Expand GAIN: It Works

Washington, in the fervor to balance the budget and trim government expenses, should not shortchange Greater Avenues for Independence, California’s successful welfare-to-work program.

GAIN deserves strong federal support. It won’t get it if Congress freezes welfare spending and gives the states block grants. This approach, pushed by Republicans in the House and Senate, would force Sacramento to choose between expanding GAIN or adequately funding welfare checks.

If the Republicans prevail as expected in the Senate, the Clinton Administration estimates that California would lose $2.8 billion over five years from Aid to Families With Dependent Children, the nation’s main welfare program. That’s a big hit.

Senate Finance Chairman Bob Packwood (R-Oregon) disputes those figures. But there is no disputing the tough choices Sacramento would be forced to make if Washington freezes welfare spending with no provision for growth even if the population increases, the unemployment rate soars or the state suffers another prolonged recession.

The Senate bill would allow governors who faced such hardships to borrow from Washington. Realistically, few governors, awash in red ink, would want a loan on top of other fiscal troubles.

Republicans also argue that states could spend the welfare money any way the governor and legislature choose. States need flexibility to experiment, but governors also need enough funding to take care of basic needs and take advantage of the new flexibility.

GAIN is a good example. It works. The program provides training, education, counseling, child care and other support to help poor people get off of AFDC and into jobs. Replacing welfare checks with pay checks is the goal of welfare reform.

GAIN, though expensive, also saves money. Every dollar invested last year in the Riverside County program, the state’s most successful workfare effort, returned $1.84 in reduced welfare costs. The $10.5 million spent on operating costs returned more than $18 million in savings. Washington ought to find more ways to duplicate that outstanding return.

GAIN moves poor parents from AFDC to work without punishing their children, or ripping off taxpayers. Washington ought to build on this success.