Transcript Slide 1

USING THE TANF EMERGENCY
CONTINGENCY FUND IN ARRA TO HELP
POOR FAMILIES WITH CHILDREN
Select Committee on Federal Stabilization
Funds
March 12, 2009
Celia Hagert, Senior Policy Analyst
The Federal TANF block grant
• The federal Temporary Assistance for
Needy Families (TANF) block grant is a
flexible funding stream for states to
provide a wide range of services aimed
at increasing family self-sufficiency
through job preparation, work, and
marriage
The Federal TANF block grant
• TANF block grant has provided Texas
with $486 million annually since 1996.
• Texas has a “maintenance of effort”
(MOE) requirement = $251.4 million.
• Our basic TANF block grant is the
seventh-largest source of federal funds
in the state budget.
The Federal TANF Block Grant
• Texas uses TANF to provide cash assistance,
child care, and employment services to
extremely poor families with children.
• Families that receive cash assistance are
subject to time limits on federally funded
benefits, work participation requirements, and
parenting/conduct rules.
• Texas also uses the block grant to pay for
child protective services and other programs
across multiple state agencies.
• Only 6% of the federal block grant in FY09 is
used to pay for cash assistance to poor
families.
Federal TANF Spending
Federal TANF Spending (Budgeted 2009)
All other
15%
Eligibility determination
7%
Eligibility determination
Cash assistance
grants
6%
State employee
benefits
7%
Cash assistance grants
Employment services Employment services for welfare
for welfare recipients recipients
15%
Child care
Child protective services
Child care
0%
Foster care
16%
Foster care
State employee benefits
All other
Child protective
services
34%
Historical Federal TANF Spending
Million $
Texas' Use of Federal TANF Dollars
All other TANF
$700
State em ployee
benefits
$600
Foster care
$500
Child protective svcs
$400
$300
Eligibility determ ination
(incl TIERS)
$200
Choices (job svcs) and
Self Sufficiency Fund
$100
Child care subsidies
$1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Cash w elfare
Historical TANF caseloads
Texas Cash Assistance Caseloads
800,000
Children
600,000
Adults
1996 202,100 adults, 487,900 children
2008 16,634 adults, 101,055 children
400,000
200,000
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
TANF in Texas
• Caseload declines have occurred due to work
requirements, time limits, and strict penalties
(“sanctions”) for not meeting program
requirements
• Fewer than 112,000 Texans receive TANF
cash assistance; over three-fourths (86%)are
children.
• Net income cannot exceed $188 a month for a
family of three to qualify.
• Recipients receive a monthly cash grant, child
care, and employment services.
• The average monthly grant is $208 or less for a
family of three.
TANF Funds in ARRA
• ARRA provides $52.7 million in
supplemental TANF block grant funds to
Texas in 2010.
• With these funds, there is a $108 million
balance in not-yet-budgeted TANF
federal TANF funds.
• ARRA also provides access to up to
$243 million in a new TANF emergency
contingency fund.
How the TANF Emergency
Contingency Fund Works
• States are eligible to draw down additional TANF
federal funds in 2009 and 2010, up to 50% of
their base block grant over the 2-year period =
$243 million.
• Funding is provided at a 20/80 state/federal
match.
• Match is available for increased expenditures
(using ’07 or ’08 as base year) in three areas:
– monthly cash grants,
– short-term, non-recurrent benefits, and
– subsidized employment.
• To draw down the full $243 million, Texas would
have to spend $60 million more in these areas.
How the TANF Emergency
Contingency Fund Works
• One caveat: to qualify for match in first area (monthly
cash grants cash grants), Texas TANF caseload must
increase over 2007/8 levels.
• Since caseloads not expected to increase in Texas,
state would not be eligible for reimbursement of
increased cash grant costs.
• However, caseload increase requirement does NOT
apply to increased spending in other two areas: shortterm non-recurrent benefits and subsidized
employment.
• Thus, emergency contingency fund could be used to
provide TANF recipients with one-time boost in
assistance, or to increase the opportunities for
subsidized employment.
Potential Uses of Emergency
Contingency Fund
• Increase “One-Time TANF” payment (existing $1,000
“diversion” payment to families who qualify for but
choose not to get on TANF.
• Increase supplemental grandparent payment
(currently $1,000/year to grandparents over 45 caring
for children on TANF).
• Provide a one-time additional payment to everyone on
TANF (such as by increasing the current $30 back-toschool payment)
• Provide more subsidized employment opportunities to
TANF adults struggling to find work.
• HB 2625 by Rep. Naishtat increases one-time
payments
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