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Colorado welfare reform legislation is tempting businesses with the carrot-and-stick approach, offering tax incentives to help welfare recipients enter the work force. Businesses will be able to claim a 20 percent tax credit for providing child care, health or dental insurance, job training or education, and transportation to employees on public assistance. Whether small businesses will pursue the carrot remains to be seen. "The less I have to pay for taxes, the more money there would be for more effective training,"said Glenda Robinson, president of Finishing Touch Janitorial Service in Longmont. But past efforts to take advantage of hiring incentives has left Robinson wary of red tape and none the richer. "I would be elated if the process was streamlined," she said. Getting Robinson to take on welfare recipients is like preaching to the converted. From her first employee, in 1983, until now, she has made it her "mission" to hire the "disadvantaged" -and built an invaluable work force in the process. This year and last, two single parents employed at her company came off the welfare rolls. Other small-business owners say if the process to claim the tax credits is burdensome, hiring welfare recipients may not be cost effective. "It depends on the paperwork," said Joseph Wyskiel, president of the Denver moving company Two Men And A Truck. "We're already overburdened with paperwork. A one- or two-page form would be fine but if I get a booklet of forms, I'd need to hire a secretary," he said. Wyskiel is a step ahead of the lawmakers. "We give anybody a try if they want to work and we find out quickly if they do. Generally, they must have had a job in the last six months," but Wyskiel sometimes bends the rules. "We have an employee {who lives} in a halfway house and he's one of our best. He did not have a serious offense. He'll be released in a couple of weeks and we'll have an employee out of the deal." But some people just don't cut it. "It really depends on the individual. It's very difficult to teach work habits and work ethics," he said. Frank Rider, president of Boulder Blimp Co., said he may hire someone on welfare when a position becomes available. "I feel like it's the right thing to do. I wouldn't do it for the tax credit since the amount of paperwork probably wouldn't pay for it. "I might get anxious or nervous about that but I've taken bigger risks in my life," he said. Law takes effect soon Beginning July 1, anyone on welfare able to work will be limited to five years of benefits in their lifetime. To help make the new program work, state Sen. Doug Linkhart, D-Denver, who initiated the tax credit provision in the Senate, is calling for businesses to team with government. "A key ingredient in the success of welfare reform, now that responsibility has been passed to the counties, will be partnerships between local governments and businesses to place recipients in good jobs with benefits. The tax incentives will help make this happen," Linkhart said. The tax credits are available to businesses for two years after a welfare recipient comes on board - the credits apply to tax years beginning Jan. 1, 1998. If the tax credit exceeds taxes owed for the year, the excess will be carried over to the first of the next three years when taxes are owed. As many as 32,000 families that receive welfare benefits are expected to make the transition to self-sufficiency. "What I'm also hoping is that it will provide a new source of reliable employees in a tight labor market," Linkhart said. Small business challenges Small business will have the greatest challenge as public assistance recipients begin settling into jobs, according to Tom Clark, executive vice president of the Denver Metro Chamber of Commerce. "People coming off welfare will need extra care and nurturing for the first few month on the job, but small businesses lack the finances and resources to do this," he said. Large companies already have support systems in place to deal with problems that may arise. The flip side, he added, is that welfare recipients are likely to get more overall personal attention and monitoring in a smaller company. Employers beware. Clark said employers are likely to face a new set of problems when this "at-risk" portion of the labor pool enters the work force. Some who are not used to holding down a job may have trouble getting up mornings, some may have trouble adjusting to an eight-hour workday and some may not show up because their car won't start, according to Clark, who has worked in the human-services arena. 'Birth dearth' opens market Despite the challenges, many businesses may welcome these job seekers with open arms. "We're scraping for labor, with the 'birth dearth' and 'baby boom echo,'" said Clark. When many baby boomers delayed childbearing until later in life, there was a time when births took a nose dive. The result is far fewer 17- to 25-year-olds today, making for the birth dearth, explained Clark. Reinforcements will be on the way when the children of baby boomers, many of whom are now in their early teens, knock on employers' doors. Meanwhile, welfare recipients will help ease the work force shortage in this thriving economy. "Welfare reform provides the impetus for recipients to find employers," said Clark. Counties set agenda State legislatures have turned much of the dirty work for welfare reform over to the counties. So far, Denver-area counties are approaching the reforms in a variety of ways. "Adams County has a sound plan for welfare reform," said Allen Murphy, division director of Adams County Department of Social Services. Because welfare reform is still a work in progress, Murphy noted that his comments are conditional since county programs will require approval. "We will work as closely as possible with business," he said. "We feel employers should see that as a sound business decision, not charity." Some getting ready to enter the work force will attend a two- to three-week training program learning about work ethics, writing resumes and dressing for the workplace. Employers tell Murphy's department that they view work ethics as paramount. Adams County plans to provide child care to those on welfare who are moving to self-sufficiency so they can "be confident" their children are looked after. Adams County officials, local economic development groups and the chamber of commerce are exchanging ideas about how to best get on with welfare reform. And they're listening to how it's done elsewhere, like in South Carolina, where job fairs and marketing programs have been used. "We see this as a very comprehensive effort. We are seeing this not just as a welfare problem, but certainly as a community challenge," said Murphy. The county's employment center, along with private employment agencies, will link employers with prospective employees. Once employees are settled in jobs, there will be "post-employment check-ups."