Kentucky Community and Technical College System
Ready to Work: News & Views

Kentucky a leader in education spending for low-income families

FRANKFORT, Ky. (Jan. 16, 2002) -- Kentucky is one of only five states that spend more than 3 percent of their combined state and federal welfare funds on education and training for low-income families, according to figures recently released by the U.S. Department of Health and Human Services. The Cabinet for Health and Family Services administers Kentucky's welfare programs.

Kentucky spent 4 percent, or $10.8 million, of its welfare funding on education and training in the 2000 federal fiscal year.  Although 41 states reported spending some money on education and training, only Kentucky, Delaware, Louisiana, Montana and South Carolina spent more than 3 percent of their federal Temporary Assistance to Needy Families (TANF) and state Maintenance of Effort (MOE) funds on education and training.  The national average is less than 1 percent.

"Gov. Patton has made education a high priority, and the General Assembly supported administration goals by funding effective education and training provisions in the current budget," said Jeanne Baldwin, executive director of the Cabinet's Office of Program Support.  It is not known how much of the state's welfare funding will be earmarked for education and training programs in the next biennial budget, in part because Congress has yet to finalize TANF reauthorization measures.

Under federal TANF guidelines, states may use welfare funds for education and training expenditures, such as adult education, GED classes, job-related education, vocational education and postsecondary education.  Early childhood education, after-school and summer enrichment programs for elementary and junior high school children are not included in this spending.

Among the cabinet's education and training programs for welfare recipients is the award-winning Ready-to-Work program, a partnership with the Kentucky Community and Technical College System (KCTCS).  The program helps prepare welfare recipients for employment by enrolling students in KCTCS institutions and providing additional support services, such as tutoring, mentoring and counseling, work experiences, job placement activities and special initiatives to help keep students in school.

In April 2001, the Ready-to-Work program received one of three 2001 Model Program Awards presented by the American Association of Women in Community Colleges.

The current state budget provides funds and directs the cabinet to make education and training programs available to at least 7 percent of the state's eligible public assistance recipients to enhance their employment opportunities and self-sufficiency success.

To be eligible, welfare recipients must participate in the Kentucky Works Program (KWP). Ordinarily, KWP participants must take part in work or training activities 20 hours a week (or more, depending on their children’s ages), but those enrolled in postsecondary education can be exempted from these additional requirements for up to two years.

The proportion of KWP participants taking advantage of the education and training option grew from less than 11.5 percent in state fiscal year 2000 to 15.7 percent in 2001.

Kentucky also exceeded the national spending average of 7.7 percent for "other work-related activities" during the 2000 federal fiscal year.  Kentucky spent 15 percent, or $40.8 million, of its welfare funds on work-related programs and services other than school-based education and training.  Eligible activities in this funding category include work experiences and community service activities, on-the-job training, job search and readiness skills development, employment counseling, information and referral, outreach to business and non-profit groups and transitional assistance for individuals who have moved from welfare to work.

Families and Children Cabinet Secretary Viola Miller said both the Model Program Award and Kentucky's standing as a national leader in providing education and training to low-income families reflect "the worthiest of welfare reform objectives: to equip welfare recipients for a better life by erasing limits" on opportunities for them to achieve and maintain self-sufficiency.

Nationwide and in Kentucky, the majority of TANF/MOE funds are used to provide providing basic assistance and child care.  The national average spending for these items equals 73.1 percent of total welfare funding.  In Kentucky, basic assistance and child care make up 55 percent, or about $151.5 million, of the state's total TANF/MOE spending.

Kentucky is also among 29 states which reported decreases in welfare caseloads from September 2000 to September 2001.  The average decline during this period was 6.6 percent; Kentucky’s was 11 percent.

The national rate of decline for welfare caseloads dropped to 1 percent from March to September 2001, with most states reporting caseload increases.  Kentucky’s welfare caseload decreased by 4 percent during the same period, making it one of only 17 states where caseloads declined.

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