STATISTICAL SNAPSHOT OF WELFARE REFORM IN MINNESOTA

By November of this year, five months after the Minnesota Family Investment Program (MFIP) went statewide, 29 percent (14,000) of Minnesota's recipients were working. Statewide implementation followed a pilot program during which 52 percent of long-term urban participants moved from welfare to work after participating for 18 months. Under the previous system, Aid to Families with Dependent children (AFDC), only 10 percent of recipients were working. According to the Minnesota Department of Human Services (DHS), about 47,500 families received assistance through MFIP as of May 1998. About one-fourth of MFIP participants were working.

Working families receive earning supplements, which are discontinued when their income is about 20 percent above the 1996 poverty level or $1,346 a month for a family of three. Parents who fail to work or attempt to become employment ready have their ass istance cut by 10 and then 30 percent. Income for a family of three that is now working increased by more than 40 percent compared to what they received under the previous welfare program. About 26,000 MFIP participants were receiving employment service s in July, according to the State Department of Economic Security, which oversees the MFIP program.

According to the Star Tribune, the number of recipients has decreased by 27 percent since 1996. The paper also reported that Hennepin County's child-care budget was about $31 million in 1997 and will increase to about $50 million this year; Ramsey County's was $15.2 million last year and is projected at $17.7 million in 1998. It is estimated that the state's welfare roster includes 120,000 children. State funding for child care has increased by $93 million to a total of $191 million over the biennium, according to the DHS Web site (http://www.dhs.state.mn.us/).

There are wide disparities among Minnesota counties in funding for employment and training of MFIP participants, according to a study released this fall by the Legal Services Advocacy Project. The study also found that MFIP had little positive effect on the employment prospects for rural participants due to the nature of labor markets in rural areas.

The most recent racial and ethnic data available from DHS shows significant decreases from January 1994 to January 1998 in welfare participation. The African American population decreased from 38,466 to 38,001; Native American from 13,813 to 11,880; Hisp anic from 8,862 to 6,673; and white from 101,402 to 58,223. Whites are getting off of welfare in significantly greater percentages than people of color. It is also important to note that these figures represent changes that occurred before MFIP was imple mented statewide.

According to preliminary studies by Manpower Research Demonstration Corporation, one-third of MFIP recipients have at least one significant barrier to employment, and one-sixth have multiple barriers to employment. Barriers to employment, ranked in order of their frequency, include: mental health problems, physical health limitations, weak English-language skills, poor social skills, poor literacy, low intellectual ability, chemical dependency, learning disabilities, family violence and family health problems.

BACKGROUND ON MINNESOTA FAMILY INVESTMENT PROGRAM (MFIP)

MFIP Goal: To increase work and to reduce poverty and dependence on welfare.

• Rewards Work - provides cash grants until total income = 120% of the poverty line.
• Expects Work - cuts grant if recipient does not work (or have a workplan) within 6 months.
• Supports Work - fully funds child and medical care while recipient is making the transition.

Top | Introduction | Statistical Snapshot | What's Working
Conclusions of Large Group | Where Do We Go From Here?
Conclusion | Contact Information