oversight

Claims of Excessive Welfare Payments in Wisconsin

Published by the Government Accountability Office on 1977-08-03.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                            DOCUEINT RESUM

03367 - rA21732831   Restricted)

rClaims of Excessive Welfare Payments in Wisconsin]. HPD-77-125;
B-164031(3). August 3, 1977. 6 p. + 6 enclosures (7 pp.).

Report to Rep. Robert   .    asten, Jr.; by Elmer B. Staats,
Comptroller General.

Issue Area: Income Security Programs: Eligibility Determination
     (1301).
Contact: Human Resources Div.
Budget Function: Income Security: Public Assistance and Other
    Income Supplements (604).
Organization Concerned: Department of Health, Education, and
    welfare.
Congressional Relevance: Rep. Robert . Kasten, Jr.
Authority: Social Security Act, as amended (42 U.S.C. 602). 45
    C.F.R. 233.20(a) (2)(i). Shea v. Vialpando, 416 U.S. 21
    (197) .

          Federal regulations require Aid for Dependent Children
 (AFDC) State plans to specify in dollars the statewide standards
to be used for determining the needs of applicants and
recipients and the amount of the assistance payment. In
comparison with other States and the District of Columbia in
July 1976, wisconsin's monthly need standard of $466 for an AFDC
family of four ranked fourth, and its payment standard and
maximum payments to AFDC families of four of $424 ranked third.
Wisconsin ranked third in average payments per family and per
recipient for July 1976. Findings/Conclusions: In 1973
Wisconsin established a consolidated need standard tc replace
i+- administratively complex standard which was based on family
ni d for individual consumption items. In computing the monthly
allowance, Wisconsin averaged the autumn 1971 Bureau of Labor
Statistics' (BLS) lower level budget figures for the cities of
Green Bay and Milwaukee. Since 1973, Wisconsin has periodically
aljrsed its need standard by using updated BLS lower level
budget figures. Wisconsin increased its payment standard from
81 of the need standard, excluding shelter costs, to 91% of the
standad, including shelter costs, in July 1976. Review of the
amounts allowed for work-related expenses in the six States in
the Department of Health, Education, and welfare's Region V
showed that Wisconsin ranked second. (SC)
                         CrA'PTOLULR GENiPCAL -J   E   UITIC   TAT



                                            Ji··I
                      IURICT[D - Not to be rle,abi    'utside
                                                               WRELEASED
                                                                   e Oer
                                                                                  /j
                     Accountinn Offle except on the basis of1 pHifL approval
PO3    B-164031(3)   by the Offies @ldnlxrlonal Rectilo --
                                                                     AUG   Vu/
      The Bonorable Robert W. Kasten, Jr.
       ouse of Representatives
      Dear Mr. Kasten:
           This is in response t yo'r November 22, 1976, letter
      in which you expressed concern over a eiies of Milwaukee
      Sentinel articles about Wisconsin's Aid to Families with
      Dependent Children (AFDC) Program.
          You asked that we
           -- determine the justification for Wisconsin's abnormally
              high payment standards;
           -- compare Wisccnsin's need standard, payment standard,
              and maximum payment for an AFDC family of four with
              those of other States and the District of Columbia;
           -- compare Wisconsin's average actual payment per family
              and per recipient with those of other States and the
              District of Columbia;
           -- determine whether welfare families are moving into
              Wisconsin from other States for the purpose of re-
              ceiving higher welfare benefits; and
           -- compare Wisconsin's allowances for work-related ex-
              penses with those of other States in the region and
              other selected larger States.
      As agreed upon by your office, we are including Wisconsin
      in our planned review of the impact and effectiveness of the
      income disregard provisions of the Social Security Act, as
      amended (42 U.S.C. 602).

           An oral briefing was presented to you and members
      your office on January 13, 1977. Membeis of your fficeof
      received another briefing on March 8. This report details
      the matters discussed in the briefings and presents, in the
      enclosures, related statistical data.

                                                                     HRD-77-125
 B-164031(3)



     We made our review at the Department of Health,
                                                      Educa-
 tion, and Welfare (HEW) in Washington, D.C.,
                                               and at BEW's
 Chicago regional office. We reviewed program
                                                records and
 interviewed HEW, State, and county agency officials
 Wisconsin and Illinois. As requested by your         in
 did not obtain written comments on this report;office, we
                                                  however,
 we discussed our observations with HEW, State, and
 officials.                                         county

ESTABLISHMENT OF STATE
ASSISTANCE STANDARDS

      Federal regulations (45 C.F.R. 2 33.20(a)(2)(i))
AFDC State plans to specify in dollars the statew'      require
                                                      e
ards to be used for determining the 'needs of applicantsstand-
recipients and the amount of the assistance payment.        and
latitude has resulted in wide differences among          This
                                                  the States
in both the items included in the need standard
                                                  and the
size of assistance payments. The need standard
monthly amount, based on family size, which       is the
necessary to cover the cost of essential itemsStates  consider
                                                 such as food,
clothing, shelter, and utilities. An applicant's
is compared against this standard to determine       income
                                                 financial
eligibility.

     When States are unable to pay the full need standard,
a payment standard limiting the amount aid to
recipient is established.                       the AFDC
                           The payment standard minus the
family's income (less applicable disregards)
                                              gives the amount
of the AFDC grant.  The Social Security Act provides for
income disregards which allow recipients to work
retain part of their earnings before the AFDC     and still
reduced. Because of budgetary restrictions,    grant is
                                              many States
establish maximum amounts which they will pay
                                               even though
their need standard exceeds the maximum payment.

JUSTIFICATION FOR WISCONSIN'S
NEED ANDPAYMENT STANDARDS

     In 1973 Wisconsin established a consolidated
standard to replace its administratively complex need
which was based on family need for individual     standard
                                              consumption
items. The consolidated need standard was intended
control rising welfare costs and consisted of        to help
                                              a
allowance for basic items based on family size. monthly
                                                  Shelter
costs were paid separately.

     In computing the monthly allowance, Wisconsin
the autumn 1971 Bureau of Labor Statistics' lower averaged
                                                   level

                                2
 B-164031(3)



budget figures for the cities of Green Bay and Milwaukee.
These budget figures represent the cost of essential goods
and services for a specific family of four who m.aintain a
lcwer standard of living and include such items as food,
housing, transportation, clothing, and personal care.
Wisconsin then updated the budget figures using the Bureau's
Index of Retail Prices for December 1972 and adjusted the
figures to exclude medical care, gifts, life insurance,
contributions, and taxes.  Further adjustments made the four-
person budget applicable to various family sizes.

     According to a State official, other sources for deter-
mining the consolidated need standard had been considered;
however, State welfare officials and the State legislature
concluded that the Bureau of Labor Statistics' modified lower
level budget figures were the most realistic indicator of
family consumption patterns within the State. Since
Wisconsin has periodically adjusted its need standard 1973,
                                                       by
using updated Bureau lower level budget figures.

     In fiscal year 1974, the State legislature set the
Wisconsin payment standard at 81 percent of the need stand-
ard, excluding shelter costs.  Initially, Wisconsin's De-
partment of ealth and Social Services had proposed that
the State pay 100 percent of the need standard, but due to
insufficient funds, the proposal was not adopted. In July
1976, Wisconsin increased its payment standard to 91 percent
of the need standard, including shelter costs.

      Until August 1975, shelter allowances were paid separ-
ately. These allowances were not to exceed the maximum
rates ($130, $110, $85, and $80) established for four shelter
cost areas within the State. The shelter cost areas, which
were determined by projecting 1970 population statistics
prepared by the Bureau of State Planning, were categoirized
as follows:   area I--counties with 70,000 people and over;
area II--counties with 35,000 to 70,000 people; area III--
counties with 20,000 to 35,000 people; and area IV--counties
with under 20,000 people.   Counties with larger populations
were considered to have higher shelter costs; however,
counties were reclassified to different areas if updated
shelter costs within the county indicated that such a re-
classification was necessary. Since the State was not
divided into four uniform shelter cost areas, the counties
within each area were located throughout the State.




                             3
B-164031(3)


COMPARISON OF WISCONSIN'S
STANDARDS AND ASSISTANCE
PAYMENTS WTE OTHER STATES

     In comparison with other States and the District of
Columbia in July 1976, Wisconsin's monthly need standard of
$466 for an AFDC family of four ranked fourth and its pay-
ment standard and maximum payments to ADC families with
four recipients of $424 ranked third. Because of its
relatively high need and payment standards, Wisconsin ranked
third in average payments per family ($323) and per recipient
($106) for July 1976.  (See encs. I and II.)

MIGRATION OF WELFARE
FAMILIES TO WISCONSIN
FOR HIGHER BENEiITS

     We reviewed Milwaukee County's fiscal years 1974-76
nonresident reports for families who had lived in Wisconsin
for less than 1 year.  In February 1976 Milwaukee County
provided AFDC assistance to approximately 38 percent of the
total AFDC families in Wisconsin and accounted for about
40 percent of the total AFDC dollars spent in the State.
Of the 37,835 cases opened in Milwaukee County during this
period, 1,344 (3.6 percent) consisted of familiec who had
lived in Wisconsin for less than 1 year.  The largest number
of recipients who migrated to the county during fiscal years
1974-76 came from Illinois.  (See encs. III and IV.)

     State officials were also gathering   igratory data
through their  computer reporting netwo:k on AFDC recipients
who moved to  Kenosha and Wood Counties from other States.

     According to a State official, data reported by the
computer reporting network showed that 1,590 cases, repre-
senting 90 percent of Kenosha's AFDC caseload, had been
sampled for the quarter ending March 31, 1977. Of the total
cases sampled, 245 (15.4 percent) were families who had
lived in Wisconsin less than 1 year. Data reported for Wood
County was based on 100 percent of the county caseload and
showed that, for the quarter ending March 31, 1977, 47 of
the total 759 cases (6.2 percent) consisted of families who
had lived n Wisconsin less than 1 year.

COMPARISON OF WISCONSIN'S
ALLOWANCES FOR WORK-RELATED
EXPENSES WITH SELECTED STATES

     Under title IV-A of the Social Security Act, States
are required to consider an individual's reasonable work-
                                4
 B-154031(3)




related expenses in determining eligibility and
                                                  amount of
AFDC benefits. Each State can establsh its
                                              own criteria
for reasonable work-related expenses.  (See enc. V.)
ever, as a result of an April 23, 19/4, U.S.0Supreme     ow-
decision, Shea v. Vialpando (416 U.S. 251), the        Court
                                                  States are
not allowe toE limit the 11lar amount of work-related
expenses that may be deducted from an individual's
income when determining eligibility and amount       gross
                                                of AFDC bene-
fits.  In the Court's opinion, any limitation
dollar amount of work-related expenses would placed on the
                                              act
incentive to an individual seeking or retaining as a dis-
                                                  employment.
     Wisconsin considers the following to be reasonable
expenses of employment:  mandatory payroll deductions,
lunches, transportation to and from work, tools,
                                                  special
uniforms, transportation to call on customers,
                                                and child
care. Wisconsin pays a flat amount of 21 percent
individual's gross income for all work-related      of the
                                                expenses,
except child care, unless the individual can provide
mented evidence that the reasonable expenses of        docu-
exceed the flat amount. Wisconsin arrived eat    employment
                                               the flat amount
in 1974 by randomly sampling AFDC cases and reviewing
for work-related expenses claimed.                       them
                                    The results  of  the
sample showed that work-related expenses averaged
                                                    21 per-
cent of an individual's gross income.
     To determine how Wisconsin's wo:k-related expenses
compared with other States in EW Region V (Illinois,
Indiana, Michigan, Minnesota, and Ohio), we sampled
AFDC cases from Illinois with itemized work-related  five
We then applied the amounts of these work-related    expenses.
                                                   expenses
to the deductions allowed under each State's criteria.
found that dollar amounts allowed for work-related        We
                                                    expenses
varied among the States because of the different
used for treating work-related expenses. Our      methods
                                              analysis
showed that, for the six States in HEW's Region
                                                 V, total
monthly work-related expenses for the five cases
                                                  sampled
ranged from $250 for Ohio to about $510 for Michigan.
Wisconsin ranked second with approximately $460
                                                 in work-
related expenses.  (See enc. VI.)
     We trust this information satisfactorily
your request. As arranged with your office, responds to
                                              unless you
publicly announce its contents earlier, we plan
                                                 no further




                              5
B-164031(3)



distribution of this report until
of the report. At that time we will30 days from the date
interested parties and make copies    send copies to
                                    available to others
upon request.

                                Si   E   l   yours




                                Comptroller General
                                of the United States
Enclosures - 6




                            6
  ENCLOSUR            I                                                                    ENCLOSURE        I


                                        AFDC FAMILY WITH FOUR RECIPIENTS
                          MONTHLY AMOUNT FOR BASIC NEED STANDARD, PAYMENT STANDARD,

                                  AND MAXIMJM AMOUNT PAID IN JULY 1976,

                              BY STATE AND THE DISTRICT OF COLUMBIA        note a)
                               Need                             Payment                              Maximum
              State          standard                State      standard                  State      pavmeht
  1.    Vermont                S519        1.   Hawaii            $514       1.      Hawaii          $514
  2.    Hawaii                  514        2.   Oregon             433       2.      Oregon           433
  3.    Oregon                  475        3.   WISCONSIN          424       3.      WISCONSIN        424
  4.    WISCONSIN               466        4.   New York           422       4.      New York         422
  5.    Utah                    433        5.   Connecticut        405
  6.                                                                         5.      Connecticut      4J5
        Ohio                    431        6.   Michigan           403       6.      Michigan         403
  7.    California              4.2        7.   Alaska             400       7.      Alaska           4,0
  8.    New York                422        8.   Massachusetts      385
  9.                                                                         8.      Minnesota        38b
        Connecticut             405        9.   Minnesota          385       9.      Washington       385
 10.    Michigan                403       10.   Washingto          385,
 11.                                                                        10.      Massachusetts    385
        Alaska                  400       11.   California         379      11.      Vermont
12.      Idaho                  395
                                                                                                      379
                                          12.  Vermont            379       12.    California         379
13.     Massachusetts           395       13   Pennsylvania       373       13.    Pennsylvania       373
14.     Minnesota               385       14.  North Dakota       370       14.
15.     Washington                                                                 North Dakota       370
                                385       15.  Missouri           365       15.    Kansas
16.     Iowa                                                                                          364
                                376       16.  Kansas             364       16.    Rhode island
 7.     Pennsylvania                                                                                  359
                                373       17.  Rhode Island       359       17.    Iowa
18.     North Daknta                                                                                  356
                                370       18.  Iowa               356       18.    New Jersey         35f
19.     Missouri                36'       19.  Pew Jersey         356       19.    New Hampshire      346
20.     Kansas                  364       20.  New Hampshire      346
21.                                                                         20.    Idaho              344
        Indiana                 363       21.  Idaho              344       21.    South Dakota       333
22.     Rhode Island            359       22.  South Dakota       333       22.    Utah               333
23.     New Jersey              356       23.  Utah               333       23.    Illinois           317
24.     District                          24.  Nebraska           330       24.    District
           of Columbia          349       25.  Indiana            327
 25.    Maine                                                                         of Columbia     314
                                349       26.  Illinois           317       25.    Virginia           311
 26.    New Hampshire           346       27.  District                     26.    Nebraska           294
 27.    Virginia                346              of Columbia       314      27.    telaware           287
 28.    Nevada                  341       28. Virginia             311      28.    Oklahoma           284
 29.    South Dakota            333       29.  Delaware            287      29.    Maine              278
 30.    west Virginia           332       30.  Oklahoma           284       30.    Colorado           276
 31.    Nebraska                330       31.  Maine              278       31.   Wyoming            270
 32.    Illinois                317       32.  Mississippi        277       32.   Ohio                254
 33.    Maryland                314       33.  Colorado           276       33.   Montana             252
 34.    Arkansas               290        34. Wyoming             270       34.    Indiana            250
 35.    Delaware               287        35. Arkansas            255
 36.    Oklahoma
                                                                           35.    west Vircinia      249
                               284        36. Ohio                254      36.    Nevada
 37.   Arizona                 282                                                                   249
                                          37. Montana             252      37.    Maryland           242
 38.   Mississippi             277        38. West Virginia       249      38.    Kentucky           235
39.    Colorado                276       39.  Nevada
40.                                                               249      39     New Mexico         206
       Wyoming                 270       40.  Maryland            242      40.    North Carolina     200
41.    Montana                 252       41   New Mexico          239      41.    Arizona            198
42.    New Mexico              239       42.  Kentucky            235      42.    Florida            170
43.    Kentucky                235       43.  South Carolina      217
44.                                                                        43.    Missouri           170
       Florida                 230       44.  Tennessee           217      44.    Louisiana          158
45.    Georgia                 227       45. North Carolina       200      45.    Georgia            148
46.    Alabama                 225       46. Arizona              198      46.    Arkansas           140
47.    South Carolina          217       47. Florida              170
48.    Tennessee
                                                                           47.    Texas              140
                               217       48.  Louisiana           158      48.    Alabama
49.    Louisiana                                                                                     135
                               203       49.  Georgia             148      49.    Tennessee
50.    North Carolina          200                                                                   132
                                         50.  Texas               140      50.    South Carolina     117
51.    Tteas                   187       51.  Alabama             135      51.    Mississippi         60
 a/Four recipients moy be represented by an adult and three children, two
   children, or three children with no allowance for th adult caretaker. adults and two
                                                                          In general,
   standards represent one adult and three children.

Source:     HEW's Office of Information Systems, National Center for Social
                                                                            Statistics
ENCLOSURE II                                                                 ENCLOSURE II
                     AVERAGE PAYMENT PER AFDC FAMILY AND      ER RECIPIENT
                    BY STATE AND THE DISTRICT OF COLUMBIA FOR JULY
                                                                   1976
                                   Averpge                                      Average
                                   payment                                      payment
                                     per                                          per
            State                  family                   State              recipient
     1.     New York               $408.71           1.    New York            $123.87
     2.     Hawaii                   362.80          2.     Hawaii              111.22
     3.     WISCONSIN                322.67          3.    WISCONSIN             106.26
     4.     Pennsylvania             291.30          4.    Alaska               103.91
     5.     Michigan                289.73           5.    California             92.93
     6.     California              283.56           6.    Oregon                 91.54
     7.     Massachusetts           282.68           7.    Massachuset's          90.50
     8.     Alaska                  281.05           8.
                                    27 5                   Minnesota              90.42
     9.     Connecticut                  .1i         S.    Michigan               89.83
   10.      Illinois                267.60         10      Pennsylvenia           88.35
   11.     Vermont                  267.60         11.     Washington             88.14
   12.     Oregon                   263.14         12.     Connecti-dt            86.98
   13.     New Jersey               262.73         13.
                                    2
                                                           Utah                   85.26
   14.     Washington                 60.31        14.     Idaho                  82.68
   15.     Minnesota                259.69         !5.     Iowa                   80.71
   16.     Rhode Islatnd         a/254.12          16.     Rhode Island        a/80.63
   17.     Iowa                     250.82         17.     Vermont                80.14
   18.     Idaho                    243.56         18.     North Dakota           79.92
   19.     Utah                    243.16          19.     New Jersey             79.87
   20.     North Dakota            234.48          20.     Kansas                 78.44
   21.     District                                21.     Illinois              77.76
              of Columbia          231.94          22.     District
   22.     Kansas                  231.02                     of Columbia        73.61
   23.     New Hampshire           221.78           23.   New lampshire          72.71
   24.     South Dakota            210.26           24.    South Dakota          69.86
   25.     Delaware                207.94           25.   Wyoming                69.75
   26.     Nebraska                203.86           26.   Delaware               69.26
   27.     Oklahoma                203.42           27.   Colorado               67.80
   28.     Colorado               200.06           28.    Nebraska               67.14
   29.     Ohio                   196.23            29.   Virginia              65.46
   30.    Virginia                194.31           30.    Oklahoma              64.24
  31.     Wyoming                 193.77           31.    Ohio                  63.33
  32.     Maryland                175.02           32.    Maryland              59.80
  33.     Maine                   174.08           33.    Montana               59.64
  34.     West Virginia           172.10           34.    Maine
  35.     Montana                                                               57.37
                                  172.01           35.    West Virginia         55.50
  36.     Kentucky                171.20           36.    Indiana               55.47
  37.     Indiana                 167.12           37.    North Carolina        55.40
  38.     Nevada                  159.73           38.    Kentucky              55.0i
  39.     North Carolina          155.48           39.    Nevada                54.75
  40.     Arizona                 142.79           40.    Missouri              45.29
  41.     New Mexico              1(1.09           41.    New Mexico            44.54
  42.     Missouri                1319.72          42.    Arizna                44.53
  43.     Florida                 124.42           43.    Florida               41.11
  44.     Louisiana               119.36           44.    Arkansas              38.09
  45.     Arkansas                117.93           45.    Louisiana             35.25
  46.     Texas                   105.49           46.    Tennessee             34.29
  47.     Tennessee               102.78           47.    Georgia               32.36
  48,     Alabama                  99.53           48.    Texas                 32.25
  49.     Georgia                  94.26           49.    Alabama               31.76
  50.     South Carolina           85.15           50.    South Carolina
  51.     Mississippi                                                           27.82
                                   48.05           51.    Mississippi           14.33
  a/For July 1976, Rhode Island's average AFDC payments
                                                         per family and per
    recipient were $418.35 and $132.73, respectively.
                                                        This amount included
    a retroactive adjustment totaling about $2.8 million,
    a court order.  Excluding this amount, the average AFDCresulting from
                                                             payment er
    family and per recipient would be 5254.12 and
                                                   80.63, respectively.
  Source:     Public Assistance Statistics Report for July 1976
                                                                prepared by
              HEW's Office of Information Systems, National Center
                                                                   for
              Social Statistics.



                                               2
ENCLOSURE III                                      ENCLOSURE III

COMPUTATION OF THE PERCENTAGE OF NEW NONRESIDENT AFDC AND

   AFDC-UNEMPLOYED FAMILY CASES TO THE        OTAL AFDC AND
          AFDC-UNEMPLOYED FAMILY CASE OPENINGS IN

     MILWAUKEE COUNTY, WISCONSINt DURING        Y 1974-76

                                         FY

                              1974      1975       1976       Total
Total AFDC and
  AFDC-unemployed new
  family case openings       11,898    14,681    11,256      37,835
Nonresident AFDC and
  AFDC-unemployed openings       450      554        340    a/1,344
Percent                          3.8      3.8       3.0         3.6
a/These openings represent 3,114 dults and children
                                                    who
  have lived in the State less than 1 year.




                             3
ENCLOSURE   IV                                                        ENCLOSURE IV
             ESTIMATED NUMBER OF AFDC AND AFDC-UNEMP OYED NON :SIDENT

              RE:IPIENTS (ADULTS AND CHILDREN) IN MILWAUKEE COUNTY,

                      WISCONSIN, DURING FY 1974-76 AND 1969-76

                       AND PLACF OF LAST RESIDENCY (note a)

                                                  Estimated number of recipients
                                                       in county during FY
     Place of last residency                       1974-i6       '      1969-76
       Illinois                                       586                1,470
       Mississippi                                    408                1,038
       Texas                                          153                  938
       Tennessee                                      165                  502
        Arkansas                                      202                  459
        California                                    187                  437
        Michigan                                      102                  418
        Missouri                                      133                  340
        Indiana                                       166                  337
       Ohio                                            99                  221
       Louisiana                                      113                  205
       New York                                        62                  192
       Florida                                         94                  189
       Minnesota                                       59                  182
       Alabama                                         70                  165
       Iowa                                            29                   85
       Kentucky                                        31                   75
       New Jersey                                      47                   71
       Pennsylvania                                    23                   68
       Nebraska                                        24                   59
       Georgia                                         35                   57
       Colorado                                        21                   52
       Washingto.                                      18                   50
       %rizona                                         15                   47
       Kansas                                          15                   46
       Massachusetts                                   11                   34
       North Carolina                                  16                   35
       OKlahoma                                         7                   28
       Oregon                                           2                   24
       Connecticut                                      8                   22
       Nevada                                          12                   18
       West Virginia                                    5                   18
       Maryland                                         5                   16
       Montana                                          2                   15
       Virginia                                         3                   14
       ,ort:    akota                                   2                   14
       New Mexico                                       6                   i4
       Washington, D.C.                                 1                   12
       Idaho                                            -                     9
       Delaware                                         2                     9
       South Carolina                                   4                     ?
       South Dakota                                     4                     6
       Wyoming                                          1                     6
       New Hampshire                                    1
       Maine                                            3                    3
       Utah                                             1                    3
       Hawaii                                           4                    2
       Rhode Island                                     2                    2
       Vermont                                          -                    1
        .Alaska                                         -                    1
       U.S. territories and
         foreign countries                           164                   312
            Total                                  3,123                8 331
       Undistributed
         differences                               b/(s)
              Total                                3 114                8 331
      a/Wisconsin considers a nonresident to be a person who has lived in the
        State less than 1 year.

      b/Adjustment for prior years.



                                         4
 ENCLOSURE V                                                                                                                                                                                        ENCLOSURE V




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                                                                                      IrOR                              ~~u~
 ENCLOSURE \
                                                 ENCLOSURE V

 aUnion dues, group life insurance premiums,
                                              group health
   insurance premiums, and retirement plan withholdings--
   included only if payment is mandatory as a condition
   of employment.

 b/Mandatory dues, mandatory health insurance
                                              premiums, and
   mandatory licenses.

 c/Incidentals.
 d/Health insurance premiums, professional association
   and public liability or other required insurance     dues,
   imbursed by employer.                            not  re-

 e/Union dues.

I/Compulsory health insurance, u.'-n dues, and
                                               retirement
  deductions when required by employer.

j/Union dues, transportation to and from child
                                               care facility,
  bridge tolls, and parking fees.

h/Transporttion to child care facility.

i/Mandatory health and/or life insurance required
                                                  by employer.
i/Alimony, child support, voluntary support of
                                               dependents,
  and garnishment of wages.

k/Licenses, union dues, and fees paid to obtain
                                                employment.
l/Any additional item which the State may allow
                                                on an indi-
  vidual basis.

m/Union dues, required group insurance, disability
  plans, and other expenses.                       or pension

n/Union dues, group insurance, other special
                                             clothing, and
  mandatory fees for licenses or permits.

o/Fees to private employment agencies, union
                                             dues, protective
  clothing, and telephone.

 /HRealth insurance premiums, union dues, voluntary
                                                    retirement
  plan contributions, education and licenses required
  employer; necessary special devices or appliances    by
                                                     not
  covered by Medicaid, expenses for clothing; and
  and incidental expenses.                         grooming

Z/Union dues and other expenses required by
                                            employer.
r/Clothing, other than special uniforms or clothing
                                                     (included
  in flat amount), and actual expenses necessary
  tinued employment.                             for  con-

                               6
ENCLOSURE VI                                                                                                                ENCLOSURE VI
                                          WORn-RELATED EXPWNSES POIp SCLC                   D I"LIfOIS
                                 k.DC RZCIPI[S AND APPLICAION O                TESE EXPtN0SStSO T3t
                                               2Zt ITh LS           IN neW REGIO V

  sampls no.     '       ora-relted
 and client's                ·apenes
 monthly gross               lIlowed by      Amount of                                 Doductions allowed by
 earned ineoe                 Illinois       deduction         ndioana             '4iehian     Minnesota  Ohio                          Wisconsin
          1            rFederl and                           Sime as·                               Sea as
                        State taxes          a/S 29.25       Illinois          S 81.32              Illinois            $ 50.J0          S 53.52
                      Social                                                   (s. .00                                  (flat            (21 of
                        Security               &/15.07                         tel                                      amount)          gross
     5254.86          Transportation              26.00                         mou t and                                                earned
                      Lunch (provided                                          S44.j 2                                                   inoae)
                        by _ployer)}                  -                        mandatory
                      Other mandatory                 -                        trpens) e_
                        @Toal                  S 70.32                         P *4.32                                  S        0.00    $ 53.52
                                                             Sams        as                         Sam        as
                      Percent                    2$          Illinois               33              Ill inois                20            21

       2               *ederal and
                         State taxes         */S 27.,        a/S$ 27.72        $S 6.68               /$S 27.72          S 50.00          S 68.04
                      Social                                                   ($40.00                                  (flat            (21 of
                        security               a/18.96         ·/18.96         flat                       /18.96        mount)           gross
     $324.00          Tranaport- ton             16.60           16.60         amount and                   15.60                        earned
                      Lunci                          9.00           12.90          46.68                   20.00                         ioneou)
                      Other mandatory                -               -             adatory
                                                                                    ponses)                              -
                      Total                    S 72.2              $76.1       S         .1s
                                                                                          .           S        3. 28    50. 500          S 68.     4
                      Percent                    22                 24              27                     26                15            21

       3             Pederal and                             arme s                                Se    S             $ 50.00           S 62.26
                       State txes             /S 20.19      Illinois              ?77.52           Illinois            (flat             121 of
                     social                                                    ($40.00                                 amount)          . oas
                       Security                a/l7.33                        flat                                                      earned
     296.48          Transportatien             .'.00                         amount and                                                income)
                     Lunch (carried                                           $37.52
                       ftro home)                    -                        mndatory
                     Otter mandatory              -                           expenses)

                     'otal                     S 52.52                        $ 77.S2                                       50.00       $ 62.26
                                                            Same as                                Same as
                     Percent                     18         Illinois                26             Illinois                   17           21

      4              Federal and
                       State tes            j/$ 66.08       a/S 66.08         S141.61              */S 66.08$   50.00                   5127.40
                      oeia                                                    (540.00              '          (flat                     (21 of
                      Security                 A/35.53        a/35.53         flat                   */35.53 amount)                    gross
    $606.67          Transportation              32.50          32.50          mount and             -32.50                             earned
                     Lunch                        9.00              12.90     S101.61                     21.50                         income)
                     Other mandatory              -                  -         anatory
                                                                              erpenses)                        -         -
                     Total                     $143.11        $147.01          141.61                $155.81           ' 50.00          $127.40
                     Percent                     24                 24             23                     26                 8            21

      s              FedPeral and                           Same         s                         Sme as
                        State taxcs·         /S 36.00       Illinois          S120.82              Illnois             S 50.00          $148.69
                     Social                                                   (540.00                                  (flat            (21 of
                       Security               */38.24                         flat                                     asount)          gross
    ST70.06           ransportation              5.20                         *JOunt and                                                earAnd
                     Lunch                                                    $80.82                                                    income )
                       (beverage                                              mandatory
                       allowance)                4. 0                         expenses)
                     Other - union
                       dues                    */6.58          -                        -      _

                     Total                    S 90.82                         S120.82                                  $ 50.00          S148.69
                                                            ame as                                 Same as
                     lPerent                    13          Illinois               17              Illinois                  7            21

  $2.190.07          Total for all
                       five cases             $492.05        $436.85          s510.95               $452.55            $250.00          *459.91
                     Percent                    22              20                 .3                     21             11               21

a/andstory     pense.




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