States' welfare caseloads starting to rise

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Federal data for the last half of 2007 show welfare rolls rose about 0.6%, and 27 states reported increases. That follows a decline of 68% since the federal law imposed work requirements, time limits and penalties for recipients who don't follow the rules.

MORE DETAIL: State-by-state caseload breakdown

"When the economy starts to tank, that's when our business starts growing," says Jeff Brenn, chief of eligibility for Nevada's welfare agency.

The reversal of a downward trend that began in 1994 reflects a hard reality facing the Temporary Assistance for Needy Families program: The 3.9 million people who remain on welfare are mostly adults with physical, mental or emotional barriers to employment, as well as children being raised by someone other than their parents — often grandparents, who are not expected to get jobs.

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