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MAIN
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A Joint Project of the Maine
Association of Interdependent Neighborhoods |
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Volume 9 No. 2 |
August 2005 |
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MAIN
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A Joint Project of the Maine
Association of Interdependent Neighborhoods |
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Volume 9 No. 2 |
August 2005 |
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Who Needs TANF and Why?
The Need for Public Education PersistsNearly a decade ago the country was in the midst of an emotional debate about reforming welfare. This debate was driven by powerful stereotypes about the behavior of families receiving welfare. In Maine a strong coalition lead by MAIN, MEJP, the Maine Women’s Lobby, church groups, social service providers and many others sent a different message. That message was that it was our economy, particularly the low wages and lack of opportunity for low-income women, that caused most families’ need for welfare—not irresponsible personal behavior.
In this recent legislative session, nearly ten years later, some echoes of this old debate have returned. As budgets get tight and public programs come under greater scrutiny, there is renewed interest at the legislature in making sure that our welfare programs are not “out of line” with other states. As a result, bills were introduced that were aimed at preventing low-income families from moving to Maine just to collect our “generous” welfare benefits; ensuring that work requirements are “tough” enough; and that people living in poverty were paying their “fair share” for the services they receive. During this session MAIN members and Maine Equal Justice had our work cut out for us responding to each of these bills with the information necessary to provide a more accurate picture of welfare programs in Maine. Testimony from MAIN members and others helped provide valuable insight for legislators who were not there for the welfare debates of the mid-nineties. The proposed changes were all successfully defeated, and processes were put in place to provide legislators with more and better information in the future.
Clearly the “welfare reform” debate did not end in the last decade. There continues to be a need to provide people throughout the State with the real facts about who needs welfare and why. If we do not get our message out, support for these very valuable programs may be lost. Here is some information that may help:
Myth: Maine’s TANF benefits are too generous and encourage people to move to Maine from other states.
Fact: Maine’s average TANF benefit ($394/month) is the lowest in New England and is below the national average ($418/month). Maine’s maximum benefit for a family of three is only 36% of the poverty level. Even when food stamps are added, TANF families reach only 65% of the poverty level. In addition, a new study from a respected research institute shows that families do not move from state to state to take advantage of more generous non-cash welfare policies, such as longer time limits.
Myth: Welfare discourages families from working.
Fact: More than ¼ of Maine TANF families are working but their wages are so low that they still qualify for assistance. Nearly two-thirds of Maine’s TANF families are participating in either a work or training activity—this is nearly 1/3 higher than the U.S. average and the highest participation rate in New England. Families are required to participate in a work activity unless they have “good cause,” like the illness or disability of a family member.
Myth: There’s a lot of fraud in the welfare system—people are getting benefits even when they don’t qualify.
Fact: Actual fraud is found in only about 1% of the cases—that means that 99% of families comply with program rules. Compare this to the IRS system where it is estimated that tax fraud is currently costing the nation enough to provide health care for all of its 44 million uninsured citizens. There are strict eligibility requirements that families must meet in order to qualify for TANF benefits. Eligibility is reviewed every six months and families must report any change in circumstances within 10 days. The Department verifies information about income and assets by computer, checking bank accounts and access to other public benefits.
Myth: A huge chunk of Maine’s tax dollars go to support welfare recipients.
Fact: TANF spending amounted to only 1.3% of the State’s general fund in 2003.Get to know some families in Maine who have benefited from receiving TANF.
