Transcript Slide 1

Elizabeth Lower-Basch
Senior Policy Analyst
The TANF Emergency Fund and
Domestic Violence
March 1, 2010
www.clasp.org
• 1996 Personal Responsibility and Work Opportunity
Reconciliation Act replaced AFDC with TANF –
“welfare reform”
• Welfare caseloads dropped dramatically.
• More low-income single mothers working, but also
increasing share not working, not receiving welfare.
• Block grants fixed at $16.5 billion a year – purchasing
power has eroded by ~30 % since 1996.
• Share of TANF block grant spent on cash assistance
declined sharply.
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• States will receive 80 percent of increases in
spending in one or more of three areas:
 Assistance
 Non-recurrent, short-term benefits
 Subsidized employment
• Each state can receive up to 50% of block grant
over two years.
• Total pool of $5 billion.
• Expires on September 30, 2010
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• Can only qualify under assistance if caseload
has risen vs. 07 or 08
• Nationally, TANF caseload has risen by ~7% vs.
29% increase in SNAP receipt.
• CBPP: 26 states “minimally responsive;” 11
“moderately responsive;” 14 states grew by 15%
or more.
• Assuming a state qualifies based on caseload
increases, ECF will pay for 80 percent of benefit
increase for TANF recipients.
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• Energy assistance – prevent utility shutoffs.
• Homelessness prevention – first and last
month’s rent, security deposit, moving costs.
• Domestic violence services, car repairs, legal
aid, dentures
• One-time payments to broad population of
needy families (eg. New York’s back to school
payment to all TANF or SNAP families)
• Refundable EITC
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• Emergency shelter
• Short-term counseling
• Short-term medical treatment, including dental
work or replacement eyeglasses
• Legal services and court-related costs
• Help in applying for TANF or other benefits
• Replacement locks
• Moving costs, including security deposits
• Purchase of clothing or household goods
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• HHS has said that employers’ costs of
supervising and training participants can be
deemed as equal to 25% of wage costs – no
state $$ required
• Can be Transitional Jobs for individuals with
barriers to employment.
 Combines work, skill development, and supportive
services
 http://www.transitionaljobs.net/
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• Can deem hours of participation for 6 months,
rather than having to document them every
week – less paperwork for states.
• Much better financially for the participant –
earnings count towards tax credits.
• Generally, more like real work situations – need
to be timely, deal with supervisors and
coworkers, can learn skills. Not pushing a
broom in the park.
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• One of largest programs in the country – goal of
placing 10,000 participants by September.
• Up to 12 months of subsidized employment at
$10/hour per hour with non-profit and public
agencies and 6 months with private entities
• TANF Emergency Fund pays the full cost of
wages; employers’ costs of supervising and
training are counted as the 20% match.
• Targets CalWORKS recipients, parents in DV
shelters, foster care youth.
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• Work participation rates only apply to recipients
of “assistance.”
• Nonrecurrent short-term benefits and work
subsidies are not “assistance.”
• Recovery act included a “hold harmless” – states
can use previous caseload reduction credit if
caseloads increase.
• Existing regulations allow for “reasonable cause”
for failure to meet rates in recession.
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• Combined MOE/TANF
spending
• Must be an increase over
comparable quarter in FY
07 or 08
• Can be redirected from
other TANF categories
• Can be third-party
spending claimed as
MOE
160
140
120
100
80
60
40
20
0
Base year
quarter
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Current year
quarter
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•
•
•
•
•
Can be cash or in-kind
Must meet definition of “expenditure”
Must benefit members of “eligible families”
Third party must give state permission
Funds can not come from another federal
program, and can not have been used for
matching or MOE requirement of other program
• Employer costs of supervision and training can
be counted.
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Reimbursement
Advance Funding
• State increases spending
on countable activities by
$5 million
• State applies for and
receives $4 million from
Emergency Fund.
• Funds received can be
spent on any allowable
TANF activity, and can be
used after Sept 2010.
• State projects that it will
increase spending on
countable activities by $5m.
• State applies for and
receives $4 million from the
Emergency Fund.
• Full $5 million ($4 million
from EF + $1 million of MOE)
must be spent on countable
activity by Sept 2010
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• 34 states have received $804 million based on
increased cash assistance caseloads.
• 19 states have received $367 million based on
increased spending in short-term non-recurrent
assistance.
• 22 states (plus the District of Columbia) have
received $138 million based on increased
spending on subsidized employment.
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• Funds must be expended, not just obligated by
September 30, to be reimbursed.
• LA is planning on phasing out subsidized jobs program in
May unless there is an extension.
• President Obama’s budget calls for extending program
for one year, providing extra $2.5B, and 100%
reimbursement of subsidized jobs.
• HR 4564 has 57 cosponsors.
• Extension should happen sooner rather than later so
states can make plans: UI/COBRA extension is best
vehicle.
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For more information:
Elizabeth Lower-Basch
[email protected]
202 906-8013
CLASP
www.clasp.org
1015 15th St, NW
Suite 400
Washington, DC 20005
The TANF Emergency Fund: A New
Resource for Domestic Violence Programs
www.clasp.org/TANFEmergencyFund
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