5-point Welfare Reform Program

This fall, when knocking on doors, I continuously heard that something needed to be done about the welfare cost in the state. The program was broken and needed to be fixed. My good friend Representative Rich Cebra ® of Naples has introduced legislation that might just address those concerns. The bill, LD 254, is entitled An Act to enact a 5-point Welfare Reform Program.

As stated by Cebra, “Right now our system penalizes people who leave welfare and go back to work,” he said. “We’re holding folks back and it makes no sense. Consequently, we’re now into our second or third generation of a welfare class, and that’s not good for anybody. As a poor state facing huge budget deficits, we simply can’t afford a system that encourages people to stay on welfare.”

Let me cover some of the specifics. First the bill requires a 90 day residency requirement before someone qualifies for general assistance. Right now an individual simply comes into the state and automatically qualifies for general assistance. This hurts Mainers who need the assistance in these rough economic times.

The legislation’s second point would offer targeted tax credits to employers who hire economically disadvantaged Maine residents. This will encourage employers to help out Mainers that are in need of jobs.

Point three would eliminate the 20-hour rule. Currently, welfare benefits are cut off for anyone working more than 20 hours a week. This does not make any sense, and only discourages people from working. The legislation would use federal figures showing that a person receiving all welfare benefits “makes” the equivalent of $17.56 per hour for a normal 40-hour week. Under the bill, an employee earning $10 per hour, for example, would still receive benefits equivalent to the differential.

The bill’s final point would bring Maine law into conformity with the federal Welfare Reform Act of 1996, one of former president Bill Clinton’s landmark achievements. Rep. Cebra’s legislation would establish a 60-month lifetime limit to receive Maine benefits, the same as the federal limit.

In many ways this bill could have a real effect on the cost of welfare. It could go a long way to enabling people to get back to work. With this legislation, employers will have incentives for hiring new employees. This bill is a great place to start the discussion of welfare reform.

If you have questions about this or anything else please call me at 645-3420 or e-mail me at drtom16@hotmail.com. As always it is my pleasure to serve the people of District 90.