ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 17, 1994                   TAG: 9403170134
SECTION: VIRGINIA                    PAGE: C-4   EDITION: METRO 
SOURCE: LESLIE TAYLOR STAFF WRITER
DATELINE:                                 LENGTH: Medium


VA. IS A WELFARE-REFORM LEADER

It didn't grab headlines, as did Disney or parental notification.

But Virginia is poised to become one of a handful of states that has jumped ahead of the national welfare-reform effort.

The state Senate and House of Delegates passed slightly different versions of a pilot program that would move people off welfare and into economic independence. The program will be phased in this summer, pending Gov. George Allen's endorsement and provided it meets federal waiver requirements.

The program calls for thousands of poor families - 3,000 in each of three years - to receive job training, child care, transportation and health care in exchange for a two-year limit on welfare benefits. Participants would seek private-sector jobs within a year of going on welfare rolls or take public service jobs.

They would be forced off the rolls completely after another year, whether or not they had a permanent job. The measure would deny extra benefits to mothers on welfare if they had more children while in the program.

"This is an exceptional piece of work, the culmination of 2 1/2 years of work and study," said Del. Richard Cranwell, D-Roanoke County, who served on the Commission to Stimulate Personal Initiative to Overcome Poverty, led by Lt. Gov. Don Beyer. The group conducted a study that led to a package of welfare-reform proposals.

The pilot program "puts us ahead of the curve," Cranwell said. "It can make sure that the welfare system is a way to improve people's lives - not turning out to be a way of life."

Members of the House and Senate approved one another's reform plans, which are nearly identical. A Senate substitute in the House version would give employers who hire program participants a $1,000 grant payment for each participant hired.

Two welfare reform bills - companion bills - have been sent to the governor. He could sign both pieces of legislation or make an effort to conform both bills by sending down an amendment to one or both.

A veto is "probably unlikely," said Ken Stroupe, Allen's press secretary.

But before the pilot program can begin, the state must obtain a federal waiver to cut off welfare benefits - specifically, Aid to Families with Dependent Children. To date, only five states have received such waivers. Even fewer have received permission to impose a "family cap," limiting benefits if a recipient has more children after enrolling in the program.

The program - to be administered through the Virginia Department of Social Services - would be phased in beginning July 1. The department would be assisted by the Department of Economic Development, the Virginia Employment Commission and the Governor's Employment and Training Department.

An Advisory Commission on Welfare Reform would be established as a catalyst for generating a pool of jobs for participants in the program.

The state would not incur any additional costs during the program's pilot years, Cranwell said. When the program is implemented statewide, the initial cost is estimated to be $6 million, he said.

Skeptics have argued that the program will not work. Two years is not long enough, they say, for some welfare recipients to move to self-sufficiency. And the program lacks crucial components of a good welfare-reform foundation.

Others are not so quick to condemn the effort.

"It will certainly be a challenge," said David Olds, manager of employment service programs for the Department of Social Services. "It's feasible, if we have the resources to do it."

Olds says he is pleased that the program's two-year limit has a little give.

"There are exceptions for folks who for some reason can't perform services in a timely fashion," he said. Cranwell said he is not surprised that the program has met with some resistance.

"People resist change," he said. "But if we don't restructure welfare, people we'd help the most are going to get hurt. My feeling is we had to come in with a better system."

Keywords:
GENERAL ASSEMBLY 1994



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