W-2 (WISCONSIN WORKS):

An Analysis of Impact on Families and Children

W-2 (Wisconsin Works): An Analysis of Impact on Families and Children--report cover

Professor Anne Statham
University of Wisconsin-Parkside

Pamela Fendt
University of Wisconsin-Milwaukee

November 1995

EXECUTIVE SUMMARY

The W-2 Program proposes to replace the current system of Aid to Families with Dependent Children (AFDC) with a work program designed to increase economic self-sufficiency and build stability among low-income families currently receiving public assistance.

The Institute for Wisconsin's Future (IWF) has examined the impact of the W-2 Program on the potential for economic self-sufficiency and family stability among current AFDC households in Wisconsin as the second component of a two-part study on the feasibility and impact of the W-2 proposal.

According to the results of this analysis, there are four primary findings:

Over one quarter of the families participating in the W-2 program (and 43% of all persons impacted) will experience a drop in income. This will leave an estimated 47,886 children living deeper in poverty.
The combined impact of reduced incomes for 15,000 families and the removal of all supports for an estimated 2,600 families due to sanctions could generate at least a 15% increase in the number of children who will be removed from their homes due to abuse or neglect.
The costs for out-of-home care for Wisconsin children compared to AFDC increases public assistance levels 135% to 2500% per child per year.
W-2 has the greatest negative impact on 17,800 high-risk families, including families with three or more children, families headed by a disabled parent and families with special needs children. These families face the largest reduction in income and/or the greatest difficulty in meeting work requirements necessary to secure even basic supports such as Food Stamps and Medicaid.

The results of this research demonstrate that W-2 does not assist the majority of families to achieve self-sufficiency and will contribute to an increased level of family disintegration as additional children are taken from the home and placed in state custody.

While some households may benefit from W-2, too many will not. The current program design does not provide the long-term structure or short-term flexibility necessary to meet the widely varied needs of AFDC families. Without substantial changes, W-2 will increase the level of crisis in many fragile families and lead to severe and sustained hardship for thousands of Wisconsin children.

Stratham, A. & Fendt, P. (1995, November). W-2 (Wisconsin Works): An analysis of impact on families and children. Milwaukee, WI: Institute for Wisconsin's Future.

For a printable online version of the full report (PDF*), click here.

*PDF requires Adobe Reader. Download it for free here.

To obtain a printed copy of the full report, order online or contact IWF at 414-384-9094 or iwf@wisconsinsfuture.org.

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