Department of Workforce Development

Wednesday, September 4, 2002 Governor Scott McCallum Secretary Jennifer Alexander

News Media Contact Rachel Langenohl 608/266-8710 e-mail: news@dwd.state.wi.us fax: 608/266-1784

MADISON – Governor Scott McCallum and Department of Workforce Development Secretary Jennifer Alexander will recognize several individuals who have succeeded with the assistance of the W-2 program, to commemorate the program’s five-year anniversary. Secretary Alexander also recognized an outstanding achievers from across the state who have worked hard to move toward self-sufficiency.

"Too often this program becomes one that people analyze based on numbers. What many people forget is that there are faces behind this program and they have worked very hard to make a difference in their lives and the lives of their children. That is what this recognition ceremony is all about, commending those who have taken on the challenge of going to work, and in many cases, have begun to move up the career ladder in just five short years. And they have done so, with the assistance of W-2 agencies in every corner of the state," said Gov. McCallum.

Secretary Alexander presented plaques to several individuals who have achieved success, and presented one award for outstanding achievement to Therese Her. Therese received W-2 cash benefits through the Eau Claire County Human Services department when she was on bed rest, pregnant with twins, and had two toddlers at home. After the birth of her twins, she was placed in a community service job with Dove Health Care to update her CNA Certification. Upon completion of her certification, childcare and transportation were both issues, so she was referred to the Wheels-to-work program and given assistance in getting a car. Therese was also assisted with childcare and job search. She is now working full-time as a home care provider while her kids are being cared for in her home with a certified provider.

"The W-2 program has given hope to people like Therese, who weren’t sure how to cope with the cards life had dealt them. It is a program that requires individual participation and personal responsibility. With those two components, it can help anyone succeed," added Secretary Alexander.

The W-2 program was implemented statewide on September 1, 1997. The W-2 program has drawn the attention of not only other states, but other countries. Some of those other countries include Germany, Australia, New Zealand, Israel, China, Sweden, and Japan.

Funding for the W-2 Anniversary Recognition Ceremonies being held across the state, was provided by the Ford Foundation as W-2 was an "Innovations in American Government" award winner in 1999.

Facts about the W-2 program:

• Statewide, since the beginning of the W-2 program more than 31,000 (31,239) people have been involved in GED and/or job training activities. (11,828 in GED and 28,608 in job training). Just under 23,000 (22,951) of those individuals were in Milwaukee county (9,265 in GED and 21,445 in job training)

• Statewide, the cash caseload has decreased by nearly 62%, from 25,823 people in August of 1997 to 9,701 in July 2002. Note: Child only cases are not included in these numbers.

• Statewide, since January of 1998 more than 43,000 (43,358) people have moved off of welfare and into jobs and more than 33,000 were in Milwaukee County (33,155).

• In the most recent W-2 contract (January 2000 - December 2001) 87% of former W2 participants statewide were still working after 30 days of employment and 64% were still working after 180 days. In Milwaukee County, more than 88% of participants were still working after 30 days and 64% were still working after 180 days.

• 53% of W-2 participants who got a job (between October 1999 and September 2000) reported an increase in their earnings making Wisconsin fourth best in the nation for the increase in earnings for it’s participants.

• The average length of stay for W-2 participants statewide receiving cash payments is 16 months, in Milwaukee county it is 18 months. (The federal lifetime limit for benefits is 60 months, and the state limit for benefits is 24 months per tier in the W2 program).

• Furthermore, if you look at the most recent data (July 2002) only 1% of cash participants have reached the 60-month limit. 76% have used fewer than 25 months, 51% have used fewer than 13 months, and only 4% have used more than 48 months.

• The number of families receiving childcare subsidies has doubled since April 1998 from more than 13,000 (13,142) families in April 1998 to more than 26,000 (26,330) families in July 2002. Expenditures in April 1998 totaled just over 6 million that month, compared to nearly 23 million for the month of July in 2002.

• Wisconsin has the second highest percentage of adults involved in work in its welfare reform program at 91 percent, following only the State of Washington at 93 percent.

• Under the AFDC program, 100% of participants were living at or below the poverty level. A recent Legislative Audit Bureau report indicated of those who had gone from welfare to work, 50% were earning above the federal poverty level.

Other statistics, which indicate Wisconsin’s social health actually improved under W-2:

• Wisconsin’s poverty rate actually dropped during the years of 1997-1999, when W-2 was implemented. (Census Bureau Data)
• Wisconsin ranks 9^th lowest in the nation for the number of children living in poverty. (Census Bureau Data)

• Wisconsin residents have the fifth best social health in the nation according to a study released by the Institute for Innovation in Social Policy, at the Fordham Graduate Center in Tarrytown, New York. (based on Census Data in 1998-1999)

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