STATE TANF PROGRAMSSTATE TANF PROGRAMSSTATE TANF PROGRAMSSTATE TANF PROGRAMS

Purposes Of TANF• Provide assistance to needy families so

children may live in home with relatives• End dependence of needy parents through

job preparation, work, and marriage• Prevent and reduce out-of-wedlock

pregnancies• Encourage the formation and maintenance

of two-parent families

What Is New About TANF?

• State flexibility -- re eligibility, spending, administration, etc.

• New Federal-State partnership • Funding -- Federal and State funds• Stronger work requirements, time

limits• Different accountability

What Has Changed?• Increased work

• Declining caseloads

• Resources to meet emerging needs

– reach all families

– support working families

• Devolution

• New collaborations and partnerships

Federal TANF Funds State MOE Funds

TANF Grant

Commingled State & Federal TANF

Segregated State TANF

Separate State

Program

TANF PROGRAM

Transfer to:

CCDF & SSBG

Potential Funding Options

Regulations StatusRegulations Status

• Published in Federal Register on April 12, 1999

• Effective Date: October 1, 1999

• Available on-line at http:\www.acf.dhhs.gov\programs\ofa

ScopeScope

Work

Penalties against StatesData collection and reporting

Basic Approach in Final Rules

• Recognize State progress

• Provide States flexibility to develop innovative approaches for supporting work and reaching all families

• Maintain State investments and ensure accountability

• Collect data in critical program areas

Provisions Affording State Flexibility

• Definition of Assistance

• Separate State Programs

• Child-only Cases

• Welfare Reform Waivers

• Domestic Violence Waivers

• Caseload Reduction Credits

• Administrative Costs

Provisions Assuring Accountability/Data

• MOE Expenditures/New Spending Test• Recipient & Workplace Protections• Reasonable Cause• Caseload Reduction Credits• Domestic Violence Waivers• Federal and State Spending• Goal 3 and 4 Activities• Diversion Programs

Definition of Assistance --Definition of Assistance --Why Does It Matter?Why Does It Matter?

• Determines which program requirements are applicable

– Many requirements--such as time limits, child support assignment, work requirements, and data collection and reporting -- apply only to families receiving assistance

Child-Only CasesChild-Only Cases

•These are cases that do not include an adult receiving assistance.

•Such cases are not included in the work participation rate and time-limit calculations.

•We have a special interest in tracking these cases.

Separate State Programs--Separate State Programs--What Are TheyWhat Are They

• States may contribute MOE funds to programs and activities that are either:

– part of the TANF program; or– outside the TANF program.

• Those outside of TANF are “separate State programs.”

•They are not subject to TANF rules

Welfare Reform Waivers--What Are They?

• Under section 1115 of prior law, the Secretary could waiver statutory requirements for research and demonstration purposes.

• Under PRWORA, States may operate under waiver provisions approved prior to TANF to the extent that they are inconsistent with TANF.

Treatment of Domestic Violence VictimsTreatment of Domestic Violence Victims

• Under Family Violence Option, States may implement programs to screen for domestic violence, refer victims to appropriate services, and waive program requirements.

Treatment of Domestic Violence VictimsTreatment of Domestic Violence Victims

• Good cause waivers that are federally recognized affect whether States get penalty relief (i.e., reasonable cause, penalty reduction, corrective compliance) if they fail work participation rate or time limit requirements.

Accountability

• Under TANF States are accountable for performance through 14 penalty provisions -- including work participation rates, time limits, MOE, use of funds, and data reporting.

• TANF also includes bonus provisions, State ranking provisions, and other performance measures.

Penalty Relief

• States may avoid most penalties through reasonable cause or corrective compliance.

• This relief is not available for:

– 3 MOE penalties

– Failure to repay a loan

– Failure to replace penalty amounts

Reasonable CauseGeneral Approach

• The basic approach in final rule is to limit the availability of reasonable cause. We would prefer that States come into compliance with statutory expectations.

Reasonable Cause--Regulatory Factors

• 3 general factors

• Secretarial discretion to grant others

• Special factors available for data reporting, time limit, and work participation penalties

ork

Overall Participation Rates

Overall Rate

Participation RatesParticipation Rates

25%30%

35%40%

45%50%

1997 1998 1999 2000 2001 2002+

Fiscal Year

Two-Parent Participation Rates

75% 75%

90% 90% 90% 90%

1997 1998 1999 2000 2001 2002+

Fiscal Year

Factors Affecting Work Requirements & Penalties

•Caseload reduction credits

•Penalty reductions

•Reasonable cause and

corrective compliance

Time LimitTime Limit

Time Limit Months Count When:

• Family receives “assistance”

• Federal TANF funds are used

• Family includes an adult, minor-child, or pregnant minor head-of-household or spouse of the head-of-household

• A noncustodial parent who is the spouse of the head-of-household receives Federal TANF assistance

20% Exception to Time Limit

• Assistance may extend beyond 5 years for up to 20% of cases

• Assistance may be extended based on:– Hardship, as defined by State, or– Battery or extreme cruelty, as defined in statute

• Exceptions apply after family reaches 60-month limit

Fiscal Matters

Funding Sources

• States receive Federal TANF grants based on prior funding -- to spend on TANF purposes or previously authorized activities

• States must contribute their own funds based on 1994 State funding. These funds are known as “MOE.”

Basic MOE Requirements

• Each FY a State participates in TANF

80% of what spent in FY 1994, or 75% if meet work participation rates

• If Tribe (or consortium) is awarded TFAG, then MOE amount is reduced by same percentage as the reduction in the State’s SFAG

Federal Funds

• Expenditure of Federal funds in violation of program rules or general grant requirements may result in a penalty for misuse of funds (and intentional misuse of funds).

• States have limited authority to transfer Federal TANF funds and have authority to reserve Federal funds for “rainy day.”

MOE Funds Must Be Spent on Eligible Families

• Families must meet:

1) Family composition requirement

– child 1/w parent or other adult relative, or

– pregnant woman

2) Financial eligibility criteria established by State

– per appropriate income and resources (when applicable) standards

– contained in TANF plan

MOE

• FOR PRE-EXISTING STATE AND LOCAL PROGRAMS, MOE claims are limited to “new spending”--

the amount by which total expenditures during the current fiscal year for eligible families exceed total expenditures in the program in ‘95

Administrative Costs

• There are separate 15-percent caps on administrative expenditures for Federal and State MOE funds.

Data Reporting

Major Data Provisions-- Reporting on TANF Programs

• States must submit quarterly reports containing detailed disaggregated case record information on families receiving assistance.

• These quarterly reports also contain limited aggregated information.

• States are subject to reporting penalties for failure to submit required data.

Major Data Provisions-- Reporting on SSP-MOE Programs

• Under final rules, States must submit SSP-MOE Data Report to receive Caseload Reduction Credit and High Performance Bonus (not for penalty reduction).

Major Data Provisions --TANF Financial Report

• States must submit quarterly financial reports that indicate how they spent their Federal TANF funds and their State MOE funds.

• Failure to submit required data could result in a reporting penalty, an MOE penalty, or a misuse of funds penalty.

Major Data Provisions--Annual Reporting

• States must also submit an annual report containing aggregate information on State program characteristics.