SALT’S Proposal Regarding Virginia Time Limits

Fact Sheet

Goal

Eliminate the two-year time limit placed on continuous receipt of TANF benefits so sufficient time can be allowed for developing the skills required to qualify for jobs in the very technical labor market.

Summary

• The elimination of the two-year time limit placed on continuous receipt of benefits is needed for incentivizing TANF recipients to take full advantage of various education and training opportunities that are available while receiving welfare.
• The Virginia “Work First” policy, requiring participants to find employment within 90 days does not promote engagement in quality training programs capable of enhancing the job skills of participants, thus empowering them to qualify for jobs paying a living wage.
• The two-year limit placed on continuous receipt of benefits is also as counterproductive as the “Work First” policy; this short period does not allow adequate time for developing required job skills needed for competing in a very technical labor market.
• Virginia’s two year TANF time limits need to be eliminated because post secondary education, GED, vocational education, and most credentialing programs as well as apprenticeships require more than 24 months for the screening, access and completion process.
• The Labor Department reports that well over sixty percent of all new jobs created now require post secondary education (Up from 29 percent in 2000). Only one in six TANF participants has a postsecondary education, unfortunately.
• The undisputed facts of the matter are: people with substantial postsecondary education find jobs more easily, keep them longer, earn more, lose their employment less often, and are unemployed for shorter periods of time than those who have not finished high school. If heads of families are expected to become free of welfare and support their families through work, they must have an opportunity to acquire the education and skill training that will enable them to earn adequate wages and make a contribution to society.

Commitments and Requirements

• Participants will be required to enroll in an education or job-training program.
• Those participating in an education or job-training program will be permitted to remain on TANF beyond two years—i.e., until the education program or job training is completed, but not more than 60 months.
• Participants will receive the needed support services—childcare, transportation, and health care for a period of time that will allow families to achieve independence.
• The Commonwealth Workforce Development will be responsible for specifically developing education, licensure, and certification programs--from high school to terminal degrees—that will put participants on the path to self-sufficiency.

Funding

• Combination of TANF, State, and private funding

Recommendations

• Strengthen the message that “work pays”.
• Virginia is one of the few states having an interrupted eligibility period after only two years. Therefore, Virginia should eliminate time limits for the benefit of TANF recipients “playing by the rules” but unable to find or retain employment through no fault of their own.
• TANF recipients needing more time to complete apprenticeships, unsubsidized job training programs, subsidized on-the-job training or vocational education preparing them for work should not be impeded by the two-year time limit when pursuing independence from TANF.
• Additionally, at this time, we would strongly urge eliminating the eligibility interruption entirely. Other states do not do this. It is clearly counter-productive. The elimination would expedite the ability of families to break free of TANF and remain free of the welfare program. It’s time to make this change.

Conclusion and Discussion
Welfare reform was intended to encourage and reward work. Perversely, because Virginia operates under a limited “Work First” system, the 60-month federal lifetime limit on TANF assistance applies for the first two years, only to be reinstated again after one year off the program. Unfortunately, this eligibility interruption for recipients who are required to work may mean an interruption in credentialing education, on-the- job training and preparation, and apprenticeships.

Virginia’s TANF is one of the most stringent in the nation. Forcing TANF recipients to find and accept any job available pushes more families into poverty without a safety net. This approach is not liberating families from poverty.

TANF parents should not be forced to drop out of programs preparing them for specific fields of skilled employment only to pick up a dead-end job, such as working in the fast food businesses.

Studies document that welfare recipients taking part in education and job training do significantly better, after completion of the education and job-training programs, in weekly earnings and social development. We believe the on-the-job training programs and apprenticeship programs developed by the Department of Social Services (DSS), partner agencies, and private sector businesses are essential in providing meaningful financial support for the TANF recipient and his/her family.

For families struggling to become self-sufficient and free of TANF, the current program requirements should be modified in a way that enables them to obtain the education, job and/or skills training necessary for work that really exist, in fields or trades that will allow them to become financially self-sustaining. In this way, we can open a path into the future, enabling parents to provide the basic necessities required for their families to survive and flourish.