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The Personal responsibility and work Opportunity act was passed and signed into law in 1996. The legislation is also known as Welfare reform. The act redistributed welfare delivery, and structure from the Federal government to state, and local governments. Allowing states to determine their own model for welfare. Since then some states have placed more requirements for welfare recipients  then the act placed.
Some of the major provisions of the PRWORA of 1996 include but are not excluded to:

The Personal responsibility and work Opportunity act was passed and signed into law in 1996. The legislation is also known as Welfare reform. The act redistributed welfare delivery, and structure from the Federal government to state, and local governments. Allowing states to determine their own model for welfare. Since then some states have placed more requirements for welfare recipients  then the act placed.
Some of the major provisions of the PRWORA of 1996 include but are not excluded to:
1)      Requiring welfare recipients to be actively in search of employment. Limiting benefits for beneficiaries who do not obtain employment two years after receive benefits.
2)      The act also placed a 5 year lifetime limit on benefits paid by federal tax dollars, however there are some exceptions for children.
Now we are on to the real felt effects of Welfare reform. Firstly A study conducted by “The Center on Budget and Policy Priorities,” published in 1999[Yes over ten years ago] found that from 1993-1995 poor families income increased by near $1,000. However the poorest families income after the passage of Welfare reform decreased even though the economy was experiencing significantly better economic growth. Their income fell by around $750 dollars in the two years preceding legislation. [1]
Other findings from the study show a significant drop in the number of children leaving poverty or extreme poverty. From 1993-1995 2.4 million children were lifted out of extreme poverty, compared to only 360,000 in 1995-1997, this is again despite a better economy during the latter years. [1]
The above mentioned effects are a bit shocking and disappointing for the well being of American families yet there's more.  
Before the welfare reform act 12 million Americans were on welfare, after the act the number of Americans on welfare fell to 5 million in 2001 or by 60%. Total yearly benefits for those on welfare fell by around $200 or by 10%. Total welfare spending equaled 28 billion dollars in 1996, and 24 billion dollars in 2001.[2,3] If your scratching your head wondering, “How come total welfare spending only fell by 15% when the number of people on welfare fell by 60% and their benefits fell by 10%?”[2,3]
The answer lies in the fact that the major effect of Welfare reform was a substantial increased in administration costs, commonly known as  bureaucracy, and wasteful spending. In fact the total amount of administration costs increased by 300%. [2,3]. After doing the math I found that we could double the number of people on welfare without adding a cent to the total cost of welfare, if we simply repealed “The Personal responsibility and work Opportunity act (welfare reform)”. The savings would come in the reduction in wasteful spending.
The major reasons why welfare reform increased wasteful spending include but don’t exclude:
1)      A decentralized system. Instead of one federally operated program there are now 50 different ones.
2)      Requirements on welfare recipients such as that they must be actively looking for a job. There’s tons of paperwork that has to be done to prove you’re looking for a job and it takes government time and employees to make sure you’re following the requirements.

Feel free to copy and past these realities as you desire.

References:
Footnote #1
http://www.cbpp.org/...
Footnote #2
http://www.libraryindex.com/...
Footnote #3
http://www.libraryindex.com/...

Originally posted to Hamtree on Tue Feb 15, 2011 at 05:25 PM PST.

Also republished by The Democratic Wing of the Democratic Party and Jobs Wages and Community Investment Working Group.

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Comment Preferences

  •  Tip Jar (4+ / 0-)

    /nt

    Pencils aren't for eating. Trust me.

    by Hamtree on Tue Feb 15, 2011 at 05:20:42 PM PST

  •  When was the last time "reform" actually reformed (3+ / 0-)
    Recommended by:
    sweettp2063, in the Trees, Tom Taaffe

    anything? It's simply become code for hurting those unable to defend themselves.

    I think it is also noteworthy that Democratic administrations have passed more of the ersatz reforms than Republiks.

    "Those who can make you believe absurdities can make you commit atrocities." - Voltaire

    by Greyhound on Tue Feb 15, 2011 at 05:33:51 PM PST

  •  88% of student parents on assistance were wiped (0+ / 0-)

    out at my alma mater (UMass amherst) in one year, thanks to welfare reform.

    In 1997, there were 911 student parents receiving some sort of assistance. in 1998, when Welfare Reform became the law of the land in Massachusetts, the number dropped to 106. 88% disappeared in one year.

    When we rallied to get a housing voucher program to protect the remaining students. The democratic party leadership of the state legislature stepped in and forced the university to release the following statement:

    "not one penny will be spent on anyone coming off welfare to remain in school."

    Thanks Democrats, with friends like you, who needs Republicans?

  •  Yes welfare needs fixing (0+ / 0-)

    Bill Clinton fucked up with Welfare Reform. Real welfare reform would stop penalizing people for being married. Real welfare reform would include substantial help and education for the recipients. Real welfare reform would provide birth control to all who wanted it free of charge. Real welfare reform would provide opportunity for the "welfare" babies. I can go on and on and on. Unfortunately too many now fail to realize that cutting spending will only mean more spending later.

    Good Diary!!

    Practice tolerance, kindness and charity.

    by LWelsch on Sat Feb 19, 2011 at 03:31:31 AM PST

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