Iowa's

Limited Benefit Plan

May 1997

Authors:

Thomas M. Fraker

Lucia A. Nixon

Jan L. Losby

Carol S. Prindle

John F. Else

Submitted to:

Iowa Department of Human Services

Division of Economic Assistance

Hoover State Office Building

Des Moines, IA 50319

Welfare Reform Waiver Coordinator: Ann M. Wiebers

U.S. Dept. of Health and Human Services

Office of Asst. Secretary for Planning and Evaluation

Hubert H. Humphrey Bldg., Rm. 404E

200 Independence Ave., S.W.

Washington, DC 20201

Project Officer: Kelleen S. Kaye

Prime Contractor:

Mathematica Policy Research, Inc.

600 Maryland Avenue, S.W., Suite 550

Washington, D.C. 20024

Project Director: Thomas M. Fraker

Subcontractor:

Institute for Social and Economic

Development

1901 Broadway, Suite 313

Iowa City, IA 52240

Subcontract Director: John F. Else

ACKNOWLEDGMENTS

The Study of Iowa's Limited Benefit Plan was made possible by financial support generously provided by the following organizations:

Ann Wiebers of the Iowa Department of Human Services handled many administrative aspects of the study, arranged for us to have access to data from state administrative systems, and responded to our numerous questions concerning Iowa's welfare system. Kelleen Kaye and her colleagues at the Office of the Assistant Secretary for Planning and Evaluation provided valuable comments on the instrument for the study's survey of welfare clients whose cash assistance was terminated and on the research design for the analysis of the flow of cases through the Limited Benefit Plan.

At MPR, Rita Stapulonis and Martha Kovac were the director and deputy director, respectively, of the telephone phase of the client survey. Mark Brinkley and Jill Corcoran provided programming and research assistance in the analysis of data from the survey and from state administrative records.

At ISED, Thomas Martin contributed to the study design and reviewed analysis plans and preliminary findings. Leigh Ann Jero assisted with the training of field interviewers for the client survey. Todd Schuldt, Lara Moore, and Connie Millson provided data entry, programming, and research assistance in the analysis of data from the survey and from case studies of families participating in the Limited Benefit Plan.

We thank all of the above organizations and individuals for their important contributions to the Study of Iowa's Limited Benefit Plan and to this report. We also thank the Iowa families that participated in the client survey and the case studies. Without their cooperation, this study would not have been possible.

CONTENTS

Executive Summary

I. INTRODUCTION TO THE STUDY OF IOWA'S LIMITED BENEFIT PLAN

A. PROMISE JOBS

B. The Limited Benefit Plan

C. Origin of the LBP Study

D. Research Objectives and Methodologies

E. The Structure of this Report

II. THE STRUCTURE AND EVOLUTION OF WELFARE REFORM IN IOWA

A. FIP, PROMISE JOBS, and the LBP

B. Policy Changes in FIP and the LBP

III. THE FLOW OF CASES THROUGH THE LBP

A. Data Sources

B. Sample for the Flow Analysis

C. Reasons for Assignment to the LBP

D. Characteristics of LBP Cases and Individuals

E. Paths Through the LBP

F. Characteristics by Path Through the LBP

G. Monthly Patterns of FIP Benefit Receipt During and After the LBP

H. Characteristics by Return to FIP

I. Monthly Patterns of Food Stamp Receipt and Benefit Levels

J. Summary of Findings

IV. THE SURVEY OF CASES WHOSE CASH ASSISTANCE WAS TERMINATED

A. Sampling Frame

B. Survey Methodology

C. Survey Response Rate and Representativeness

D. Characteristics of Survey Respondents

E. Content of the Interview

F. The Presentation of Survey Findings

V. THE STATUS OF LBP CASES BEFORE AND AFTER BENEFIT TERMINATION

A. Household Size and Composition

B. Housing

C. Household Income

D. Employment

E. Government Assistance and Child Support

F. Support from Family and Friends

G. Support from Community Organizations

H. Summary of Findings

VI. EXPERIENCES WITH THE LIMITED BENEFIT PLAN

A. Meeting PROMISE JOBS Requirements

B. Entering the LBP

C. Experiences on the LBP

D. Personal Plans for Leaving Welfare

E. The Termination of FIP Cash Benefits

F. Messages for State Politicians

G. Summary of Findings

VII. CASE STUDIES OF LBP FAMILIES: PARENTS TELL THEIR STORIES

A. The Case-Study Methodology

B. Family Vignettes

C. Cross-Cutting Themes in the Lives of the Case-Study Families

D. Decisions Regarding Welfare Participation

E. Summary of Findings

VIII. CONCLUSION

Appendix A

Table A1

Table A2

Table A3