Gary Johnson on Welfare & Poverty Libertarian presidential nominee; former Republican NM Governor

Impose gross income cap on welfare recipients

• Block grant Medicare and Medicaid funds to the states, allowing them to innovate, find efficiencies and provide better service at lower cost.
• Fix Social Security by changing the escalator from being based on wage growth to inflation
• Repeal ObamaCare, as well as the failed Medicare prescription drug benefit.

Maintain federal Social Services Block Grant funding.

The Issue

NGA’s Position

In 1996, Governors reluctantly agreed to a slight reduction in funding for SSBG, from $2.8 billion to $2.38 billion, with the understanding that funding would remain at $2.38 billion through fiscal 2002, and then return to $2.8 billion. However, the federal government has consistently broken that promise. The nation’s Governors strongly urge Congress and the administration to reject the proposed cuts and to restore funding and flexibility to the program.

Maintain flexibility & funding levels for TANF block grants.

The Issue

NGA’s Position

In 1996, the Governors, Congress, and the administration entered into a historic welfare reform agreement. In exchange for assuming the risk involved with accepting the primary responsibility for transforming the welfare system from one of dependency to self-sufficiency, Governors agreed to guaranteed funding for the life of the TANF block grant along with significant flexibility to administer federal programs. The current NGA policy on welfare reform makes three key points:
1. Maintain flexibility. The TANF block grant was created so that states could develop innovative approaches to addressing welfare reform, and states have been successful in tailoring their programs to meet the individual needs of their citizens. This flexibility must be maintained so that states can continue the progress of welfare reform.
2. Maintain investment. States are provided with $16.5 billion each year in federal TANF funds, which together with the required state maintenance-of-effort funds, finance welfare reform. Some will argue that the funding should be cut because of the dramatic drop in caseloads. But TANF is no longer just about cash assistance - states are now serving a much broader population than under the old welfare system, and states are now providing services to families that help them succeed and advance in the workplace, not just cutting a check for cash each month.
3. Move toward greater program alignment. The Food Stamp Program is one example of a program that is in great need of reform, and its connection to welfare reform should be discussed in the context of reauthorization. Other related programs that should be considered include child support, child welfare, housing, the Workforce Investment Act and Medicaid.

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