Jack Tweedie National Conference of State Legislatures.

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1 State TANF Programs 2011 Jack Tweedie National Conference of State Legislatures

2 Overview Policy context Economy recession Federal budget politics State budgets politics State changes 2011 Work participation 2009 penalties Zero hours Use of excess MOE Spending Other and previously authorized TANF Contingency Fund TANF Reauthorization

3 Economy Policymaking Context Slow recovery from the recession Unemployment jobs Responsiveness of state safety net programs SNAP Unemployment TANF Federal policy environment Budget Partisanship Touch consequences for programs

4 Safety Net

5 State Policymaking Context Political changes New governors Legislative changes Tea party Budgets Skeptics of government programs, spending Principles and programs Bottom no bounce Several layers/years of cuts Likely reduced federal help

6 State changes Cuts in TANF benefit levels Washington 15% ($478) South Carolina 20% ($216) New Mexico 15% ($380) California 8% ($638) Reduced earnings disregard ($ % of remainder to 50%) DC D.C. 20% reduction for families receiving benefits over 60 months declining gradually to zero by 2015 Wisconsin $20 ($653) New York and dconnecticut tdelayed d scheduled d benefit level l increases Oregon eliminated enhanced benefits for families applying for SSI

7 Time limits Arizona 24 months California 48 months (adult only) Washington tightened extensions Maine 60 months Michigan tighter 48 month limit

8 Increased sanctions DC D.C. Maine Oregon Washington Michigan

9 Limited access to education and training Oregon Minnesota Suspended post employment assistance Oregon Washington New Mexico Delaware (2010) Massachusetts (2010)

10 Increased work exemptions for parents of young children California Washington Oregon

11 Drug testing Florida all applicants, applicants pay for test, reimbursed Missouri screening, reasonable cause testing Child welfare Arizona reasonable suspicion testing one year ineligibility for adult Maine drug felons

12 Cuts in Child Care Arizona Massachusetts Minnesota Washington

13 Supplemental TANF Grants Seventeen e states Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Louisiana, Mississippi, Montana, Nevada, New Mexico, North Carolina, Tennessee, Texas, and Utah $319.5 million Only $211.3 million available for FFY2011 No guarantee for FFY2012 Budget environment appropriations States have not strongly raised the issues

14 TANF Contingency Fund Original $2 billion dollar fund Needy state trigger SNAP, unemployment Increase in MOE above 100% Exhausted in FFY2010 TANF Emergency Fund Partially reinstated for FFY2011 & exhausted Prospects for future

15 Work Participation Rates Change in calculating work rates from Deficit Reduction Act in FFY2007 FFY2009 latest data 29.6% States that fell short in FFY2009 California (3) D.C. Maine (3) Missouri (2) Ohio (3) Oregon (3) Use of caseload reduction and excess MOE claims 21 states had 0% requirement after CRC 22 states met FFY2008 WPR requirement only because they claim additional credit due to excess MOE

16 Zero Hours Congressional concern with adults with no reported hours FFY % with zero hours compared to 29.4% that met work rate 15 states reported zero hours for more than 50% of their adult headed TANF cases State defense that they did have incentive to report partial lhours since they did not count Claims Resolution Act report requirement

17 Work Participation Zero Hours not verified 4.4% statutory time limits i 1.8% uncountable activities 4.5% Met work requirement 23.6% insufficient hours 12.3% unreported countable hours 1.1% zero hours participation 52.3%

18 21 states under 50% engagement States engaging less than 33% Arizona D.C. Indiana Massachusetts Missouri New Jersey Rhode Island States engaging g g between 33% and 45% Alabama Arkansas California Maine New Hampshire Ohio Tennessee Texas West Virginia

19 WEIs with Zero Hours of Participation Nationally, 668,181 WEIs (52.3 percent of all WEIs) had zero hours of participation p in a countable or non countable work activity percent are non compliant and are in the sanction process (and are not disregarded); 15.2 percent are individuals the State or local agency has failed to engage; 13.3 percent are in families disregarded from the participation rate because they were caring for a child under age one, were subject to a work related sanction, or were participating in a Tribal work program 12.3 percent are exempt due to illness or disability; 9.1 percent are exempt due to other State policies; 4.4 percent are exempt by the State because they are single custodial parents with a child under the age of one, but not disregarded from the work participation rate;

20 TANF Spending Sharp increase in spending in FFY2009 & 2010 TANF caseload TANF Emergency Fund Decrease in available funds for FFY2011 State policy changes dictated by tight budgets Increase in MOE reporting FFY2006 $12.0 billion FFY2009 $15.4 billion Inappropriate spending Other and previously authorized

21 TANF spending FFY2009 Authorized Under Prior Law, 5% Refundable Earned Income Tax Credit or Other Refundable Tax Credits, edts, 6% Remaining Categories*, 5% Pregnancy Prevention, 7% Other Nonassistance, 14% Administration and Systems, 7% Work-Related Activities, 7% Basic Assistance, 28% Child Care Spent or Transferred, 17% Transferred to Social Services Block Grant, 4%

22 TANF Emergency Contingency Fund ARRA funds to help states weather the recession $5 billion Up to 50% of TANF block grant for each state Funds available in FFY2009 & 2010 $828.3 million in FFY2009 ~ $4 billion in FFY2010 Increased spending in basic assistance, short term benefits and subsidized employment Cliff

23 TANF reauthorization Uncertainty Timing Continuing resolutions House Republicans Work participation Zero hours "Other" spending

24 Looking Ahead TANF reauthorization/continuing resolution/budget Sensitive issues Work participation Safety net State issues Engagement Tight budgets Hot issues drug testing, EBT cards Duck & cover