New York Has Lowest Number Of Welfare Recipients In 37 Years

by Assemblyman Willis J. Stephens, Jr.

New York state is no stranger to being first in the nation. We who live in the Empire State have every right to be proud of our state’s great achievements over the years, and this year is no exception. New York was recently ranked first in the nation in a comparison study of state tax relief assistance offered to working families that rely on child and dependent care. In addition, Gov. George E. Pataki recently announced that the number of individuals receiving welfare in New York state has declined by more than one million since January 1995, bringing New York’s welfare rolls to the lowest level in 37 years.

According to figures from the state Office of Temporary and Disability Assistance (OTDA), the number of individuals receiving cash assistance is now 640,131, down 1,003,701 from January 1995. The last time there were fewer New Yorkers on public assistance was February 1965. In addition, according to the U.S. Bureau of the Census, the child poverty rate in New York state has declined by 28 percent, from 26.4 percent in 1994 to 19 percent in 2000. This is the lowest level in more than 21 years.

In March, the state exceeded all required federal welfare-to-work participation rates for the fourth consecutive year, as welfare rolls continue to drop to the lowest levels in a generation. During 2000, New York achieved a 33.2 percent all-family participation rate, compared with the adjusted federal required rate of just 5.2 percent.

A large number of support systems is required to help families maintain the newfound independence that comes with moving from welfare to work. Today, New York provides support and programs, not just to those trying to leave assistance, but also to those who have left welfare behind and trying to make better lives for their families. Ongoing support is essential in order to prevent a relapse of dependency on the welfare system. An important component of New York’s success in reducing welfare dependency is its commitment to quality child care for low-income New Yorkers. Since 1996, subsidized child care slots have more than doubled, from 72,000 to 177,500 as proposed in the 2002-03 executive budget. Funding for child care has more than tripled, from $279 million in 1995 to $877 million in the 2002-03 budget proposal.

New York’s Child Health Plus program is recognized as the nation’s best, with current enrollment at an all-time high of 550,000 previously uninsured children, up from about 90,000 enrolled in 1994. New York is committed to providing health insurance coverage to working families and their children.

Family Health Plus and Disaster Relief Medicaid have helped nearly 400,000 New Yorkers receive the health services they need and deserve, while the Healthy New York program provides insurance coverage to small business employees.

New York’s Earned Income Tax Credit (EITC) will expand from 20 percent of the federal credit to 30 percent when fully phased-in by 2003. New York is one of only 13 states with an EITC program, and New York’s rate is among the highest nationally. The EITC has been shown to lift more children out of poverty than any other program.

There have been more than 660,000 job placements of public assistance recipients since January 1995 and more than 132,000 in the last year alone. Allowing low-income wage earners to keep more of what they earn is a key component of New York’s efforts to make employment more rewarding to those who move from welfare to work. To that end, New York has one of the highest income thresholds in the nation before taxes are levied, and since 1995 the state’s personal income tax cuts have moved several hundred thousand people off the tax rolls.

New York is a great state because it takes care of its own. If you have any questions or comments about this or any other issue of state importance, feel free to contact my district office at 225-5038 or my Albany office at (518) 455-5783.