TEXAS Families in Transition. Surviving without TANF: An Analysis of Families Diverted From or Leaving TANF

TEXAS Families in Transition. Surviving without TANF: An Analysis of Families Diverted From or Leaving TANF
Date of Report:	January 2002 (http://www.dhs.state.tx.us/publications/TexasFamilies2002.pdf)
Methodology:	Administrative and survey data of diverted families who applied for TANF between April 1998 and June 1999. Administrative data and interviews from leavers who exited between April 1998 and June 1999 and administrative data and a survey of those that left between July 2000 and September 2000. (71% response rate of leavers who exited in 2000)
Study Timeframe:	Leavers were off TANF for at least six months.
Investigator (Contact):	Texas Department of Human Services (James Hine, Commissioner, 512-438-3030)
Study Objective:	What are the characteristics associated with leaving TANF or being diverted and how do these families manage.

Comparable State Findings:	Former Recipients
Percent employed in the 4^th quarter after exit	52%
Mean hourly wage of those employed	$7.20
Percent receiving Medicaid (children)/Food Stamps in the 4^th quarter after exit	60% / 46%
Percent who say life is "better" after welfare	N/A
Percent receiving cash assistance in first year since exit	37%

Employment & Income

70% percent of leavers were employed at some time in the year following exit, however, only 33% were employed in all four quarters after exit.
The median annual earnings (according to administrative data) for leavers employed in all four quarters were $9,738.
52% of leavers who exited between April 1998 and June 1999 were employed 18 months after exit.
Leavers who exited between July and September 2000 reported working an average of 36 hours per week and being employed for just under 5 months.
Leavers who exited between April 1998 and June 1999 had average quarterly earnings of $2,285 eighteen months after exit, up from $1,926 in the quarter of exit.
41% of leavers reported exiting because they found a job or had too much income-41% of those that returned to TANF returned because they lost their job, were laid off or stopped working.

Other Supports

17% of employed leavers who exited between April 1998 and June 1999 and 24% of employed leavers who exited between July and September 2000 reported receiving subsidized child care in the month of exit.
According to administrative data, 21% of leavers received formal child support payments after exit.
29% of employed leavers who exited in July through September 2000 reported receiving benefits from their job, however, 17% of employed leavers reported that benefits were offered but they could not afford the employee contribution.

Family Well-Being

11% of leavers who exited between April 1998 and June 1999 reported having earnings above the poverty level 18 months after exit. However, only 3% of leavers who exited between April 1998 and June 1999 reported having earnings at a self-sufficient level (165% of poverty) 18 months after exit.
22% of leavers had no benefits or earnings in the 4^th quarter after exit according to administrative data.
The most commonly reported reasons for not working (according to a survey of leavers who exited between July and September 2000) were child care problems (31%), currently looking for work (27%), and transportation problems (25%).
38% of surveyed leavers reported being unable to afford a place to stay or pay their rent in the past six months.