Most states have renewed all or some of their area waiver requests in 1998. In addition, states that operate under waivers differ in the extent to which they apply for such relief. The most extensive relief is provided where states utilize all three bases. States acting to secure the broadest waiver relief include Illinois and Pennsylvania, which have utilized economic studies showing projected labor market growth and the extent to which that growth will meet the demand for jobs by those persons leaving the assistance rolls. More narrow relief is provided in states exempting only a portion of eligible areas.
States have broad flexibility in structuring exemptions.
USDA has set a reimbursement rate limiting the amount of funds available per work slot beginning in FY 1999. USDA will allow some states to avoid the reimbursement rate structure by guaranteeing a work slot to every person who reaches the three month limit and would otherwise be cut off the program. In February 1998, USDA issued guidance to states on both of these provisions. While states were apparently slow in moving to implement these options earlier, the number of states committed to implementing one or both options has increased greatly. Figure 1 3.