscal year Fiscal year March May ------------------------------------------------------------ March May ----------------------------------------------------------- 1979 \2\ 1982 1986 \3\ 1989 \3\ 1990 \3\ 1992 \3\ 1994 \3\ 1995 \3\ 1979 1982 1986 \3\ 1989 \3\ 1990 \3\ 1992 \3\ 1994 \3\ 1995 \3\ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Optional $5 disregard.................... 1.1 (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) $6 (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) $30 and one-third of earned income \5\... 12.5 2.5 3.8 4.0 4.0 3.8 5.7 6.7 147 $62 $76 $83 $92 $89 $130 $172 Child care............................... 3.9 1.3 1.5 1.7 1.2 1.4 1.5 1.6 101 86 106 119 128 153 154 137 Other work expenses...................... 8.4 5.2 6.2 6.9 6.7 6.3 7.1 7.8 95 54 76 77 89 92 98 102 Cases with child care and other work expenses \6\............................ 3.0 NA NA NA NA NA NA NA 100 NA NA NA NA NA NA NA Child support............................ 0.1 (\7\) 3.0 5.1 4.9 4.7 5.1 4.8 93 NA \8\ 47 \8\ 48 \8\ 48 \8\ 48 \8\ 48 48 Other.................................... 1.6 0.4 NA NA NA NA NA NA 77 100 NA NA NA NA NA NA ------------------------------------------------------------------------------------------------------------------------------------------------------ U.S. total........................... 13.8 NA 6.3 7.0 6.8 6.4 7.7 8.5 250 NA 146 153 171 177 211 224 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ \1\ See text about differences in data sources for March 1979, 1983 and later years. Note.--1982 data are from interim study. \2\ Source: Committee staff tabulation of March 1979 AFDC recipients' data base. \3\ Average monthly for fiscal years. \4\ Repealed by 1981 law. \5\ Limited to 4 months' duration by 1981 law; 1984 law extended $30 disregard to 12 months. \6\ In these cases, there was insufficient information in the data file to distinguish between child care and other work expenses. \7\ Less than 0.05 percent. \8\ Average amount of $50 child support passthrough. NA--Not available. Note.--The child support passthrough is not included in the total amount disregarded. It is part of unearned income rather than earned income. Source: Based on National Integrated Quality Control System's monthly sample of cases surveyed by the U.S. Department of Health and Human Services. TABLE 7-23.--1995 AFDC CHARACTERISTICS BY UNIT TYPE \1\ ---------------------------------------------------------------------------------------------------------------- One adult Two adults --------------------------------------------------------------- Not Characteristic Total No Divorced legally adult Not or separated Other Unemployed Other married legally or reasons parent separated divorced ---------------------------------------------------------------------------------------------------------------- Number of units (in thousands).. 4,873 923 2,196 578 485 336 249 106 Percent of total................ 100.0 18.9 45.1 11.9 10.0 6.9 5.1 2.2 Average monthly payment......... $371 $272 $373 $383 $401 $367 $583 $490 Percent of total dollars paid out............................ 100.0 13.9 45.3 12.3 10.8 6.8 8.0 2.9 Average number in assistance unit........................... 3.0 2.0 3.0 3.0 3.0 3.0 5.0 4.0 Food stamps: Percent participating....... 89.3 72.3 93.2 93.7 93.4 90.2 96.7 90.9 ------------------------------------------------------------------------------- Percentage Distribution ------------------------------------------------------------------------------- Number of recipients: One......................... 11.8 52.0 (\2\) 0.0 0.0 28.0 0.0 0.0 Two......................... 36.5 29.3 49.1 32.4 29.4 27.3 (\2\) 6.1 Three....................... 26.6 11.7 29.7 36.6 33.3 22.0 23.7 27.3 Four........................ 14.9 4.4 13.7 20.9 23.6 12.3 33.3 24.7 Five........................ 6.3 1.6 5.1 7.2 9.8 5.8 20.4 21.0 Six......................... 2.4 0.6 1.6 1.8 2.8 2.5 11.4 13.3 Seven or more............... 1.6 0.5 0.8 1.1 1.6 2.1 11.1 7.6 Number of nonrecipients: Zero........................ 51.2 2.1 63.6 65.9 67.6 26.9 80.6 77.2 One......................... 23.9 42.5 18.2 18.8 16.5 43.0 10.7 11.7 Two......................... 12.0 24.8 9.0 8.7 9.1 15.5 3.2 6.2 Three....................... 6.0 13.6 4.3 3.8 3.2 7.7 2.5 2.8 Four or more............... 6.9 17.1 5.1 2.7 3.6 6.9 3.0 2.1 Shelter: Owns or buying.............. 4.0 5.4 1.8 5.7 3.9 6.3 7.7 12.2 Homeless/emergency shelter.. 0.3 0.1 0.4 0.3 0.3 0.6 0.1 (\2\) Public housing.............. 8.0 6.2 9.9 6.4 7.3 6.9 4.2 11.6 HUD rent subsidy............ 12.1 7.6 14.0 15.6 11.1 9.4 9.7 12.9 Other subsidy............... 2.4 1.5 2.6 2.6 2.7 2.7 2.0 3.4 Private housing............. 64.2 66.1 62.4 61.8 66.4 67.1 74.0 56.4 Rents free.................. 6.9 11.0 6.8 5.4 6.4 5.3 2.0 2.7 Group quarters \3\.......... 1.6 1.6 1.9 1.9 1.5 1.1 0.2 0.3 Number of child recipients: Zero........................ 2.1 0.0 (\2\) 0.0 0.0 28.0 0.1 7.2 One......................... 42.4 52.0 49.1 32.4 29.4 27.3 23.7 27.3 Two......................... 30.4 29.3 29.7 36.6 33.3 22.0 33.2 24.9 Three....................... 15.5 11.7 13.7 20.9 23.0 12.3 20.5 19.9 Four or more................ 9.6 7.0 7.5 10.0 14.2 10.4 22.5 20.7 Race of parent: White....................... 35.6 27.1 27.4 65.2 40.8 38.3 54.8 39.0 Black....................... 37.2 40.5 49.5 15.1 28.0 26.8 8.2 17.6 Hispanic.................... 20.7 26.2 17.7 16.1 25.7 21.9 20.6 32.9 Asian....................... 3.0 1.8 1.7 1.5 3.0 8.9 12.4 7.3 Native American............. 1.3 1.4 1.3 1.2 1.3 1.1 1.6 1.7 Unknown..................... 2.2 3.0 2.4 0.9 1.2 3.0 2.4 1.6 Age of youngest child in AFDC unit: Under 3..................... 38.9 31.0 47.4 19.4 35.9 37.7 49.3 28.4 3-5......................... 23.1 19.9 24.9 24.7 26.1 16.9 20.8 17.9 6-11........................ 23.7 27.7 19.2 35.5 25.4 22.0 19.9 25.6 12-15....................... 10.0 14.5 6.3 15.6 9.5 12.5 7.1 16.3 16-18....................... 3.7 6.8 1.9 4.8 3.1 6.2 2.4 7.5 Unknown..................... 0.6 0.1 0.3 (\2\) (\2\) 4.7 0.5 4.3 Number of months continuously on AFDC: 6 or less................... 21.2 18.5 19.1 22.1 26.1 27.0 27.6 28.7 7-12........................ 12.9 12.1 12.8 12.6 14.8 13.1 13.7 13.3 13-18....................... 9.4 9.6 9.2 9.2 10.6 7.2 11.4 10.0 19-24....................... 7.8 8.3 7.7 9.0 7.1 7.6 6.3 7.5 25-36....................... 12.4 13.0 12.6 12.0 11.6 10.8 12.8 10.5 37-48....................... 8.7 8.8 9.1 9.5 7.2 7.7 8.5 5.9 49-60....................... 7.1 7.0 7.6 7.4 6.4 5.6 6.7 6.0 61-120...................... 14.5 16.0 15.5 13.4 12.2 14.3 8.5 14.1 121-180..................... 0.9 1.1 0.9 1.1 0.7 0.8 0.6 1.4 181 and up.................. 1.7 1.9 2.0 1.1 1.1 1.9 0.6 1.6 Unknown..................... 3.2 3.6 3.4 2.6 2.3 4.0 3.4 1.0 Age of female adult recipient: 11-18....................... 2.3 ...... 3.3 0.2 0.6 3.6 1.4 0.9 19-21....................... 12.4 ...... 16.6 2.6 5.9 12.8 8.6 11.5 22-25....................... 20.0 ...... 24.2 12.3 17.6 12.7 17.0 9.9 26-29....................... 17.2 ...... 18.1 16.6 19.2 11.9 16.7 8.1 30-34....................... 19.6 ...... 17.7 27.9 22.7 16.2 19.1 13.5 35-39....................... 14.9 ...... 11.1 22.7 17.6 17.3 19.5 23.2 40 and up................... 13.6 ...... 8.9 17.6 16.4 25.5 17.8 32.6 Unknown..................... (\2\) ...... (\2\) 0.1 0.0 0.0 .......... ........ AFDC female adult employment status: Employed full time.......... 3.7 ...... 3.6 4.9 4.5 2.5 3.5 1.5 Employed part time.......... 3.9 ...... 3.7 6.0 3.2 3.1 5.2 1.9 Employed other.............. 1.2 ...... 1.0 2.0 1.7 1.0 0.7 1.7 Not employed................ 80.2 ...... 81.1 74.2 81.2 84.1 78.0 85.1 Unemployed.................. 10.4 ...... 10.3 12.6 9.2 8.6 11.9 9.0 Percent with non-AFDC income.... 23 3.9 23.2 40.0 25.5 27.0 41.3 25.2 Average monthly amount of income $311 $171 $287 $248 $317 $350 $524 $525 Percent with earned income...... 9.7 0.4 9.6 14.8 11.3 9.0 29.3 12.8 Average monthly earned income... $431 $309 $431 $346 $415 $408 $543 $510 Percent of earned income disregarded.................... 28.3 39.3 31.6 26.6 30.8 15.9 28.8 14.5 Percent with unearned income.... 14.9 3.5 14.9 28.9 16.1 19.1 16.0 16.4 Average amount of unearned income......................... $199 $153 $169 $165 $208 $301 $349 $401 Percent with countable assets... 17.4 6.9 14.3 30.1 19.6 24.4 37.2 26.2 Income of persons not in assistance unit: Percent with income......... 41.1 56.0 26.3 31.3 28.8 48.3 31.9 33.0 Average monthly amount...... $499 $482 $514 $572 $622 $511 $531 $404 Percent with earned income.. 10.7 10.3 11.3 11.3 14.5 7.8 8.5 3.0 Percent with public assistance income.......... 29.2 47.0 11.8 14.8 10.0 39.6 21.2 27.3 Percent with other unearned income..................... 8.1 11.1 5.0 8.4 6.8 8.0 3.1 3.3 ---------------------------------------------------------------------------------------------------------------- \1\ Characteristics information was not always available for 100 percent of cases. The number of missing cases, to the extent there were any with respect to a particular characteristic, was small as a percent of the AFDC family caseload (usually below 3 percent). \2\ Less than 0.05 percent. \3\ The family composition of recipients in group quarters is unknown in 5.7 percent of cases. Source: Administration for Children and Families, Department of Health and Human Services. Employment status of AFDC mothers and duration of enrollment, selected years Table 7-20 provides more detail about the reported work/ nonwork status of mothers (or other caretakers) of AFDC children. The share of mothers needed at home or not actively seeking work was 70 percent in fiscal year 1995, compared to a recent low of 56 percent in 1988. After passage of the Family Support Act in 1988, which established the JOBS education, work, and training program, there was a sharp increase in the percentage of mothers at school or training from 2 percent in fiscal year 1988 to 14 percent in fiscal year 1995. Table 7-20 also reports that 36 percent of AFDC families in fiscal year 1995 had been enrolled in the program for more than 3 years, and 20 percent for more than 5 years, since the most recent opening of their case. Families with non-AFDC income, selected years In fiscal year 1995, 22.7 percent of AFDC families reported receiving non-AFDC income averaging $304 monthly from various sources (table 7-21). In 1979, 19.4 percent of AFDC families reported receiving specified forms of non-AFDC income averaging $299 per month ($649 in fiscal year 1995 dollars). The share of families reporting other public assistance or State-funded SSI benefits climbed from 1.1 percent in 1986 to 8.5 percent in fiscal years 1994-95. For those families with the following kinds of income, reported monthly amounts in fiscal year 1995 averaged $438 in children's earnings, $412 in earnings of mothers or other caretaker relatives, and $707 in Federal SSI payments. Disregarded income for AFDC families, selected years Table 7-22 shows disregarded income of AFDC families by type. Among families that received the following kinds of income disregards, their fiscal year 1995 monthly value averaged: for child care expenses, $137; for other work expenses, $102; and for work incentive (disregard of $30 and one-third, time-limited), $172. In addition, an average of $48 monthly was disregarded in child support collections distributed to the family. It should be noted that after 1979, less than 10 percent of AFDC families had disregard income from any of these sources in any year. Characteristics of various kinds of AFDC units Table 7-23 divides the 1995 AFDC caseload into seven mutually exclusive groups. Column 1 contains data on the entire caseload. Column 2 describes AFDC units with no adult recipient. They represented 18.9 percent of the AFDC units and 13.9 percent of total payments. The average payment per case was $272 per month. These children-only cases comprise needy children with nonneedy or otherwise ineligible adult caretakers (usually relatives). Columns 3-6 present characteristics of more typical AFDC units--one adult with children. The one-adult caseload is split into four groups based on the reason for deprivation of the youngest child. Column 3 shows the most numerous group, unwed parents (usually mothers) with children. They account for 45 percent of all AFDC units and expenditures. Column 4 shows cases of a divorced or legally separated parent, 12 percent of the total. Columns 7 and 8 present characteristics of cases with two adult recipients. Column 7 provides data about the unemployed parent (AFDC-UP) caseload; column 8 contains other two-parent cases, most of which have an incapacitated parent. In fiscal year 1995, AFDC-UP cases represented 5 percent of the total caseload and received 8 percent of total payments. The cases in which one parent is incapacitated tend to be older, as demonstrated by both the age of the mother and the age of the youngest child. The table indicates that the racial composition of the AFDC-UP caseload differs from that of the overall AFDC caseload. White parents represented 36 percent of all AFDC families in fiscal year 1995, but 55 percent of AFDC-UP families; black parents represented 37 percent of all families, but 8 percent of AFDC-UP families and 50 percent of unwed AFDC families. Hispanic families accounted for 21 percent of all families and AFDC-UP families and for 18 percent of unwed AFDC families. Of the overall caseload, 3 percent of parents were Asian and 1.3 percent were Native American. State Data: Characteristics of AFDC Recipients The four subsections of text below contain discussions of selected aspects of AFDC recipients as revealed in State-by- State data. The four subsections are followed by the four tables (7-24 through 7-27) that contain the detailed data summarized by the text. Demographic characteristics of AFDC families, by State, fiscal year 1995 Table 7-24 presents selected demographic characteristics, by State. For some characteristics, there is marked variation among the States. For example, the percentage of cases living in households with nonrecipients ranged from 15 percent in Hawaii to above 65 percent in Arizona, Arkansas, Louisiana, Mississippi, and Virginia. The percentage of Native American cases, 1 percent for the United States as whole, exceeded 50 percent in South Dakota and was 40 percent in North Dakota. The percentage of families with a Hispanic parent, 21 percent for the Nation, was 40 percent or more in Arizona, California, New Mexico, Texas, and (with 99.9 percent) Puerto Rico. Income characteristics of AFDC families, by State, fiscal year 1995 Table 7-25 presents selected income characteristics, including the percent of units with earned income, unearned income, the disregard of child care costs, and the $30 and one- third earnings disregard (time-limited). This table also provides the average monthly amount of these sources of income as well as information on the percent of units participating in the Food Stamp Program. Nationally, 9.5 percent of all AFDC families reported earned income, but the percentage exceeded 20 percent in Iowa and Michigan. Nationally, monthly earnings averaged $431 for families reporting earnings; average earnings exceeded $500 in California, Connecticut, the District of Columbia, Guam, and Illinois. TABLE 7-24.--SELECTED DEMOGRAPHIC CHARACTERISTICS OF AFDC UNITS BY STATE, FISCAL YEAR 1995 -------------------------------------------------------------------------------------------------------------------------------------------------------- Percent of units Percentage Percentage distribution by race of natural or --------------------------------- distribution by age adoptive parent \1\ \2\ Average of youngest child ---------------------------------------------- Average number in With \1\ State number household household With no With one ---------------------- in unit of unit members adult adult 6 or White Black Hispanic Asian Native not in recipient recipient 0-2 3-5 more American unit yrs. yrs. yrs. -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama....................... 2.5 3.8 63.4 35.8 63.5 40.8 21.6 36.4 23.8 75.6 0.1 0.4 0.0 Alaska........................ 3.1 3.5 28.3 6.5 78.8 33.8 25.2 39.9 47.7 9.3 3.6 3.9 35.2 Arizona....................... 2.8 4.4 67.5 27.0 69.7 40.3 25.8 31.7 35.1 8.1 40.8 0.7 14.8 Arkansas...................... 2.7 4.2 66.0 27.8 70.6 38.1 23.9 36.5 44.1 55.2 0.3 0.1 0.0 California.................... 3.0 4.3 59.0 21.2 65.5 37.9 22.1 36.5 25.6 17.7 40.0 8.8 0.9 Colorado...................... 2.8 3.2 28.9 15.8 80.4 36.5 25.4 34.0 43.4 15.7 37.8 1.2 1.1 Connecticut................... 2.8 3.4 35.7 11.8 83.1 36.9 22.0 38.8 30.6 31.2 36.0 1.1 0.1 Delaware...................... 2.6 3.1 35.2 25.0 74.7 39.2 23.8 36.1 27.8 64.8 7.1 0.0 0.0 District of Columbia.......... 2.8 3.6 41.9 16.1 82.4 43.2 22.2 32.3 1.3 96.7 1.8 0.2 0.0 Florida....................... 2.7 3.9 55.3 19.9 77.4 36.6 22.3 36.4 33.0 48.7 17.6 0.4 0.0 Georgia....................... 2.7 3.6 49.1 22.1 76.5 36.6 23.0 38.7 24.4 73.4 1.3 0.8 0.0 Guam.......................... 3.5 5.5 52.4 4.5 83.6 53.3 19.1 25.2 3.0 0.6 0.0 96.4 0.0 Hawaii........................ 3.1 3.3 15.1 10.6 78.0 41.4 20.9 36.1 21.7 1.3 1.4 72.8 0.0 Idaho......................... 2.7 3.2 34.4 17.0 75.2 39.0 22.0 37.1 80.5 1.2 12.1 0.9 5.0 Illinois...................... 3.0 3.9 47.5 14.4 80.4 43.9 22.7 31.1 30.3 56.6 11.9 1.0 0.1 Indiana....................... 2.8 3.8 53.1 18.0 76.9 34.7 23.4 37.7 55.8 39.2 3.4 0.3 0.0 Iowa.......................... 2.7 3.2 27.3 13.7 76.2 36.0 24.0 38.6 83.3 13.4 1.8 1.2 0.3 Kansas........................ 2.8 3.7 45.7 17.8 73.9 41.5 21.2 34.6 62.4 27.9 6.6 1.9 1.3 Kentucky...................... 2.5 3.6 55.5 22.7 70.7 32.2 21.0 44.8 80.5 18.9 0.2 0.3 0.0 Louisiana..................... 2.8 4.5 70.4 26.1 72.7 39.3 20.6 37.3 16.5 82.8 0.2 0.5 0.0 Maine......................... 2.8 3.3 36.4 8.2 82.3 27.6 25.5 44.8 97.3 1.0 0.4 0.8 0.6 Maryland...................... 2.7 3.5 44.6 16.0 82.4 29.9 27.6 36.5 25.7 70.4 0.8 0.8 0.1 Massachusetts................. 2.7 3.3 35.3 16.7 79.1 33.4 26.4 38.1 43.3 17.9 29.8 4.9 0.2 Michigan...................... 2.9 3.4 31.0 12.2 79.0 37.4 25.4 32.5 42.8 52.1 3.0 0.6 0.7 Minnesota..................... 3.0 3.6 36.1 10.7 82.2 36.0 23.4 38.6 58.1 22.4 4.9 7.1 7.2 Mississippi................... 2.9 4.5 68.9 25.0 74.9 39.4 22.0 37.5 17.8 81.8 0.0 0.0 0.4 Missouri...................... 2.8 3.7 47.3 17.7 78.5 38.2 21.4 39.3 54.5 44.0 0.8 0.6 0.1 Montana....................... 3.0 3.3 22.0 10.1 77.7 37.6 21.2 39.8 66.3 0.3 1.9 0.5 30.8 Nebraska...................... 2.6 3.7 53.5 28.8 66.8 41.1 20.5 32.5 62.4 24.0 6.8 1.7 4.5 Nevada........................ 2.5 2.9 34.3 31.6 66.2 38.8 19.9 38.1 54.7 27.6 12.9 2.0 2.5 New Hampshire................. 2.6 2.8 25.1 18.4 76.5 34.3 24.4 39.7 86.7 1.3 1.9 0.0 0.0 New Jersey.................... 2.7 3.0 28.6 16.5 79.1 30.1 27.7 40.6 19.7 51.5 27.0 1.6 0.2 New Mexico.................... 2.8 3.2 23.7 15.6 76.8 40.5 21.0 35.6 20.9 4.2 58.2 0.2 16.2 New York...................... 2.8 3.4 33.9 14.5 74.5 35.0 22.8 35.6 21.5 35.4 36.3 0.9 0.2 North Carolina................ 2.5 3.8 61.0 23.7 74.2 37.6 21.8 38.0 31.7 63.8 0.9 0.3 1.7 North Dakota.................. 2.7 3.1 24.7 12.5 83.5 35.5 26.0 35.8 56.6 0.7 2.0 0.7 40.1 Ohio.......................... 2.7 3.6 49.8 21.0 72.8 35.9 21.8 36.0 52.8 44.1 2.5 0.4 0.1 Oklahoma...................... 2.8 3.7 48.2 17.9 80.9 33.6 23.8 41.7 56.9 28.0 3.5 0.2 11.4 Oregon........................ 2.7 4.0 59.1 22.9 69.1 38.7 22.7 36.8 79.3 7.8 7.7 2.9 2.0 Pennsylvania.................. 2.9 3.3 27.5 11.8 79.3 36.5 22.7 37.5 43.7 43.7 11.1 1.1 0.1 Puerto Rico................... 3.2 4.1 44.6 11.3 77.6 19.0 22.6 58.4 0.0 0.1 99.9 0.0 0.0 Rhode Island.................. 2.8 3.3 30.8 11.8 83.9 40.7 24.0 33.5 57.0 13.9 17.4 10.9 0.4 South Carolina................ 2.7 4.0 60.4 32.5 66.1 38.2 24.1 36.1 22.6 76.8 0.4 0.1 0.1 South Dakota.................. 2.7 3.7 52.0 23.5 75.5 37.0 21.9 39.2 41.2 0.7 0.7 0.0 57.5 Tennessee..................... 2.7 3.8 54.4 20.4 77.4 35.2 21.6 40.8 48.5 50.6 0.4 0.2 0.0 Texas......................... 2.7 4.1 61.8 25.8 71.0 39.8 22.0 37.7 20.9 33.7 44.5 0.8 0.0 Utah.......................... 2.7 3.3 33.9 16.0 79.3 33.2 26.0 36.3 75.0 2.8 14.6 2.2 5.0 Vermont....................... 2.9 3.3 27.0 5.9 77.0 31.9 23.0 41.4 96.4 2.6 1.0 0.0 0.0 Virgin Islands................ 3.7 4.1 25.2 8.9 90.1 43.2 23.6 33.2 1.3 55.8 21.6 0.0 0.0 Virginia...................... 2.5 4.0 65.5 24.5 74.0 34.7 23.5 40.0 31.8 64.4 2.3 0.8 0.2 Washington.................... 2.9 3.8 47.3 14.8 69.4 36.4 23.7 38.1 69.4 10.8 8.5 6.4 4.1 West Virginia................. 2.7 3.5 43.7 17.4 67.1 31.0 24.8 42.7 90.4 8.3 0.1 0.1 0.1 Wisconsin..................... 3.0 3.7 46.6 21.2 71.5 42.0 20.8 32.2 42.8 40.4 8.5 4.2 2.7 Wyoming....................... 2.7 3.4 44.1 20.7 77.1 37.9 22.1 39.0 74.7 1.4 10.6 0.0 13.4 ------------------------------------------------------------------------------------------------------------------------- U.S. total................ 2.8 3.8 48.3 18.9 73.8 38.9 23.1 37.4 35.6 37.2 20.7 3.0 1.3 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Percentages will not add to total as ``unknown'' and ``other'' are not included. \2\ All race categories are mutually exclusive. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 7-25.--INCOME CHARACTERISTICS OF AFDC UNITS BY STATE, FISCAL YEAR 1995 -------------------------------------------------------------------------------------------------------------------------------------------------------- Units with earned Units with unearned Units with child care Units with $30 + one- income income disregard third disregard -------------------------------------------------------------------------------------------------- Percent of State Percent Percent food stamp of all Average \1\ of all Average \1\ Percent of Average \1\ Percent of Average \1\ participation units dollars units dollars all units dollars all units dollars -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama................................ 3.6 $175.89 12.3 $140.28 0.6 (\2\) 1.7 (\2\) 88.8 Alaska................................. 16.8 488.20 16.4 358.45 0.6 (\2\) 10.7 $144.35 71.6 Arizona................................ 5.8 251.00 5.5 160.69 0.5 (\2\) 3.4 78.14 92.1 Arkansas............................... 4.4 248.64 18.4 166.17 1.3 (\2\) 2.9 82.00 86.4 California............................. 15.3 555.81 15.3 340.74 2.8 $204.88 12.9 116.23 89.6 Colorado............................... 9.2 400.14 13.3 138.24 2.0 (\2\) 3.3 106.10 90.2 Connecticut............................ 11.5 530.13 20.9 172.60 0.2 (\2\) 9.7 175.65 88.7 Delaware............................... 6.5 238.52 19.1 105.19 0.6 (\2\) 4.9 (\2\) 83.6 District of Columbia................... 1.0 568.33 5.7 277.55 0.2 (\2\) 0.3 (\2\) 90.5 Florida................................ 6.9 367.17 13.1 190.56 1.6 (\2\) 5.3 107.50 93.6 Georgia................................ 8.2 357.73 22.3 125.10 2.7 147.12 4.9 81.19 86.3 Guam................................... 3.6 500.08 12.1 182.62 0.3 (\2\) 1.8 (\2\) 80.3 Hawaii................................. 9.6 453.43 7.3 256.63 0.6 (\2\) 5.1 119.65 92.7 Idaho.................................. 11.1 334.72 18.0 152.19 1.9 (\2\) 9.0 130.83 81.4 Illinois............................... 10.4 570.81 10.9 200.89 0.0 (\3\) 9.4 370.64 93.7 Indiana................................ 7.6 279.57 20.3 128.61 0.6 (\2\) 4.4 79.29 92.6 Iowa................................... 27.5 483.66 19.8 131.77 6.2 127.38 20.2 177.26 88.3 Kansas................................. 8.6 242.30 10.8 148.74 0.6 (\2\) 4.4 80.28 90.1 Kentucky............................... 11.5 372.45 26.0 91.63 2.4 176.60 5.5 99.14 90.0 Louisiana.............................. 1.9 180.57 12.0 105.81 0.0 (\3\) 0.6 (\2\) 94.9 Maine.................................. 16.1 385.75 79.0 265.00 3.9 (\2\) 6.8 122.86 93.8 Maryland............................... 4.2 366.77 30.4 51.05 1.1 (\2\) 3.0 90.32 91.8 Massachusetts.......................... 7.0 354.59 20.9 150.25 1.2 (\2\) 3.4 102.76 78.6 Michigan............................... 23.0 425.16 15.9 214.84 6.1 152.79 14.8 221.34 94.4 Minnesota.............................. 13.3 338.14 25.3 127.30 3.4 142.94 5.9 107.89 90.2 Mississippi............................ 8.8 304.08 24.3 92.50 1.2 (\2\) 5.0 87.82 93.5 Missouri............................... 4.9 340.85 16.4 72.75 1.0 (\2\) 2.5 92.84 89.9 Montana................................ 16.2 335.18 39.0 113.79 4.5 (\2\) 9.0 103.62 90.7 Nebraska............................... 12.8 294.48 8.2 219.81 1.1 (\2\) 8.2 89.89 86.4 Nevada................................. 3.7 284.20 20.4 92.93 0.2 (\2\) 3.2 (\2\) 81.6 New Hampshire.......................... 7.9 361.40 22.5 120.48 0.3 (\2\) 4.1 (\2\) 84.8 New Jersey............................. 3.6 364.86 7.5 208.97 0.6 (\2\) 2.4 145.21 90.5 New Mexico............................. 7.6 304.42 7.6 502.66 0.7 (\2\) 3.9 90.12 89.9 New York............................... 4.9 413.86 9.2 168.01 0.5 (\2\) 2.7 86.56 95.3 North Carolina......................... 11.4 326.56 21.7 186.18 1.2 (\2\) 5.2 123.33 77.7 North Dakota........................... 15.1 257.87 20.4 66.73 4.3 (\2\) 8.9 76.85 86.2 Ohio................................... 5.7 299.63 23.6 97.41 0.8 (\2\) 3.4 84.03 91.3 Oklahoma............................... 5.9 278.96 7.2 203.92 0.0 (\2\) 2.9 97.92 91.4 Oregon................................. 14.4 318.05 15.8 112.66 0.1 (\2\) 7.7 91.87 91.1 Pennsylvania........................... 5.0 328.25 4.6 185.50 1.0 (\2\) 2.7 83.02 92.8 Puerto Rico............................ 0.7 159.10 2.4 67.78 0.0 (\3\) 0.1 (\2\) 0.0 Rhode Island........................... 7.7 339.17 21.2 208.27 2.3 (\2\) 4.1 (\2\) 95.7 South Carolina......................... 7.0 366.38 16.5 182.91 1.6 (\2\) 4.7 101.71 90.2 South Dakota........................... 14.7 320.33 42.2 140.90 3.9 (\2\) 7.5 (\2\) 83.7 Tennessee.............................. 12.6 400.34 16.6 193.33 1.4 (\2\) 4.9 97.77 95.0 Texas.................................. 4.4 168.76 5.5 78.83 0.1 (\2\) 2.5 48.39 94.7 Utah................................... 17.6 380.16 17.7 112.40 1.2 (\2\) 11.0 115.19 85.9 Vermont................................ 18.8 403.58 24.3 156.77 0.0 (\3\) 12.8 162.79 97.7 Virgin Islands......................... 3.3 358.30 6.7 (\2\) 1.3 (\2\) 2.7 (\2\) 94.7 Virginia............................... 6.6 290.25 13.8 132.21 0.4 (\2\) 4.0 95.25 86.6 Washington............................. 8.0 307.17 12.8 243.94 0.1 (\2\) 4.5 96.75 88.0 West Virginia.......................... 1.3 123.71 16.1 136.10 0.0 (\3\) 0.4 (\2\) 92.7 Wisconsin.............................. 16.4 386.76 12.8 188.77 5.2 155.70 9.4 92.98 85.5 Wyoming................................ 17.2 454.79 13.3 140.10 0.3 (\2\) 9.8 144.97 90.2 ---------------------------------------------------------------------------------------------------------------- U.S. total....................... 9.5 431.46 14.7 189.95 1.6 172.10 6.5 137.89 89.8 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Average per unit with this item. \2\ Fewer than 25 sample cases. \3\ No sample cases. Source: Administration for Children and Families, U.S. Department of Health and Human Services. Shelter arrangements of AFDC families, by State, fiscal year 1995 Table 7-26 gives a detailed percentage distribution of AFDC units by shelter arrangement. Notable variations among States: In 8 States, more than 1 out of 5 AFDC families lived rent free: Alabama, Arkansas, Guam, Louisiana, Mississippi, Nevada, South Carolina, and Texas. In another 8 States, more than 1 out of 10 AFDC families owned or were buying their home: Alaska, Kentucky, Maine, Minnesota, New Mexico, Puerto Rico, West Virginia, and Wyoming. Nationally, 8 percent of AFDC families lived in public housing; and another 12.1 percent received a rent subsidy from the U.S. Department of Housing and Urban Development (HUD). Use of public housing was more than double the national AFDC average in Alabama, Alaska, the District of Columbia, Puerto Rico, and Tennessee. Nationwide, almost two- thirds of AFDC families were in unsubsidized private housing. Except in Arkansas, Guam, and Mississippi, where rent-free housing dominated, most AFDC families in all States lived in unsubsidized private housing. Reason for lack of parental support for AFDC child, by State, fiscal year 1995 Table 7-27 provides a detailed percentage distribution of AFDC units by the reason for parental deprivation of the youngest child. The share of families with unwed parents (determined by adding those for whom paternity either was or was not established) exceeded 80 percent in the District of Columbia and the Virgin Islands, but was below 35 percent in Vermont. Nationally, paternity was established for only 42 percent of nonmarital children, but many jurisdictions identified fathers of most of the children. These jurisdictions included Alaska, Connecticut, Delaware, Georgia, Guam, Iowa, Maine, Massachusetts, Minnesota, New Hampshire, New York, North Dakota, Oregon, Puerto Rico, Rhode Island, Vermont, the Virgin Islands, and Washington. A parent's incapacity was the reason why 3.6 percent of U.S. AFDC children needed aid, but in three jurisdictions (Kentucky, Puerto Rico, and West Virginia) it accounted for at least 10 percent of the cases. Similarly, a parent's unemployment was the reason why 6.5 percent of U.S. AFDC children needed aid, but in four States (Alaska, California, Washington, and West Virginia) it accounted for more than double this proportion. Waivers from Federal AFDC Law Section 1115 Demonstration Projects Since 1962, section 1115 of the Social Security Act has authorized the Secretary of DHHS (and the predecessor Secretary of Health, Education, and Welfare) to waive specified requirements of the act in order to enable a State to carry out any experimental, pilot, or demonstration project that the Secretary judges likely to assist in promoting the objectives of AFDC. The Reagan, Bush, and Clinton administrations all adopted a liberal policy of granting waivers for State reforms. President Reagan created an interagency group (the Low Income Opportunity Advisory Board) to facilitate TABLE 7-26.--AFDC FAMILIES BY TYPE OF SHELTER ARRANGEMENT BY STATE, FISCAL YEAR 1995 [In percent except total families] -------------------------------------------------------------------------------------------------------------------------------------------------------- Type of shelter arrangement ---------------------------------------------------------------------------------- Total Private State families Owns Public HUD Other housing Shares Rents Homeless or is housing rent rent with no group free Unknown buying subsidy subsidy subsidy quarters -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama................................................... 46,030 0.0 4.4 20.2 12.7 0.5 34.8 1.0 26.4 0.0 Alaska.................................................... 12,426 0.6 15.0 18.9 9.5 5.6 42.0 0.0 8.5 0.0 Arizona................................................... 69,609 0.1 2.2 6.5 8.6 1.3 71.1 0.2 10.0 0.0 Arkansas.................................................. 24,296 0.0 8.1 12.3 20.3 1.0 26.6 2.7 29.0 0.0 California................................................ 919,471 0.2 1.5 1.9 5.8 1.6 87.6 0.8 0.6 0.0 Colorado.................................................. 38,557 0.3 2.5 6.9 16.6 8.0 59.3 5.1 1.0 0.2 Connecticut............................................... 60,985 0.2 1.0 11.4 21.6 1.1 57.5 4.4 2.9 0.0 Delaware.................................................. 10,775 1.2 4.0 15.1 21.3 0.6 52.8 4.3 0.6 0.0 District of Columbia...................................... 26,789 0.8 0.0 19.3 20.4 2.2 51.3 2.2 2.7 1.1 Florida................................................... 230,807 0.1 2.3 3.9 11.5 0.4 77.0 0.3 4.0 0.6 Georgia................................................... 139,135 0.2 4.6 15.8 9.5 0.4 51.6 5.9 11.2 0.8 Guam...................................................... 2,099 0.3 4.8 1.2 30.0 3.9 10.3 9.7 39.7 0.0 Hawaii.................................................... 21,674 0.9 2.3 9.0 15.8 2.7 48.8 9.5 11.0 0.0 Idaho..................................................... 9,071 0.3 4.0 1.5 27.2 3.4 45.2 5.9 11.1 1.2 Illinois.................................................. 236,205 0.3 1.7 10.0 9.5 1.9 69.5 1.1 6.1 0.0 Indiana................................................... 65,556 0.1 6.9 6.4 11.1 5.2 54.7 0.0 14.9 0.6 Iowa...................................................... 36,435 0.1 9.5 4.5 22.3 1.2 54.8 3.3 4.3 0.0 Kansas.................................................... 28,206 0.4 4.6 7.2 11.1 1.0 65.6 1.2 9.0 0.0 Kentucky.................................................. 75,384 0.2 10.5 9.6 18.4 0.1 42.0 0.2 19.2 0.0 Louisiana................................................. 79,825 0.1 4.5 11.5 13.8 3.2 36.7 3.4 26.8 0.0 Maine..................................................... 21,694 0.4 19.1 7.4 13.2 10.7 45.7 1.0 2.5 0.0 Maryland.................................................. 77,677 0.0 1.9 8.9 19.8 0.7 68.6 0.0 0.1 0.0 Massachusetts............................................. 100,852 1.0 0.9 13.1 20.6 9.5 52.5 2.4 0.2 0.0 Michigan.................................................. 201,696 0.6 7.1 1.8 8.7 0.7 74.1 0.1 4.7 2.2 Minnesota................................................. 57,061 0.5 11.8 12.6 19.3 6.3 44.4 1.4 3.1 0.6 Mississippi............................................... 52,528 0.1 8.3 5.7 16.8 0.5 26.3 0.4 41.9 0.0 Missouri.................................................. 89,298 0.4 5.9 5.4 19.9 1.5 55.4 1.8 9.7 0.0 Montana................................................... 11,508 0.3 6.4 13.0 27.3 3.4 45.9 2.4 1.3 0.0 Nebraska.................................................. 14,828 0.5 5.4 10.7 25.9 1.4 48.4 3.1 4.5 0.0 Nevada.................................................... 15,708 0.5 0.5 0.0 21.4 0.2 45.0 2.2 30.1 0.0 New Hampshire............................................. 10,800 0.0 1.0 9.8 9.8 1.9 68.3 7.9 0.3 1.0 New Jersey................................................ 118,883 0.6 1.2 7.6 9.4 3.7 70.4 6.7 0.3 0.1 New Mexico................................................ 34,444 0.1 11.9 9.6 16.6 2.7 43.9 6.3 8.6 0.2 New York.................................................. 456,929 0.7 0.7 14.0 12.4 6.0 64.3 0.6 1.3 0.0 North Carolina............................................ 125,503 0.0 1.1 12.1 11.6 1.6 68.1 1.4 4.1 0.0 North Dakota.............................................. 5,215 0.7 9.5 5.9 47.4 2.6 20.4 4.9 8.6 0.0 Ohio...................................................... 228,171 0.3 3.8 7.5 17.8 3.5 59.4 0.6 7.1 0.0 Oklahoma.................................................. 44,790 0.0 4.6 2.4 25.1 6.8 38.3 4.2 18.7 0.0 Oregon.................................................... 39,264 0.8 4.0 1.6 15.9 2.0 68.5 3.9 3.4 0.0 Pennsylvania.............................................. 204,771 0.2 3.4 12.7 6.2 0.5 71.9 3.9 1.1 0.1 Puerto Rico............................................... 54,799 0.1 33.4 21.7 6.1 2.7 20.4 1.8 13.7 0.2 Rhode Island.............................................. 22,194 0.0 2.4 9.6 20.6 0.8 58.7 6.0 1.9 0.0 South Carolina............................................ 48,981 0.2 9.7 8.5 18.6 1.7 37.5 0.1 23.7 0.1 South Dakota.............................................. 6,286 0.0 4.6 0.0 27.5 12.4 49.0 0.3 6.2 0.0 Tennessee................................................. 104,009 0.0 5.1 17.9 10.5 1.1 60.3 0.8 4.4 0.0 Texas..................................................... 274,505 0.3 7.4 6.3 13.5 1.4 42.4 0.4 28.3 0.0 Utah...................................................... 16,648 0.3 1.7 2.4 23.2 2.2 62.3 4.8 2.8 0.2 Vermont................................................... 9,648 0.0 7.9 7.9 13.8 1.0 60.2 6.3 3.0 0.0 Virgin Islands............................................ 1,308 1.0 2.0 59.1 1.3 1.7 15.0 0.3 19.3 0.3 Virginia.................................................. 72,147 0.0 0.6 14.4 14.5 1.3 49.7 0.7 8.7 10.2 Washington................................................ 101,949 0.6 3.7 5.9 14.6 2.5 71.0 0.6 0.8 0.3 West Virginia............................................. 38,404 0.5 15.5 4.4 19.5 0.5 43.6 0.8 14.8 0.4 Wisconsin................................................. 72,366 0.5 4.1 3.8 11.3 2.4 68.7 5.7 3.4 0.0 Wyoming................................................... 5,200 0.0 11.4 6.0 12.3 5.4 55.6 5.7 3.5 0.0 --------------------------------------------------------------------------------------------- U.S. total............................................ 4,873,398 0.3 4.0 8.0 12.1 2.4 64.2 1.6 6.9 0.3 -------------------------------------------------------------------------------------------------------------------------------------------------------- Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 7-27.--AFDC FAMILIES BY REASON FOR DEPRIVATION OF THE YOUNGEST CHILD, BY STATE, FISCAL YEAR 1995 [In percent except total families] -------------------------------------------------------------------------------------------------------------------------------------------------------- Parent absent -------------------------------------------------- Total Parent Parent Paternity State families Deceased incapacitated unemployed Divorced Separated, established Other Unknown or legally but not ---------------- absence separated legally Yes No -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama.................................... 46,030 0.7 1.9 0.1 13.1 8.6 23.3 48.5 2.2 1.7 Alaska..................................... 12,426 1.2 3.8 13.9 20.1 13.3 25.6 18.7 3.0 0.6 Arizona.................................... 69,609 1.3 4.0 1.3 12.3 16.8 21.4 39.3 2.1 1.5 Arkansas................................... 24,296 1.7 4.5 1.1 14.8 10.4 27.8 34.3 2.8 2.5 California................................. 919,471 2.1 4.7 16.1 9.6 10.8 15.0 36.1 4.6 0.9 Colorado................................... 38,557 0.8 5.6 1.8 16.6 11.8 20.5 37.0 4.5 1.5 Connecticut................................ 60,985 1.8 1.5 7.9 9.4 8.1 41.7 24.6 3.5 1.5 Delaware................................... 10,775 1.9 1.9 0.0 14.5 5.9 45.1 26.2 3.4 1.2 District of Columbia....................... 26,789 2.4 1.4 1.0 3.5 4.0 13.1 70.7 3.0 1.0 Florida.................................... 230,807 1.1 2.7 2.3 11.4 13.1 22.6 40.1 3.8 3.0 Georgia.................................... 139,135 1.7 2.6 0.8 11.1 11.7 62.2 7.4 1.3 1.3 Guam....................................... 2,099 0.6 3.0 7.9 10.6 4.2 34.5 32.7 5.1 1.2 Hawaii..................................... 21,674 2.3 5.1 6.7 11.8 15.8 18.8 36.0 3.0 0.5 Idaho...................................... 9,071 0.6 4.3 6.8 27.9 13.9 21.1 21.4 2.7 1.2 Illinois................................... 236,205 1.0 1.1 5.0 7.4 11.2 16.9 53.5 2.6 1.3 Indiana.................................... 65,556 1.1 2.9 3.4 15.7 10.6 23.2 31.4 2.8 8.7 Iowa....................................... 36,435 0.7 2.9 9.1 23.8 7.9 30.7 22.5 1.4 1.2 Kansas..................................... 28,206 1.4 4.6 6.0 21.0 9.7 21.1 30.9 3.1 2.2 Kentucky................................... 75,384 1.2 10.9 6.9 17.2 9.6 19.1 31.5 1.0 2.6 Louisiana.................................. 79,825 1.0 3.3 0.9 7.6 10.5 18.8 53.3 1.1 3.5 Maine...................................... 21,694 1.0 4.9 8.9 26.1 10.9 29.0 16.1 1.8 1.4 Maryland................................... 77,677 1.1 1.0 0.8 5.6 6.9 29.9 33.4 11.1 10.2 Massachusetts.............................. 100,852 1.9 3.5 3.6 9.9 11.6 33.7 32.8 2.0 1.0 Michigan................................... 201,696 1.4 1.9 8.0 11.7 7.0 28.7 31.1 4.0 6.3 Minnesota.................................. 57,061 1.3 3.7 6.9 18.4 7.9 32.3 26.5 1.6 1.6 Mississippi................................ 52,528 1.2 3.6 0.0 6.4 16.2 25.7 44.4 1.5 1.1 Missouri................................... 89,298 1.6 3.3 3.0 15.9 11.1 31.0 31.2 1.5 1.5 Montana.................................... 11,508 1.9 6.1 6.9 22.3 11.4 22.3 24.7 3.7 0.8 Nebraska................................... 14,828 0.3 1.6 4.0 15.2 10.5 18.4 41.8 5.8 2.4 Nevada..................................... 15,708 1.0 0.7 3.0 14.2 18.2 18.7 39.6 4.5 0.2 New Hampshire.............................. 10,800 0.6 4.4 3.2 22.2 12.7 29.2 23.8 2.5 1.3 New Jersey................................. 118,883 2.9 0.9 4.1 6.7 9.3 31.2 41.8 1.7 1.4 New Mexico................................. 34,444 1.7 4.7 5.2 14.1 13.9 18.7 37.6 2.7 1.4 New York................................... 456,929 1.6 2.9 5.1 7.2 14.2 38.6 20.6 4.1 5.7 North Carolina............................. 125,503 1.2 2.3 1.8 10.5 10.8 29.5 38.3 3.0 2.6 North Dakota............................... 5,215 2.0 3.6 1.6 22.7 3.3 43.4 18.4 3.2 1.6 Ohio....................................... 228,171 1.3 3.1 6.7 13.0 10.4 20.7 36.7 5.4 2.6 Oklahoma................................... 44,790 0.9 3.8 0.1 23.6 15.5 17.0 36.7 1.4 0.9 Oregon..................................... 39,264 1.3 2.9 7.5 17.0 15.8 26.7 25.8 1.5 1.7 Pennsylvania............................... 204,771 2.1 4.0 4.0 10.2 7.5 26.7 41.2 2.1 2.3 Puerto Rico................................ 54,799 3.7 11.4 0.1 10.1 18.0 47.1 6.7 2.6 0.4 Rhode Island............................... 22,194 1.7 3.0 3.4 12.8 19.9 29.8 27.2 0.6 1.7 South Carolina............................. 48,981 1.1 3.1 0.6 8.2 18.0 27.6 38.9 0.1 2.6 South Dakota............................... 6,286 2.0 3.9 0.7 19.3 7.2 31.0 31.7 2.3 2.0 Tennessee.................................. 104,009 1.9 4.4 2.1 16.1 11.9 23.2 35.4 3.3 1.9 Texas...................................... 274,505 2.4 3.7 2.0 10.8 19.1 11.3 47.7 2.3 0.8 Utah....................................... 16,648 0.7 6.5 0.9 25.0 15.7 16.0 28.6 5.1 1.5 Vermont.................................... 9,648 0.7 8.2 11.5 32.9 5.3 20.1 14.8 3.6 3.0 Virgin Islands............................. 1,308 0.7 1.0 0.7 3.3 2.0 65.8 24.6 0.3 1.7 Virginia................................... 72,147 1.0 2.8 0.4 9.7 14.9 25.6 41.8 2.2 1.8 Washington................................. 101,949 1.6 4.3 14.3 15.2 12.0 24.2 23.4 3.6 1.5 West Virginia.............................. 38,404 0.7 10.8 14.5 19.4 15.9 14.8 21.2 1.4 1.4 Wisconsin.................................. 72,366 1.4 3.1 6.7 11.1 5.8 31.2 31.3 7.5 1.9 Wyoming.................................... 5,200 2.5 2.7 0.5 33.8 8.4 18.3 31.1 2.1 0.5 ------------------------------------------------------------------------------------------------------------ U.S. total............................. 4,873,398 1.6 3.6 6.5 11.2 11.7 24.9 34.6 3.4 2.4 -------------------------------------------------------------------------------------------------------------------------------------------------------- Source: Administration for Children and Families, U.S. Department of Health and Human Services. action on waiver requests; President Bush stressed State innovations in his welfare reform strategy and required that demonstrations not increase annual Federal costs and that they provide for rigorous evaluation. President Clinton accelerated the waiver process and relaxed the cost neutrality rule by applying it over the life of the demonstration instead of each year. By mid-August 1996, shortly before passage of the Personal Responsibility and Work Opportunity Reconciliation Act, the Clinton administration had approved more than 70 waivers for more than 40 States, many of which were for statewide reforms. The 1996 law permits States to continue terms of existing waivers until their expiration, and many States have incorporated provisions of their AFDC waiver projects into their initial plans for TANF. AFDC waiver projects can be classified broadly as restricting or liberalizing some elements of the program. As of late February 1996, all but 10 States had received some waivers, summarized as follows: Restrictive changes --Place time limit on benefit duration (24 States); --Tighten work requirements (31 States); --Link benefits to school attendance or performance (26 States); --Limit benefits for additional children (14 States); --Reduce benefits based on relocation (2 States); --Require fingerprinting as a condition of eligibility (1 State). Liberalizing changes --Treat earnings more generously (30 States); --Expand eligibility for 2-parent (unemployed) families (25 States); --Increase resource limit (28 States); --Increase vehicle asset limit (25 States); --Expand transitional medical and child care benefits (21 States). AFDC Quality Control The AFDC quality control system had two goals: correcting faults in program administration that contribute to erroneous payments and reducing the extent of misspent benefit dollars. To these ends, it attempted to: (1) measure the extent and dollar value of ``errors'' in administration; (2) identify the types and causes of error; and (3) specify and monitor corrective actions taken to eliminate or reduce errors. Sanctions were imposed on States that had error rates above the national average. The ``errors'' identified and measured in the quality control system ranged from simple arithmetical mistakes to incomplete or inaccurate reporting of income to recipient fraud. ``Agency-caused'' errors made up nearly half the errors typically identified in quality control surveys, and ``recipient-caused'' errors sometimes were simple mistakes in understanding what was required or failure to provide correct information on a timely basis. Thus, the quality control system revealed fairly low levels of fraud. The core of the quality control system was the quality control case survey. The system annually compiled the results of a statistically valid sample of cases. Each selected case was subjected to a thorough review by quality control personnel, including a full field investigation. This review identified payments to ineligibles, overpayments, underpayments, the type of error made, the responsibility (recipient versus administering agency) for the error, and, to a limited degree, incorrect denials of aid. The sample of cases was then extrapolated into error ``rates'' for that review period for each State. Table 7-28 summarizes national overpayment dollar error rates for AFDC from October 1979 through fiscal year 1994. It shows that the lowest national overpayment error rate achieved was 5 percent, in fiscal year 1991. TABLE 7-28.--SUMMARY OF NATIONAL OVERPAYMENT DOLLAR ERROR RATES UNDER THE AFDC PROGRAM, 1979-94 ------------------------------------------------------------------------ Period Error rate ------------------------------------------------------------------------ October 1979 to March 1980.................................. 8.3 April 1980 to September 1980................................ 7.3 October 1980 to March 1981.................................. 8.3 April 1981 to September 1981................................ 7.0 October 1981 to March 1982.................................. 7.2 April 1982 to September 1982................................ 6.6 October 1982 to March 1983.................................. 6.2 April 1983 to September 1983................................ 6.8 October 1983 to March 1984.................................. 6.2 April 1984 to September 1984................................ 5.7 Fiscal year 1985............................................ 6.1 Fiscal year 1986............................................ 7.1 Fiscal year 1987............................................ 6.3 Fiscal year 1988............................................ 6.8 Fiscal year 1989............................................ 5.7 Fiscal year 1990............................................ 6.0 Fiscal year 1991............................................ 5.0 Fiscal year 1992............................................ 5.7 Fiscal year 1993............................................ 6.1 Fiscal year 1994............................................ 6.1 ------------------------------------------------------------------------ Note.--Overpayment errors include payments made to ineligible families but do not include underpayments. Source: U.S. Department of Health and Human Services. Table 7-29 provides a State-by-State comparison for fiscal years 1993-94 of overpayment error rates (including payments to ineligible persons). The table also ranks the States by overpayment error rate (number 1 signifying the lowest rate) and provides an estimate of erroneous AFDC payments in fiscal year 1994. Fiscal year 1994 overpayment error rates ranged from a low of 2.52 percent of benefit payments made in Hawaii to a peak of 14.41 percent in Florida. Half the States achieved a rate below 5.74 percent, but the average was 6.11 percent, compared with 6.08 the previous year. Erroneous AFDC expenditures, not including underpayments, were reported to total $1.382 billion (out of $22.8 billion). TABLE 7-29.--AFDC OVERPAYMENT ERROR RATES IN FISCAL YEARS 1993-94, 1994 RANK AND AMOUNT OF ERRONEOUS EXPENDITURES ---------------------------------------------------------------------------------------------------------------- Federal and State Fiscal Fiscal amount of State year year 1994 erroneous 1993 1994 rank expenditures in rate rate fiscal year 1994 ---------------------------------------------------------------------------------------------------------------- Alabama........................................................... 4.55 4.93 17 $4,535,010 Alaska............................................................ 2.39 3.75 7 4,215,234 Arizona........................................................... 7.50 8.12 45 21,459,292 Arkansas.......................................................... 6.05 4.59 15 2,632,240 California........................................................ 5.05 4.95 18 301,104,742 Colorado.......................................................... 6.30 6.94 38 10,850,922 Connecticut....................................................... 5.39 4.32 11 17,064,790 Delaware.......................................................... 8.95 9.91 50 3,924,487 District of Columbia.............................................. 6.75 8.34 46 10,469,998 Florida........................................................... 13.95 14.41 54 116,149,872 Georgia........................................................... 5.91 6.73 35 28,788,860 Guam.............................................................. 8.10 11.27 52 1,259,536 Hawaii............................................................ 2.41 2.52 1 4,115,017 Idaho............................................................. 4.19 6.94 37 2,099,497 Illinois.......................................................... 5.43 5.30 23 48,389,732 Indiana........................................................... 9.59 11.89 53 27,125,837 Iowa.............................................................. 6.25 7.46 42 12,570,664 Kansas............................................................ 5.43 5.41 24 6,623,194 Kentucky.......................................................... 4.25 4.59 14 9,092,492 Louisiana......................................................... 7.70 5.92 31 9,942,873 Maine............................................................. 4.52 6.82 36 7,326,926 Maryland.......................................................... 8.82 10.28 51 32,116,351 Massachusetts..................................................... 2.89 2.95 3 21,509,892 Michigan.......................................................... 4.74 4.57 13 51,730,598 Minnesota......................................................... 2.89 4.12 10 15,567,334 Mississippi....................................................... 6.75 7.53 43 6,157,571 Missouri.......................................................... 7.53 7.27 41 20,721,554 Montana........................................................... 4.27 4.55 12 2,224,286 Nebraska.......................................................... 5.71 5.85 29 3,559,521 Nevada............................................................ 5.90 9.14 48 4,395,580 New Hampshire..................................................... 6.85 7.07 39 4,377,268 New Jersey........................................................ 4.68 5.61 26 29,808,372 New Mexico........................................................ 5.26 3.97 8 5,624,548 New York.......................................................... 6.95 7.20 40 199,406,924 North Carolina.................................................... 6.26 5.14 20 18,116,404 North Dakota...................................................... 3.91 5.46 25 1,383,609 Ohio.............................................................. 8.55 9.06 47 91,642,826 Oklahoma.......................................................... 4.19 5.27 21 8,675,441 Oregon............................................................ 4.44 5.77 28 11,351,455 Pennsylvania...................................................... 5.85 5.28 22 49,302,561 Puerto Rico....................................................... 5.92 5.87 30 4,342,406 Rhode Island...................................................... 1.62 4.03 9 5,477,241 South Carolina.................................................... 6.03 6.28 33 7,233,436 South Dakota...................................................... 0.65 2.99 4 731,485 Tennessee......................................................... 10.52 7.84 44 16,871,311 Texas............................................................. 10.57 6.55 34 35,672,176 Utah.............................................................. 3.51 2.83 2 2,171,394 Vermont........................................................... 1.92 3.30 6 2,140,546 Virgin Islands.................................................... 2.63 3.00 5 103,640 Virginia.......................................................... 6.37 6.16 32 15,521,900 Washington........................................................ 6.21 5.09 19 31,024,870 West Virginia..................................................... 8.48 9.55 49 12,015,731 Wisconsin......................................................... 4.17 4.84 16 20,417,922 Wyoming........................................................... 3.14 5.74 27 1,223,422 --------------------------------------------- U.S. total \1\................................................ 6.08 6.11 ....... $1,382,460,790 ---------------------------------------------------------------------------------------------------------------- \1\ Weighted average. Source: Administration for Children and Families, U.S. Department of Health and Human Services. In fiscal year 1994, AFDC families were underpaid by an estimated $260 million (1.14 percent of actual payments) compared with underpayments of $207 million (0.93 percent of actual payments) in fiscal year 1993 (table 7-30). In fiscal year 1994 underpayment rates ranged from a low of 0.11 percent in Hawaii to a peak of 2.97 percent in New York. Table 7-31 depicts estimated sanction amounts and DHHS' projected schedule for collecting them. The Department estimates that fiscal year 1991-96 sanctions total $290.9 million; thus far, it has actually collected $17.2 million (in fiscal year 1994). TABLE 7-30.--AFDC UNDERPAYMENT ERROR RATES IN FISCAL YEARS 1992-94 ---------------------------------------------------------------------------------------------------------------- Fiscal year-- State ----------------------------------------------- 1992 rate 1993 rate 1994 rate ---------------------------------------------------------------------------------------------------------------- Alabama......................................................... 0.51 0.68 0.67 Alaska.......................................................... 0.50 0.11 0.86 Arizona......................................................... 0.96 1.20 1.26 Arkansas........................................................ 1.08 0.48 1.09 California...................................................... 0.65 1.11 1.26 Colorado........................................................ 0.44 0.20 0.52 Connecticut..................................................... 0.31 0.46 0.42 Delaware........................................................ 0.89 0.55 0.93 District of Columbia............................................ 0.75 0.58 0.49 Florida......................................................... 1.33 1.31 1.55 Georgia......................................................... 2.14 1.05 1.43 Guam............................................................ 1.97 2.29 2.17 Hawaii.......................................................... 0.26 0.36 0.11 Idaho........................................................... 1.05 1.06 0.86 Illinois........................................................ 0.63 0.47 0.42 Indiana......................................................... 0.59 0.84 0.46 Iowa............................................................ 0.71 0.60 0.68 Kansas.......................................................... 0.40 0.66 0.48 Kentucky........................................................ 0.57 0.69 0.92 Louisiana....................................................... 0.91 1.01 0.80 Maine........................................................... 0.47 0.37 0.78 Maryland........................................................ 0.32 0.95 0.72 Massachusetts................................................... 0.37 0.39 0.27 Michigan........................................................ 0.43 0.79 0.58 Minnesota....................................................... 0.43 0.45 0.21 Mississippi..................................................... 0.79 0.64 0.72 Missouri........................................................ 0.10 0.66 0.85 Montana......................................................... 0.52 0.27 0.39 Nebraska........................................................ 0.56 0.68 0.93 Nevada.......................................................... 0.33 0.57 0.77 New Hampshire................................................... 0.36 1.00 0.78 New Jersey...................................................... 0.32 0.51 0.43 New Mexico...................................................... 0.81 1.09 0.54 New York........................................................ 1.91 1.80 2.97 North Carolina.................................................. 0.71 0.94 0.59 North Dakota.................................................... 0.44 0.12 0.51 Ohio............................................................ 0.65 0.55 0.70 Oklahoma........................................................ 0.45 0.97 0.77 Oregon.......................................................... 0.40 0.46 0.27 Pennsylvania.................................................... 0.62 0.41 1.00 Puerto Rico..................................................... 1.09 0.81 0.75 Rhode Island.................................................... 0.09 0.12 0.38 South Carolina.................................................. 0.82 1.33 1.71 South Dakota.................................................... 0.72 0.44 1.72 Tennessee....................................................... 1.28 1.02 0.59 Texas........................................................... 1.56 1.16 1.17 Utah............................................................ 0.45 0.38 0.96 Vermont......................................................... 0.36 0.18 0.16 Virgin Islands.................................................. 0.32 0.25 1.38 Virginia........................................................ 0.70 0.44 0.60 Washington...................................................... 0.62 0.20 0.28 West Virginia................................................... 0.55 0.72 1.03 Wisconsin....................................................... 0.61 1.35 0.96 Wyoming......................................................... 0.72 0.94 1.05 ----------------------------------------------- U.S. total \1\.............................................. 0.83 0.93 1.14 ---------------------------------------------------------------------------------------------------------------- \1\ Weighted average. Source: Administration for Children and Families, U.S. Department of Health and Human Services. TABLE 7-31.--ESTIMATED AFDC QUALITY CONTROL SANCTION AMOUNTS AND COLLECTION SCHEDULE, 1991-2002 \1\ ------------------------------------------------------------------------ DHHS projected DHHS DHHS schedule estimated estimated for Fiscal year error rate sanction collecting (percent) amounts (in sanctions millions) (in millions) ------------------------------------------------------------------------ 1991............................. 5.0 $32.4 0.0 1992............................. 5.7 48.0 0.0 1993............................. 6.1 54.0 0.0 1994............................. 6.1 55.2 \2\ $17.2 1995............................. 6.1 52.7 0.0 1996............................. 6.0 48.6 0.0 1997............................. ........... ........... ........... 1998............................. ........... ........... 15.3 1999............................. ........... ........... 25.4 2000............................. ........... ........... 51.2 2001............................. ........... ........... 54.6 2002............................. ........... ........... 53.9 ------------------------------------------------------------------------ \1\ The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 repealed the AFDC Program as of July 1, 1997. AFDC error rates will not be calculated after fiscal year 1996. \2\ Actual amount collected. Source: Administration for Children and Families, U.S. Department of Health and Human Services. In fiscal year 1994, an estimated 70,549 families were incorrectly denied aid as ineligible, and 85,409 families were improperly dropped from the AFDC rolls, in violation of due process notice and hearing requirements (table 7-32). (These estimates are based on TABLE 7-32.--DATA ON AFDC QUALITY CONTROL NEGATIVE CASE ACTIONS, FISCAL YEAR 1994 ---------------------------------------------------------------------------------------------------------------- Case error rates Total number of incorrect ---------------------------- actions Total --------------------------- number of Advance Advance State case Eligibility notice/ notice/ actions requirements hearing Eligibility hearing requirements requirements requirements only only ---------------------------------------------------------------------------------------------------------------- Alabama.................................... 49,674 0.60 0.00 296 0 Alaska..................................... 14,399 0.55 0.55 79 79 Arizona.................................... 114,376 1.32 1.32 1,505 1,505 Arkansas................................... 42,818 1.40 1.05 601 451 California................................. 955,090 1.36 1.59 13,024 15,195 Colorado................................... 70,280 0.81 0.81 567 567 Connecticut................................ 36,276 0.00 0.00 0 0 Delaware................................... 11,156 0.00 0.54 0 60 District of Columbia....................... 9,866 0.00 8.46 0 834 Florida.................................... 516,877 0.73 4.68 3,765 24,203 Georgia.................................... 128,078 2.42 1.06 3,100 1,356 Guam....................................... 1,160 1.92 2.88 22 33 Hawaii..................................... 15,645 1.46 3.40 228 532 Idaho...................................... 21,588 1.56 2.08 337 450 Illinois................................... 175,583 1.18 0.17 2,076 297 Indiana.................................... 90,420 0.34 4.09 308 3,697 Iowa....................................... 23,984 2.89 0.00 694 0 Kansas..................................... 24,407 1.10 1.10 268 268 Kentucky................................... 54,543 1.03 2.76 564 1,505 Louisiana.................................. 76,994 0.71 0.71 546 546 Maine...................................... 17,614 2.34 0.00 412 0 Maryland................................... 39,588 0.00 2.81 0 1,113 Massachusetts.............................. 66,399 0.24 0.47 157 314 Michigan................................... 202,075 2.76 1.04 5,584 2,094 Minnesota.................................. 73,737 0.00 2.25 0 1,660 Mississippi................................ 35,066 3.27 1.09 1,148 383 Missouri................................... 71,981 3.04 0.76 2,187 547 Montana.................................... 19,468 0.43 3.02 84 587 Nebraska................................... 6,387 0.00 0.00 0 0 Nevada..................................... 22,808 0.84 0.00 191 0 New Hampshire.............................. 14,156 0.57 0.00 80 0 New Jersey................................. 72,000 0.24 0.98 176 702 New Mexico................................. 47,173 6.36 0.42 2,998 200 New York................................... 259,237 0.92 0.23 2,376 594 North Carolina............................. 99,483 0.43 0.22 433 216 North Dakota............................... 9,858 0.00 0.00 0 0 Ohio....................................... 329,460 0.97 0.00 3,195 0 Oklahoma................................... 56,168 0.00 0.00 0 0 Oregon..................................... 40,769 1.79 2.51 731 1,023 Pennsylvania............................... 136,205 2.00 4.41 2,730 6,005 Puerto Rico................................ 26,140 1.17 3.13 306 817 Rhode Island............................... 13,854 0.00 1.65 0 228 South Carolina............................. 60,370 4.39 6.73 2,648 4,060 South Dakota............................... 8,310 1.09 0.54 90 45 Tennessee.................................. 358,691 0.60 0.00 2,167 0 Texas...................................... 442,806 1.71 1.95 7,560 8,640 Utah....................................... 25,264 4.95 0.45 1,252 114 Vermont.................................... 12,701 0.56 1.12 71 142 Virgin Islands............................. 612 0.00 0.00 0 0 Virginia................................... 83,642 3.84 1.92 3,209 1,605 Washington................................. 114,277 1.70 1.70 1,943 1,943 West Virginia.............................. 29,565 0.45 2.70 133 799 Wisconsin.................................. 84,431 0.84 0.00 708 0 Wyoming.................................... 9,741 0.00 0.00 0 0 -------------------------------------------------------------------- United States \1\...................... 5,323,250 1.33 1.60 70,549 85,409 ---------------------------------------------------------------------------------------------------------------- \1\ Weighted average. Source: Administration for Children and Families, U.S Department of Health and Human Services. the percentage of errors made in taking ``negative case actions''; and, since more than one action may apply to a single family, may overstate somewhat the total number of families affected.)