1107 9th Street,

Suite 310

Sacramento,

California 95814

(916) 444-0500

www.cbp.org

cbp@cbp.org

1107 9th Street,

Suite 310

Sacramento,

California 95814

(916) 444-0500

www.cbp.org

cbp@cbp.org

Jobs and CalWORKs: Recent Trends

A PRESENTATION BY SCOTT GRAVES, SENIOR POLICY ANALYST

November 2011

2

The Great Recession Has Not Ended for Many California Families

3

July 200715,214,300

September 200913,851,100

September 201013,847,900

February 201114,060,900

August 201114,057,200

13,500,000

14,000,000

14,500,000

15,000,000

15,500,000

Seas

onal

ly A

djus

ted

Num

ber o

f Non

farm

Job

sCalifornia's Job Growth Has Flat-Lined Since Early 2011

Source: Employment Development Department

4

14.0

3.1

0

2

4

6

8

10

12

14

16

Unemployed Job Openings

Seas

onal

ly A

djus

ted

Num

ber o

f Une

mpl

oyed

and

Jo

b Op

enin

gs N

atio

nwid

e, A

ugus

t 201

1 (in

Mill

ions

)The Number of People Looking for Work Nationwide Exceeds Available Jobs by More Than Four to One

Source: US Bureau of Labor Statistics

5

July 2007143,500

February 20111,032,100

September 2011977,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Num

ber o

f Job

less

Cal

iforn

ians

Une

mpl

oyed

for A

t Lea

st 2

7 W

eeks

The Number of Long-Term Jobless Is Nearly Seven Times Higher Than It Was Before the Recession Began

Note: Data reflect 12-month averages ending in the month displayed. Source: Employment Development Department

6

50.0%

62.1%

69.8% 69.2%

58.8%

30%

40%

50%

60%

70%

80%

Perc

enta

ge o

f Cal

iforn

ia S

ingl

e M

othe

rs W

ith J

obs

The Share of Single Mothers With Jobs Dropped by More Than 10 Percentage Points, 2007 to 2010In Just Three Years, the Recession Erased All Employment Gains Following State and Federal Welfare Reform

California implementswelfare reform

Source: CBP analysis of US Census Bureau data

7

More Than Three Out of Four CalWORKs Recipients Are Children

8

Children77.0%

Adults23.0%

More Than Three Out of Four CalWORKs Recipients Are Children

Number of Individuals Receiving CalWORKs Cash Assistance in June 2011 = 1,475,623

Source: Department of Social Services

9

After Declining for Many Years, the Number of CalWORKs Families

Has Risen Substantially Due to the Great Recession

10

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Num

ber o

f Fam

ilies

Rec

eivi

ng A

FDC/

CalW

ORKs

Cas

h As

sist

ance

Number of Families Receiving CalWORKs Cash Assistance Generally Declined Through Mid-2007

Source: Department of Social Services

Great Recession begins(December 2007)

Great Recession ends(June 2009)

2001 recession begins(March 2001)

2001 recession ends(November 2001)

CalWORKs implementation begins(January 1998)

Federal welfare law enacted(August 1996)

Caseload peak(March 1995)

Caseload trough(July 2007)

11

597,723

450,000

475,000

500,000

525,000

550,000

575,000

600,000

625,000

Num

ber o

f Fam

ilies

Rec

eivi

ng C

alW

ORKs

Cas

h As

sist

ance

Number of Families Receiving CalWORKs Cash Assistance Has Risen Substantially Since Mid-2007

Source: Department of Social Services

12

The Purchasing Power of CalWORKs Cash Assistance Has Dropped Significantly

13

$1,325

$694

$638

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Max

imum

AFD

C/Ca

lWOR

Ks G

rant

for a

Fam

ily o

f Thr

eePurchasing Power of CalWORKs Grants Has Dropped by More Than Half Since 1989-90

Grant Level if Grant Had Been Adjusted for Inflation Each Year Actual Grant

Note: Maximum grants are for high-cost counties beginning in 1996-97.Previously, maximum grant levels did not vary by county.

Source: CBP analysis of Department of Finance and Department of Social Services data

Loss ofpurchasing powersince 1989-90 =

51.8 percent

14

$18,530

$9,265

$7,656

$13,368

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

2011 Federal Poverty Linefor a Family of Three

Half the 2011 FederalPoverty Line (Deep Poverty)

Annual Value of MaximumCalWORKs Grant

for a Family of Three

Annual Value of MaximumCalWORKs Grant Plus

CalFresh Food Benefits

The Maximum CalWORKs Grant in 2011-12 Provides an Annual Income Below Half the Poverty LineAdding CalFresh Food Benefits Raises Families Out of Deep Poverty, But Not Above the Poverty Line

Note: Maximum CalWORKs grant is for high-cost counties.Source: Department of Social Services, Legislative Analyst's Office,

and US Department of Health and Human Services

41.3 percent of thefederal poverty line

72.1 percent of thefederal poverty line

15

$17,170$18,530

$19,812

$16,428

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

$28,000

2007-08 2011-12

Families Currently Lose CalWORKs Cash Assistance Well Before Their Incomes Reach the Poverty LineCalWORKs Income Limit for a Family of Three Has Dropped by Nearly $3,400 Since 2007-08

Federal Poverty Line for a Family of Three CalWORKs Income Limit for a Family of Three

Note: CalWORKs income limits are for high-cost counties.Source: Department of Social Services and US Department of Health and Human Services

115.4 percent of thefederal poverty line

88.7 percent of thefederal poverty line

16

46.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Max

imum

Mon

thly

Gra

nt fo

r a F

amily

of T

hree

as

a Pe

rcen

tage

of

the

Aver

age

Fair

Mar

ket R

ent f

or a

Tw

o-Be

droo

m U

nit,

2011

The CalWORKs Grant Level Is Lower Than TANF Grants in 27 States, After Adjusting for Housing Costs

Source: Center on Budget and Policy Priorities and National Low Income Housing Coalition

17

CalWORKs Spending Has Dropped Significantly Since the Mid-1990s

18

$7,916

$463$219

$774

$9,372

$3,743

$1,524$1,057

$597

$6,922

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

Cash Assistance Employment Services Child Care Administration Total

AFDC

/Cal

WOR

Ks S

pend

ing

(201

0-11

Dol

lars

in M

illio

ns)

Total Welfare Spending in California Dropped Substantially Between 1996-97 and 2010-11

1996-97 2010-11 Enacted

Note: AFDC/CalWORKs spending includes county, state, and federal funds.Source: Department of Finance and Department of Social Services

19

6.8%

3.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

1996-97 2010-11 Enacted

AFDC

/Cal

WOR

Ks S

pend

ing

as a

Per

cent

age

of T

otal

Sta

te S

pend

ing

Welfare Spending as a Share of Total Spending Dropped by More Than Half Between 1996-97 and 2010-11

Note: AFDC/CalWORKs spending includes county, state, and federal funds.Total state spending includes state and federal funds.

Source: Department of Finance and Department of Social Services