In FY 1997, nearly half of the states spent more than the minimum state funds required toward their welfare programs, and states made work a part of their spending in nearly every feature of their welfare programs. FY 1997 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. Since states are not required to report any expenditure of state funds in excess of the maintenance of effort requirement, states may actually be spending more than reported.
Child care is a critical support for families moving from welfare to work.
States are submitting separate reports on child care spending that will offer more information on state investments. 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. Some states, such as Wisconsin, have effectively transformed cash assistance into work based assistance, for example, requiring employment or community service as a condition of welfare receipt. Cash and Work-Based Assistance.