By Lester Chang
If the city of Sunnyvale does not work with other Santa Clara County cities, it could become overwhelmed by federal welfare reform, according to a city report.
City officials said residents who have used all their benefits will turn to a last resort--county assistance funds.
If the county can't meet the demand for this type of help, it will draw funds from other programs to continue serving welfare recipients, officials said in a report presented at a May 6 council meeting.
In that case, the state might call on Sunnyvale and other cities to take on welfare programs and fund them, city staff members said.
This obligation would strain city services and disrupt the city's budget plans, the report suggested.
Moreover, the city would see more homeless people and destitution on its streets, the report said.
The situation could provoke an increased need for more law enforcement, housing and child-care services, and trigger more requests from community groups serving the poor.
"At this time, no one knows how Santa Clara County would deal with a major potential breach in the county-level safety net, but staff believes that such a fiscal crisis is very possible," the report said.
In response, the council approved a plan requiring the staff to monitor reforms in California and help Sunnyvale head off potential problems.
The council will receive three additional reports between now and June 1998.
One report, to be delivered in August, will examine what county welfare programs will look like after reform.
Another will be presented in December and will look at the progress of welfare reform and identify options the city can pursue to address impacts.
The third study, forthcoming in June 1998, will focus on what welfare reform looks like in the county after one year.
The City Council received the first report at its May 6 meeting. It offered information on the reform and how it might affect the city in the near future.
Officials suggested the city work with other county cities to accomplish the following:
* advocate reform legislation through federal and elected officials;
* encourage the development of affordable housing; and
* develop employment through the NOVA Private Industry Council.
Last year in Sunnyvale, 6,856 residents had received welfare benefits as of October 1996. That figure doesn't include 1,132 residents who receive Supplemental Security Income.
The total, the second-highest in Santa Clara County, represents only 4.5 percent of all the people receiving welfare assistance in the county.
In Sunnyvale, 2,700 people receive Aid to Families with Dependent Children; 3,400 receive some form of Medi-Cal assistance; 39 receive foster care assistance; 654 receive food stamps; and 1,132 legal immigrants receive SSI assistance.
The full impact of the reform measures won't be known for at least five years, when people begin to permanently lose eligibility for federal and state assistance, the report said.
Under the reforms, among other requirements, recipients must return to work within two years and cannot receive assistance after they have been paid for five years.
The federal reform legislation was signed into law last August.
The state Legislature is now beginning to discuss how California will implement the changes.
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This article appeared in the Sunnyvale Sun, May 14, 1997.
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