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Wisconsin’s welfare-replacement program Wisconsin Works (W-2) was implemented statewide in September 1997. To date, W-2 continues to succeed beyond all expectations. W-2 was the first welfare-to-work program in the nation and it remains a model for other states. The program’s success can be measured in a number of ways.
First, by our precedent setting caseload reduction. In Wisconsin, in February 1999, just over 8,800 families were receiving cash assistance compared to just over 34,000 families in August 1997. This 74 percent reduction has not been duplicated by any other state. Between January 1987, when I took office, and February 1999, Wisconsin reduced its caseload by more than 90 percent. Again, this is higher than any other state in the country.
Though it is a good indicator, welfare reform success cannot and should not be measured by caseload reduction alone. A second measure of success must be the direct impact the program has on our participants, their families and, most importantly, their children. That is why Wisconsin’s Department of Workforce Development has undertaken an evaluation project to determine how our former W-2 participants or "leavers" are doing post-W-2. To that end, we have conducted the first in a series of four Leavers surveys to find out about the well being of our former participants. The results are favorable. Some critics of AFDC and W-2 predicted before the end of AFDC and start of W-2 that most people having to leave these programs would not make it at all and, instead, what we are finding is that many people previously on welfare now believe they are at least making it, for perhaps the first time in their lives. The survey shows that 83 percent had worked since leaving welfare and that most of those were still working. Additionally, at least 80 percent of those with jobs said they were working 30 or more hours a week. Finally, 70 percent of the Leavers said life was better for them now than when they were receiving welfare. And, we know those leaving are succeeding. The average wage for those leaving W-2 is $7.42 an hour – more than $2.00 above the minimum wage.
The compassion of W-2 shines through in the economic and social successes that these families and entire communities are seeing. The entire state is benefiting from W-2’s success. Here are some impressive and telling statistics:
A family of three in W-2 is 30 percent above the poverty line at the current average wage of $7.42 an hour. On AFDC, this same family was 30 percent BELOW poverty. Even at a minimum wage job, the family is still 15 percent above poverty.
Child poverty in Wisconsin has dropped 13 percent since 1985.
Overall, we have the fifth smallest poverty rate in the country. And we have the fourth smallest gap between the rich and the poor.
Wages for the lowest-income residents are rising faster than any other group. In 1989, Wisconsin ranked 29th in wages for its poorest residents; today it ranks 12th. And it’s continuing to grow.
Recently, it was reported that our infant mortality rate hit an all-time low and has been on a steady decline this decade.
Teen pregnancies are dropping as Wisconsin now has the seventh lowest rate in the country.
And crime in Wisconsin hit its lowest level since 1973.
Third, our success can be measured through the personal experiences of our W-2 participants. I recently had the opportunity to speak with a number of our W- 2 participants in Milwaukee. Our success can be found in the words they shared with me that day and that I would like to share with you today.
"I was blessed (to have found W-2)." "And I ask others to take a chance on W-2 workers. We won’t let you down." Michelle Crawford
"If I had a dollar for every time I tell someone how great W-2 is, I wouldn’t have to work." Roberta Giles
"Thank God for W-2. It works for me. I’ve seen it work for others, too" Connie Alston
Finally, our success can be found in the innovations developed by our W-2 agencies. Innovations developed because we have given them the flexibility to do so. This type of innovative thinking is epitomized at Generation 2 Plastics or G2P in Milwaukee. G2P is a company created by a non-profit organization in Milwaukee, the YWCA of Greater Milwaukee. Trainees are recruited through YW Works, one of Milwaukee’s five W-2 providers. Its mission is to increase the self-sufficiency of central city residents by providing living wage jobs and training in skilled labor for low-income participants. In its first year, G2P trained 98 W-2 customers in office, light industrial and injection molding positions. Upon completion, participants are prepared for hiring by plastics injection molding firms at wages up to $11.00 per hour. This program not only provides the job skills necessary for our participants, but it has also formed partnerships with Wisconsin’s employers who are in desperate need of skilled workers. This is innovation and partnership at their very best! .....Tommy Thompson |
