Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, January 28, 1994 TAG: 9401280078
SECTION: VIRGINIA PAGE: A-6 EDITION: METRO
SOURCE: BY ELIZABETH THIEL LANDMARK NEWS SERVICE
DATELINE: RICHMOND LENGTH: Medium
The package, which took two years to develop, could cost up to $144.4 million over the next two years.
The proposals would "keep Virginia on the forefront of the reform effort nationally," said Del. Richard Cranwell, D-Roanoke County, who helped lead the Commission on Stimulating Personal Initiative to Overcome Poverty, which came up with the package.
Lt. Gov. Don Beyer, who headed the bipartisan commission, said he's discussed the package with Gov. George Allen. The governor has outlined a variety of welfare reform ideas of his own, some of which closely resemble the commission's plans.
"I didn't get any pledge of support from the governor, but he was interested," Beyer said.
The commission wants legislators to change state law to give Virginia's estimated 75,000 welfare recipients incentives to get jobs. The average recipient stays on welfare for four years, but about one-third never leave the rolls, Beyer said.
"We recognize that there are many disincentives to getting off welfare, and many very real physical barriers," he said.
The package, which would be tried with 10,000 people for the first two years but expanded to everyone on the rolls later if it works, would give recipients two years to get off welfare.
In exchange, the state would offer job training, child care, transportation and intensive counseling. Welfare recipients also would be allowed to keep public housing subsidies, health benefits and more of their Aid to Dependent Children payments for a time after they get jobs.
The package calls for a two-year experiment, which would eliminate extra ADC payments to anyone who has a new baby while participating in the job-training program.
The package includes stricter enforcement of child support laws, including taking away professional licenses and putting liens on vehicles of people who are behind on support payments.
The state also would provide more educational opportunities for disadvantaged children, and boost efforts to prevent teen pregnancy, including forcing unmarried teen mothers to live with their parents in order to receive food stamps and Medicaid.
To help low-income people stay off welfare, the state would provide a $1 million Welfare Avoidance Fund for people who need a temporary lift.
The commission also proposes offering low-income residents an earned income tax credit, a break on Virginia income taxes similar to the one the federal government offers. The credit, which would cost as much as $110 million over two years if everyone who was eligible took advantage of it, is the most expensive part of the package. All the other initiatives combined would cost $34.4 million for two years.
"I think you're going to see some shifting in the budget, which could pay for the proposals," said Cranwell, who also heads the House Finance Committee.
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GENERAL ASSEMBLY 1994
by CNB