Iowa's Limited Benefit Plan (LBP)

IOWA

Iowa's Limited Benefit Plan (LBP)
Date of Report:	May 1997 (http://www.aspe.hhs.gov/hsp/isp/iowalbp/Cover.htm)
Methodology:	Survey and administrative data: 137 surveys of households whose benefits were terminated (85% response rate)
Study Timeframe:	Survey data of leavers off cash assistance for one to five months.
Investigator (Contact):	Mathematica Policy Research, Inc. and the Institute for Social and Economic Development (Thomas Franker 202-484-4698)
Study Objective:	To examine the experiences of families who lost cash assistance for six months under the design of the Limited Benefit Plan (a component of Iowa's Family Investment Program).

Comparable State Findings:	Former Recipients
Percent employed after termination of cash benefits	53%
Mean/Median hourly earnings	N/A
Percent receiving Food Stamps/Medicaid at time of interview	64% / 66%
Percent who say life is "better" after welfare (increased independence/self-esteem)	24%
Percent receiving cash assistance in first year since exit	N/A

Employment & Income

The mean total monthly household income of leavers was $735.62. However, the distribution of income varied greatly between $300 per month and $1,000 per month. For example, 23% of respondents received $300 - $499 per month, 24% received $500 - $699 per month, and 27% received $799 - $100 per month.
38% of respondents reported working 40 or more hours per week. Respondents average weekly earnings were $170.
Among those employed, 10% received health insurance through their employer.
49% of respondents experienced a decrease in income after exit which averaged $384 per month. In contrast, 40% of respondents experienced an increase in income following exit which averaged $496 per month.

Other Supports

At the time of interview, 23% of respondents were living with a friend or relative.
The number of respondents receiving child support increased 9% from the last month of cash assistance to the time of the interview. For families receiving child support at the time of exit, the average increase in child support was $89 per month.

Family Well-Being

While nearly half (49%) of those whose benefits were terminated experienced a decrease in income after exit (from LBP), 53% of all closed cases were eligible to re-apply.
30% of all closed cases left assistance before their benefits ended.
55% of respondents reported difficulty in meeting household expenses and 39% reported difficulty providing for their children after their cash assistance ended. However, 19% of respondents reported no difficulties after ending cash assistance.