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Q. Will the waivers save money? If yes, how much? <br /> A. Yes. Under the current welfare rules, they'll produce the savings that I just mentioned—$2.2 million <br /> initially and $17 million after about 5 years. In the beginning, we'll put a lot of that savings back into <br /> Work First for training and child care. <br /> Block Grants <br /> Q. What impact will block grants have on Work First? <br /> A. We won't know that until we know Congress has acted. Whatever they do, we'll make the proper mid- <br /> course corrections. My staff is monitoring what's happening in Washington. The Local Government <br /> Partnership Council, which I created by executive order, has formed a Human Services Task Force <br /> chaired by Betty Lou Ward and Robin Britt,to look at those developments and advise me on them. <br /> Q. How much does North Carolina stand to lose in the current federal budget <br /> negotiations, and what will, you do about the shortfall? <br /> A. It's too early to say. This week the U.S. Senate is debating key provisions of its welfare reform bill. <br /> Any one of those provisions could have a significant impact on costs. We'll know more when, and if, <br /> House and Senate conferees complete their work <br /> Q. What's the worst case scenario for block grant cuts? <br /> A.The House bill would cut federal spending by about 15 percent and cap it for five years.The Senate bill <br /> is a little less than that. Under the old entitlement rules,that would automatically shift more of the burden <br /> to states.New rules under block grants would give states a lot more flexibility, but nobody knows yet <br /> how that will shake out.That's a major reason we need to move ahead now. We can't afford to watt. <br /> Q. Under block grants, will there be a requirement that counties continue to fund welfare <br /> to the extent that they are now? <br /> A.The Senate is considering several provisions that would require states to maintain funding at certain <br /> levels. The House bill, HR 4,has none. , <br /> Q. Will you require counties to continue that, funding? Wouldn't that, in effect, constitute <br /> an unfunded mandate? <br /> A.That's something that needs to be looked at very carefully.We're partners with local government on this, <br /> and I'm confident that counties will act responsibly.If we're as successful in quickly moving families off <br /> of welfare and getting parents into the work place as I think we'll be, that won't be an issue. <br /> Other <br /> Q. How have you involved legislators in your efforts?' <br /> A. Legislators —of both parties — have been part of this effort from Day 1. They served on my Workforce <br /> Preparedness Commission welfare reform task force. My staff monitored the legislative study <br /> commission on welfare reform&worked closely with legislators in the session on key legislation. <br /> They've been invited to serve on the Human Services Task Force. I think there's a lot of common <br /> ground. <br /> Q. What involvement has your "stakeholders" group had in putting together this waiver <br /> package? <br /> A.There hasn't been any direct involvement, although many of those serving on the Task Force have been <br /> part of some of the efforts I just described.The Task Force is charged with addressing the potential <br /> impact of block grants. <br /> Paae 4 <br />