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SR-11-A (50) /I-A March, 17 1992 Santa Monica, California MAR 1 ~ 1992 TO: Mayor and City Council FROM: Commission on the Status of Women SUBJECT: Proposed revisions in the state of California's Aid to Families with Dependent Children (AFDC) program INTRODUCTION: The Santa Monica Commission on the status of Women (SMCOSW) has closely observed the development of Governor Pete Wilson's proposed revisions to the state of California's Aid to Families with Dependent Children (AFDC) program. The SMCOSW undertook this policy analysis because oversight of the needs of women and children is a key component of the commission's mission. The SMCOSW urges the Santa Monica City Council to oppose the Governor's proposed revisions to the state's AFDC program. BACKGROUND The proposed AFDC rules would require that all welfare recipients attend school or job training or risk losing benefits. It would also eliminate subsidies for additional children. In principle, the new rules are the same as those contained in the state of New Jersey's Family Development Initiative Act. The commission urges the City Council to oppose the Governor's proposed AFDC revisions for the following reasons: 1. Data from Project GAIN, the state's workfare program, demonstrate that too many participants have been unable to find - 1 - II.,A M~R 1 ';c 199 any work. The reality of today's job market mitigates against any aggregate success for job training program participants. 2. Many mothers on welfare fear that they will lose health care coverage for their children if they go to work. 3. Many mothers on welfare remain on AFDC rather than take a minimum wage job because they have no place to put their children while they work. 4. There is no evidence that mothers on AFDC have more babies to increase the size of their checks. A family on welfare is only slightly larger than all other families. This slight difference is more closely associated with religion; lack of contraceptive devices and education; and, less access to abortion. 5. Most women on AFDC have as much contempt for welfare as any middle-class person. only one-third of AFDC recipients remain on the rolls for six or more years. Another one-third use AFDC intermittently. The last third only use AFDC once to help them weather a crisis. Most turn to AFDC as a last resort. 6. The August 1991 cuts in the state's AFDC benefit levels, along with the freeze in cost-of-living increase, equate to a 30 percent reduction in spending power for recipients. These are sufficiently powerful disincentives to use the AFDC program for anything but minimal survival. Solutions to welfare reform are complex. They can never be as simple as those proposed by Governor Wilson. Real welfare reform will require radical and comprehensive action, like another war - 2 - on poverty. More immediate solutions include: greater emphasis on reducing teen-age pregnancy and the school drop-out rates, more education and training that targets the real needs of a changing jOb market, more innovative thinking about new ways to get people working and more initiatives for child care and health care. The City of Santa Monica has set one small example for the state in its support of the School Aged Parent and Infant Development (SAPID) program. This program, operating on the Santa Monica High School campus, provides child care and support services for adolescent parents so they may continue their education. The Child Care Master Plan, when fully implemented, could set a larger example. It could enable many AFDC mothers to work with the security of child care. BUDGET/FINANCIAL IMPACT There is no budget or financial impact. RECOMMENDATION The SMCOSW recommends that the city Council oppose Governor Pete Wilson's proposed revisions in the State of California's Aid to Families with Dependent Children (AFDC) program and that the Council authorize the SMCOSW to oppose the Governor's proposed revisions. Prepared by: Madeleine Stoner, commissioner Melodye Kleinman, Staff Liaison Santa Monica Commission on the Status of Women - 3 -