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Income Support and Social Services for Low-Income People in Colorado: Highlights from State Reports

Publication Date: September 01, 1998
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About the Series

This report is part of the Urban Institute's Assessing the New Federalism, a multi-year effort to monitor and assess the devolution of social programs from the federal to the state and local levels. Alan Weil is the project director. The project analyzes changes in income support, social services, and health programs. In collaboration with Child Trends, Inc., the project studies child and family well-being. There are two Highlights for each state. The Highlights that focus on health cover Medicaid, other public insurance programs, the health care marketplace, and the role of public providers. The income support and social services Highlights look at basic income support programs, employment and training programs, child care, child support enforcement, and the last-resort safety net. The Highlights capture policies in place and planned in 1996 and early 1997. To receive the full-length reports on which the Highlights are based, contact the Urban Institute. The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.


Colorado is a conservative state with respect to fiscal issues, and its citizens are protective of individual rights and local government prerogatives. Economic and demographic distinctions among regions are important because the state’s social service delivery system is decentralized. Counties deliver most social services—including welfare benefits, employment and training, child care, child welfare, and General Assistance. Counties also establish eligibility for Medicaid and food stamps and share in the costs of administering the Food Stamp program. Recent state welfare reform legislation and reorganization of employment and training programs have further decentralized service delivery. Only in child welfare has centralized state control increased.

Colorado’s strong economy has helped the budget grow, but the state has imposed strong fiscal constraints on public revenues and expenditures. In 1979, legislation imposed a cap on the growth of general fund appropriations, which cannot exceed the annual gain in personal income or 6 percent, whichever is lower. The Taxpayers’ Bill of Rights (TABOR), passed in November 1992 in a citizen-initiated referendum, stipulates that each year total state and local government revenues may not increase more than the combined percentage of population growth and inflation. TABOR covers all state and local revenues except federal funds, government enterprise revenues, lawsuit awards, and donations. If TABOR limits are exceeded, the state or the localities must either refund the difference to taxpayers or receive voter approval to retain the excess revenues. Colorado’s economy has been so strong that, in fiscal year (FY) 1997, state revenue growth exceeded Colorado’s 6.6 percent combined population growth and inflation rate, triggering a refund for the first time.

State Characteristics

Colorado’s population was 3.7 million in 1995 (table 1), after growing at a brisk pace of over 2.5 percent per year from 1991 to 1995. During these years, net in-migration averaged over 56,000 people per year. The state’s population is relatively young. In 1994–95, 8.5 percent of people in the state were age 65 or older, compared with 12.1 percent nationally. Although most of the state’s 63 counties are rural, Colorado’s population is significantly less rural than the U.S. population (27.8 percent in Colorado compared with 36.4 percent for the nation as a whole in 1990). The state’s population is heavily concentrated in Denver and nearby counties along the Front Range, in a line that stretches north and south, from Fort Collins and Boulder through Denver, and south through Colorado Springs and Pueblo. Twelve Front Range counties contained 79 percent of the state’s population in 1992. Douglas County, just south of Denver, was the fastest-growing county in the nation, with a 65 percent population increase between 1990 and 1995.

Colorado’s population includes a significant share of Latinos but relatively small numbers of other racial or ethnic minority groups. In 1995, Colorado’s population was 11.8 percent Hispanic, compared with 10.7 percent for the United States. Non-Hispanic blacks made up only 2.9 percent of the state’s population, far less than their 12.5 percent share of the national population. Colorado also had fewer noncitizen immigrants—5.1 percent compared with 6.4 percent nationally.

Colorado has a somewhat higher percentage of two-parent families than the nation as a whole (39 percent compared with 35.7 percent) and a slightly higher percentage of two-parent families in which mothers of young children work full-time. Colorado also has a highly educated population. The state ranks in the top four in the nation for high school completion (91 percent of Coloradans age 25 and over were high school graduates) and in the top five in college completion (33 percent of Coloradans had a bachelor’s degree).

Strong economic growth has fueled in-migration and rising incomes during the 1990s. Per capita personal income has risen by nearly one-quarter since 1990. By 1995, Colorado’s per capita income ($23,961) was just above the national average of $23,208. Colorado’s poverty and unemployment rates were well below U.S. rates: 9.3 percent versus 14.3 percent for the poverty rate in 1994, and 4.2 percent versus 5.4 percent for the unemployment rate in 1996. Children in Colorado appear to be strikingly better off than the national average. In Colorado, 12.4 percent of children lived in families with incomes below the federal poverty level in 1994, compared with 21.7 percent nationally.

Colorado’s economy is outperforming the national economy, as shown by higher income growth and lower unemployment every year during the 1990s. Falling unemployment rates have been accompanied by rapid declines in welfare caseloads and decreased demand for employment services in most areas of the state. Nonagricultural employment increased by 25 percent from 1990 to 1996. The construction sector led the state’s job growth, with employment increasing by almost 10 percent annually during the 1990s. Public-sector projects such as a new international airport, baseball stadium, and central public library accounted for much of this construction growth early in the decade, but private commercial and housing development picked up during the mid-1990s. Despite rapid growth in recent years, Coloradans remember the "bust" years of the 1980s, when energy industry declines led to real estate losses and a crisis in the state’s savings and loan industry. Colorado policymakers have adopted strategies to diversify the state’s economic base and have a cautious attitude toward growth.

Setting the Social Policy Context

Within the fiscally conservative framework and budget priorities, the guiding philosophy of state policies is to provide the assistance people need to get back on their feet (with strong emphasis on education and training) and to help those who cannot help themselves. Thus, Colorado human services include social safety net programs, such as a constitutionally mandated Old Age Pension and state appropriations for Aid to the Needy and Disabled and Aid to the Blind.

Colorado spends most of its state budget on K-12 education, higher education, health care, and human services. Because of the fiscal limits, the legislature has had to establish spending priorities. Top priority has been given to Medicaid increases, corrections caseloads, and social services caseloads under court order. "Discretionary" spending in areas such as the welfare benefit level, mental health, and most other social services receives priority, but there has been little room for expansion of income support.

Basic Income Support

In the final year of Aid to Families with Dependent Children (AFDC), a single mother with two children received a monthly cash benefit of $356, a level that had not changed since 1989. This compares with the national average of $377 a month. The number of Colorado families receiving AFDC fell by 42 percent between 1993 and 1997, outpacing the nationwide decline of 29 percent. In addition to AFDC/Temporary Aid for Needy Families (TANF) and the state-funded assistance programs, counties may offer General Assistance (see table 2).

Until 1997, Colorado had a five-county welfare demonstration project under federal waiver—the Colorado Personal Responsibility and Employment Program (CPREP). For the rest of the state, both state and local officials’ goals for AFDC reflected the traditional role of the program as an income-maintaining entitlement. Colorado’s Job Opportunities and Basic Skills (JOBS) program, called New Directions, promoted long-term self-sufficiency by encouraging recipients to participate in extensive education and training and by advocating that counties work on reducing barriers to employment with holistic case management and supportive services. Mandatory JOBS components included a high school diploma or general equivalency diploma (GED), basic or remedial education, English as a second language, job skills training, job readiness, job development, and job placement. Components at county option included job search, on-the-job training, community and alternative work experience, and work supplementation. There was no standard organizational structure for county JOBS programs.

CPREP continued to emphasize skill development, but it changed a number of other features of the AFDC/JOBS structure. It offered more generous earned income disregards, provided financial incentives to those who completed a GED, enacted stricter JOBS requirements through permanent sanctions for noncompliance, increased the number of JOBS case managers or provided additional JOBS slots, and increased the income limits for transitional child care. An early evaluation indicated that CPREP did not see a decrease in welfare dependence, but there was a slight increase in the percentage of recipients who were employed (compared with the control group). The state ended CPREP in July 1997 when it implemented Colorado Works, taking advantage of the option in the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) that allowed states to end their waiver demonstrations without being subject to cost neutrality requirements if they did so within 90 days of enacting their TANF program.

Colorado’s TANF response, although different from the reform embodied in CPREP, was influenced by two lessons learned from the waiver experience: Recipients need a support system of services in order to stay employed once they have jobs, and moving families from welfare to work is expensive and requires a long-term commitment.

Programs That Promote Financial Independence

To help promote self-sufficiency, cash assistance programs often need to be supplemented with employment and training, subsidized child care, child support collection efforts, and health insurance coverage.

Employment and Training

Employment and training programs in Colorado are in the process of moving toward a system of one-stop career centers, with the goal of serving all Coloradans. In 1994, the Colorado Workforce Coordinating Council (CWCC) was established to identify areas for reform to move toward this goal. In consultation with CWCC, the Colorado Department of Labor and Employment (CDLE) sets policy, develops performance standards, and allocates funds for career centers. Counties are heavily involved in providing job training services through administration of Job Training and Partnership Act (JTPA) Service Delivery Areas (SDAs) and will become more heavily involved through changes adopted during 1997.

CWCC recommended consolidating all U.S. Department of Labor-funded programs into a "seamless network of career centers delivering services at the local level." CWCC also recommended "ultimately" integrating Food Stamp Employment and Training, JOBS, Adult Education, Vocational Education, and other programs into the career centers, but its top priority was implementing the one-stop career centers through the Colorado Career Center System, a process that is to take place over three years.

In July 1997, following CWCC’s recommendations, the JTPA and Job Service programs were consolidated under the CDLE with 18 planned Workforce Development Regions (WDRs) as local administrative entities. Conversion of five of the seven SDAs in Denver and the neighboring counties into WDRs, where both JTPA and Job Service will be offered at one-stop centers (to be operated by counties or county consortia), was scheduled for fall 1997. The second wave is scheduled to convert the remaining SDAs into WDRs. The third and final wave will divide the single rural SDA into WDRs in 1999. CDLE plans to close most or all of its Job Service centers during the implementation period and convert their staffs, through attrition, to county employees.

School-to-Career (school-to-work in other states) is the next major program slated for consolidation, to be merged with the one-stop system by 2000. It is currently administered by the lieutenant governor’s office through an interagency team at the state level, six regional partnerships, and local school districts and businesses. Adult education programs, administered jointly by the Colorado Department of Education (CDE) and the Colorado Community College and Occupational Education System, are also supposed to be integrated with the one-stop system, but there is no formal mechanism for coordination between the two at the state level.

Welfare reform is unlikely to drive Colorado’s workforce development systems for two reasons. First, CWCC and CDLE view businesses and job seekers as their primary customers. Second, TANF, JOBS, and the Food Stamp program are far from being consolidated into the workforce development system. In 1997, an executive order from the governor directed CWCC to coordinate the one-stop workforce system with welfare-to-work as well as other programs. The details are left to CWCC, CDLE, and local WDRs to work out, but funds flow separately to distinct local government entities—county departments of social services and career centers—that must then coordinate services.

Child Care and Early Childhood Development

Colorado has taken a number of steps to encourage broad input into and awareness of child care policy. These include First Impressions (housed in the governor’s office and supported by private foundations to develop policy, coordinate programs, and advocate on behalf of families); the Business Commission on Child Care Financing (appointed by the governor to come up with financing recommendations); the Colorado Children’s Cabinet (made up of representatives from the state agencies that deliver or influence policy related to young children); Bright Beginnings (a public-private partnership that focuses on the prenatal period through age three); a governor-established Commission on Early Care and Education; and the Colorado Children’s Campaign (an independent nonprofit organization that works to raise the visibility of children’s issues).

Child care and child development are considered parts of an overall vision in the state, although the two components still have separate administrative structures. State policymakers are interested in bridging the gap between child development and child care by building an integrated system that enhances child development and provides care during all the hours parents need to support their work activities.

The Child Care Division of the Colorado Department of Human Services (CDHS) administers all child care subsidies, is responsible for licensing child care facilities, and oversees child care resources and referrals. The Colorado Child Care Assistance Program pools federal funding sources into a single program that serves all low-income families on a sliding fee scale based on family income. Federal funding accounts for about 55 percent of funds available for the subsidy, which served almost 32,000 low-income children in state FY 1996. The subsidy is administered through county departments of social services, and the state reimburses the county for child care subsidy payments to providers. These county departments are responsible for eligibility determination, authorization, and payments to providers. Until July 1, 1997, eligibility requirements were statewide, and there were few county options. The state’s response to TANF has increased county flexibility. There are no waiting lists for the subsidy program, which serves welfare and nonwelfare clients alike, although there is concern about what will happen as welfare reform progresses. Supply is reported to be a current problem, primarily for infants and toddlers and in rural areas.

The major child development programs are the Colorado Preschool Program and Head Start, structured as part-day, part-year programs operating in facilities separate from full-day child care centers. The Preschool Program is administered by the CDE, which is under the jurisdiction of the elected State Board of Education. It was established to serve four-year-olds and now operates in 110 of Colorado’s 176 school districts.

The Head Start Collaboration grant is administered by the governor’s office, with input from CDHS and CDE. An interagency group representing child care, Head Start, family care, preschool programs, and schools met for nine months and developed basic principles and beliefs and then agreed on strategies for early childhood programming. Blended funding, one of the strategies addressed by this group, was incorporated into pilot projects authorized in recently passed child care legislation.

Child Support

Colorado’s child support program is housed in the Division of Child Support Enforcement in CDHS and is administered by the state’s 63 county departments of social services. The state has been working hard to improve its child support system. In 1989, it initiated immediate income withholding, authorization to intercept lottery winnings, and a state case registry. Since then, it has implemented workers and unemployment compensation intercept, credit bureau reporting, driver’s license suspension, and in-hospital paternity establishment. Colorado has centralized collection and distribution of child support payments, which is the only part of the statewide child support responsibilities that is performed by a private contractor.

One of the state’s principal child support goals is to increase both the number of cases with support orders and the number of those cases that actually receive payments. Collections increased from $31.7 million in 1987 to $137.3 million in 1996, with the majority of the increase from non-AFDC cases. In 1996, for example, 54 percent of AFDC cases had support orders (compared with 63 percent for non-AFDC cases), and payments were made on only 24 percent of AFDC cases (compared with 31 percent of non-AFDC cases with child support orders). The state is currently examining the effectiveness of various innovations in processing child support cases through the Model Office Project—a three-year federal research and demonstration project with three sites in Colorado.

Medicaid

The Medicaid program is the main vehicle for providing health coverage to the low-income population in Colorado. Because increased Medicaid spending directly reduces the state’s ability to raise spending in other areas, the legislature is concerned with keeping its coverage limited. Thus Colorado’s Medicaid program covers only federally required groups. The state does, however, have certain state-only programs with limited coverage, in an effort to provide a decent floor on coverage without expanding the Medicaid entitlement. These state-only programs include the Colorado Indigent Care program, the Old Age Pension program, the Colorado Prenatal Plus program, and the Child Health Plan (recently replaced by the State Children’s Basic Health Plan). Some 540,000 Coloradans were uninsured in 1995, of whom 150,000 were children. These represent smaller proportions of the state’s population than the national average.

The only Medicaid change passed in response to federal welfare reform legislation was to authorize development of buy-in programs for both former welfare recipients and disabled recipients after they return to work. Some respondents expressed concern that the delinking of Medicaid from AFDC/TANF may create problems for counties in identifying and enrolling Medicaid-eligibles who are not on welfare, given that the pressure to move welfare clients to work may take precedence in an environment of limited caseworker time. To alleviate this concern, the state is developing an automated eligibility system that will include a stand-alone Medicaid eligibility system to interface with TANF, food stamps, and other programs.

Teen Pregnancy Prevention

The Family Services Division (FSD) of the Colorado Department of Public Health and Environment oversees statewide policy and programs concerning teen pregnancy prevention. Most of the state and federal money goes to serve pregnant and parenting teens, although FSD has been urging that more money be allocated to prevention. FSD produces an adolescent health report every few years, which is widely used. It also uses federal money to support teacher training in sexuality education in the schools and has recently added abstinence programs to its offerings. Colorado did accept federal money for abstinence-only programs and solicited proposals from local jurisdictions. In the 1996 legislative session, a provision was passed allowing Medicaid to cover primary prevention (aimed at 10- to 13-year-olds). Few counties have taken advantage of this provision, however, because the reimbursement process is cumbersome. FSD has been informing communities about this option and encouraging them to apply. In the private sector, the Colorado Trust, one of the state’s major foundations, has played a key role in supporting community-based prevention efforts. It is now in the fourth year of a five-year $10 million teen pregnancy prevention initiative.

Last-Resort Safety Net Programs

Although one of the goals of devolution is to promote the well-being of children and families, it is important to consider what might happen to families for whom the new rules and programs do not work as designed. Child welfare, housing, and emergency services have existed for a long time to "pick up the pieces" when families cannot cope.

Child Welfare

Child welfare in Colorado is the responsibility of the Office of Children, Youth, and Families in CDHS. The state office provides for a range of technical assistance and oversight responsibilities. Primary among these is oversight for a settlement agreement that followed a civil action brought by the Colorado Lawyers Committee on behalf of the state’s foster children and other children served by the child welfare system. The provisions of the Child Welfare Settlement Agreement (CWSA), reached in 1994, resulted from negotiations with CDHS, which had conducted its own investigation into the deficiencies of the system.

The impact of CWSA has been great. It has led to additional resources for the system, including increased state funding, maximization of federal funding, and overall staff increases. In addition, it has brought statewide standards concerning service delivery, policies and procedures, and documentation and automation. All counties now use a statewide risk assessment tool and state-mandated intake and investigation procedures and time frames. All counties are mandated to provide a wide range of core services, which can be provided as alternatives to or to prevent out-of-home placements. As of June 1996, all counties had implemented family preservation, in-home homemaker services, and aftercare services, and most had available mental health services, nonresidential substance abuse treatment, and ongoing family therapy. The state is unlikely to see much further change as a result of federal welfare reform, as child welfare services will continue to comply with the terms of settlement agreements.

Emergency Services and Housing

Colorado faces a continued shortage of affordable housing and a homeless population that increased by 18 percent between 1990 and 1995, as thousands of families a month streamed into Colorado because of its economic boom. The state plays a relatively limited role in serving the homeless, however, and provides no state funding for affordable housing development. The Coordinating Council on Housing and the Homeless includes representatives of nonprofit organizations and state agencies and plays a role in distributing federal McKinney funds. Otherwise, providing for the homeless is up to the counties. In Denver, the local site we visited, food, shelter, and transportation to individuals in a temporary emergency are provided by the local General Assistance program. Most services to the homeless are provided by private agencies. The Metropolitan Denver Homeless Initiative (MDHI) was formed in 1994 as a collaborative with more than 400 member organizations. MDHI has been involved in developing 753 transitional, permanent, and single-occupancy housing units.

Implications of the New Welfare Reform Legislation

Passage of federal welfare reform was the impetus for major welfare reform legislation in Colorado. The senator whose proposal finally prevailed (after two previous welfare reform bills were defeated) sought input from a broad range of groups, including AFDC caseworkers and recipients. The legislation’s primary goal was to shift from the AFDC/JOBS focus on education and training to a TANF program that stressed a work-first orientation through work requirements, time limits, and strict sanctions. The final legislation, Colorado Works, included uniform eligibility standards and benefit levels set by the state, but also transferred considerably more responsibility to the counties than had been the case under AFDC/JOBS (see table 3).

Colorado Works mandates that counties assess all applicants and recipients and enter into an individual responsibility contract (IRC) with each recipient. Counties may design their own assessment tools and contracts as long as they are confined to matters directly related to seeking and maintaining education, training, or employment. The absence of strategies to overcome personal barriers to employment (such as substance abuse) from the IRC does not reverse Colorado’s historical dedication to providing supportive services. It is, rather, a commitment to focus on outcomes, not behavior, and reflects a decision to manage personal barriers outside the IRC process. Counties may decide if they want a diversion program and how diversion assistance will be provided. They may also design and implement their own education, training, and work programs from a menu of mandatory and optional components. In addition, they may determine when recipients will have to work within the 24-month federal requirement and may provide any form of assistance, in addition to the cash grant, to promote long-term employment.

With respect to sanctions, the state defines penalties but the counties have some discretion on timing. For the first instance of noncompliance, a family’s grant is cut by 25 percent for at least one month until compliance but not more than three months as determined by the county. For the second instance, the grant is cut by 50 percent with the same stipulations. For the third instance, the case benefit is terminated for at least three months but not more than six months, again as determined by the county.

The increased flexibility for the counties embodied in Colorado welfare reform law is truly changing the state-county relationship, even in a state that has always had a decentralized system—with some consequent strains. The debate over performance contracts highlights the push and pull. All counties were required to submit their county operational plans for Colorado Works implementation by October 1, 1997, for state review. The counties were then supposed to sign a performance contract, with noncompliance sanctionable by the state. However, counties refused to sign the contracts and had ongoing negotiations with the state regarding what these documents should include. In December 1998, the state and the counties finally agreed on a memorandum of understanding between the Colorado Department of Human Services and Boards of County Commissioners. The only specific performance standards that counties are held accountable for are participation rates. There is a bill pending in the legislature that would require counties to have official written policies regarding welfare. Another area of controversy is the counties’ maintenance-of-effort funding requirements. That issue was revisited in the 1998 legislative session, resulting in a 9 percent reduction in county maintenance-of-effort requirements for state FYs 1997–98 and 1998–99.

Particular challenges for Colorado in complying with federal PRWORA/TANF requirements are work participation requirements, child support provisions, and provisions affecting immigrants. The TANF participation requirements necessitate uniform standards and reporting at the state level. Colorado is in the process of implementing a statewide system for tracking work participation rates, but counties disagreed with early figures and did not believe they should be sanctioned for not meeting participation requirements. In addition, the state’s current management information system is not designed to take into account county-specific policies as currently permitted under Colorado Works. CDHS officials acknowledge that the data system is an immediate priority, but the counties are pessimistic about the ability of the state to solve the problems quickly. Although Colorado has emphasized administrative processes rather than court involvement in child support enforcement for several years, some of PRWORA’s policies geared toward more centralized and standardized case processing are difficult to implement in a system with county discretion. Colorado passed legislation in 1997 to bring the state into full compliance with PRWORA requirements, but these requirements displeased several state legislators, who viewed them as increased government interference in individuals’ lives.

Colorado continued its commitment to providing a safety net for legal immigrants with legislation passed in 1997. The bill (S.B. 97-171) confirmed eligibility for the state’s Old Age Pension, Aid to the Needy and Disabled, and Aid to the Blind, irrespective of citizenship or date of entry. It also appropriated $2 million for FY 1997 in emergency assistance for immigrants losing eligibility for food stamps, but the bill contained two controversial provisions, both of which may be open to legal challenges. The first would count sponsors’ income as part of immigrants’ income in determining eligibility for these state cash assistance programs, which is a violation of Colorado’s state constitution. The second makes anyone who sponsors an immigrant ineligible for public assistance, which may violate the U.S. Constitution.

Changes in the relationship between the state and its counties in Colorado as a result of PRWORA/TANF offer the opportunity for innovation in one of the nation’s most comprehensive experiments in devolution. It will be important to watch whether counties take advantage of this opportunity to optimize the use of county resources and personalize service delivery, or whether energies will be diverted by the power struggle between the state and the counties as they try to adjust to a new state-local partnership.


Tables


Table 1
State Characteristics, 1995

  Colorado United States

Population Characteristics    

Population (1995) (in thousands)

3,689 260,202

Percent under 18 (1995)

26.5% 26.8%

Percent Hispanic (1995)

11.8% 10.7%

Percent Non-Hispanic Black (1995)

2.9% 12.5%

Percent Noncitizen Immigrant (1996)

5.1% 6.4%

Percent Rural (1990)

27.8% 36.4%

Population Growth (1990–1995)

13.7% 5.6%
Births:    

Per 1,000 Women Ages 15–19 (1994)

54 59

Per 1,000 Women Ages 15–44 (1994)

63.3 66.7

Percent to Unmarried Women (1994)

25.0% 32.6%

Percent to Women under 20 That Were Nonmarital (1994)

73% 76%

Economic Characteristics

   

Per Capita Income (1995)

$23,961 $23,208

Percent Change in Per Capita Personal Income (1990–1995)

24.6% 21.2%

Percent below Poverty (1994)

9.3% 14.3%

Unemployment Rate (1996)

4.2% 5.4%

Employment Rate (1996)

69.3% 63.2%

Percent Jobs in Manufacturing (1995)

11.0% 16.0%

Percent Jobs in Service Sector (1995)

25.3% 23.1%

Percent Jobs in Public Sector (1995)

13.6% 14.7%

Family Profile

   

Percent Two-Parent Families (1994)

39.0% 35.7%

Percent One-Parent Families (1994)

12.5% 13.8%

Percent Mothers with Child 12 or Under

   

Working Full-Time (1994)

41.2% 38.1%

Working Part-Time (1994)

14.6% 16.1%

In Two-Parent Families and Working (1994)

42.9% 40.3%

In One-Parent Families and Working (1994)

12.8% 13.9%

Percent Children below Poverty (1994)

12.4% 21.7%
Median Income of Families with Children (1994) $43,143 $37,109
Percent Children Uninsured (1995) 10.5% 10.0%

Source: Complete list of sources is available in Income Support and Social Services for Low-Income People in Colorado (The Urban Institute, 1998).


Table 2
Social Welfare Spending for Families
with Children in Colorado, FY 1995

Program $ in Millions Total Spending per
Poor Family

Federal
Spending

State
and/or
Local
Spending

Total
Spending
Colorado United
States

Income Support          

AFDC Benefits

$75.8 $67.0 $142.8 $699 $851

AFDC Administration

12.5 12.5 24.9 122 136

SSI for Children

43.5 213 184

EITC Federal

295.7 295.7 1448 1010

Food Security

         

Food Stamps, households with children

180.2 180.2 882 $711

Child Nutrition

97.7 97.7 478 344

Education and Training

         

JOBS

10.5 6.2 16.7 82 59

JTPA—TOTAL

26.6 26.6 130 NA

Title II

18.6 18.6 91 73

Title III

8.0 8.0 39 NA

Job Service

10.0 10.0 49 NA

Child Care/Development

         

AFDC

6.0 5.3 11.4 56 61

At-Risk

4.1 3.7 7.8 38 20

CCDBG

10.0 10.0 49 34

Head Start

35.8 35.8 175 117

Colorado Preschool

17.0 17.0 83 NA

Child Support Enforcement

         

Child Welfare

24.9 11.2 36.1 177 115

Protection/Family Preservation

         

Foster Care

5.4 1.8 7.2 NA NA

Adoption Assistance

24.4 22.4 46.8 NA NA

Other

3.3 3.0 6.3 NA NA

I-VA Emergency Assistance 0.8 0.8 NA NA

Health 32.7 32.7 65.5   NA

Medicaid, children only

116.8 103.2 220.0 1077 984

Source: Complete list of sources is available in Income Support and Social Services for Low-Income People in Colorado (The Urban Institute, 1998).

Table 3
Colorado’s TANF Program

Eligibility

Income eligibility for a recipient family of three with no unearned income and no child care expenses is $750/month in the first month of earnings, falling to $510/month in the thirteenth month of earnings; asset limit is $2,000.
Diversion Assistance Provides up to three months of cash or vendor payments, whichever the county prefers, for families with short-term needs; counties have the option of implementing a diversion assistance program for applicants eligible under TANF; counties can also choose to operate a separate diversion program for applicants not eligible for cash assistance under TANF.
Time Limits Five years, with exemptions for those who are disabled or ill, caring for a disabled person, or victims of domestic violence.
Earnings Disregards Disregards $120 and one-third of the remainder for the first four months of earnings; $120 for the next eight months (months 5–12); $90 after 12 months.
Work Requirements Adults must participate in work activities within two years of benefit receipt; counties have the option to exempt adults caring for children under age one. $164/month maximum for single parent with two children and no other income.
Work Sanctions For first instance of noncompliance, 25 percent reduction in benefit for 1–3 months (county option); for continued noncompliance after 3 months or second instance of noncompliance, 50 percent reduction in benefit for 1–3 months (county option); for continued noncompliance after another 6 months or subsequent instances of noncompliance, termination of benefits for 3 months (county option).
Benefit Level $356/month maximum for single parent with two children and no income.
Source: L. Jerome Gallagher, Megan Gallagher, Kevin Perese, Susan Schreiber, and Keith Watson. One Year after Federal Welfare Reform: A Description of State Temporary Assistance for Needy Families (TANF) Decisions as of October 1997. The Urban Institute, Assessing the New Federalism Occasional Paper Number 6, June 1998, various tables.

 


Also Available From Assessing the New Federalism:

1. The Medicaid Reform Debate in 1997. John Holahan, Joshua M. Wiener, and David Liska, July 1997.

2. The Other Side of Devolution: Shifting Relationships Between State and Local Governments. Keith Watson and Steven D. Gold, August 1997.

3. Health Care in New York City: Service Providers’ Response to an Emerging Market. Joel Cantor, Kathryn Haslanger, Anthony Tassi, Eve Weiss, Kathleen Finneran, and Sue Kaplan, March 1998.

4. The State Children’s Health Insurance Program: A Look at the Numbers. Frank Ullman, Brian Bruen, and John Holahan, March 1998.

5. Federal and State Funding of Children’s Programs. Toby Douglas and Kimura Flores, March 1998.

6. One Year after Federal Welfare Reform: A Description of State Temporary Assistance for Needy Families (TANF) Decisions as of October 1997. L. Jerome Gallagher, Megan Gallagher, Kevin Perese, Susan Schreiber, and Keith Watson, June 1998.

7. Adopting and Adapting Managed Care for Medicaid Beneficiaries: An Imperfect Translation. Robert E. Hurley and Susan Wallin, June 1998.

8. Counting the Uninsured: A Review of the Literature. Kimball Lewis, Marilyn Ellwood, and John L. Czajka, July 1998.

9. Does Work Pay? An Analysis of the Work Incentives under TANF. Gregory Acs, Norma Coe, Keith Watson, and Robert I. Lerman, July 1998.

10. Job Prospects for Welfare Recipients: Employers Speak Out. Marsha Regenstein, Jack A. Meyer, and Jennifer Dickemper Hicks, July 1998.

11. Medicaid Managed Care for Persons with Disabilities. Marsha Regenstein and Stephanie E. Anthony, August 1998.

12. Long-Term Care for the Elderly: Profiles of Thirteen States. Joshua M. Wiener and David G. Stevenson, August 1998.

13. Public Policy, Market Forces, and the Viability of Safety Net Providers. Stephen A. Norton and Debra J. Lipson, September 1998.

14. The Children’s Budget Report: A Detailed Analysis of Spending on Low-Income Children’s Programs in 13 States. Kimura Flores, Toby Douglas, and Deborah A. Ellwood, September 1998.

15. Child Care Assistance under Welfare Reform: Early Responses by the States. Sharon K. Long, Gretchen G. Kirby, Robin Kurka, and Shelley Waters, September 1998.

16. Cash Assistance in Transition: The Story of 13 States. Sheila R. Zedlewski, Pamela A. Holcomb, and Amy-Ellen Duke, December 1998.

17. Health Care Market Competition in Six States: Implications for the Poor. Randall R. Bovbjerg and Jill A. Marsteller, November 1998.

18. Health Policy for the Low-Income Population: Major Findings from the Assessing the New Federalism Case Studies. John Holahan, Joshua M. Wiener, and Susan Wallin, November 1998.

19. Portraits of the Safety Net: The Market, Environment, and Safety Net Response. Stephen A. Norton and Debra J. Lipson, November 1998.

20. The Cost of Protecting Vulnerable Children: Understanding Federal, State, and Local Child Welfare Spending. Rob Geen, Shelley Waters Boots, and Karen C. Tumlin, January 1999.

21. Welfare Reform and Interstate Welfare Competition: Theory and Evidence. Jan K. Brueckner, December 1998.

22. Controlling the Supply of Long-Term Care Providers at the State Level. Joshua M. Wiener, David G. Stevenson, and Susan M. Goldenson, December 1998.

23. Block Granting Welfare: The Fiscal Impact on States. Elizabeth T. Powers, forthcoming.


About the Authors

Nancy Pindus is a senior research associate at the Urban Institute. She served as case study coordinator for income support and social services for Assessing the New Federalism. Her work at the Urban Institute focuses on services integration, welfare reform, employment and training programs, public health programs, and organizational and industry analysis.

Randy Capps is a research associate at the Urban Institute and is currently a Ph.D. candidate in sociology at the University of Texas at Austin. His dissertation concerns self-employment among Mexican immigrants in the United States. His other interests are immigration policy, economic incorporation of immigrants, and education and training policy.

Amy-Ellen Duke is a research associate at the Urban Institute. Her career has concentrated on income support programs and related employment and training issues. She has been involved in a number of the Institute's assessments and evaluations of state welfare reform efforts, including a study of the impacts of welfare reform in rural communities.

Karin Malm is an independent consultant with a background in child welfare issues, including studies of the implementation of family support and family preservation services, incidence of child abuse and child neglect, and evaluations of family preservation, foster care, and adoption services. Currently, she is directing an assessment of domestic violence/child protective services collaboration grants for the Administration for Children and Families.


Funders

The project has received funding from The Annie E. Casey Foundation, the W.K. Kellogg Foundation, The Robert Wood Johnson Foundation, The Henry J. Kaiser Family Foundation, The Ford Foundation, The John D. and Catherine T. MacArthur Foundation, the Charles Stewart Mott Foundation, The David and Lucile Packard Foundation, The Commonwealth Fund, the Stuart Foundation, the Weingart Foundation, The McKnight Foundation, The Fund for New Jersey, and The Rockefeller Foundation. Additional funding is provided by the Joyce Foundation and The Lynde and Harry Bradley Foundation through a subcontract with the University of Wisconsin at Madison.

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Copyright © 1999

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