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Agenda - 12-04-1995 - Early - Special Work Session
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Agenda - 12-04-1995 - Work Session on Welfare - Early
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Agenda - 12-04-1995 - Early - Special Work Session
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1/13/2015 11:07:13 AM
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BOCC
Date
12/4/1995
Meeting Type
Special Meeting
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Agenda
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Minutes - 19951204
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\Board of County Commissioners\Minutes - Approved\1990's\1995
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r programs received as much as a family of three with the head of household earning $8.08 <br /> per hour, almost twice the minimum wage. Therefore the authors conclude that work <br /> t- does not pay more than welfare. <br /> The Cato report,however, suffers from several flaws: <br /> • Benefits are incorrectly calculated. The Cato report assumes that each household <br /> receives the maximum benefit from these programs. But the level of benefits for one <br /> program often depends on the level received in another program. For example, the <br /> amount of food stamps is adjusted for Aid to Families with Dependent Children <br /> (AFDC) payments. AFDC is the primary Federal cash assistance program. The <br /> North Carolina family would receive $540 lei in food stamps than Cato projects. <br /> • Medicaid benefits are treated as cash. The Cato report treats Medicaid benefits like <br /> cash assistance. The US General Accounting Office (GAO) recently stated that such <br /> treatment of Medicaid is controversial.2 The controversy arises because Medicaid is <br /> paid to providers of medical services, so recipients cannot use the benefits for <br /> anything but medical care. The Cato report also uses the amount spent per <br /> beneficiary, rather than the more comparable amount of a private insurance policy. A <br /> September 1994 report by Michael Walden, an economist at North Carolina State, <br /> uses a proxy for Medicaid over$600 lei than the Cato study.3 <br /> • . Not All Recipients Benefit from these Programs. While all families receiving <br /> AFDC are eligible for Medicaid and most AFDC recipients receive food stamps, less <br /> than one out of every four AFDC recipients receive a housing subsidy. The Cato <br /> report fails to make clear that the family they describe is not typical. <br /> • Working Poor Families Benefit from Some Programs. The Cato report <br /> acknowledges that the Federal Earned Income Tax Credit (EITC) helps low-income <br /> workers. But the analysis does not account for programs such as food stamps provide <br /> assistance to the working poor as well. <br /> So How Does a Working Poor Family Really Compare to an AFDC Recipient? <br /> Our analysis will compare two families consisting of a single adult supporting two <br /> children. One family (Family A) will have no earned income, while the other family <br /> (Family B) will have one worker earning $5.25 an hour and working full-time. A <br /> description of the methodology is included in the Appendix. <br /> Family A receives $272 each month, or $3264 each year in AFDC. Family A is eligible <br /> for $250 each month for food stamps, or $3000 each year. We assume Family A <br /> receives Medicaid with a value of $3312 each year (the Walden estimate), when <br /> compared to market value. <br /> Family B receives $10,920 in gross income from earnings. Family B is also eligible for <br /> $113 each month in food stamps, or $1356 each year. If we assume that the children are <br /> under the age of nine, then they would be covered by Medicaid as well. <br />
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