News Release

October 19, 2004

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Eight states and D. C. fail on welfare reform report card
Study hands out 4 A's, 9 F's

WASHINGTON--A study released today by the Cato Institute grades the welfare reform policies of each state and the District of Columbia and offers suggestions for improvements. Four states received A's, seven earned B's, 20 states took home C's, 11 trailed with D's, and eight states and the district received a failing grade in "Implementing Welfare Reform: A State Report Card," compiled by Cato welfare policy analyst Jenifer Zeigler.

With the 1996 law that implemented these changes currently up for reauthorization by Congress, the study provides a timely guide to implementing successful welfare reform.

Essential reforms include enforcing stronger sanctions for welfare recipients who do not find work, creating stricter definitions of work-related activity, and discouraging teen pregnancy. "If states can dissuade young women from having out-of-wedlock-births in their teenage years, more women will complete school and have a better chance for a self-sufficient future," Zeigler writes.

The report card grades states on both their program reforms and performance measures. Idaho received the highest score, with Wisconsin, Wyoming, and Ohio also receiving A's. Nebraska, Rhode Island, Utah, New Hampshire, Maine, North Dakota, Missouri, Vermont, and the District of Columbia were given failing grades, with Vermont taking the lowest score.

Legislators can use the report card to compare their programs with those of other states, observing what policies work and which ones lead to failure. Over time, such reforms will change the face of welfare. "[The 1996 welfare reform bill] removed the entitlement status of cash assistance and now sends the message that welfare is meant to be temporary, not a way of life," says Zeigler. "As welfare administration continues to devolve from the federal government to the states, and eventually to more local levels, communities will effectively assume responsibility for the welfare system."

Policy Analysis no. 529