Hiking – Less than 2 hours from Indianapolis

I hiked in each of the 200 counties within 3 hours (210 miles) of Indianapolis during 2020-2021. I’d like to share hikes in 10 of the 60 counties within 110 miles of Indy.

Morgan-Monroe State Forest

Morgan-Monroe State Forest offers a variety of moderately challenging woods and stream valley hikes just an hour southwest of Indy. You might combine this with a hike in Yellowwood State Forest just 30 miles further south.

No photo description available.
No photo description available.
No photo description available.

https://www.in.gov/dnr/forestry/properties/morgan-monroe-state-forest/

Portland Arch Nature Preserve

Portland Arch Nature Preserve is less than 90 minutes NW of Indy via I-74 and US 41 near the Illinois border. It features deep stream valleys, cliffs and a small “arch” with a stream running through it. Combine this hike with a visit to 90 foot high Williamsport Falls just 8 miles to the north or Shades State Park 35 miles to the south.

No photo description available.
No photo description available.
No photo description available.

https://www.nature.org/en-us/get-involved/how-to-help/places-we-protect/portland-arch-1/

McCloud Nature Park

McCloud Nature Park is 40 miles WNW of Indy. Trails follow the hills and valley of Big Walnut Creek. Combine this with a hike in Big Walnut Nature Preserve 8 miles west, Sugar Creek Nature Park 30 miles NW or Fern Cliff Nature Preserve 30 miles SW.

No photo description available.
No photo description available.
No photo description available.

https://www.visithendrickscounty.com/listings/mccloud-nature-park/186/

Spring Mill State Park

Spring Mill State Park is 90 miles south of Indy, past Bloomington and Bedford via IN-37. This is limestone country. The park features history, steep valleys, hills, forests, lakes and an inn. Combine this with a stop at Cedar Bluffs Nature Preserve 30 miles north or Hardin Ridge Recreation Area on Lake Monroe 30 miles north.

Spring Mill State Park: Memories and Some Photos ⋆ Stephanie A. Cain
No photo description available.
No photo description available.
No photo description available.

https://www.in.gov/dnr/state-parks/parks-lakes/spring-mill-state-park/

Clifty Falls State Park

Clifty Falls State Park is 90 miles SE of Indy. It features several trails that view waterfalls or rapidly flowing streams that are moving from the standard elevation of SE Indiana down to the Ohio River. Combine this hike with a visit to Madison, IN or Versailles State Park 30 miles north.

Clifty Falls State Park — terryangel.com
May be an image of tree, nature and body of water
May be an image of nature and body of water
May be an image of tree and nature

https://www.in.gov/dnr/state-parks/parks-lakes/clifty-falls-state-park/

Calli Nature Preserve

Calli Nature Preserve is located 70 miles southeast of Indianapolis along the Muscatatuck River. The short trail explores a small stream valley and the river valley. It is best visited when Spring wildflowers are in bloom. Combine this hike with a visit to Selmier State Forest just 5 miles north or Muscatatuck National Wildlife Refuge 12 miles to the west.

Calli Nature Preserve (North Vernon) - 2021 All You Need to Know BEFORE You  Go (with Photos) - Tripadvisor
No photo description available.
No photo description available.
No photo description available.

Versailles State Park

Versailles State Park is located 75 miles southeast of Indianapolis. The park features a lake and trails that follow streams/historic roads upland to the east. Combine this hike with a stop at Calli Nature Preserve or Selmier State Forest 20 miles to the west.

Versailles State Park : r/Indiana
No photo description available.
No photo description available.
No photo description available.

https://www.in.gov/dnr/state-parks/parks-lakes/versailles-state-park/

France Park

France Park is located 80 miles north of Indy in the Wabash River Valley. The park features a lake in an old quarry, overlooks, waterfall, a beach and some geological history. Combine this hike with a stop on the Nickel Plate Rail Trail between Peru and Kokomo 25 miles east.

France Park Falls
No photo description available.
No photo description available.
No photo description available.

https://visitindiana.com/things-to-do/54745-france-park

Ouabache State Park

Ouabache State Park is located 110 miles northeast of Indy, south of Ft. Wayne, about 30 miles from the start of the Wabash River in Ohio. This is still relatively flat, agricultural Indiana, but the park features pines forests, wetlands, a small lake and a herd of bison. Combine this hike with a stop at the JE Roush Fish and Wildlife Area 25 miles to the NW or the Loblolly Marsh 16 miles south.

Ouabache State Park | David, Janet, and our Van
Info for campers - Review of Ouabache State Park, Bluffton, IN - Tripadvisor
May be an image of animal and nature

https://www.in.gov/dnr/state-parks/parks-lakes/ouabache-state-park/

Kickapoo State Recreation Area (IL)

Kickapoo State Recreation Area is 100 miles NW of Indy, just across the Illinois border. It features trails along the Versailles River in an area that was once only strip mines. Combine this with a visit to the Forest Glen Preserve 20 miles to the south or the Portland Arch 30 miles to the east.

No photo description available.
No photo description available.

https://www2.illinois.gov/dnr/Parks/Pages/Kickapoo.aspx

Hiking – East North East Indiana

This area is mostly flat, with a few smaller river valleys and many well-maintained rail-trails.

2 mile paved trail from Blackford HS, east or Marion, IN.

https://www.facebook.com/Blackford-Greenway-Inc-140018430028350/

Follow the Cardinal Greenway from Richmond, IN to Losantville to Muncie to Gas City to Marion. 60 miles of gently rolling terrain on a rail-trail, part of the American Discovery Trail.

Trail near Richmond heading north. - Picture of Cardinal Greenway, Muncie -  Tripadvisor

https://www.indianatrails.com/cardinal-greenway

Rail trail west of Marion, IN.

Heavily used rail-trail in Hamilton County, north of Indianapolis.

Monon Trail Homes for Sale | m.s.Woods Real Estate | Homes for Sale Near Monon  Trail

https://www.visithamiltoncounty.com/things-to-do/outdoors/monon-trail/

Rail-trail west of Indianapolis.

https://www.greenfieldin.org/component/content/article/107-content/170-pennsy

Impounded lake with trails south of Muncie, IN.

https://www.in.gov/dnr/state-parks/parks-lakes/summit-lake-state-park/

Rail-trail beginning in Kokomo, IN by the Wildcat Creek.

http://www.nickelplatetrail.org/

Wetlands area north of Portland, IN.

Blog Archives - Friends of the Limberlost

Hiking along the White River plus Indian mounds near Anderson, IN.

https://www.in.gov/dnr/state-parks/parks-lakes/mounds-state-park/

Highly used rail-trail for 10 miles in Indianapolis.

https://www.visitindy.com/indianapolis-monon-rail-trail

Explore the streets and rail tracks of this small town north of Indianapolis.

Hiking – SW Indiana

From the Wabash River to Patoka River/Lake to the Hoosier National Forest, scenic trails and preserves abound.

Hike the central road of Dogwood Lake at Glendale FWA, SE of Washington, IN.

Glendale Fish & Wildlife Area - Southern Indiana

https://www.in.gov/dnr/fish-and-wildlife/properties/glendale-fwa/

The 6 mile main trail is rugged, providing a view of Totem Rock. Patoka Lake is south of French

Lick, IN.

https://www.in.gov/dnr/state-parks/parks-lakes/patoka-lake/

The Snakey Point Marsh offers trails and road hikes in Patoka River Wildlife Refuge, north of Evansville.

Spring Mill State Park, south of Bedford, IN, is one of the largest Indiana State Parks with an inn and extensive hilly, wooded hiking trails.

https://www.in.gov/dnr/state-parks/parks-lakes/spring-mill-state-park/

Southwest of Bedford, IN, adjacent to Hoosier National Forest, Martin State Forest offers a variety of moderate to challenging hikes in the forested hills.

https://www.in.gov/dnr/forestry/properties/martin-state-forest/

1 mile old growth forest trail south of Bedford, IN. (Pioneer Mothers Memorial)

https://www.fs.usda.gov/recarea/hoosier/recarea/?recid=41586

Tipsaw Trail is 6 miles long in rugged country near Tipsaw Lake in the southern Hoosier National Forest, 20 miles north of the Ohio River.

Hoosier National Forest - Wikipedia

https://www.fs.usda.gov/recarea/hoosier/recarea/?recid=41500

West of Jasper, IN, Pike State Forest encompasses the bottomlands of the Patoka River and small hills.

https://www.in.gov/dnr/forestry/properties/pike-state-forest/

South of Evansville on the banks of the Wabash River, Harmonie State Park offers moderately rugged woods hiking.

Harmonie State Park - State of Indiana
Harmonie State Park Indiana HD wallpapers, Backgrounds

https://www.in.gov/dnr/state-parks/parks-lakes/harmonie-state-park/

South of Jasper, IN, Lincoln State Park offers 10 miles of hiking trails in varied areas.

Free Admission to Lincoln State Park - Santa Claus Indiana

https://www.in.gov/dnr/state-parks/parks-lakes/lincoln-state-park/

Short hike in community park and adjacent neighborhoods in Evansville.

https://www.visitevansville.com/sports/price-park

Challenging hike through creek bottoms and steep cliffs, west of Louisville.

https://www.crawfordcountyindiana.com/attractions/park-scenic/yellow-birch-ravine/

Off-road vehicle park, with some trails open to hikers on this formerly strip-mined site. Northeast of Evansville.

https://www.in.gov/dnr/outdoor-recreation/properties/interlake-state-recreation-area/

Vincennes community park with Wabash River and woods trails.

Ouabache Trails County Park | The Dyrt

Hiking – WNW Indiana

Surprisingly diverse and steep hiking options in this area in addition to the classics.

https://www.in.gov/dnr/state-parks/parks-lakes/shades-state-park/

Bring your compass and binoculars to explore this marshy bird sanctuary.

https://indianabirdingtrail.com/pages/pine-creek-game-bird-habitat-area-birding-opportunities

Enjoy the forest, prairie and valley areas of this suburban Indy rail-trail. (Starkey Park)

https://www.zionsville-in.gov/Facilities/Facility/Details/4

Woods oasis surrounded by farmland, typical of central Indiana.

Portland Arch on the border with Illinois is a hiking and scenic highlight.

https://www.nature.org/en-us/get-involved/how-to-help/places-we-protect/portland-arch-1/

Diverse hiking and scenery in a small town west of Indy.

Hendricks County Parks and Recreation - Home | Facebook

https://www.visithendrickscounty.com/listings/mccloud-nature-park/186/

Short, but interesting local trail. (Sugar Creek)

Short woods trails from the campgrounds at Raccoon Lake.

A short, challenging hike with unique views.

https://www.nature.org/en-us/get-involved/how-to-help/places-we-protect/fern-cliff/

Hiking trails provide nice views of this highly visited wetlands area.

https://www.homeofpurdue.com/things-to-do/nature-and-outdoors/celery-bog-nature-area/

Forest Glen Preserve south of the Vermillion River and Danville, IL.

https://en.wikipedia.org/wiki/Forest_Glen_Preserve

Short hike down a rock solid stream bed (temporarily closed)

https://www.nature.org/en-us/get-involved/how-to-help/places-we-protect/fall-creek-gorge/

Forest edge and bottomlands hike.

https://nicheslandtrust.org/properties/warren-county/weiler-leopold-nature-reserve

Hiking – WSW Indiana

Relatively rugged and remote hiking southwest from Indianapolis.

Indiana’s newest state forest in rugged Brown County.

https://www.in.gov/dnr/forestry/properties/mountain-tea-state-forest/

Hike the gravel roads of this largely undeveloped FWA near Terre Haute.

https://www.in.gov/dnr/fish-and-wildlife/properties/chinook-fwa/

A hiker’s paradise with many moderately challenging trails.

https://www.in.gov/dnr/forestry/properties/morgan-monroe-state-forest/

Hike the more remote horse trails on the southern part of this heavily wooded state park.

Owen-Putnam State Forest | Bloomington Indiana | Tourism | Ecotour | Nature  | Scenic | Environment

https://www.in.gov/dnr/forestry/properties/owen-putnam-state-forest/

Nice trails surround the lakes on this relatively developed state park south of Terre Haute.

https://www.in.gov/dnr/state-parks/parks-lakes/shakamak-state-park/

Follow the western bank of the Wabash River near Terre Haute.

https://www.in.gov/dnr/fish-and-wildlife/properties/wabashiki-fwa/

Horse trails and gravel roads throughout this area that was once filled with coal mines.

Best Trails in Greene-Sullivan State Forest | AllTrails

https://www.in.gov/dnr/forestry/properties/greene-sullivan-state-forest/

Hiking – ESE Indiana

This area is mostly flat or slightly rolling and dominated by agriculture. Small forest preserves closer to Indianapolis. Larger parks in the Whitewater River valley east towards Ohio.

Large FWA adjacent to an active military base. Flat hiking trails.

https://www.in.gov/dnr/fish-and-wildlife/properties/atterbury-fwa/

Short trail adjacent to a stream.

Small old growth forest preserve.

https://www.nature.org/en-us/get-involved/how-to-help/places-we-protect/shrader-weaver-woods/

Mounds SRA is adjacent to Brookville Lake, part of the Whitewater River watershed.

https://www.in.gov/dnr/state-parks/parks-lakes/brookville-lake/

Johnson County Park occupies part of historic Camp Atterbury. Flat trails.

https://www.jocoparks.com/johnson-county-park

Symbiosis forest preserve with minor hills.

Symbiosis - Classified Forest, 1241 S 775 E, Waldron, IN 46182, USA

Click to access Symbiosis-Brochure.pdf

Small old growth forest preserve relatively close to Indianapolis.

Another lakeside park in the Whitewater River watershed, like Mounds SRA.

https://www.in.gov/dnr/state-parks/parks-lakes/whitewater-memorial-state-park/

Hiking – SE Indiana

A surprisingly scenic and hilly part of the state.

The oldest IN state forest is 2,000 acres, containing the White Oak Nature Preserve.

https://www.in.gov/dnr/forestry/properties/clark-state-forest/

Highlands overlooking the Ohio River.

https://www.greatparks.org/parks/shawnee-lookout

Knobstone trail starts at the south end of the lake, heading north. Wonderful forest.

https://www.in.gov/dnr/forestry/properties/deam-lake-sra/

Scenic hike on both sides of Indiana Creek.

Hayswood Nature Reserve - Corydon, IN

https://www.harrisoncountyparks.com/parks/hayswood-nature-reserve

Hiking these “knobs” is a true “backbone” hike with scenic views over the surrounding countryside.

https://www.in.gov/dnr/forestry/properties/jackson-washington-state-forest/

Clifty Falls is a top 10 Indiana state park, mainly due to the up close access to waterfalls and cliffs.

Indiana Clifty Falls State Park | State parks, Beautiful places, Waterfall  park

https://www.in.gov/dnr/state-parks/parks-lakes/clifty-falls-state-park/

Hidden gem along the Muscatatuck River. Especially sweet during Spring wildflower season.

Almost 100 years as a classified forest preserve.

https://www.in.gov/dnr/forestry/properties/selmier-state-forest/

The Ohio River waterfront in Vevay is worth a visit.

Schenck Mansion in Vevay, Indiana. | Indiana travel, Mansions, Old houses
Vevay, IN - 80-Foot-High Flood Poles

https://en.wikipedia.org/wiki/Vevay,_Indiana

Versailles State Park trails start at the lake, but follow historic stone trails up the surrounding hills and streams. Very enjoyable hikes.

https://www.in.gov/dnr/state-parks/parks-lakes/versailles-state-park/

Knobstone Trail is the highlight of Indiana Hiking. Pick a trailhead and enjoy. Check with your doctor to be sure you’re ready for repeated 400 foot climbs and descents.

https://www.in.gov/dnr/forestry/properties/knobstone-trail-conditions-reroutes-maps/knobstone-trail-about/

A Beginner's Guide to Backpacking Indiana's Knobstone Trail – The Indiana  Adventurer
Knobstone Trail Description – Knobstone Hiking Trail Association
The Knobstone Trail, part one. The trail, the plan, the prep | So Many Miles

Hiking – NW Indiana

Nice variety of rail trails, state and county parks, nature preserves, a quarry and an arboretum. This is mostly flat walking. St. Joseph County offers many options.

A village, a historic canal, a deep valley and a rail trail provide options in Delphi, along the Wabash. The bridge is under reconstruction, but you can hike up to one end and you can hike beneath it in the valley.

Travelers have come to know and love the outdoor recreational facilities of France Park, with scenic trails, beautiful waterfall, clear swimming lake with picturesque cliffs, quiet fishing areas, and spacious camping facilities.

https://www.co.cass.in.us/departments/e-i/france-park/home

The Nickel Plate Trail runs from Kokomo to Rochester. There are a dozen trailheads along its 40 mile length. Although mostly flat, this is a surprisingly scenic trail where it crosses 3 major rivers and approaches Lake Manitou south of Rochester.

http://www.nickelplatetrail.org/

Visit Jasper-Pulaski any time, but come in the fourth quarter to see the truly amazing sandhill cranes.

https://www.in.gov/dnr/fish-and-wildlife/properties/jasper-pulaski-fwa/sandhill-cranes/

Deep River Park in Lake County follows the river, starting at an historic grist mill.

https://lakecountyparks.com/151/Deep-River-County-Park

Spicer Lake has trails and board walks for visiting the birds. This is a short hike, but quite memorable at the Michigan border.

Spicer Lake Nature Preserve - July 4, 2017 | Bloomington Indiana | Tourism  | Ecotour | Nature | Scenic | Environment

http://www.sjcparks.org/591/Spicer-Lake

Plymouth, Indiana has a small trail system that connects the river and surrounding areas.

LaSalle FWA is part of the Grand Kankakee Marsh. Interesting trees, bushes and birds abound.

https://www.in.gov/dnr/fish-and-wildlife/properties/lasalle-fwa/

The prairie and stream trails are enjoyable. The Gabis arboretum resources and gardens are nice. But the highlight is the outdoor model train and landscaping.

Several interesting trails along the Tippecanoe River.

Tippecanoe River State Park - Nature Preserve

https://www.in.gov/dnr/state-parks/parks-lakes/tippecanoe-river-state-park/

Potato Creek is west of South Bend. The trails take advantage of a lake, historical and planted areas. The state is investing in this park for the future.

Potato Creek State Park

https://www.in.gov/dnr/state-parks/parks-lakes/potato-creek-state-park/

The Erie Trail is a straight 20 mile rail-trail segment of the American Discovery Trail, starting north of the Tippecanoe River SP and heading WNW to North Judson, IN.

Walk the Golden Trail.

https://www.prairietrailsclub.org/about

Surprising place for a nature park. This “savanna” landscape is just west of a heavily drained farm landscape.

A second St Joseph County Park. Pine trees, open spaces and a small stream highlight the trails.

St. Patrick's County Park - Picture of St. Patrick's County Park, South  Bend - Tripadvisor

http://www.sjcparks.org/592/St-Patricks

Hiking – NE Indiana

Significantly more water and small hills in this area of Indiana.

South of Ft. Wayne, a large marshy area with a variety of close-up and elevated trails.

https://www.lrwp.org/eaglemarsh

Just south of Eagle Marsh is Fox Island County Park with several woods trails, including one that follows a sand bar.

Fox Island County Park

The main feature is old growth forest on this 2 square mile property. There is a creek, pond and wetlands in this nature preserve.

Douglas Woods preserve grows | News | kpcnews.com

https://www.nature.org/en-us/get-involved/how-to-help/places-we-protect/douglas-woods-1/?tab_q=tab_container-tab_element

17 miles of rail-trail connecting small cities through rolling farmlands on the Pumpkinvine Trail.

Pumpkinvine Nature Trail | Nature trail, Bike trails, Bicycle trail

The least visited of the 3 Wabash River feeding lakes, formerly known as Huntington Lake. Lake shore and river following trails.

https://www.in.gov/dnr/fish-and-wildlife/properties/je-roush-lake-fwa/

Short hike and board walk extends out into the marsh/lake.

https://indianabirdingtrail.com/pages/pisgah-marsh-birding-opportunities

There are many trails and gravel roads to hike in the large Pigeon River FWA.

Nasby Dam on the Pigeon River in Lagrange County Indiana | Flickr

https://www.in.gov/dnr/fish-and-wildlife/properties/pigeon-river-fwa/

Many hiking options around the large dammed Lake Mississinewa, which empties into the Wabash.

https://www.in.gov/dnr/state-parks/parks-lakes/mississinewa-lake/

Nice woods and road hikes around the connected lakes and hills.

https://www.in.gov/dnr/state-parks/parks-lakes/chain-o-lakes-state-park/

Many connected trails around the lake, wetlands and woods of this state park with an inn.

Best Trails in Pokagon State Park | AllTrails
Pokagon State Park, an Indiana State Park located near Angola, Coldwater

https://www.in.gov/dnr/state-parks/parks-lakes/pokagon-state-parktrine-state-recreation-area/

Many trails around this lake which also empties into the Wabash.

https://www.in.gov/dnr/state-parks/parks-lakes/salamonie-lake/

Located out of the way, near the headlands of the Wabash, this state park is more developed than expected, with a dammed lake, pine woods and bison area.

Info for campers - Review of Ouabache State Park, Bluffton, IN - Tripadvisor

https://www.in.gov/dnr/state-parks/parks-lakes/ouabache-state-park/

Loblolly Swamp is west of the Geneva Limberlost homestead. It’s a shorter hike, but covers unusual terrain.

Welfare Benefits: Order of Magnitude

“Typical welfare family”, a single parent and 2 children (cue the video), receives $35,000 of welfare benefits annually claims the Wisconsin congressman in 2014. That number has stuck in our minds, just like the “welfare queen” and escaped prisoner “Willie Horton”.

https://www.washingtonpost.com/news/fact-checker/wp/2014/12/05/grothman-single-parents-welfare/

Fact checkers debunked this claim, but it’s important to work through the details to get back to a reasonable “order of magnitude” estimate of “welfare benefits”.

If a family has ZERO income, they may receive maximum benefits. The Clinton “welfare reforms” limited the primary benefits to a total of 60 months. Families cannot receive benefits “forever”. Most household heads do work and have some income during the year. The maximum benefit number is an inappropriate “anchor”.

Temporary Assistance for Needy Families (TANF) (welfare) participation rates have fallen from 80% of those eligible to less than 25% since “reform” was implemented. The reform has had it’s intended effect. Two-thirds of those previously participating no longer do so. Some have become more productive and income earning members of society. Others “make do”.

Click to access what_was_the_tanf_participation_rate_in_2016_0.pdf

The percentage of families “in poverty” receiving welfare benefits has fallen from 68% to 23%.

https://www.cbpp.org/research/family-income-support/temporary-assistance-for-needy-families-tanf-at-25

Current average TANF benefits in my home state of Indiana are $346/month or $4,152. That’s a long way from $35,000 of cash benefits, which is the “anchor” that needs to be removed. $4,000 per year of cash is the typical Indiana welfare benefit. The maximum is $700/month or $8,400/year, twice as high. More kids, no income, still eligible. This is possible, but it’s not a useful reference point. The normal received benefit is just one-half of the maximum.

https://www.needhelppayingbills.com/html/indiana_cash_assistance.html

Supplemental Nutritional Assistance Program (SNAP of food stamps) is the next welfare program. For an Indiana family of 3, current benefit value is $6,240 per year. A family of 3 can earn up to $25,000 annually before benefits start to decline. The national ratio of SNAP to TANF recipients is 82%. In Indiana, just 75% of those eligible receive ANY SNAP benefits.

https://www.fns.usda.gov/usamap/2018#

https://www.in.gov/fssa/dfr/snap-food-assistance/about-snap/income/

Housing assistance is listed at $9,000. There are various federal and state programs. This is like “winning the lottery” for low income families. In Indiana, 1 in 8 eligible families (12%) receive housing subsidies. These average $736/month or $8,832 per year. On an “expected value” basis, this is only $1,060 per year. From a public policy point of view, this is the relevant number.

See pages 23-24.

Support has not increased materially since 2013.

https://www.pgpf.org/blog/2020/07/how-does-the-federal-government-support-housing-for-low-income-households

In the Wisconsin representative’s model, there is $7,000 of higher education benefits. This is clearly irrelevant to public policy. Individuals do not make ongoing annual work choices based on education benefits.

The Cato Institute started this “conversation” about “welfare versus work” in 1995 and updated their analysis in 2013.

Like the congressman, they note that the “welfare benefits” received are in “after-tax” dollars, so they “should” be translated back into pre-tax dollars to be “fair”. Since the marginal tax rate for low-income wage earners is often just 10%, this is immaterial. More importantly, the emotional, political currency is cash. “how much do THEY receive?” is THE question. This is an after-tax amount. No “grossing up” is required.

The Cato folks also include the full value of Medicaid benefits received by those below the eligible income transition. The value paid per child ($2,145) and per adult ($4,211) yields an $8,501 annual “benefit” currently. Is this a “welfare” benefit or a “citizen” benefit? The US health care system is primarily funded through tax-deductible employer plans. Medical plan subsidies are now available up to 400% of the federal poverty level. From a federal budget perspective, lowest income families receive more value. From an “incentive” perspective, low income families are generally indifferent between federal and employer sponsored plans. This $9,000 does not belong in “the cost of welfare”.

The Cato analysis includes the cost of the “earned income tax credit” (EITC) as a welfare benefit. The EITC was created and enhanced as an incentive for unemployed persons to work and earn some income, thereby providing themselves with short-term and long-term benefits and reducing the cash level welfare benefits. It grows quickly with earned income up to about $18,000 and then falls back down nearly as quickly as income grows to $40,000 per year. This is not what most people think of as a “welfare benefit”.

https://en.wikipedia.org/wiki/Earned_income_tax_credit

The Cato analysis also focuses on welfare benefits versus the minimum wage, emphasizing that overly generous welfare benefits provide a disincentive for recipients to seek paid employment (ignoring the 60 month TANF benefits limit). As the effective minimum wage in 2021 approaches $15/hour and $31,200/year, we won’t be hearing this comparison again.

As a professional “cost accountant” since 1978, I was often asked to provide the “exact cost” of various products or services. College courses, residence hall rooms, food service meals, buildings for rent, account managers, computer hardware, installed cables, telephone services, computer maintenance, software development, dresses, tops, retail stores, extension cords, surge protectors, imported goods, cell phones, returned cell phones, etc. The answer is always “it depends”. This is never a popular answer. It depends on what decision you are making. Short-term, medium-term or long-term timeframe. Do we include opportunity costs? Which externalities should we consider, if any? Do we include strategic, brand or cultural consistency as factors?

For the “welfare benefits” question, I think that the relevant public policy/budget and personal incentive numbers are largely the same. Welfare/TANF and food stamps/SNAP matter. EITC, medicaid, education benefits, housing assistance, and income taxes don’t matter.

Welfare/TANF for an Indiana family of 3 is worth $4,152 annually. The complementary food stamp/SNAP benefits are worth $6,240. The total quasi-cash welfare payment is $10,392 per year of eligibility. Maximum of 5 years. This is the right “anchoring” number: $10,000 per year for a family of 3. They will be going to the local food pantry every week. They will be seeking family and private charity. They will be leaning on friends, relatives and neighbors for “subsidized” child care. They will be working and seeking to advance themselves.

There are disincentive challenges remaining in our current systems.

https://www.washingtonpost.com/news/fact-checker/wp/2014/12/05/grothman-single-parents-welfare/

But, these technical, marginal, incremental, opportunity rates are not the heart of the matter. Lower income families are not “optimizing” their benefits. I volunteered to provide low income/elderly federal income tax services for several years. The benefit and tax rules are complex beyond comprehension.

The core public policy question is “Is $10,000 of annual benefits a reasonable amount for our state to pay to a family of 3 with no income?”. I would argue that it is too low, half what it ought to be.

Support for a universal basic income (UBI) has grown in recent years, as the economy, productivity and equity returns have grown by 3% annually but wages have remained flat for 40-50 years in the US.

https://www.investopedia.com/news/history-of-universal-basic-income/

Typical welfare benefits at $10,000 are now irrelevant compared with $30,000 effective minimum wage.