HD46 - Making Welfare Work: Virginia's Transformation from Dependency to Opportunity


Executive Summary:
The 1995 General Assembly passed into law Virginia's innovative welfare reform program - The Virginia Independence Program (VIP). VIP includes eligibility policies and work related policies for TANF (Temporary Assistance for Needy Families) recipients. The work related policies are known as VIEW (Virginia's Initiative for Employment not Welfare.) This report covers the story of VIP from implementation to outcomes to future considerations.

Since July 1995, more than 34,500 of the TANF cases mandatory for VIEW enrolled in the program. A high 64 percent, or 22,080, of those enrolled in VIEW found unsubsidized employment. Working VIEW participants earned more than $80 million by the end of SFY 98. Virginia helped these working parents with more than $36 million in day care, transportation and other supportive services. Another $2.5 million was used to develop regional initiatives to facilitate transportation to employment for VIEW participants. Even with the added supportive services expenses, Virginia had a net taxpayer savings of more than $143 million from pre-welfare reform expenditures. In short, Virginia invested in VIPNIEW and thousands of participants have responded by finding employment and contributing to Virginia's economy.

VIP/VIEW Evaluation Initiatives. Although thousands of VIP/VIEW participants have joined the labor force, an innovative program like VIP warrants a full evaluation effort. This evaluation effort was planned and through a competitive application process $2.3 million in federal evaluation funds were awarded to Virginia for an independent evaluation of VIP/VIEW. There are five studies included in this evaluation initiative: (1) an Implementation Study; (2) an outcome and impact analysis of VIP/VIEW; (3) a longitudinal study of the 24-month time limit cases; (4) a study of cases exempt from the VIEW program; and (5) a job retention demonstration project. All of these federally funded evaluation studies are being conducted by Virginia Tech's Center for Public Administration and Policy and their subcontractor Mathematica Policy Research Inc. (MPR). Interim and final reports from these studies will be completed over the next three years. The first of these reports is the Implementation Study. The full executive summary of this study is included in this report.

Key findings of the Implementation Study are that: VIP/VIEW has been fully implemented; worker focus has shifted from one of providing cash assistance to one of supporting client efforts to find employment; full funding was critical to successful implementation; businesses have been receptive to hiring welfare recipients; the majority of VIEW enrollees found employment; and employment services workers believe that the earned income disregard, supportive services and the eligibility sanctions have been critical to program success.

Virginia Tech and MPR are also conducting a study of TANF closed cases. Reports on this study are expected during 1999. Virginia Department of Social Services (VDSS) staff have also undertaken other analyses of VIPNIEW cases showing: (I) that most of the early time limits cases had employment before reaching the end of their 24-months; and (2) that TANF cases usually have income resources above 100 percent of the federal poverty level if they are VIEW participants who work and take advantage of the income disregard and other resources such as the federal Earned Income Tax Credit.

Outcome Measures. House Bill 2001, as prepared by the 1995 General Assembly, required that outcome measures be defined and reported on annually. These outcome measures cover sanctions, employment and earnings, and supportive services, as well as TANF participation. Key findings are that: relatively few cases receive eligibility sanctions; VIEW participants have achieved high rates of employment; and high percentages of families stay off TANF following diversionary assistance or after leaving TANF with employment. Each of the outcome measures is defined and reported in the VIPVIEW Outcome Measures section of this report. Appendix A includes tables showing the full locality specific detail for these outcome measures.

Looking Forward. Finally, the last section of this report, Looking Forward: The Virginia Independence Program, reflects some of Commissioner Clarence H. Carter's recommendations for welfare reform in the future.