Understanding the Costs of the DOL Welfare-to-Work Grants Program

Examines the costs of 18 selected programs from nine sites with different service locations, target populations, and service emphases. Notes that total costs for one year of operations ranged from just over $200,000 to more than $7 million per program, with participation ranging from just under 100 to more than 2,000 individuals during the course of the year. Core program services, which included job readiness classes; intake, assessment, and preemployment case management; job development and placement; and postplacement followup, accounted for almost two-thirds of total program costs, on average. Total costs per participant depended on services used but reflected three main approaches: 1) enhanced direct employment ($3,559), 2) transitional employment ($4,346-$4,513), and 3) postemployment services ($2,178). Concludes that future programs focusing on the hard to employ could cost as much as, or more than, welfare-to-work.