Opening Statement of the Hon. Benjamin L. Cardin, a Representative in Congress from the State of Maryland

Hearing on Welfare Reform and Work

April 3, 2001

Mr. Chairman, I am pleased that we are focusing today on the most important component of welfare reform -- work. Enabling people to make the transition from welfare to employment is the first critical test for any welfare reform initiative. I believe the 1996 welfare law is passing this test. In fact, the employment rate of poor single mothers with young children increased 23% between 1996 and 1999.

However, our enthusiasm about these results should be tempered by three facts. First, about a third of those of exiting welfare are not going into work, and we have very little research about their well-being. Second, a growing portion of the current welfare caseload has more severe barriers to employment, such as the lack of a high school degree, no work history, problems with substance abuse, and mental or physical disabilities. These problems will demand more attention and more resources if this population is expected to make the transition from welfare to work. And third, the current uncertainty about the economy raises particular risks for those who have recently left welfare for work.

The second major test of welfare reform is whether former recipients are keeping their jobs, and whether they are moving up the employment ladder. The1996 law has not yet made the grade is this area.

As the Congressional Research Service told us during our last hearing, most welfare leavers are not increasing their income when the leave welfare for work. If this trend continues, the final legacy of welfare reform will be that we replaced a generation of welfare poor with a generation of working poor. We can and must do better.

There are several remedies for this problem. Some are outside the jurisdiction of the Subcommittee, such as increasing the earned income tax credit, improving our Nation=s educational system, and expanding investment in inner city neighborhoods.

But other reforms are directly relevant to this panel=s reauthorization of TANF. First, we must maintain the Federal financial commitment to TANF so that States can invest not only in job placement, but also in job retention and wage progression. Second, we should help individuals take advantage of one of the positive steps taken by most States under welfare reform, namely raising their so-called earnings disregards, which allow recipients to subsidize very low wages with a partial welfare benefit. One way to pursue this goal would be to establish a National policy of Awork stops the clock,@ meaning that periods of employment do not count against an individual=s five-year time limit on TANF.

Third, we must do a much better job of ensuring that individuals who are leaving welfare for employment are receiving the work supports they are entitled to, such as food stamps, Medicaid and child care.

Fourth, we should evaluate the restrictions on training and education contained in the 1996 law to ensure that we are not limiting the future earning potential of welfare recipients.

And finally, we should encourage States to consider the impact any TANF policy has on poverty.

Before I conclude let me quickly comment on the issue of Aworkfare,@ which is one of the issues this hearing will focus on. The goal of work experience programs should not be to discourage needy families from obtaining assistance, nor to provide a source of cheap labor for State or City projects. Work programs should be specifically designed to help individuals make the transition into wage-paying jobs. Furthermore, recipients in work programs must be treated with dignity and respect, as well as being afforded all of the protections provided to other workers.

Mr. Chairman, I look forward to hearing the testimony of the witnesses. Thank you.