I just realized that I allowed 2&2 to bait me into an exchange over an unclear anecdote that was not really a material part of the story.* Well played, 2&2.
Here's the real issue.
http://www.cbpp.org/sites/default/files/atoms/files/tanf_spending_ar.pdf
Arkansas spends about 144 million taxpayer dollars on TANF. Much of that is federal dollars (and much of that, in turn, is paid by much wealthier states who subsidize Arkansas' low-tax policies and poor economy, but I digress).
Out of that pool, Arkansas spends just 6% on basic assistance, 11% on "work activities", and 0% on child care (this is misleading however, see below). They spent 11% on Administrative and Systems - so more went to bureaucrats then actually went to helping poor people get by.
Only 5 out of 100 poor families with children in Arkansas receive welfare.
70% was "other services". What are those? Well, from the Arkansas annual report (
http://www.arkansas.gov/esd/Programs/TANF/PDF/PublicNotice/2016%20TANF%20Annual%20Report.pdf) that 70% appears to be spent under the "Third and Fourth TANF Purposes". A few of those: Plan to Reduce Unwed Births and Teen Pregnancy, Healthy Marriage Initiative, Fatherhood Initiative, a program for preventing recipients from using benefits at casinos, strip clubs, or liquor stores.
About that childcare. The majority of Arkansas TANF funds (almost $100,000,000/year) go toward operating Arkansas' pre-K program. As best I can tell, the money goes to child care centers for families making less than 70% of the median income, however, I found some evidence that these child-care centers can have up to 35% of their customers be above the threshold. They justify this as appropriate TANF spending by claiming it "prevents out of wedlock pregnancies" and I guess the feds have gone along with it.
Actual cash assistance to needy families - i.e. welfare? Total expenditure was $1,037,689.
Arkansas spends next to nothing helping poor people get jobs. The annual report says an average of 1 person a month participated in subsidized employment. That's not a typo. One.
So what the state of Arkansas has done is take almost all of the federal block grant that was used to provide poor families with cash assistance in 1995 and turned it into a day-care system. The rest of it goes mostly to administration and to programs for preventing teen pregnancy, and of course to drug-testing welfare recipients and making sure they're not spending their benefits on liquor. The annual report spends more pages discussing these critical anti-abuse initiatives than it does discussing the (non-existent) worker training efforts. The state of Arkansas ranks 48th among all states on the share of TANF funds spent on "core activities."
So, Arkansas has followed the red-state welfare reform playbook to the letter. There is no chance that any Arkansan is going to become dependent on welfare - only 5% of poor Arkansans receive it, and the amounts doled out are pitifully small.** Arkansas clearly puts all its money toward supporting marriage and traditional families, so check that box too. No meaningful cash at all goes toward actually getting anyone a job: at best, you get subsidized childcare, and you pull on your bootstraps and you go get that job yourself. Teen pregnancy is clearly bad, we all agree on that, and Arkansas is spending a good chunk of its budget trying to prevent that.
The results?
Teen pregnancy rate: 4th highest in the country.
Poverty rate: 18.7%, 6th highest.
Good job, Arkansas!
*Turns out, Raquel Williams was interviewed for a prior Atlantic story on the same topic.
That article provides more detail. She was required to volunteer for 35 hours a week.
**How much did Ms. Williams receive? $247/month. So the state of Arkansas is requiring her to work for 56 cents an hour.