This chart displays the average monthly percent of exemptions granted to Welfare-to-Work (WTW) adults. It offers a visual representation of exemption rates over time. The second chart shows WTW Exemption Rate categories by percentage.
Note, some people are unable to participate in WTW activities. They may receive an exemption from required participation in WTW and continue receiving cash aid.
This chart provides insights into the effectiveness of exemption policies and their impact on workforce participation among WTW adults within CalWORKs. By tracking exemption rates over time and analyzing the distribution of exemption reasons, partners can assess whether exemptions are appropriately granted and aligned with program goals of promoting employment and employment-like activities assigned for building self-sufficiency.
Secondly, understanding exemption trends helps in identifying common reasons for exemptions, such as health issues, caregiving responsibilities, or participation in other qualifying activities. This knowledge allows for targeted interventions or support services to address barriers to workforce participation and enhance engagement among WTW adults.
Additionally, analyzing exemption rates assists in program evaluation and performance monitoring. It provides a measure of program outcomes related to workforce participation, exemption utilization, and the impact of exemption policies on program dynamics and participant outcomes.
Understanding these trends is essential for evaluating the impact of exemption policies, identifying common reasons for exemptions, and making informed decisions regarding program adjustments or targeted interventions to improve workforce participation among WTW adults within CalWORKs.
Overall, the information from this chart supports evidence-based decision-making, program optimization, and the design of strategies to promote workforce engagement and economic self-sufficiency among WTW adults in CalWORKs.
While WTW program statuses and the rules governing them have not changed recently, how they are used in response to macroeconomic trends does shift with time. For example, during the Great Recession (approximately 2009-2014), many families were offered and accepted exemptions from WTW participation, and, while they continued to receive cash assistance, they did not receive services and support, which resulted in savings during the fiscal downfall. During the COVID-19 Public Health Emergency (PHE) (approximately 2021-2022), the State adopted a universal good cause policy where CalWORKs families could participate in WTW activities and receive services and support, but many families opted instead to stay home and shelter in place and therefore received “good cause for WTW non-participation”. The outcome was the same for families- a continuation of cash assistance but decrease in services and support utilization, but how that is reflected in program data differs. For this reason, the figure presents high utilization of exemptions during the Great Recession, but significantly less utilization during the PHE.
The CalWORKs program provides opportunities for engagement of CalWORKs participants in education and training leading to academic degrees and certificates. This chart illustrates the number of community college degrees, certificates, and awards CalWORKs participants received during the 2021-2022 and 2022-2023 academic years.
Data collection, and the way the California Community Colleges Chancellor’s Office (CCCCO) reports degrees and certificates, changed in 2020. Specifically, the CCCCO began to track Baccalaureate of Science, Associate in Science for Transfer, and Associate in Arts for Transfer Degrees. In addition, the number of units in two of the CCCCO certificate categories changed and data regarding certificates requiring less than six units is no longer collected. Due to this reporting change, these prior categories are no longer shown.
Understanding the changes in data collection and reporting regarding degrees and certificates within the CalWORKs program not only benefits individual participants but also contributes to positive outcomes for CalWORKs families as a whole. By aligning educational pursuits with recognized degrees and certificates, CalWORKs families can increase their employability, access higher-paying jobs, and achieve financial stability. This, in turn, leads to improved economic well-being, reduced reliance on public assistance, and greater self-sufficiency for CalWORKs families, fostering long-term success and upward mobility.
No significant policy changes in the most recent 12 months.
The line graph illustrates the participation level of CalWORKs recipients in federally required work or work-like activities. Federal regulations require all work-eligible adults and minor heads of households receiving Temporary Assistance for Needy Families (TANF) to participate in federally allowable Welfare to Work (WTW) (or CalLearn, for minor heads of household) activities for a specified number of hours per week. The data is from Federal Fiscal Year for TANF cases only.
Required hours of participation are a minimum average of 20, 30, or 35 hours per week in the month, depending on the number of work eligible individuals and the age(s) of the aided child or children in the home. Participating families are meeting the average hourly participation requirements. Families with some participation, but less than the required average number of hours per week are characterized as Partially Participating. Families with no participation are the Not Participating population, which includes adults with a WTW sanction, exemption from WTW, or good cause for non-participation. For the purposes of calculating the federal WPR, only those families fully meeting participation requirements are counted. Federal law does not give credit for partial participation.
The above table provides a summary of California’s current Work Participation Rate (WPR) penalty status. The table includes the Federal Fiscal Year when the penalty was assessed, which rates failed, the assessed base penalty amount, and the target compliance year of the submitted Corrective Compliance Plan (CCP). Additionally, the table shows the estimated penalty amount remaining after accounting for actual and likely CCP completion. Finally, the table includes an estimate of the earliest possible FFY a penalty would be assessed that would result in a Temporary Assistance for Needy Families (TANF) block grant reduction.
A state participating in the federal TANF program must meet an overall Work Participation Rate (WPR) equal to 50 percent of all families and a separate 90 percent WPR requirement for two-parent families. A state that does not achieve the two WPR targets may be subject to a fiscal penalty. If assessed, the initial penalty is equal to a five percent reduction of California’s federal TANF block grant, which would total approximately $3.7 billion annually. For each successive year of non-compliance, the penalty increases by up to two percent for up to a maximum of 21 percent.
This is important for partners to understand because it directly impacts federal funding. States failing to meet the WPR potentially face significant financial penalties, which increase with continued non-compliance. Partners can benefit from this information to ensure accountability, advocate for necessary program adjustments, and support families effectively.
The two charts present three participation statistics associated with the federal Work Participation Rate (WPR); the federally required participation rate (in Red), the All Families Participation Rate, and the Two-Parent Participation Rate. Additionally, in Teal is the previously applied caseload reduction credit that ended after FFY 2021. States are required to meet a 50 percent WPR for Temporary Assistance for Needy Families (TANF) caseloads overall (All Families) and a 90 percent WPR for two-parent families. States receive a Caseload Reduction Credit (CRC) toward these required rates equal to the percentage of caseload reduction from a federally determined base year, currently set at FFY 2005. Starting in FFY 2025, the CRC base year will be FFY 2015. Partners can view and compare California's TANF WPR for all families to two-parent.
The Work Participation Rate (WPR) is the single federal measure of performance for TANF. The WPR is the rate at which CalWORKs recipients are meeting federal work participation requirements. Under federal law, the State’s failure to meet the WPR can result in fiscal penalties, which by state law are shared with counties that do not achieve the WPR, unless a statutory exception applies (known as the “pass through”). California has also implemented the CalWORKs Outcomes and Accountability Review (Cal-OAR) process to measure and learn from a wider variety of program outcomes more holistically.