Require individuals and families work a number of hours each payment period to support their benefits. Consider this a service learning opportunity where everyone is obligated to help earn their income. Opportunities can exist in day care centers, adult day care centers, homeless shelters, cleaning parks and roadways.
States, counties, cities, and communities are reducing staff due to the economic conditions and need this "service learning" support to maintain the infrastructure we all come to expect and enjoy.
This would also provide job skills and resume support for individuals. It offers the ability to have pride in earning your way through life. An analogy for this type of service learning is Habitat for Humanity. Familes are required to "earn" sweat equity in their new homes.