Ridge promises cheaper welfare

By JON FEINBERG
Collegian Staff Writer

Gov. Tom Ridge plans to make good on his campaign promise to streamline the size and expenditures of the state's government by making extreme cuts in one area -- welfare.

In his budget proposal, Ridge announced last week that his administration would work toward a less costly welfare system that maintains programs for those who need the most financial assistance. Although the proposal will raise the Department of Public Welfare's budget by 1.9 percent, it will be the smallest increase in a decade.

One major provision of Ridge's budget is to eliminate welfare benefits for those people who are in the transitionally needy category -- such as people who are able to work, but are not employed. These people receive an average of $180 for two different 30-day periods in two years.

Ridge's administration has said this measure will save the state about $35.7 million.

But Norman Knaub, assistant professor of economics at Penn State Altoona, said the governor's estimates of savings may not be correct.

"In and of itself (the proposal) is really not going to do too much," Knaub said.

Although eliminating funding for the transitionally needy will save a money in the short run, Knaub said the measure may actually harm the state in the future.

Able-bodied people who are out of work need extra assistance while they try to find new jobs, Knaub said. Cutting this funding could result in some people losing their homes, he said.

"If they lose their homes, they get into a situation where it's really difficult to get a job," Knaub said. Not only will homeless people not have a place for potential employers to reach them, but they will also have trouble making

themselves presentable for interviews, he said.

In the long-run, Knaub said the state would then actually have more poor people to assist with welfare resulting in the need to increase spending.

"You really need to look at a little more detail before you say that the state will save money in the long run," he said.

However, Steve Miskin, Ridge's deputy press secretary, said the potential of increased homelessness is not a concern when considering funding for able-bodied people.

"No matter what, there's always a possibility of losing your home," Miskin said. All people, including those who are unemployed, need to live within their means, he said.

The rationale behind cutting funding for the transitionally needy is that it is an extension of unemployment insurance still available, Miskin said. The new proposal would not eliminate health benefits, and people who are between jobs would still receive their compensation checks from the state's Department of Labor and Industry, he said.

Another part of the reasoning behind Ridge's proposal is that extra welfare checks provide less of an incentive for unemployed people to find new jobs, Miskin said.

David Lapan, spokesperson for the state Department of Public Welfare, agreed that cutting off cash assistance for the transitionally needy may be a good starting point for reforming welfare.

"Since we are in the climate where we're looking to save (state funds)," Lapan said, "we're trying to save benefits for those who need it most."

The state is looking to get people off of welfare and into jobs, Lapan said. Able-bodied people are the ones closest to getting jobs and are therefore the easiest to remove from welfare, he said.