Findings

Thirty-one mayors responding to a 2003 survey on the impact of the 1996 welfare law on their cities and residents, current state and local budget difficulties, and President Bush's proposal for reauthorization of the 1996 law report that:

  • Welfare rolls in almost half of the cities increased last year, and two-thirds of cities saw an increase in the proportion of Temporary Assistance for Needy Families (TANF) recipients facing substantial barriers since 1997. Frequently reported barriers to work include lack of skills training and health problems, although layoffs due to the economy rank as the top reason former welfare recipients returned to the rolls.

  • Work support services like child care are very important in helping TANF recipients find and keep jobs, but current programs are inadequate to meet the needs of either working poor families or TANF recipients. State eligibility and funding level changes for child care assistance last year hurt working families, and two-thirds of mayors report that their states are considering changes for next year that would negatively affect both groups of families.

  • Over 20 percent of welfare recipients face substantial barriers to employment, and in roughly one-third of the cities, more than one in five recipients could hit a timelimit this year. The most prevalent barrier to work is lack of skills, followed by health problems and lack of transportation. The training services most needed by TANF recipients focus on work habits and soft skills, occupational skills, basic skills, and GED attainment. In addition, the vast majority of mayors state that the lack of affordable housing in their city has a negative effect on the ability of TANF recipients and other lowincome families to find and keep jobs.

  • Federal and state funding cuts led to reductions in work support services despite significant unmet need. Most mayors of cities that received Welfare-to-Work grant funds indicate that their city has or will discontinue services because of expiring funding. At the same time, they anticipate their state will reduce benefits and services to both TANF recipients and poor working families in the coming year. The loss of services for hard-to-place recipients occurs just as caseload decline stops or reverses in most cities, recidivism is significant, and cases with substantial barriers to work are increasing.

  • The change in eligibility for legal immigrants has had a negative impact on needy non-citizens and the institutions that serve them. Community-based organizations are the most likely entities to serve needy non-citizens, more likely than houses of worship or family members.

  • The administration's proposed changes to work requirements would be costly; funds are not available to cover program and child care changes that would be required; and mayors have an overwhelmingly negative reaction to the proposal. Almost all mayors said funding is inadequate to meet the increased costs of the proposed work program, so existing supports for working poor families would have to be eliminated. The primary condition preventing compliance with the proposed changes is a lack of jobs in cities, followed by a lack of affordable child care or transportation.