[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[July 27, 1992]
[Pages 1194-1195]
[From the U.S. Government Publishing Office www.gpo.gov]



White House Fact Sheet: The State of Wisconsin's Two-Tier Welfare 
Demonstration Project

July 27, 1992
    The President today announced approval of a second Federal waiver 
for the State of Wisconsin's welfare reform effort. The waivers will 
enable Wisconsin to implement a two-tier welfare benefit. Recipients of 
Aid to Families with Dependent Children welfare benefits who are new 
arrivals to Wisconsin would receive the benefit level paid

[[Page 1195]]

in that person's State of origin, regardless of whether the State of 
origin's rate is higher or lower than Wisconsin's.

The Problem

    Wisconsin's survey of new welfare recipients in Milwaukee County for 
June 1992 found 16 percent had moved to Wisconsin, applied for welfare 
benefits within 90 days of arriving in the State, and had never 
previously lived in Wisconsin. Of this group, 28 percent had moved from 
Illinois.
    In explaining why it seeks waivers, Wisconsin notes that, except for 
Minnesota, welfare benefits in all adjoining and nearby States are lower 
than in Wisconsin. Wisconsin's welfare benefit for a family of three is 
$517 per month. The level in Illinois, the most populous adjoining 
State, is $367 per month for a family of three. Payments are $288 per 
month in Indiana, $426 in Iowa, and $532 in Minnesota for families of 
three.

The President's Proposal

    In his State of the Union Address, the President pledged to help any 
State attempting to reform its welfare system to promote individual 
responsibility by making it easier to obtain quickly any waiver of 
Federal regulations that may be required.
    Today's is the sixth such waiver to be approved since the State of 
the Union. It is the second for Wisconsin; Wisconsin received its first 
waiver on April 17. Other waivers have been approved for California, 
Maryland, New Jersey, and Oregon.

Wisconsin's Two-Tier Welfare Demonstration Project

    The project will run for 3 years in up to six Wisconsin counties. 
The two-tier benefit will be in effect in Milwaukee, Kenosha, Racine, 
and up to three other counties. In those counties, AFDC benefits for a 
new arrival in the State would be paid at the level in that person's 
State of origin, regardless of whether the State of origin's rate is 
higher or lower than Wisconsin's. A person arriving in the State to take 
a job who is employed for at least 90 days and subsequently seeks AFDC 
will be paid at the Wisconsin rate. A person who is a former Wisconsin 
resident for at least 6 months will also be paid at the Wisconsin rate.
    Results in the counties where the two-tier benefit is in effect will 
be compared to three other counties and the balance of the State where 
the two-tier benefit will not be in effect. The project will operate for 
3 years, after which its effects will be evaluated to assess whether 
AFDC recipients move to the State for the purposes of obtaining higher 
AFDC benefits.