Policy Analysis No. 529

Implementing Welfare Reform: A State Report Card

By Jenifer Zeigler
October 19, 2004

In 1996 the Personal Responsibility and Work Opportunity Reconciliation Act was signed into law, and the nation waited to see if welfare reform would truly “end welfare as we know it.” Block grant funding and administrative devolution gave the states a chance to move beyond pilot programs and prove that they could transition people off welfare more efficiently and effectively than the federal government. As a result, caseloads have dropped by more than half.

Congress is currently debating the reauthorization of PRWORA, and there are a variety of perspectives on the direction welfare reform should now take. It is useful to look at the policy decisions states have made over the past seven years and compare the results. This paper emphasizes the positive policy choices made by states regarding welfare reform implementation—choices that encourage personal responsibility and self-sufficiency.

Strong structural reforms in a state’s welfare system—including time limits, sanctions, and narrow definitions of work activity—lay the foundation for successful reorganization. Idaho, Ohio, Wisconsin, and Wyoming combined those reforms with positive quantitative outcomes and received the highest grade of A. California and New York, the states with the largest welfare caseloads, will struggle to maintain their C grades in the coming years since they lack programs that encourage self-sufficency. Vermont received the lowest of the failing grades, including the lowest grade on implementation of structural reforms required for a successful state welfare program.

Strained state budgets, a fluctuating economy, and new “pet programs” packed into welfare reauthorization will all change the face of welfare over the next several years. This study offers analysis of state welfare reform implementation in the present and can serve as a baseline for tracking welfare reauthorization program changes in the future.

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Table 1: Overall Grades

State Overall Score Letter Grade
Idaho 76 A
Ohio 74 A
Wyoming 72 A
Wisconsin 71 A
Florida 68 B
Connecticut 63 B
Virginia 62 B
Illinois 61 B
New Jersey 60 B
Indiana 60 B
Iowa 60 B
Maryland 58 C
California 58 C
South Carolina 57 C
Arizona 57 C
New York 57 C
Georgia 56 C
North Carolina 55 C
Colorado 55 C
Washington 55 C
Hawaii 55 C
South Dakota 54 C
Louisiana 54 C
Kansas 53 C
Mississippi 53 C
New Mexico 52 C
Delaware 52 C
Montana 51 C
West Virginia 50 C
Arkansas 50 C
Oregon 50 C
Alabama 49 D
Kentucky 49 D
Oklahoma 49 D
Tennessee 46 D
Massachusetts 44 D
Nevada 43 D
Michigan 43 D
Pennsylvania 43 D
Texas 40 D
Minnesota 40 D
Alaska 40 D
Nebraska 38 F
Rhode Island 38 F
Utah 37 F
New Hampshire 36 F
D.C. 36 F
Maine 36 F
North Dakota 36 F
Missouri 36 F
Vermont 21 F

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Jenifer Zeigler is a welfare policy analyst with the Cato Institute.