MAYOR GIULIANI ANNOUNCES THAT NEW YORK CITY SEEKS $33 MILLION IN FEDERAL FUNDING TO MOVE WELFARE RECIPIENTS INTO JOBS
City Supports Another $70 Million Sought By Community Groups
Mayor Rudolph W. Giuliani today announced that New York City has submitted eight welfare-to-work competitive grant applications to the United States Department of Labor seeking more than $33 million in Federal funding for a broad array of welfare-to-work initiatives intended to move more New Yorkers now on welfare into jobs.
As part of the new Federal funding cycle, New York City also reviewed and supported 21 grant applications to be submitted by New York City non-profit and community organizations seeking more than $70 million in additional Federal funding, for a City-wide total of more than $103 million. The maximum amount available for any single proposal is $5 million.
"The Federal welfare-to-work funds provide a real opportunity for New York City to build on our welfare reform achievements and move even more people off welfare dependency," Mayor Giuliani said. "Based on our efforts to date, for the first time in thirty years there are now less than 800,000 New York City residents receiving public assistance. The programs contained in the City's submissions are designed to help increasing numbers of people move towards self-sufficiency and develop the self-respect and dignity that comes from taking care of themselves and their families. They will also help in our efforts to turn welfare centers into job centers."
As of February 1998, there were 797,241 people on the welfare rolls in New York City, a decrease of more than 360,000 since Mayor Giuliani's welfare reform program began in March 1995. Over the past four years, adult welfare recipients have self-reported more than 130,000 jobs, as compared with just over 50,000 jobs self-reported during the four years of the previous administration.
The new funding is made available under the Federal Balanced Budget Act of 1997, which provides $3 billion over two years for Federal Welfare-to-Work grants to States and local communities throughout the nation to create employment opportunities for welfare recipients. These funds will be allocated in a two-step process, through formula grants and competitive grants. In December 1997, the United States Department of Labor announced an initial $184 million national solicitation for competitive grant applications. Project applications were submitted on March 10, 1998.
The December 1997 Federal competitive grant solicitation allowed both local governments and private organizations throughout the nation to compete for funding. New York City, through the Human Resources Administration, directly submitted six grant applications seeking more than $26 million in funding. The New York City Housing Authority submitted two additional grant applications seeking $7.3 million.
The City's proposals are based on the strategies recently announced by Mayor Giuliani during his State of the City speech, including the goal of establishing a universal work requirement for adults receiving cash assistance, and emphasizing the importance of work as a means of moving people off welfare dependency.
One of the proposals submitted by New York City, "Ladders to Success", begins to implement the goal that every eligible adult capable of some level of work should work, and that a work-based system of support presents the best opportunity for helping low-income families attain self-sufficiency. The "Ladders to Success" program, which will be supplemented by the available grant funding, will begin the redesign of the City's welfare offices into "Job Centers," starting with pilot projects at the Greenwood Center in Brooklyn and the Melrose Center in the Bronx.
Case workers at these centers will be directed to help applicants explore and identify alternatives to welfare even before they complete the application process. The case workers will seek to divert potential recipients to unsubsidized employment instead of welfare.
Public assistance applicants, in addition to participating in job search and work activities, will be referred to comprehensive welfare-to-work agencies for placement in unsubsidized employment. The agencies will be compensated on a pay-for-performance basis; that is, the agency's compensation will depend on its finding employment for its clients.
Other elements of the program that are designed to facilitate the goal of a universal work requirement include an expanded program of subsidized employment, continued development of the WEP program, and the development of supportive work environments for those recipients who are unable to perform independent, self-sustaining work.
The two pilot centers will operate under self-contained management structures, and will be evaluated based upon their respective performances in moving recipients to work. Each pilot center also will consult with business partners on the implementation of the pilot programs in order to maximize the number of individuals moved from welfare to work. New York City is requesting $5 million in Federal funding for this initiative.
New York City also submitted a $5 million proposal -- the New York City Retail and Customer Service Institute -- which is based on the successful program initiated by Macy's Department Store. The Macy's program provides successful participants in the City's WEP program with an opportunity for full-time employment at Macy's. More than half of the program participants have been on public assistance for more than three years. Under the program, in addition to their work assignments, selected workfare participants are given three weeks of training and orientation tailored to Macy's specifications and are then interviewed by Macy's for employment. The program is generally run each month with approximately 20 participants, almost all of whom are hired by Macy's.
Participants in the proposed Retail and Customer Service Institute program will move from welfare to work through short-term targeted training programs designed to bolster the skills individuals need to work in the retail, customer service and other business sectors. HRA's Business Link Division will screen and interview all applicants. Initial industry partners include Federated Department Stores, through its Macy's, Bloomingdale's and Stern's divisions; and American Airlines.
The Institute will be structured so that HRA and private organizations can design and implement intensive employer-specific job readiness programs to meet the needs of almost any employer in any industry. All participants will combine their training with Workfare.
Outreach, keyed to employers' hiring schedules, will be coordinated by the City's Business Link program at the Human Resources Administration. Participants enrolled in the Institute will also be provided with job retention, career development, counseling and other support services.
The additional six proposals submitted by the City, in conjunction with community partners, include programs targeted to individuals with a histories of long-term welfare dependency:
- The "Satellite Child Care Program" seeks $5 million to train single mothers to work as certified "satellite" day care providers affiliated with established child care agencies.
- The "Non-Custodial Parents" program, which requests $2.4 million in funding, will supplement increased enforcement of child support orders by preparing non-custodial parents for placement in unsubsidized jobs that will enable them to provide financial support for their children and become responsible parents.
- The "Women With Children Project", which seeks $3.5 million in funding, will target women recovering from substance abuse and train them for employment in the high-speed photocopying industry. The project builds on the success of an existing program that has placed more than 90% of its graduates with more than 70 New York City businesses.
- The "Post-Employment Service Program" seeks $5 million to target families in subsidized employment and help move them to self-sufficiency. The program will provide employment services and skills training to household heads who are already working but still receiving welfare, with the goal of moving these families to complete economic independence.
- Two proposals submitted by the New York City Housing Authority seek a total of $7.3 million to establish painting apprenticeship programs for Housing Authority residents who are participating in Workfare programs.
The USDOL expects to announce competitive grant awards in May 1998. USDOL also expects to release a second competitive grant solicitation later this year.
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