In Hard-Times Budget, at Least Some Winners : Reform compromise rewards welfare recipients who work

The state budget compromise does more than parcel out California’s fiscal pain. The bipartisan agreement substantially reforms the beleaguered welfare system to reward poor parents who work.

Gov. Pete Wilson wins big because welfare reform has been a priority for him. Democrats, led by Sen. Mike Thompson (D-St. Helena) and Assemblyman Tom Bates (D-Berkeley), win big because they have worked for years to reduce welfare dependency without harming poor children. But the biggest winners are the poor parents who can count on more help as they make the transition from welfare to work.

Under California’s proposed new system, which would take effect when the Legislature passes implementing legislation, the state would no longer penalize welfare mothers and fathers who work. They would keep one-third more of their earnings. They could also count on increased subsidies for day care for their children.

Other changes would allow welfare recipients to save up to $5,000 for college, a home or a business. In addition, they could own more reliable transportation--a car worth up to $4,500 instead of a relic valued at no more than $1,500, the current limit.

The new approach also addresses teen-age mothers, the people most likely to become long-term welfare recipients. Young parents who go to school and maintain a C average could count on an extra $100 per quarter. Those who graduate from high school would collect a $500 bonus. Those who refuse to go to school and those who fail would lose $100 in benefits. Although these rules would punish poor children for the failures of their parents, the rewards and penalties are certainly worth trying.

The state’s best bridge between welfare and work is the successful Greater Avenues to Independence program. GAIN provides remedial education, job training, counseling and other workplace skills. Preliminary studies indicate GAIN works for the majority of those lucky enough to get a place in the program (because of inadequate funding there have been waiting lists).

The proposed budget gives GAIN $38 million in additional money. The big boost is warranted by both the program’s results and the need.

The improvements are not without a price. To pay for the GAIN expansion and other reforms, the state would use the savings from a cut in welfare checks. The Democrats successfully fought to limit the reduction to 2.7%. A single mother with two children, the typical welfare family, would receive $607 instead of $624 per month. That reduction comes atop welfare cuts of 10% made since Wilson took office.

In this year’s torturous budget process, Democrats and Republicans compromised to achieve a workable welfare reform that could become part of a model for national reform. President Clinton has promised a national overhaul that will put more poor parents to work without throwing their children into homeless shelters or food lines. But that reform will take time, and this state cannot afford to wait.

California’s new bipartisan approach to welfare recognizes the realities of today’s workplace: Most mothers hold jobs and depend on day care. Most poor parents want to work--and if parents collect a small paycheck and a partial welfare check, neither they nor their children should be penalized.