Session 2003 Budget and Taxes Business Environment Higher Education K-12 Education Health and Welfare Public Safety Stadium Transportation Audio Does Wisconsin's welfare plan work? (story audio) Michelle Ayala on how getting a job has changed her life Kathleen Mulligan-Hansel on myths surrounding welfare recipients Photos Kathleen Mulligan-Hansel has studied welfare reform in Wisconsin More from MPR Falling Behind: Stories of the working poor (Jan. 2003) Resources Institute for Wisconsin's Future United Migrant Opportunity Services -- Milwaukee Your Voice Join the conversation with other MPR listeners in the News Forum.

	E-mail this page			Print this page

Does Wisconsin's welfare plan work?
February 20, 2003

Kathleen Mulligan-Hansel has studied welfare reform in Wisconsin, and concludes the state has not done enough to bring people out of poverty. She testifies at a Minnesota legislative hearing Thursday. (Photo courtesy of the Institute for Wisconsin's Future)

Minnesota state lawmakers hold a hearing Thursday on Gov. Pawlenty's plan to copy much of Wisconsin's welfare-to-work system. The Wisconsin program, known as W-2, has received national attention for reducing the number of welfare clients receiving cash benefits. But critics say the program has many problems. Wisconsin's new governor has just proposed significant changes.

Milwaukee, Wis. — When W-2, or Wisconsin Works, began about six years ago, the number of state households receiving cash welfare benefits was more than 35,000. Two years ago, that number had shrunk 80 percent, to about 7,000. Supporters of the Wisconsin system say many former welfare clients became success stories in the world of work.

About 20 former AFDC recipients gathered recently in a Milwaukee classroom, where they're now learning how to be on the front lines of the W-2 system. They're training to become caseworkers, known in W-2 lingo as FEPS or financial/employment planners.

Michelle Ayala is one of the students. Ayala, a single mother of seven, now works for a non-profit service agency that runs W-2 in part of Milwaukee. Ayala says going from about $650 a month in welfare benefits to what her employer calls a living wage has helped her family.

We still have this one-third that leave W-2 who don't go into work, don't report earnings, or don't show up in state data bases that track workers who are living -- we don't know how. - Kathleen Mulligan-Hansel, welfare researcher

"One thing is clothing. I would have to go to a second-hand store, family members, 'Can my daughter borrow something?' Now I go to second-hand stores -- don't get me wrong. But now I can go to Wal-Mart," says Ayala.

When her time in W-2 ended, Ayala lost some government benefits -- child care assistance, food stamps -- and other things that helped her make the transition to the workforce. But she says the benefits package from her employer is all right.

Ayala does have her eldest child, a 15-year-old daughter, take care of all of the younger kids for two hours after school every day.

Critics of Wisconsin's W-2 system acknowledge that many former welfare recipients have gone on to jobs in areas such as clerical work, nursing homes and the hospitality industry. But an analysis of state tax returns shows the average person who leaves W-2 for a job now makes about $12,000 a year.

Kathleen Mulligan-Hansel of the labor and business-backed group Institute for Wisconsin's Future, says that figure is well below the poverty level even for a small family of three. She also says that wage level only includes about two-thirds of the former W-2 clients.

"We still have this one-third that leave W-2 who don't go into work, don't report earnings, or don't show up in state data bases that track workers who are living -- we don't know how," says Mulligan-Hansel. "We have some theories based on what we see happening in the homeless shelters, meal programs and food programs around the city."

Rod Ritcherson of the largest Milwaukee W-2 service agency, UMOS or United Migrant Opportunity Services, says it's understandable why many W-2 clients are not making a quick leap to the middle class.

"We are dealing with a population that doesn't have a good work experience -- has not been in the workplace for some time," says Ritcherson. "But even if you have been in the workplace a long time, you don't start out at the top, you start out at a lower level."

We are dealing with a population that doesn't have a good work experience -- has not been in the workplace for some time ... you don't start out at the top, you start out at a lower level. - Rod Ritcherson, W-2 service provider

Supporters and critics of W-2 also differ over Wisconsin's big decline in cash benefit cases, with opponents arguing many people were diverted into other social service programs.

The two sides do agree that during the economic slump of the last two years, the cash welfare caseload has gone back up by about one-third, to roughly 9,000.

The higher unemployment rate has put some W-2 clients back into a more basic skills program. The YWCA of Greater Milwaukee has a program called the creative workshop, where women run sewing machines, and measure and cut cloth.

One of the clients is Tiffany Harris, who spent a few years in customer service and clerical work, but is now back on cash assistance. Harris says what Wisconsin's program, and other welfare to work programs, really need are education components that help people get a higher level of training.

"They should allow you to go to school. And if you're keeping up the grades you should be allowed to do that, versus sitting in the creative workshop -- you know, sewing -- and they don't even having sewing positions available that much anymore," Harris says.

Wisconsin's new governor, Democrat James Doyle, has spoken out in favor of additional education assistance under W-2. In his state budget released this week, Doyle also proposed reducing administrative costs for the program.

More significantly, Doyle wants to replace cash benefits with wage-paying jobs that would allow clients to claim the earned income tax credit. Republican lawmakers who helped design W-2 say they will probably challenge some of Doyle's plans.

News Headlines

Related Subjects