This document provides information about the State fiscal reports for the first quarter of fiscal year 1999. First Quarter FY 1999 Highlights Maintenance of Effort . The new welfare reform law requires states to continue to spend state funds at a level equal to at least 80 percent of their FY 1994 levels. If states meet the minimum work participation rates, the law also allows them to reduce their minimum spending requirement to 75 percent. Child Care .
Child care is a critical support for families moving from welfare to work.
Work Activities . The goal of the new welfare law is to move welfare parents into work. Many states have changed their welfare programs to help parents get into jobs immediately, prioritizing work itself over other activities. Cash and Work-Based Assistance . The work-based assistance in this category may include paychecks earned by TANF recipients in return for community service jobs or subsidized employment.