Department of Workforce Development

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Tuesday, January 12, 1999 Governor Tommy G. Thompson Secretary Linda Stewart

News Media Contact DWD News Office 608/267-4400 e-mail: news@dwd.state.wi.us fax: 608/266-1784x

Hiring gains and economy
cited for W-2 number drop

W2 Data Table for November 1998

Madison, Wis. – The number of families participating in Wisconsin’s work-based welfare replacement W-2 program continued to shrink in November.

"Successful placement efforts of W-2 agencies and a continuing strong economy appear to be among the major contributors to the latest changes," said Jean Rogers, who administers the "Wisconsin Works" program in the State Department of Workforce Development (DWD).

The participation count at the end of November was 13,818 families, according to Rogers, DWD’s Economic Support Division administrator.

That was down from 14,755 a month before.  It also was the lowest level since the program began Sept. 1, 1997, and well below participation levels of the program it replaced – Aid to Families with Dependent Children, or AFDC.

There were 34,491 families participating in W-2 or AFDC when W-2 began Sept. 1, 1997.

The measurement counts all participants in the program, whether or not they are receiving financial assistance. Most do receive payments directly or are helped through subsidies to their employers.

Financial assistance can be provided for up to five years to participants as they gain work experience in three types of subsidized employment.

Rogers said all counties continue to provide extensive non-financial assistance to all W-2 participants through case managers.  Financial and employment planners serve as the primary case managers, and they are helped by resource specialists and supportive services planners.

Together, they provide job readiness screening, employability planning, determine eligibility for food stamps, medical assistance, child care, job access loans, and emergency assistance, and provide other help.

The number of families or people in those types of placements which have direct or indirect payments declined over-the-month from 9,741 to 9,235 in November.

Most of the drop was in the largest of the three placement categories in this group – community service jobs. That number declined from 7,341 to 6,873, although its share of participants overall remained almost unchanged.

Changes in the other two programs – trial jobs and a special intensive transition assistance program -- were not significant.

Rogers said cash welfare dependency has been reduced 73 per cent since the start of W-2, and by 90 per cent since Governor Tommy G. Thompson began welfare reform.

The number of those in another category -- unsubsidized activities -- also declined from October, from 5,014 to 4,583. Most of those in the unsubsidized category are employed, with wages averaging $6.70 an hour.

"Our agencies around the state are doing an excellent job of matching job-seekers and employers," said Rogers.

"In addition, many W-2 participants are making employment matches for themselves as a result of new job-seeking skills they are learning through W-2 job-readiness efforts."

In Milwaukee County, which accounts for the majority of W-2 cases in the state, the number of participating families also declined from October, down from 12,172 to 11,378.   Those in subsidized activities totaled 7,846 in November, compared to 8,223 in October.  Unsubsidized participation declined from 3,849 to 3,532.

Rogers noted that Milwaukee County’s share of the overall caseload was about 85 per cent in November, down about half a percentage point from October and the smallest share since April.

Five of Wisconsin’s 72 counties reported no families receiving financial assistance under W-2 in November, while another 39 counties reported counts only in the single digits.  Both measurements were at about the same level of recent months.   The five counties were Florence, Iron, Jackson, Lafayette and Waushara.

Rogers also said the number of persons receiving federally-financed food stamps rose in November for the second month in a row after nine months of decline, from 70,895 inOctober to 71,364 in November.

That two-month trend is counter to the gradual declines being recorded nationally and among other states in the upper Midwest, Rogers said.  It indicates that intensified efforts by W-2 staffs in Wisconsin to make eligible recipients aware of the program are having the desired impact.  Most W-2 participants receive food stamps, as do other people with meeting federal eligibility standards.

"I am proud of the work our W-2 agencies are doing," Rogers said, "and particularly of the dedicated and caring case management provided by the W-2 Financial and Employment Planners who work directly with our families."

 
The key data, in summary: