Each time this happens, the agencies' wallets get a little bit fatter. 3 out of 4 W-2 workers in Milwaukee County work within the Community Service and Transition Job categories. However, these workers receive no wages from their employers, just their welfare check plus support services. What this comes down to is that these employers are being provided with free labor from the 10,000 W-2 workers. In line with this, the PIC, or Private Industry Council, which are the people whose job it is to oversee the work of W-2 agencies, stands to directly benefit from the system.
Government stands to profit also.
State Senator Gwen Moore, an advocate for changes in welfare reform, made a deal with the devil, so to speak. She offered Republican Representative John Gard a 100 million dollars for his tax break amendments in order to pass reforms in the state budget, which would positively affect W-2. Of course, Governor Tommy Thompson vetoed each and every provision and John Gard kept his 100 million. David Reimer, the Director of Administration for Mayor of Milwaukee, John Norquist, personally takes the credit for coming up with the idea of welfare to work and is promoting W-2 nationwide. Finally, we reach Governor Tommy Thompson.