Transcript Slide 1
Elizabeth Lower-Basch Senior Policy Analyst TANF 101 Working Poor Families Project June 20, 2013 www.clasp.org Temporary Assistance for Needy Families TANF Block Grant and MOE TANF Assistance and Work Activities www.clasp.org 2 • 1996 “welfare reform” replaced AFDC with TANF. • Fixed block grant ($16.5 billion a year) and maintenance of effort (MOE) requirement replaced uncapped matching funds Value of block grant has fallen by > 30% due to inflation • Block grant can be used for broad range of activities aimed at 4 goals of TANF: assistance to needy families, but also job preparation, work, marriage, reduction of out-of-wedlock pregnancies www.clasp.org 3 • Supports a range of activities: Cash assistance and work programs Child care, early education and youth programs Emergency assistance and state EITCs Child welfare • Limited to “needy families” with children, but not just to families receiving cash assistance States define income limits for “needy families” Non-custodial parents, youth may be part of “families” www.clasp.org 4 • Can include wide range of state/local spending on low-income families • Can include “third-party MOE” – nonprofits, employer costs related to subsidized employment • Incentive to claim all possible spending MOE requirement – 75 or 80 percent Contingency Fund “Excess” MOE can increase caseload reduction credit and therefore lower work participation rate target www.clasp.org 5 Does not mean actual spending has increased GAO-13-431 www.clasp.org 6 Basic Assistance is a Smaller Part of TANF and MOE Spending 1997 Spending Child Care Spent or Transferred, 5.4% 2011 Spending Other Nonassistance, 0.1% Pregnancy Prevention 6% Remaining Categories, 1.9% Work-Related Activities, 3.6% Admin and Systems 7% Remaining Categories* 2% Basic Assistance 29% Refundable Tax Credits 8% Administration and Systems, 9.1% All Work Related** 8% Basic Assistance, 70.9% Other and Authorized Under Prior Law*** 19% Child Care Spent or Transferred 17% Transferred to SSBG 4% * "Remaining Categories" includes "Transportation or Support Services" and "Two-Parent Promotion" ** "All Work Related" includes "Other Work", "Education and Training" and "Work Subsidies" *** "Other and Authorized Under Prior Law" includes "AUPL All" and "Other Nonassistance" www.clasp.org www.clasp.org 8 • Very low eligibility thresholds • Up-front “diversion” programs and sanctions • Time limits • “Not worth it” www.clasp.org GAO estimates 87 percent of decline is due to non-participation by eligible families 9 Work and Welfare Among Poor Single Mothers, 1987-2010 Welfare, No Work 60% Work and Welfare 50% 40% 30% 20% 10% 0% 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: CRS, Trends in Welfare, Work, and the Economic Well-Being of Female-Headed Families with Children: 1987-2010 (December 20, 2011). www.clasp.org 10 • 12 countable activities – restrictions apply to counting of education and training • Recipients must average 30 hours per week of work participation, 20 hours per week if single parent of child under 6 • No partial credit • Daily supervision and documentation requirements www.clasp.org 11 • Target rate is 50 % for all families, 90% for two parent families • Actual rate has been about 30% for country as a whole 2000-2009 • States vary widely, but most states have “passed” due to caseload reduction credit, excess MOE • States failing in FY 2009: California, DC, Guam, Maine, Missouri, Ohio, Oregon, and Puerto Rico www.clasp.org 12 • Technical changes with far-reaching impacts Loss of caseload reduction credit (CRC) States can not use “separate state programs” Federal definitions of work activities Increased requirements to verify and document actual hours of participation (not just scheduled) • Pressure on states to focus on federally countable activities www.clasp.org 13 • Revised rules took effect in FY 2008 • But, Recovery Act rules allowed states to use FY 2007 WPR MOE+CRC+Work for FYs 2009, 2010 CRC + Work Work and 2011 • In many states, FY 2012 will be the first year under new rules. Many States Used Additional State Spending to Meet WPR GAO-11-880T www.clasp.org 14 WA WorkFirst Performance Chartbook Feb 2013 www.clasp.org 15 • Improved reporting requirements • Restrictions on what can be claimed Third party MOE Limits on definition of “needy” Limits on use of funds for child welfare, pre-k, scholarships? • Revised contingency fund Focus on subsidized employment? • Possibility of cuts to block grant?? www.clasp.org 16 • GAO report presents a range of options Eliminate/cap caseload reduction credit Eliminate “excess MOE” as part of CRC Employment credit Reduce documentation requirements Add countable activities, or remove limitations on education and training Replace work rate with outcome measures • Waiver opportunity www.clasp.org 17 www.clasp.org 18 • Four categories of education and training: vocational education (12 month limit), job skills training, education related to employment, and satisfactory school attendance (teens) • Up to 30% of recipients counted in rate can be in full-time education and training focused activities (voc ed training and satisfactory school attendance) • Job skills training, education related to employment can only count when combined with 20 hours/week of “core activities” • Basic education can count when embedded/integrated HHS guidance discouraged sequential approach www.clasp.org 25.0% 20.0% Percent of Families in the Participation Rate Engaged in Activity: FY2009 19.1% 15.0% 10.0% 5.0% 5.0% 4.5% 2.6% 1.7% 1.1% 0.9% 0.0% Source: Congressional Research Service (CRS) based on data from the U.S. Department of Health and Human Services (HHS). * = Less than 0.05%. www.clasp.org 0.4% 0.4% 0.3% 0.1% * OKLAHOMA LOUISIANA COLORADO NEW JERSEY FLORIDA PENNSYLVANIA PUERTO RICO WEST VIRGINIA MINNESOTA KENTUCKY GEORGIA OREGON VIRGIN ISLANDS KANSAS UTAH OHIO IDAHO NORTH CAROLINA ARIZONA MARYLAND IOWA WYOMING NEW HAMPSHIRE WISCONSIN CALIFORNIA NEW MEXICO NORTH DAKOTA MAINE UNITED STATES TEXAS WASHINGTON MISSOURI CONNECTICUT MISSISSIPPI SOUTH CAROLINA NEBRASKA ILLINOIS VERMONT MONTANA DELAWARE MICHIGAN NEVADA DIST. OF COL. TENNESSEE ARKANSAS ALASKA RHODE ISLAND ALABAMA INDIANA MASSACHUSETTS SOUTH DAKOTA VIRGINIA NEW YORK HAWAII -10.0% www.clasp.org 0.0% CLASP Analysis of FY 2009 Work Participation Rate Data. Sum of share of participants reported in vocational education and satisfactory school attendance. 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 21 • Some states don’t think they should support education and training Ideology: work not education 1990s JOBS evaluation is interpreted as “education doesn’t work” • Some don’t think they can allow education and training Federal limits on what can be counted Concerns about documenting hours www.clasp.org 22 www.clasp.org 23 TANF Work Eligible Individuals by Age 6.9 Under Age 20 20-24 25-29 25.3 30+ CRS analysis of FY 2009 national TANF data https://www.fas.org/sgp/crs/misc/R42768.pdf 21.8 www.clasp.org 24 • Minor teens (under age 18) must live in adultsupervised setting and attend school. • Teen parents (under age 20) can be counted as engaged in work if they maintain satisfactory attendance at secondary school or the equivalent during the month; or participate in education directly related to employment for at least 20 hours per week • CRS finds 42 percent of minor teens w/o HS degree counted this way, but only 10 percent of 19 year olds. www.clasp.org 25 • High intensity, with clear connection to workforce goals Focus on credentials with economic payoff Even participants with low basic skills start working on vocational skills quickly “Stackable” credentials minimize tradeoff between short-term and long-term goals • Addresses students’ overburdened lives Supportive services Flexible scheduling www.clasp.org 26 Lesley Turner The Returns to Higher Education for Welfare Recipients: Evidence from Colorado www.clasp.org 27 • Up to 12 months of “vocational education” as standalone activity (for up to 30% of recipients in rate) • After 12 months, can be counted as job skills training, education related to employment -- but only when combined with 20 hours/week of “core activities” (work or community service) • All hours of participation must be documented • One hour of homework can be counted per hour of class time www.clasp.org • Document hours of participation in ways that do not burden, stigmatize students • Minimize gaps in participation – either by reorganizing schedules, or adding wrap-around programs. • Count work-study, internships, practicums, coops as subsidized employment or work experience, to preserve 12 months of full-time participation www.clasp.org 29 • States can allow non-countable activities Some states have enough caseload decline that they don’t have to worry about WPR States can use solely state funds (not MOE) • Focus on outcomes Get people into good jobs Possibility of waivers www.clasp.org 30 Success: Working an average of 30+ hours per week, or off cash assistance 3 years after baseline, but not if they left due to time limit, sanction www.clasp.org 31 For more information: Elizabeth Lower-Basch [email protected] 202 906-8013 www.clasp.org 1200 18th St, NW Suite 200 Washington, DC 20036 www.clasp.org 32