Transcript TANF in the “Great Recession” and Beyond Elizabeth Lower-Basch CLASP July 16, 2009 CCD Webinar.

TANF in the “Great Recession”
and Beyond
Elizabeth Lower-Basch
CLASP
July 16, 2009
CCD Webinar
The “Great Recession:” Challenges
• Rising unemployment and underemployment
– Individuals with disabilities may be affected
directly or by loss of private supports
• Severe state budget crises, with many services
being cut
• State human services agencies must serve
rising caseloads with fixed or declining staff
levels
The “Great Recession:” Opportunities?
• Increased recognition that caseload decline is
not the goal, work-first can’t be only solution?
• Reduced focus on work participation rates?
– ARRA included “hold harmless” provision on
caseload reduction credit that will help states
– HHS has authority to waive work participation
penalties during recession
• New $$ through the TANF Emergency Fund
TANF Emergency Fund
• States will receive 80 percent of increases in
spending in one or more of three areas:
– Assistance
– Non-recurrent, short-term benefits
– Subsidized employment
• States can receive up to 50 percent of block grant
over two years (FY 09 and 10) from Emergency Fund
and Contingency Fund combined
• Total pool of $5 billion
• States can apply for funds for upcoming quarter
based on projected spending
Can only qualify under assistance if
caseload has risen vs. 07 or 08
Wall Street Journal,
June 22, 2009
TANF assistance
• Caseloads starting to rise in many states, but
by modest amounts compared to the decline
• Should consider outreach to food stamp
households that appear to be eligible for
TANF, former TANF households
• Assuming a state qualifies based on caseload
increases, Emergency Fund will pay for 80
percent of benefit increase for TANF
recipients.
Non-recurrent short-term benefits
• Energy assistance – prevent utility shutoffs
• Homelessness prevention – first and last
month’s rent, security deposit, moving costs
• Back to school clothing allowance
• Not limited to families receiving cash
assistance
Subsidized employment
• Includes the cost of overseeing the program,
developing work sites, supervising participants and
providing training
• Range of models – including supported work,
transitional jobs.
• Opportunity for existing programs to expand – states
are excited about model, but concerned about ability
to get up and running before Emergency Fund ends
in FY 2010.
What counts for Emergency Fund
reimbursement?
• Combined MOE/TANF
spending
• Must be an increase over
comparable quarter in FY 07
or 08
• Can be spending from
Contingency Fund
• 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
Current year
quarter
TANF Reauthorization
• Scheduled to occur by September 30, 2010.
• Hearings likely in early 2010
• Current work participation rate requirements
provide a disincentive to provide assistance to
“hard to serve” populations, no reward for
providing services that don’t count toward the
work participation rate.
Different possible approaches
• Add to list of activities that are countable
toward work participation rate, allow partial
credit for less than full participation
• Replace work participation rate with other
performance measures that have less of a
“one size fits all” attitude
• Allow states to serve individuals with
disabilities through separate programs that
establish different expectations than TANF
Thank you
For more information:
Elizabeth Lower-Basch
[email protected]
202 906-8013
CLASP
www.clasp.org
1015 15th St, NW
Suite 400
Washington, DC 20005
Q and As on the TANF Emergency Fund:
http://www.clasp.org/publications/tanf_efc_qanda0409.pdf