STATE STRATEGIES FOR WELFARE-REFORM - THE WISCONSIN STORY

Wisconsin is commonly cited as exemplar of the capability of states fo r reforming welfare. Wisconsin's welfare caseload declined 22.5 percen t between 1986 and 1994. I argue that the decline resulted from restri ction of eligibility and benefits, a strong state economy, and large e xpenditures on welfare-to-work programs encouraged by an exceptional f iscal bargain with the federal government. Continued reduction of welf are utilization by means other than denying access are jeopardized by proposed changes in federal cost-sharing, a prospective state deficit, and the growing share of the caseload accounted for by residents of M ilwaukee. Wisconsin Works, the state's plan for public assistance in a post-block grant world, continues benefit reduction and eligibility r estriction but expands emphasis on employment. The special circumstanc es enjoyed by Wisconsin are unlikely to be duplicated elsewhere.