Welfare Reform in the States: Where is Higher Education?
Policy Implications

Welfare reform is well underway, and the policy implications for higher education are impacting both the state and the campus.

   State-Level Policy Concerns

Educational Savings Initiatives. What is the potential of tuition assistance initiatives for TANF recipients? Since federal law allows welfare recipients to save money for college, should states exclude these assets in determining eligibility for continued welfare benefits? Should states with prepaid tuition/college savings programs provide tax exempt opportunities or state matching funds to welfare recipients as an incentive to save for postsecondary expenses?

Financial Aid and TANF Eligibility. Should state policies exclude financial aid from TANF eligibility calculations?

K-12 Collaboration. To what extent should state policy foster or expand early intervention programs to encourage young people to stay in school?

Social Services. If a state appropriates funds for child care or offers specific financial aid for students with dependent children, should it consider student parents on TANF as a priority group?

School to Work. Should states with school-to-work/welfare-to-work programs expand those programs to serve teen parents and adults required to return to school under the program?

Evaluation. What kinds of information do policymakers need to assess the impact of welfare reform on higher education and the effect of postsecondary education on welfare students? Should policymakers and education leaders monitor shifts of state dollars tied to higher education?

   Campus-Level Policy Concerns

Program Adjustments. Should programs be reconfigured to fit the new welfare training time frame? For example, can basic skills instruction be more fully integrated into job training curricula?

Competition and Accountability. To what extent will welfare reform increase competition among the public, private, and proprietary sectors? Will competition for limited resources jeopardize quality programming and accountability in higher education? How can institutions assess the impact of welfare reform on their programs and the outcomes of participating in postsecondary education on welfare students?

Enrollment Planning. How will enrollment policies change with welfare reform? Will enrollments be limited, waiting lists set up, or offerings restricted?

Services. How will welfare reform impact student services policies? Are expanded services such as family transition centers needed to serve students on welfare?

At a time when the U.S. Department of Labor projects that by the year 2000 most jobs will require postsecondary education, the higher education community may want to avoid a fragmented approach to addressing the issues of welfare reform. If higher education coordinating and governing bodies within each state fail to monitor and participate in welfare decision-making, the approach to moving from welfare to work will be spotty at best, with pools of recipients left out of the loop of higher education opportunity.

UNRESOLVED ISSUES

   Should higher education coordinating and governing boards take a leadership role with their states to shape welfare reform issues affecting higher education? Or, are community colleges best positioned to take the lead? What is the role of comprehensive and research institutions?

   Will community colleges lose credibility with government leaders and employers if they are unable to deliver recipients that are academically prepared for the ever-changing workforce?

   Will the requirement of 12-month and shorter educational programs lead to a growth in the proprietary school sector? What are the implications of this for higher education?

   Who is to provide assurance that credit-bearing education and training programs at postsecondary institutions meet quality standards? What is the potential for the proliferation of unscrupulous training providers?

   What are the fiscal and legal capacities of federal and state financial aid programs to assist welfare recipients in enrolling in and completing college?

   How can universities establish stronger partnerships with the business community, particularly in the area of "retraining" of their current workforce?


Introduction Background on Welfare Reform Initial Challenges Status of the Western States