The dramatic reduction in welfare dependence achieved by Wisconsin Governor Tommy Thompson is the most significant event in the sixty-year history of the Aid to Families with Dependent Children (AFDC) program.

  Since he became governor more than ten years ago, Tommy Thompson has reduced Wisconsin's AFDC caseload by over 58 per cent. Over the same period in the rest of the nation, the AFDC caseload actually grew by 4.5 per cent.

  The decline in welfare dependence in Wisconsin is unprecedented: In inner city Milwaukee, the number of AFDC cases has dropped 38 per cent. In the rest of the state, the decline has been over 76 per cent.

  AFDC dependence has been virtually eliminated throughout much of the state: In 47 of Wisconsin's 78 counties, the caseload has dropped by 80 per cent or more.[39]

  Prior to the Wisconsin success story, skeptics argued that after the most employable recipients were weaned off the welfare rolls in the first stages of reform, the decline in dependence would slow and eventually halt. But, remarkably, as more sophisticated reforms have been implemented, the decline in the welfare caseload has actually accelerated. Currently the AFDC caseload is falling by two per cent per month in Milwaukee and four per cent per month in the rest of the state.

  In recent years, other states have begun to reduce their AFDC caseloads. Over the last 12 months, Wyoming has cut its AFDC caseload by 52 per cent; Tennessee by 28 per cent; and Oregon by 28 per cent. But in most instances these successes represent merely a pruning back of the rapid upsurge in AFDC caseloads which occurred in the early 1990's.

  Most states implementing reforms are only now engaging in the early stages of dependency reduction which Wisconsin completed in the late 1980's. Despite the fact that it has already cut its AFDC caseload in half, Wisconsin continues to reduce dependence at a rate surpassing all but a handful of other states.

  Wisconsin has successfully reduced AFDC dependence by: 1) requiring AFDC recipients to quickly obtain a private sector job or to perform community service work if a private sector job is not available; 2) reducing unnecessary new enrolments in AFDC; 3) making AFDC beneficiaries earn their welfare checks through a "pay after performance" rule; and 4) creating incentives for the welfare bureaucracy to reduce welfare caseloads.

December 1997

AFDC Families: Wisconsin vs. The Nation

Wisconsin Reduction of AFDC Caseload

Wisconsin's Reforms and Caseload decline January 1992 - January 1997

Wisconsin AFDC and Related Costs (in millions of current dollars)

Programs	1986	1995
AFDC Benefits	592.6	384.4
AFDC Administration	17.2	85.6
Emergency Aid	1.6	3.3
Jobs		27.8
Daycare
IVA and TTC		15.2
At-Risk		5.7
Child Care Block Grant		14
Total	611.4	536

Source: Ways and Means, Green Book.

Source: Department of Health and Human Services.

Source: Department of Health and Human Services.