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Welfare reform was a spectacular success in New York under Mayor
Giuliani despite the city's history of liberal social programs and
its huge, entrenched welfare system. The city reduced the numbers
on welfare from 1,120,000 to 460,000 by changing the organizational
culture, protecting against fraud, insisting on 'work first,'
adapting information technology, and contracting for job placement.
The organizational culture was transformed by bold leadership that
changed the welfare agency's mission and goals, overcame internal
resistance, and prevailed over politicians who had a vested
interest in the status quo and the media that were opposed to
welfare reform. Welfare fraud was largely eliminated by dropping
from the rolls those who were working and could not appear for
in-person interviews, by fingerprinting recipients to catch those
enrolled under multiple identities and those receiving welfare
checks from other jurisdictions, by uncovering hidden income, by
enrolling new applicants only after thorough investigation, and by
tightening controls to prevent fraud by corrupt employees. JobStat,
a computer-based system modeled after the Police Department's
system used to track precinct activity, was developed to track the
status of welfare recipients and to monitor the performance of the
'Job Centers,' which were formerly called welfare offices. JobStat
focused the attention of department personnel on performance
indicators rather than on minutely specified rules. The Giuliani
administration's major contribution to national welfare reform was
the creation of the only system in the country with large-scale,
alternative work arrangements that was able to acculturate large
numbers of the never-employed to the world of work.
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