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HRD-81-6 1 (1980-11-14)

handle is hein.gao/gaobabbie0001 and id is 1 raw text is: 4~ BY THE' U,S, GENERAL ACCOUNTING OFFICE Report To The Honorable William V. Roth 1 (391- United States Senate RISTRICTD - Not to be released outside the General Accounting Office except on the basis of specic approval e-a flff;ra of Congressional Relations. RELEASED Public Assistance Benefits Vary Widely From State To State, But Generally Exceed The Poverty Line A major U.S. public assistance program is Aid to Families with Dependent Children (AFDC). States establish their own need standards and decide on the appropriate level of benefits for the AFDC program. Decentralized State con- trol produces wide variations in benefits. Coverage is not always uniform and results in the different treatment of similar families. Despite wide differences in these benefits, about 80 percent of AFDC families in GAO's sample (which, because it is not statistically valid, cannot be projected to the AFDC uni- verse) received cash, and inkind benefits from other public assistance-type programs, which in total exceeded the official poverty line. GAO found, using hypothetical analyses, that working even at a minimum wage job would improve the AFDC mother's financial well- being, although the loss of important benefits at certain earning levels raises the question as to whether she would have a sufficient finan- cial incentive to work. HRD-81-6 NOVEMBER 14,1980 1375 (5 '/'-CM2 t. -9 1

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