[Congressional Record Volume 142, Number 117 (Friday, August 2, 1996)]
[Extensions of Remarks]
[Page E1495]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   CONFERENCE REPORT ON H.R. 3734, PERSONAL RESPONSIBILITY AND WORK 
                 OPPORTUNITY RECONCILIATION ACT OF 1996

                                 ______
                                 

                               speech of

                          HON. KAREN McCARTHY

                              of missouri

                    in the house of representatives

                        Wednesday, July 31, 1996

  Ms. McCARTHY. Mr. Speaker, I would like to submit for the record the 
following letter from the National Conference of State Legislatures 
[NCSL] regarding welfare reform. As past president of NCSL, I 
understand first hand the concerns they raise about meeting the work 
requirements in H.R. 3734 without adequate Federal funding and the 
potential cost shifts the welfare reform proposal places on States. I 
supported H.R. 3734 with similar concerns and look forward to working 
with State legislators during the 105th Congress to see that these 
concerns are addressed:

                                               National Conference


                                        of State Legislatures,

                                     Washington, DC July 31, 1996.
     Hon. Karen McCarthy,
     U.S. House of Representatives,
     Washington, DC.
       Dear Representative McCarthy: The National Conference of 
     State Legislatures (NCSL) has long sought federal legislation 
     reforming our welfare system and now urges your support for 
     the conference agreement on H.R. 3734. This legislation 
     builds on the numerous state legislative welfare reform 
     efforts of the past decade and on federal waivers granted in 
     recent years.
       We particularly are pleased with the creation of block 
     grants for cash assistance and child care and the 
     programmatic and administrative flexibility they may bring. 
     The inclusion of increased child care funding, establishment 
     of a contingency fund, preservation of child welfare 
     entitlements and preservation of state legislative authority 
     over block grant funds are notable achievements and represent 
     key provisions recommended and sought by NCSL. We are further 
     gratified with the inclusion of several policy options, such 
     as the state option to provide Medicaid to legal immigrants 
     and refugees, recognition of the need for adequate transition 
     time, restructuring of child support collection systems and 
     initiatives as well as an exemption for states from 
     electronic benefit transfer liabilities.
       We remain particularly concerned about work participation 
     requirements and a related array of policy mandates and 
     sanctions. These will be troublesome. The flexibility needed 
     in the work participation area is missing. Furthermore, the 
     Congressional Budget Office has repeatedly warned of the 
     multi-billion dollar shortfall in federal funding for work 
     efforts. We recommend that Congress and the Administration 
     collaborate with state legislators and others to review and 
     evaluate work requirements, state experiences with these 
     requirements, funding needs and worker placement and job 
     retention accomplishments commencing with the 105th Congress.
       We continue to question policy changes in H.R. 3734 
     regarding income security accessibility for legal immigrants 
     and refugees. We remain convinced that H.R. 3734 will produce 
     unfunded mandates and cost shifts to state and local 
     governments of unacceptable proportions. We strongly 
     recommend that Congress and the Administration immediately 
     begin an analysis and review of state experiences regarding 
     income security program availability for legal immigrant 
     populations, particularly children, the elderly and the 
     disabled. Those provisions of H.R. 3734 regarding legal 
     immigrants should be tested against the intent and objectives 
     of S. 1, the Unfunded Mandate Reform Act of 1995, and 
     Executive Order 12875. This recommended review and analysis 
     should involve state legislators and other officials.
       H.R. 3734 represents a number of policy compromises. It 
     also offers states new opportunities to manage a welfare 
     system most Americans agree needs restructuring and 
     redirection. Despite some of its aforementioned shortcomings, 
     we encourage your support for H.R. 3734 and urge you to work 
     with state legislators to ensure its success.
           Sincerely,
     Michael E. Box,
       Majority Chairman, Alabama House, President, NCSL.
     James J. Lack,
       State Senator, New York, Immediate Past President, NCSL.

                          ____________________