Welfare Waiver Approved for South Dakota
HHS Secretary Donna E. Shalala today approved a demonstration in South Dakota that will encourage welfare recipients to undertake employment or education activities to enable them to move from dependency to self-sufficiency.
"The Clinton administration continues to encourage flexibility and initiative in state welfare programs. Today, I am approving South Dakota's welfare demonstration which emphasizes employment and education activities for recipients in the Aid to Families with Dependent Children program," Secretary Shalala said.
The demonstration, called the "Strengthening of South Dakota Families Initiative," will assign AFDC participants to either an employment or education track. Individuals who enroll in the employment track will receive up to 24 months of AFDC benefits; participants in the education track will receive up to 60 months of AFDC benefits.
Upon completion of either track, participants will be expected to find employment or, failing that, to enroll in approved community service activities. Individuals who refuse to perform the required community service without good cause will have their benefits reduced until they comply.
In addition, in conformance with the food stamp program, AFDC benefits can be denied to any family in which an adult parent quits a job without good cause. The sanction period will last three months, or until the parent acquires a comparable job.
The demonstration also enacts new rules pertaining to the employment and earnings of children receiving AFDC. Under current law, income earned by children can reduce the family's overall AFDC payment. The South Dakota demonstration will disregard such earnings for children who are attending school at least part-time. Children will be permitted to have a savings account of up to $1,000.
Additionally, AFDC children 14 and over, who are employed part-time, will be permitted to own an automobile worth up to $2,500.
Mary Jo Bane, HHS' assistant secretary for children and families, said the South Dakota demonstration "is another good example of state initiative in encouraging AFDC families to engage in activities that will help them get ready for employment."
The South Dakota demonstration will involve a rigorous evaluation, utilizing random assignment to experimental and control groups.
Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.
Contact: David Siegel (202) 401-9215
