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highplainsdem

(49,004 posts) Tue Oct 22, 2013, 01:05 PM Oct 2013

Virtually All Welfare Benefits Are Now Worth Less Than In 1996

Source: ThinkProgress

The value of benefits from the Temporary Assistance for Needy Families (TANF) program, formally known as welfare, continued to fall this year, and for 99 percent of recipients, their purchasing power is less than it was in 1996 after adjusting for inflation, according to a new report from the Center on Budget and Policy Priorities.

A family of three that relies solely on TANF cash benefits won’t be able to meet market rent prices for a two-bedroom apartment in any state. Worse, in 25 states the benefits cover less than half of rent.

The benefits are now worth at least 20 percent less than in 1996, adjusted for inflation, in 37 states. While no states reduced the amount they give out in benefits, most left them unchanged, which meant that inflation continued to erode their value. Seven states — Connecticut, Maryland, Montana, New York, Ohio, Texas, and Wyoming — increased benefits this year, but most were small cost of living adjustments.

Given the erosion in value, the benefits for a family of three will only put it at 50 percent of the federal poverty line in every state, or $9,765 a year. In 32 states and Washington, DC, the benefits put that family at less than 30 percent of the poverty line, and in 16, benefits are at 20 percent of the poverty line, or less than $326 a month. More than 80 percent of families who receive TANF also receive food stamps through the Supplemental Nutrition Assistance Program (SNAP), but even those families who get both will still fall below 75 percent of the poverty line in 48 states and DC.

-snip-

Read more: http://thinkprogress.org/economy/2013/10/22/2814711/welfare-benefits-decline/

The article also points out that the 1996 levels were already a big drop from the 1970 levels -- by more than 40% in most states -- and that only a quarter of poor families get these benefits now, compared to 68% in 1996.

4 replies

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Highlight:

Virtually All Welfare Benefits Are Now Worth Less Than In 1996 (Original Post) highplainsdem Oct 2013 OP

The richest nation in the world will not take care of its own Stargazer99 Oct 2013 #1

all of which shows the 'reform' of 1996 is preceding according to plan azurnoir Oct 2013 #2

Pennsylvania has NOT changed its Welfare grants since 1982. happyslug Oct 2013 #3

course in fantasy world of the Tea Party or KKK PatrynXX Oct 2013 #4

Stargazer99

(2,585 posts)

1. The richest nation in the world will not take care of its own

Reply to highplainsdem (Original post)

Tue Oct 22, 2013, 01:08 PM

Oct 2013

Shows what a crass failure capitalism is
The dirty underbelly of the US

azurnoir

(45,850 posts)

2. all of which shows the 'reform' of 1996 is preceding according to plan

Reply to highplainsdem (Original post)

Tue Oct 22, 2013, 01:39 PM

Oct 2013

by breaking up the federal welfare system and meting out the TANF to individual states in no small part also broke up any political sway and organizing/lobbying power that Women who were on welfare had, which while it was not much in the first place, it did allow some change, but what '96 accomplished was the completion of Ronald Reagan's plan

The article says in most states the grant for a family of 3 would not pay for a 2 bedroom apartment, in all honesty it wouldn't pay for an efficiency or one room apartment in most states I suspect

happyslug

(14,779 posts)

3. Pennsylvania has NOT changed its Welfare grants since 1982.

Reply to highplainsdem (Original post)

Tue Oct 22, 2013, 06:55 PM

Oct 2013

You must understand one thing about Welfare, it is a joint Federal-State program when it comes to assistance to Children under age 18 and their parents. The Federal Government will pay 50% of the cost of Welfare up to the Federal Standard of Need (Which is $710 a month in 2013, it is adjusted for inflation every year. The announcement of how much should have been made in October but do to the Government Shut down it has NOT yet been released (that it will be about 1.5% is known, but not the exact amount).

The Standard of Need is also used for determining the Supplement Security Income (SSI) amount for people who are disabled BUT not eligible for Social Security, SSI is 100% Federally funded thus everyone on SSI gets the whole $710 a month in 2013:
http://www.ssa.gov/oact/cola/SSI.html

In 1982 the Standard of Need was $284.30 per month
http://www.ssa.gov/oact/cola/SSIamts.html

No state has EVER funded its share of Welfare at 100% of the Standard of Need. Pennsylvania has NOT changed how much it pays people on welfare (including TANF) since 1982. Pennsylvania's welfare Grant varies by county, $215 for one person in Philadelphia and some other counties (mostly around Philly), $205 in Pittsburgh (and most other countries) and $174 for one person in the poorest counties (including my home county of Cambria County, main city Johnstown PA).

Thus a person in Cambria County PA gets 24.5% of the what Congress has set as the bare minimum one needs to survive (The definition of the Standard of Need). A person in Philadephia gets 35 % of the Standard of Need, while a person in Pittsburgh gets 29% of the Standard of Need.

Thus some states have had to increase their welfare payments since 1996, for Pennsylvania has not and given inflation Pennsyvania has dropped what it spent in Welfare.

PatrynXX

(5,668 posts)

4. course in fantasy world of the Tea Party or KKK

Reply to highplainsdem (Original post)

Tue Oct 22, 2013, 08:05 PM

Oct 2013

Blacks are living the life of heaven on Welfare. ie more blacks than whites (despite the obvious facts that Welfare is racist) take in Welfare and thats why they act rich X_X Okay we are smarter but it'll fall on deaf ears on the other side

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