Department of Workforce Development

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Thursday, April 8, 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: 608/266-1784

February W-2 caseload data
indicates possible leveling off

Madison, Wis. -- The Department of Workforce Development today released W-2 data for February 1999 which, while continuing to show overall declines, indicate a leveling off in the caseload may be approaching.

The highlights:

The total number of families in W-2 declined in February from the month earlier to the lowest level – 12,161 -- since W-2 began in September 1997. However, it was the smallest monthly decline, at 394 families, since a drop of 232 last August.

The number of W-2 cases with financial assistance also declined over the month, to 8,865. That was the first time ever that total has been below 9,000.

These changes indicate the possibility of a general leveling off in the caseload both overall and within the category of cases with payment.

Milwaukee also saw similar trends in February with a decline of 331 in the number of all cases (down to 9,764 and below 10,000 for the first time) and by 168 in that share involving financial payments (down to 7,432).

Milwaukee’s share of the statewide payment caseload for February was 83.8 per cent, the lowest since April 1998 when it was 84.4 per cent. There has been a minor, but steady, decline since July 1998, when it peaked at 87.0 per cent.

Three counties -- Iron, Marquette and Rusk -- reported no cash assistance cases under W-2 in the latest month, while 39 reported cases in the single digits. That compared to five and 36 in January.

The food stamp caseload statewide rose for the fifth month in a row from 1998’s low of 70,458 in September, while still down from a year ago.

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Wisconsin Department of Workforce Development                                                    April 6, 1999
Economic Support Division

W-2 PLACEMENT DATA: FEBRUARY 1999

The total number of families in W-2 declined in February from the month earlier to the lowest level – 12,161 -- since W-2 began in September 1997. However, it was the smallest monthly decline, at 394 families, since August’s drop of 232. The number of W-2 cases with financial assistance also declined over the month, to 8,865. That was the first time ever that total has been below 9,000. These changes indicate a general leveling off in the caseload overall and within the payment category.

Milwaukee also saw similar trends with a decline of 331 in the number of all cases (to 9,764 and below 10,000 for the first time) and by 168 in that share involving financial payments (to 7,432). Milwaukee’s share of the statewide payment caseload for February was 83.8 per cent, the lowest since April 1998 when it was 84.4 per cent. There has been a minor, but steady, decline since July 1998, when it peaked at 87.0 per cent.

* Total of Trial Jobs, Community Service Jobs, W-2 Transitions. Most do receive payments directly or are helped through subsidies to their employers.

For comparison:

* See definitions above

* See definitions above

 

Selected Other Services:

Other highlights:

• Three counties -- Iron, Marquette and Rusk -- reported no cash assistance cases under W-2 in the latest month, while 39 reported cases in the single digits.

• The food stamp caseload statewide rose for the fifth month in a row from 1998’s low of 70,458 in September, while still down from a year ago.
  

Definitions:

Unsubsidized Activities: Employment and employment-related activities for which a W-2 agency provides no subsidy to the employer, including self-employment and entrepreneurship.

Trial Job: A W-2 subsidized employment position that provides work experience and training which may become permanent, unsubsidized employment. The W-2 subsidy is paid directly to the employer.

Community Service Job: A W-2 work-readiness practice placement designed to improve the employability of participants by providing work experience and training in the public and private sectors. These participants must serve a useful public purpose or be employed in a project whose cost is partially or wholly offset by revenue generated by such projects.

W-2 Transition: A W-2 work-readiness practice placement for individuals who are unable to perform independent, self-sustaining work, but who are able to participate in work practice or other developmental activities and training up to their abilities.

There is a two year lifetime limit for participation in any of the above subsidized W-2 programs, and a five-year lifetime limit on participation in any mix of the above.

Philosophy and Goals of W-2:

• For those who can work, only work should pay. n W-2 assumes everyone is able to work within their abilities.

• Families are society’s way of nurturing and protecting children, and all policies must be judged in light of how well they strengthen the responsibility of both parents to care for their children.

• The system’s fairness will be gauged by comparison with low-income families who work for a living.

• There will be no entitlement; the W-2 reward system is designed to reinforce behavior that leads to independence and self-sufficiency.

• Individuals are part of various communities of people and places; W-2 operates in ways that enhance the way communities support individual efforts to achieve self-sufficiency.

• The system provides only as much service as an eligible individual asks for or needs; many individuals do much better with just a "light touch."

• W-2’s objectives are best achieved by working with the most effective providers and by relying on market and performance mechanisms.