W-2 Policy Reform

Wisconsin led the nation in replacing the welfare system with a work-based program, introducing "Wisconsin Works" (W-2) in 1997. While AFDC (Aid to Families with Dependent Children) provided a safety net for low-income children and their families, W-2 eliminated the safety net and focused on improving the employment potential of low-income adults. View a comparison chart of AFDC and W-2.

Rather than provide real supports to families in crisis, the W-2 program is designed to make supports more difficult to access. Rather than provide low-income parents with the opportunity to upgrade their skills and move into good jobs, W-2 pushes participants immediately into the labor market. As a result of these two features of program design, families in need often must do without. Families experiencing a crisis may have difficulty navigating the program to get the supports they really need. People who have some capabilities, but who could do much better with education or skills improvements, end up being pushed directly into low-wage, dead-end work.

Because it is funded by a federal block grant (Temporary Assistance to Needy Families or TANF), W-2 is subject to federal TANF guidelines. W-2's program design is more punitive and harsh than federal law requires. Much of IWF's advocacy seeks to create more options for participants, by maximizing the flexibility in TANF to provide better support programs for families in need.

IWF has conducted research and advocacy to improve W-2 since it was first discussed in 1996. In the initial implementation phase, IWF released several studies that demonstrated gaps in the program. Agencies failed to provide appropriate services to immigrants and victims of domestic violence. Participants with limited education and minimal skills were classified as job ready and denied support and services. Though welfare caseloads declined, the number of families living in poverty remained the same. More recent research has focused on how to improve policies so that the program can better serve low-income parents.

Another dimension of IWF's advocacy has focused on working with the state administration to improve service provision and policy. Staff served on the education and training policy group of the W-2 Advisory Panel from 2001-02. In 2002, IWF was appointed to the Governor's Task Force on Transitional Jobs; in 2003-04, staff served on the Department of Workforce Development's Sanctions Study Steering Committee.

IWF regularly lobbies legislators and testifies before legislative committees on key issues in W-2 reform, including budget matters, policy improvements, and the need for better access to state data on program performance.

We are determined to connect local advocates and service providers with opportunities to influence policy at the state level. If you are interested in learning more about our efforts with local organizations across the state, or if you would like to schedule a presentation on the W-2 program and the need for reform, contact Kristin Settle, Project Director.