Wisconsin Gov. Scott Walker signs new limits on welfare programs into law
Jason SteinMADISON - Wisconsin Gov. Scott Walker on Tuesday signed new limits on welfare programs into law, committing state and federal taxpayers to nearly $80 million in spending to draw more people into the labor force.
"Our ... welfare reform bills ensure help to those who truly need it, while providing the training and assistance they need to re-enter the workforce and regain independence," Walker said in a statement.
Supporters have said that, with the state's unemployment rate at an all-time low of 2.9%, it's the ideal time to shift more people from food stamps and other public benefits to jobs. Though these measures could cost state taxpayers in the short run, they could save money for the federal taxpayers who cover that program's benefits, they say.
Critics say there are more cost-effective ways to get the unemployed into jobs such as public transit and education programs. Senate Minority Leader Jennifer Shilling (D-La Crosse) said Walker was spending "millions of taxpayer dollars making it harder for working families to put food on the table."
"Rather than creating barriers and driving more Wisconsin families into poverty, Democrats want to expand economic opportunities, grow our middle class and support strong communities," Shilling said.
The Republican governor on Tuesday signed nine pieces of legislation at stops in Wausau, River Falls and Milwaukee. Several of the measures deal with the joint state and federal food stamp program known as FoodShare.
One piece of legislation would require parents with children between the ages of 6 and 18 to work or get job training or lose FoodShare benefits after three months.
Starting in April 2015, Walker and GOP lawmakers had already applied this work requirement to able-bodied adults without children.
As of November, that requirement had led 24,420 participants to find work through the program and 86,000 residents to lose benefits paid for by federal taxpayers. Some of those who lost benefits likely went on to get jobs outside the program, but it's not possible to track that.
The requirements signed by Walker on Tuesday will cost an estimated $79.7 million in state and federal money when fully implemented. The other measures will:
- Increase the work or training requirement for all able-bodied FoodShare participants from 20 hours a week to 30 hours. That would require about 130 hours of work a month for benefits from the program, which average about $212 a month per household.
- Require pay-for-performance standards in the state's contracts with private groups that help run the state's FoodShare and separate Welfare to Work, or W-2, programs.
- Put asset limits on FoodShare and W-2 programs to exclude people with homes valued at more than $321,200 and personal vehicles worth more than $20,000.
- Create an up to $20 million fund to pay private contractors doing welfare, corrections and training contracts. The state could use the money to pay vendors for reaching big cost savings or improvements in performance.
- Create health savings accounts for Medicaid recipients.
- Implement work requirements and drug testing for public housing programs.
In some cases, state taxpayers might be able to recover some of the cost of administering these requirements on welfare programs. One example would be cases in which people get jobs and fall off Medicaid health coverage, since both state and federal taxpayers pay for those benefits.
RELATED:Gov. Scott Walker removes most abortion coverage for Wisconsin public workers
But in other programs like food stamps, it would be difficult for state taxpayers to recoup these administrative costs. State taxpayers in Wisconsin cover half the back-office costs here, but federal taxpayers cover the actual food benefits, so if people drop out of FoodShare the savings would go to federal taxpayers around the country.