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Welfare Reform Project

COLORADO

Evaluation of the Colorado Works Program, Third Annual Report, Caseload Trends, Employment Outcomes and Post-Exit Support Services

Date of Report:

November 2001 (http://www.state.co.us/gov_dir/audit_dir/2002/2002perf/1260Pt2.pdf)

Methodology:

Administrative data of families who exited in the 1st quarter of 1997 through the first quarter of 2001.

Study Timeframe:

Study compares outcomes for those who left welfare between 1997 and 2001.

Investigator (Contact):

Berkeley Policy Associates
(Vince Valvano, 510-465-7884)

Study Objective:

Evaluation of program operations, caseload trends and recipient outcomes.

Comparable State Findings:

Former Recipients

Percent employed 4th quarter after exit

53%

Mean/Median hourly wage of those employed

N/A

Percent receiving Food Stamps 12 months after exit

34%

Percent who say life is "better" after welfare

N/A

Percent receiving cash assistance in first year since exit (among 2000 leavers)

18%

Employment & Income

  • 56% of those who left welfare in state fiscal year 2000 were employed the 1st quarter after exit, up from 53% of fiscal year 1998 leavers.
  • 32% of leavers were employed in all four quarters after exit.
  • During the 2 years following exit, only 20% of the 1998 leavers were employed in all 8 quarters.
  • The median earnings among employed 2000 leavers were $2,793 in the 4th quarter after exit, up from $2,520 for 1998 leavers.
  • Median earnings for employed leavers increased by 14% - 18% between 1st and 4th quarters after exit.
  • 74% of leavers that filed income taxes received the state earned income tax credit for tax year 2000.

Other Supports

  • Although most leavers were eligible for food stamps after exit, less than 4% received them for the full 12 months after leaving cash assistance (based on those who left 1st quarter 2000).
  • More than half of leavers received food stamps for 6 months or less after exit (based on those who left 1st quarter 2000).
  • Medicaid receipt increased over time for families leaving welfare. The number of adults enrolled within 2 months of exit increased from 60% 2nd quarter 2000 to 77% 4th quarter 2000. Similarly, the number of children enrolled within 2 months of the family's exit increased from 68% 1st quarter 2000 to 83% 1st quarter 2001.
  • On average, 13% of 1997 and 1998 leavers were using child care subsidies 12 months after exit. An average of 26% of these leavers had relied on subsidies at any point within the first 12 months after case closure.

Family Well-Being

  • Among those who left welfare in 1997 and 1998, more than 50% of leavers who worked continuously had earnings above the poverty level (compared to less than 20% of those who did not work continuously).
  • The use of continuing support services is helpful in lifting families above the poverty level. Among those who left welfare between 1997 and 1999, only 38% of single parents had an income above the poverty level. Once child care assistance, food stamps and state and federal earned income tax credits were figured in, 59% of single parents had an income above the poverty level (for tax year 2000).


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