CalWORKs 101: Key Facts 1107 9th Street, Suite 310 Sacramento, California 95814 (916) 444-0500 www.cbp.org cbp@cbp.org About California s Welfareto-Work Program A PRESENTATION BY SCOTT GRAVES, SENIOR POLICY ANALYST November 2012
First, Some Context 2
As a Result of the Great Recession, Poverty Has Increased Dramatically 3
Approximately One Out of Six Californians Were Living in Poverty in 2011 Change in California's Poverty Rate Between 2010 and 2011 Was Not Statistically Significant 19% Percentage of People With Incomes Below the Federal Poverty Line 18% 17% 16% 15% 14% 13% 12% 11% 12.9% 12.8% 11.3% 12.7% 12.3% 12.2% 16.9% 15.0% 10% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 California US Source: US Census Bureau 4
Nearly One Out of Four California Children Were Living in Poverty in 2011 Change in California's Child Poverty Rate Between 2010 and 2011 Was Not Statistically Significant 29% 27% Percentage of Children Under Age 18 in Families With Incomes Below the Federal Poverty Line 25% 23% 21% 19% 20.6% 22.0% 16.4% 18.1% 24.3% 21.9% 17% 17.4% 16.3% 15% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 California US Source: US Census Bureau 5
California s Families Continue To Face a Tough Job Market 6
California Still Has a Deep Hole in Its Job Market 15,500,000 July 2007 15,212,200 Seasonally Adjusted Number of Nonfarm Jobs 15,000,000 14,500,000 14,000,000 February 2010 13,842,300 September 2012 14,347,900 13,500,000 Source: Employment Development Department 7
California's Annual Jobless Rate Is Projected To Drop Below 10 Percent in 2013 14% 12% 12.4% 11.7% 11.3% 10.6% 10% 9.6% California Unemployment Rate 8% 6% 4.9% 5.4% 6.7% 6.8% 6.2% 5.4% 4.9% 5.4% 7.2% 8.7% 7.8% 7.1% 6.7% 6.7% 4% 2% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Note: 2012 through 2018 are projected. Source: Legislative Analyst's Office and US Bureau of Labor Statistics 8
The Great Recession Hit Single Mothers Particularly Hard 9
The Share of California's Single Mothers With Jobs Has Fallen to Its Lowest Level Since 1995 80% Employment Rate for Unmarried California Women With Children 70% 60% 50% 40% 55.8% 50.0% 55.0% California implements welfare reform 69.8% 69.2% 56.8% 30% Source: CBP analysis of US Census Bureau data 10
Key Facts About the CalWORKs Program 11
Most Californians Who Receive CalWORKs Cash Assistance Are Children 12
Nearly Four Out of Five Californians Who Receive CalWORKs Cash Assistance Are Children Adults 21.6% Children 78.4% Number of Individuals Receiving CalWORKs Cash Assistance in August 2012 = 1,362,339 Source: Department of Social Services 13
Most Single-Parent Households That Receive CalWORKs Cash Assistance Are Headed by Women 14
More Than 90 Percent of Single-Parent Households Receiving CalWORKs Cash Assistance Are Headed by Women Households Headed by Men 8.3% Households Headed by Women 91.7% Heads of Household in Single-Parent Families Receiving CalWORKs Cash Assistance in Federal Fiscal Year 2011 = 205,269 Source: Department of Social Services 15
The Number of CalWORKs Families Dropped Steeply After Welfare Reform and Then Increased Beginning in 2007 Due to the Great Recession 16
After Declining for Many Years, the Number of Families Receiving CalWORKs Cash Assistance Increased Steadily Beginning in 2007 Due to the Great Recession Number of Families Receiving AFDC/CalWORKs Cash Assistance 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 March 1995 932,345 July 2007 454,956 Source: Department of Social Services and US Department of Health and Human Services 17
The CalWORKs Caseload Has Declined Over the Past Year 18
The Number of Families Receiving CalWORKs Cash Assistance Began a Sharp Decline After June 2011 625,000 June 2011 597,723 600,000 Number of Families Receiving CalWORKs Cash Assistance 575,000 550,000 525,000 500,000 475,000 Drop reflects the impact of an 8 percent grant cut and other CalWORKs reductions implemented on July 1, 2011. August 2012 563,347 450,000 Source: Department of Social Services 19
CalWORKs Provides Modest Cash Assistance 20
Purchasing Power of CalWORKs Grants Has Dropped by More Than Half Since 1989-90 $1,600 Maximum AFDC/CalWORKs Grant for a Family of Three $1,400 $1,200 $1,000 $800 $600 $400 $200 $633 $694 $1,364 $638 Loss of purchasing power since 1989-90 = 53.2% $0 Maximum Grant if Grant Had Been Adjusted for Inflation Each Year Actual Maximum Grant * Maximum grant as of the enacted budget. Note: Maximum grants are for high-cost counties beginning in 1996-97. Previously, maximum grant levels did not vary by county. Source: CBP analysis of Department of Finance and Department of Social Services data 21
Combining CalWORKs and CalFresh Assistance Still Leaves Families Well Below the Federal Poverty Line 80% 70% 72.8% Maximum CalWORKs Grant and CalFresh Assistance as a Percentage of the 2012 Federal Poverty Line 60% 50% 40% 30% 20% 10% 40.1% 0% Maximum CalWORKs Grant CalWORKs Program Maximum CalWORKs Grant Plus CalFresh Food Assistance CalFresh Program Note: CalWORKs grant is for a family of three living in a high-cost county. Source: Department of Social Services, Legislative Analyst's Office, and US Department of Health and Human Services 22
$21,000 Families Currently Lose CalWORKs Cash Assistance Well Before Their Incomes Reach the Poverty Line $19,812 $19,090 $18,000 $17,170 $16,428 $15,000 $12,000 $9,000 CalWORKs Income Limit for a Family of Three Federal Poverty Line for a Family of Three * Enacted. Note: CalWORKs income limits are for high-cost counties. Source: Department of Social Services and US Department of Health and Human Services 23
CalWORKs Provides Job-Related Services To Help Families Move Toward Self-Sufficiency 24
Since the Mid-1990s, Spending on Welfare-to-Work Services and Child Care Have Both Increased, While Spending on Cash Assistance and Administration Have Dropped, After Adjusting for Inflation $10,000 AFDC/CalWORKs Spending (2012-13 Dollars in Millions) $8,000 $6,000 $4,000 $2,000 $0 $8,273 $3,339 $955 $993 $809 $484 $588 $229 Cash Assistance Welfare-to-Work Services Child Care Administration 1996-97 2012-13 Enacted Note: Spending includes federal, state, and county dollars. Source: Department of Finance and Department of Social Services 25
Expenditures as a Percentage of Total AFDC/CalWORKs Spending 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Since the Mid-1990s, Welfare-to-Work Services and Child Care Have Both Increased Substantially as a Share of Total Welfare Spending, While the Share Going to Cash Assistance Has Dropped 84.5% 56.8% 4.9% 16.3% 16.9% Cash Assistance Welfare-to-Work Services Child Care Administration 2.3% 8.3% 10.0% 1996-97 2012-13 Enacted Note: Spending includes federal, state, and county dollars. Source: Department of Finance and Department of Social Services 26
Spending on CalWORKs Has Declined Sharply Since California Implemented Welfare Reform in the 1990s 27
Welfare Spending in California Fell by More Than One-Third From 1996-97 to 2012-13, After Adjusting for Inflation $12,000 AFDC/CalWORKs Spending (2012-13 Dollars in Millions) $10,000 $8,000 $6,000 $4,000 $2,000 $9,795 $5,876 $0 1996-97 2012-13 Enacted Note: Spending includes federal, state, and county dollars. Source: Department of Finance and Department of Social Services 28
Welfare Spending in California Has Dropped Substantially Since 1996-97, While Total Spending Has Increased by More Than Half, After Adjusting for Inflation 70% 55.4% 50% Percent Change (2012-13 Dollars) 30% 10% -10% -30% -50% -40.0% AFDC/CalWORKs Spending 1996-97 to 2012-13* Total Spending Through the State Budget * 2012-13 enacted. Note: AFDC/CalWORKs spending includes federal, state, and county dollars. Total spending includes federal dollars and state General Fund, special fund, and bond fund dollars. Source: Department of Finance and Department of Social Services 29
Spending on CalWORKs Now Accounts for Less Than 3 Percent of the State Budget 30
Welfare Spending as a Share of Total Spending Fell by More Than Half From 1996-97 to 2012-13 8% 7% 6.8% AFDC/CalWORKs Spending as a Percentage of Total Spending Through the State Budget 6% 5% 4% 3% 2% 2.6% 1% 0% 1996-97 2012-13 Enacted Note: AFDC/CalWORKs spending includes federal, state, and county dollars. Total spending includes federal dollars and state General Fund, special fund, and bond fund dollars. Source: Department of Finance and Department of Social Services 31