It’s been more than 50 years since President Lyndon Johnson declared the War on Poverty and there’s no getting around it - our welfare system is failing. Since 1964, we have spent $22 trillion dollars and created 126 different federal welfare programs. Unfortunately, it seems the response has almost invariably been to throw more money at the problem or create a new program with no expectation of whether it will work or has worked. I believe the problem is the welfare system itself.
Most of us believe our welfare programs were created to help our fellow citizens get through a difficult time in their life. We are there to pick up our neighbors when they fall. We’ve always intended it to be a hand up – not a hand out. With that, we believe hard work and determination will lead to a better life. That is the American Way and the Missouri Way and our people deserve nothing less.
The answer is clear and simple; work is the ticket out of poverty and the path to success and our welfare policies should reflect this common-sense approach. Our system is failing in this goal. One of the reasons we are failing is the sheer number of welfare programs - the federal government currently funds 126 different programs – and the generosity of those programs is a disincentive to work. A recent study found that in Missouri, a typical family receiving welfare benefits could receive as much $26,837 a year which is a $10.96-an-hour job. This exceeds today’s minimum wage and even the minimum wage proposed by President Obama.
On top of this, a recent report issued by the Heartland Institute places Missouri dead last in the nation for welfare reform policies and Missouri has the worst work participation rate in the country. Under federal law, welfare recipients are supposed to work an average of 30 hours a week in a “work activity” which a broad definition that includes job training, vocational education, and even community service. However, only about 15 percent of our recipients are meeting the work requirement and we are not holding them accountable.
This is a problem and my solution is Senate Bill 24 – a comprehensive reform of our welfare system that emphasizes work while breaking down barriers to self-sufficiency. Right now, Missouri allows two years to go by before requiring our welfare population to work. The first thing my bill would do is require a recipient to engage in one of those work activities before even receiving welfare benefits. My bill also lowers the lifetime eligibility limit for the program. Missouri currently allows the maximum eligibility limit of five years on welfare while 12 other states limit lifetime eligibility to four years or less with our neighbors, Arkansas and Indiana, limiting benefits to two years.
Senate Bill 24 creates strict sanctions for recipients not complying with work requirements. Currently, Missouri only removes part of the benefit a welfare recipient gets until compliance with the work requirement occurs. Under my bill, those on welfare would have a limited amount of time to comply with the work requirement before a complete loss of benefits is imposed. More than half of the states have a similar policy and it is been an effective tool in getting people back to work. The bill will also create a cash diversion program that will act as a cash grant for short-term needs designed to keep potential welfare recipients, particularly those considered “job ready,” from ever entering the system.
As President Reagan said, “We should measure welfare's success by how many people leave welfare, not by how many are added.” Senate Bill 24 is an effort to put this idea in practice. The bill has been voted out of the Senate and was approved by the House just this week. The last step in the process is to work out the differences between the Senate and House versions and to send it to the governor for his signature.
As always, I welcome your ideas, questions and concerns about Missouri government. You may contact me at the State Capitol as follows: (573) 751-1480, david.sater@senate.mo.gov or by writing to Sen. David Sater, Missouri State Capitol, Room 419, Jefferson City, MO 65101.
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