-.
- '
•-. /
-■'
.
.'• •
• / •
•• î
t - y W - . r •-/•.
$ •'* ’
• .j
’
, • '•
••-% . .
* .• • •
• .-
■w
P age A6
WH
A ugust 9, 1995 • T he P ortland O bserver
Dropping The Welfare Safety Net May Backfire
by
J anet G oknick
In August, the Senate w ill vote
on a Republican welfare b ill that
would end the “ entitlement" status o f
A id to Families with Dependent
Children (A F D C ), the nation’ s main
cash assistance program for single­
parent families.
The exact contours o f the Re­
publican plan are no, yet clear; a plan
recently approved by the Senate Fi­
nance Committee is now competing
with more conservative proposals
offered by presidential hopefuls Sen­
ator Bob Dole and Senator Phil
Gramm
I f any o f these plans becomes
law, the federal government no long­
er w ill be required to provide assis­
tance to poor families. The federal
role w ill be to provide block grants to
the states and, critica lly, spending
w ill be cut. The states w ill not be
obligated to provide any minimal
level o f assistance and, furthermore,
the plan allows them - and in some
versions requires them - to withhold
aid completely from certain groups
(including young parents, children
born to families on welfare and legal
immigrants). Such a measure would
unravel a section o f the safety net
stitched together
as partofthe Social Security Ac,
o f 1935.
Ironically, a Democrat catalyzed
the current wave o f Republican- led
welfare reform In 1992, B ill Clinton
shaped the national agenda with his
pledge to “ end welfare as we know
it.” Clinton argued, correctly, that
there are serious problems with
AFDC. What are those problems?
Liberals contend that program
rules (particulajjy, reduced benefits
for employed recipients) and limited
services (especially child care) dis­
courage able-bodied recipients from
employment. Moreover, low bene­
fits mean that virtually all AFDC
recipients - about 5
m illion parents and their 10 m il­
lion children -live below the poverty
level.
Conservatives typically argue
that welfare creates dependency and
encourages
o u t-o f-w e d lo c k
childbearing. C rucially, liberals and
conservatives are in considerable
agreement on one point: The current
welfare system discourages recipi­
ents from leaving welfare for em­
ployment.
In mid 1994, Clinton unveiled a
reform proposal. His “ tough love”
plan called for expanded services -
largely to facilitate employment -
including education, training, child
care and health insurance guaran­
tees Moreover, “ to make work pay,”
the administration proposed increas­
ing tax credits for working parents,
and also guaranteed jobs for those
unable to secure private-sector work.
Finally - the “ tough” par, - the plan
tightened e lig ib ility rules (such as
requiring minors to live with their
parents) and initiated time lim its on
cash assistance. In a textbook case o f
interparty competition. Republicans
picked* up w e lfa re
re fo rm .
Emboldened by resurging conserva­
tism - including a strand that is clear­
ly racist and anti-immigrant - and
then exhilarated by their 1994 elec­
tion victories, H ill Republicans
pushed welfare reform steadily to the
right.
They retained the time limits,
jettisoned the services and guaran­
teed jobs and expanded states’ op­
tions for restricting eligibility. Dis­
mantling the entitlement status was a
late addition. Now, the GOP plans
are disconnected from the root prob­
lems; the proposed changes no long-
Disparity Between Wealthy And
Poor Worse Than Expected
The inequality between rich and
poor in the United States is far worse
than even its sternest critics have
charged, astudy by aC alifom ia think
tank said Monday.
The study comes as the Clinton
administration is battling with Con­
gress over wha, to do about the widen­
ing gap between haves and have-nots
in society. The president has accused
Republican lawmakers o f planning to
use cuts in government spending on
the poor and elderly to pay for tax cuts
for the wealthy, exacerbating the gap
between rich and poor.
The analysis by Rand Corp, se­
nior economist James Smith noted
that the disparity on accumulated
wealth comes as the pension system
is in steep decline and Social Securi­
ty’s promises seem impossible to keep
as the population ages.
“ Loud alarm bells are ringing
for the future,” it said.
“ Wealth inequality in America
is simply enormous, several times
greater than the growing income d if­
ferentials that have triggered so much
recent discussion and dismay.”
The study said most middle-aged
and elderly households have very
modest holdings at best, while large
segments o f the over-50 population
have no net worth at all. Disparities
in conventional wealth such as finan­
cial assets, home equity and business
holdings are very large among white
households.
The top"five percent o f white
families with at least one spouse over
70 have wealth o f $655,000, seven
times the $90,000 held by the median
white household. White households
in the bottom 10 percent have less
than $800.
Among white households in the
pre-retirement years o f 51 to 61, the
top five percent have socked away
$300,000, while the typical family
has $ 17,300 and the bottom fifth has
$800 or less.
The situation for minorities is
far worse. The typical black and His­
panic household has less than $500
in assets and four ou, o f 10 have
nothing.
The analysis used two national
surveys by the National Institute on
Aging to reach its conclusions. One
sample examined 7,600 households
with at least one member between 51
and 6 1, wh i le another looked at 6,000
families with at least one spouse 70
years or older.
Differences, it said, can be ac­
counted for by less income com pli­
cated by higher divorce levels, which
apparently affect savings behavior,
and the fact that poor families tend to
have poorer health, also a key
déterminent o f wealth.
Labor Secretary Robert Reich
has been waging a campaign to in­
crease training for those unable to
compete in the new global economy.
University Of California
Scraps Affirmative
Action
W h ite House C h ie f o f S ta ff
Leon Panetta said Sunday that
federal co ntracts w ith the U n i­
v e rs ity o f C a lifo rn ia w o u ld be
review e d fo llo w in g last w e e k’ s
c o n tro v e rs ia l decision to scrap
race and sex preferences.
“ W e ’ re g oing to be re v ie w ­
ing o ur co n tra ct laws and the p ro ­
v is io n o f resources to that state,”
Panetta to ld “ Face the N a tio n ”
on C BS , add in g that he does not
kn ow w hether the state system
w o u ld end up losin g c ru c ia l fe d ­
eral contracts.
“ T he Justice D epartm ent and
the o th e r agencies are g o in g to
re v ie w that re la tio n s h ip w ith the
state,” Panetta added.
L a te r, C a lifo rn ia G ov. Pete
W ils o n to ld C N N ’ s “ Late E d i­
tio n ” : “ I th in k these are abso­
lu te ly sham eful threats. ... 1 do
not intend to be swayed by them .”
W ils o n , w ho a n g rily clashed
w ith c iv il rig h ts leader Jesse Jack-
son in te le v is io n appearances this
weekend, said h e “ can’ t concieve
o f a n y" circum stances in w hich
the U n iv e rs ity o f C a lifo rn ia a f­
firm a tiv e a ctio n ru lin g w ou ld be
re v is ite d .
Ja ckson on A B C ’ s “ T h is
Week w ith D a vid B r in k le y " and
la te r on C N N said he w o u ld
m ount a legal challenge to the
C a lifo rn ia a ctio n and accused
W ilso n o f p o stu rin g to advance
his quest fo r the 1996 R e p u b li­
can p re sid e n tia l n o m in a tio n .
The U n iv e rs ity o f C a lifo r ­
n ia ’ s g o ve rn in g Board o f Regents
A d v e rtis e In
(The P o , t l . i n b ( O l i s r r t i r r
( all 503-2M-0033
voted Thursday to end a decades-
o ld p o lic y that gave preference
to women and racial m in o ritie s
in e nro llm e n t and em ploym ent at
the nine-cam pus, 162,000-stu-
den, body
The decision puts C a lifo rn ia
in the fo re fro n t o f national moves
to reth ink a ffirm a tiv e action p o l­
icies, used since the 1960s to
help women and m in o ritie s .
The San Francisco C h ro n i­
cle reported Saturday that the
change in p o lic y at the C a lifo r­
nia u n iv e rs ity system puts at risk
b illio n s o f d o lla rs jn c ru cia l fed­
eral research contracts.
Woody G illiland, deputy direc-
toi o f the O ffice o f Federal Contract
Compliance Programmes in San
Francisco, told the Chronicle his o f­
fice wants to meet with the university
administration to determine what
funding changes would occur.
,
“ The p o in t is they must con­
tinue to have an a ffirm a tiv e ac­
tio n program m e i f th e y ’ re going
to continue to be a federal con­
tra c to r,” G illila n d to ld the news­
paper.
Panetta to ld CBS that the a f­
firm a tiv e action vote was a ma­
jo r setback fo r the u n iv e rs ity sys­
tem and the state.
“ I th in k i t ’ s w rong and I th in k
it is d iv is iv e and 1 th in k i t ’ s rea l­
ly g o in g to set that state back,”
Panetta said.
The change in adm issions
p o lic y w ill take e ffe ct in January
1997, the change in h irin g and
c o n tra c tin g in 1996.
An Opportunity To
Make a Difference
The PCC program prepared me realistically for the workplace. Things
I’ve encountered were not a surprise, and I felt capable.”
Kim Wanecke
The PCC Alcohol and Drug Counselor program Ls a good
career choice for people with strong motivation to help
others toward significant change.
♦ A highly-regarded, challenging health care program
♦ Iransfer.s directly to related bachelor’s degree programs at
several colleges
♦ Free orientations, 5 to 6 p m. in Student Center Bldg, Mon
8/14, Wed 8/30, Thurs 9/14 (all Rm 204) and Tues 9/26 in
Rm 201.
For adm issions packet
Call 978-5668
Cascade Campus
705 N. Killingsworth
er constitute “ reform” in any recog­
nizable sense. Based on false as­
sumptions, these proposals are dan­
gerously o ff course. What’s wrong?
First, Republican leaders have
justified welfare retrenchment, in
part, by the need to reduce federal
spending. They have s k illfu lly culti­
vated mis-perceptions o f welfare’s
costs. AFDC spending absorbs only
I percent o f the federal budget; even
a total elimination o f the Federal
share would barely affect the deficit.
Second, the Republican plans over­
look the fact that most adult AFDC
recipients - 90 percent o f which are
women - are poorly prepared for
employment.
Nearly h alf lack high school d i­
plomas and few have marketable
skills. Wages for unskilled workers
are low and sinking, and their jobs
rarely provide benefits that working
parents need. The GOP plans errone­
ously assume a labor market pre­
pared to absorb nearly 5 m illion
young mothers.
Third, Republicans claim that
steep welfare cuts and rule changes
w ill reduce out-of-wedlock births.
Although that is intuitively appeal­
ing, a decade o f research has found
no causal linkage between welfare
rules and birth rates. Contrary to
popular imagery, families on welfare
have, on average, fewer children than
do the typical American family Fur­
thermore, a large share o f recipients
have never had any children out o f
wedlock. Nearly h a lf o f AFDC re­
cipients first applied for aid fo llo w ­
ing a di vorce or separation, and many
turn to welfare for other reasons.
Finally, all o f the Republican
plans jeopardize the well-being o f
our children. The proposed time lim ­
its would push 4 m illion children o ff
the rolls. Families on AFDC already
live on the edge - average monthly
AFDC benefits are less than $400 for
a family o f three, about half their real
value in 1970 - and child poverty
rates in the U S. are the highest in the
industrialized world. Cutting offthese
families could lead to a surge in
hopelessness, crushing pressure on
child welfare services and declining
nutrition.
The short-term costs associated
with pulling the net from under poor
children w ill be great. The long-term
costs could be enormous.
Republican presidential candi­
dates are now wrangling over which
version is the toughest; Gramm calls
Dole’s proposal token reform. As
one o f my students said o f his party’s
senators, “ they’re acting like a bunch
o f drunken sailors. “ Let’s hope that
they sober up soon - and shift back
toward a proposal that addresses the
underlying problems with welfare.
Now Clinton is revising his plan.
While hardly ideal - many find the
time limits harsh - it is far more
rational, and Congress should look
again at its provisions.
To become independent from
welfare, poor parents need servic­
es— especially child care and health
insurance. Furthermore, given their
low earnings capacity, welfare recip­
ients need training, education, jo b
guarantees and wage support. Yes,
the Clinton package carries a price
tag - the original estimate o f approx­
imately $9 b illion over five years
But that is an investment in poor
families that w ill surely pay for itself.
W ithout it, the costs associated
with poverty, especially among chil­
dren, w ill only rise.
(Editor's note: Janet Gornick
is assistant professor o f political
science at Baruch College o f the
City University o f New York.)
Helpful And Practical Advice
This year in the face o f federal
government cutbacks, there w ill still
be more than $200 b illion given out
to independent contractors. Despite
the controversy surrounding A ffir ­
mative Action, many o f these con­
tracts w ill be assigned to small busi­
nesses, m inority businesses and busi­
nesses owned by women.
Why do some businesses get
these contracts and other don’t? A c­
cording to A Manual for Small, M i­
nority and Women-Owned Business­
es: Government Programs and Op­
portunities, it’ s because only a few
business owners understand how the
process o f government contracting
works.
This simple guide to a m ulti­
billion dollar industry was the brain­
child o f B ill Henderson and Bert
fruxal. Built on practical experience,
these two Cal i fom ia contractors iden­
tify the do’ s o f working with the
federal government on contract work.
Three years in the making, the book
centers on the five most important
steps in gaining significant and lu­
crative federal contracts:
Clear discussion on how and
why the government buys.
Descriptions o f available gov­
ernment and government-related pro­
grams on the federal and state level.
Useful advice in obtaining and
fu lfillin g government contracts.
A complete and comprehensive
directory o f agencies that w ill offer
contracted work this year.
Quarterly updates o f changes in
government regulations and policies
relating to contracts, financing and
grants.
This book contains many useful
tips for managers o f existing busi-
nesses and for those considering
opening a business. To order this
manual, call to ll free 1-800-972-
3312.
WE DON'T CARE CLEANERS
LOOK
FAMILIAR?
TRY US!
We Are Open
7 Days A Week
‘Till 9:00pm
WE OFFER
High Quality Cleaning and Pressing
Great Laundered Shirts (we do our own)
Tailor On Duty
Bring In This Ad and Receive 20% Off Your Next Dry Cleaning Order
o n e hour .
D R V C L E R n iR C
1419 re .
7-9
281-6133 Mon-Fri
Mon"Fri7
'9
Sat-Sun 8-9
Albina Youth
Opportunity School, INC
Memorandum
Tor Parents, Guardians, Students
To: High School Placement Professionals
From: Albina Youth Opportunity School (AYOS)
Subject: 1995 - 1996 Enrollment Procedures
Several forms must be signed and/or completed prior to enrollment in AYOS. To
receive an AYOS enrollment packet, prospective and returning students and
their parents/guardians should'do the following between July 1st and Septem­
ber 4th:
1 - Call AYOS at 288-5813.
2 - Leave a message with names, address AND phone number on AYOS Executive
Director, Rance Spruill’s voice mail. (203-9618)
3 - Students, Parent/Guardians attend the MANDATORY enrollment meeting at
AYOS on September 5th at 9 am. Bring a current transcript (new students only),
and any other pertinent information.
4 - Also, on September 5th schedule an individual intake interview with AYOS
counselor, Faith Love.
5 - Attend the intake interview as scheduled. Parent/guardians must attend this
interview.
PLEASE BE ON TIME.
Portland
Community
College
(Free shuttle bus from other campuses)
Placement at AYOS is limited. Enrollment will be on a first come first served basis.
Students who do not attend the September 5th enrollment and intake interview are not
guaranteed placement.