Insights Gained in Workfare Demonstration Projects

The Food Stamp Act of 1977 requires that the workfare concept, in which food stamp recipients will be required to work on public service jobs for the value of their food stamp benefits, be tested in 14 pilot projects. GAO reviewed the first year's operation of the Food Stamp Workfare Demonstration, focusing on the operating results of seven demonstration sites, problems in measuring workfare benefits and costs, and the need for legislative and administrative changes that would help provide a more effective and efficient workfare operation.

GAO found that the maximum benefits available to the program were not realized because of shortcomings in federal and local project design and administration. GAO suggested changes to increase household participation in workfare and help achieve workfare's basic objectives of: (1) deterring program participation by those who could work, but choose not to; (2) securing some repayment to taxpayers by those who are needy and receive assistance; and (3) introducing individuals to the work environment. Twenty-five percent of the program participants were in four categories which GAO did not believe merited automatic exemption from workfare. These categories were the participants in the Aid to Families with Dependent Children Work Incentive Program, recipients of unemployment insurance benefits, students, and members of households whose earned incomes were equal to or greater than their monthly food stamp benefits. As most households' workfare obligations were less than 5 days a month, it seemed unlikely that workfare obligations would be a problem to these recipients. GAO found that a 30-day job search period given to new referrals to the program allows some participants to receive food stamp benefits for 2 months before being assigned to a workfare job. It found that workfare sanctions are not effective deterrents to workfare noncompliance and need to be strengthened. Also, the cost effectiveness of workfare was not determinable, and there was inadequate reporting to Congress on improvements needed in the program design and administrative procedures.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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