TANF Checklist for State Legislators
By Sheri Steisel, Senior Committee Director
NCSL Human Services Committee
Decide what you want to do first.
This is the best way to begin. There are so many creative ways to serve children and families. It is best to start with an idea and maximize your funding flexibility to pay for it.
Obligate and/or transfer TANF reserves by October 1(end of federal fiscal year)
To maintain maximum flexibility, states must obligate TANF funds in the federal fiscal year they are received. However, If a state has an unobligated balance after October 1, it must spend the money on ongoing assistance like cash, food, and housing. States obligating or transferring funds may also may transfer up to 30% of TANF funds to the Child Care Development Block Grant, the Access to Jobs Program, and the Social Services Block Grant.
You can also transfer to the Child Care Development Block Grant, the Access to Jobs Program, or the Social Services Block Grant.
States may transfer a total of 30 percent of its TANF grant to the Child Care Development Block Grant, the Job Access and Reverse Commute Program and the Social Services Block Grant. (The maximum amount that may be transferred to the Social Services Block Grant is 10 percent, but will be 4.25 percent in FY 2001 and after.)
Examine the four purposes of PRWORA.
All TANF and MOE expenditures must be made for one of the four purposes.
- Provide assistance to needy families
- End dependence on welfare by promoting job preparation, work and marriage for needy families;
- Prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and
- Encourage the formation and maintenance of two-parent families.
--If your idea meets purpose 1 and/or 2, state must set an eligibility level.
States can set eligibility for as many different programs as they create, eligibility need not be the same for each program, nor does it need to have a direct correlation with TANF eligibility.
--If your idea meets purpose 3 and/or 4, no eligibility level needs to be set to use federal TANF funds. States can serve expanded populations without regard to income-teens, custodial parents, and noncustodial parent. States can serve those who have been on welfare, those who have transitioned off welfare and those who have never been on welfare.
USE of FEDERAL TANF FUNDS
Federal TANF- Is it assistance or not assistance?
Under the regulations governing the TANF program, a careful distinction is made between "assistance " and "not assistance" (other services and benefits states may choose to provide). "Assistance" means payments to meet ongoing basic needs, like cash, food, or housing. If assistance is provided, federal requirements apply. These requirements include work participation rate requirements, time limits, child support assignment, and data collection. If states provide other services, including education, short-term assistance, and work subsidies, such aid is "not assistance" and is not subject to these federal requirements. This allows families to provide services to families not receiving cash support under TANF.
What is short-term assistance?
Short-term, non-recurring assistance of less than 4 months does not count as assistance.
Federal TANF-Refundable Earned Income Tax Credit (EITC)/Individual Development Accounts (IDA)
Federal TANF can fund the refundable portion of EITC and IDA and is NOT assistance.
Are you serving an employed family with federal TANF?
If yes, child care, work support, and transportation is NOT assistance.
Does education count?
Educational programs, such as post-secondary education, are NOT assistance.
Federal TANF-provide non medical services
Non-medical services include substance abuse screening, counseling by a non-medical professional and residential care.
STATE MAINTENANCE OF EFFORT (MOE)
Should you commingle with Federal TANF?
If commingled, state funds are subject to federal TANF rules.
MOE-Should you segregate funds?
Segregated funds are subject to TANF requirements except time limits.
MOE-Should you create a separate state program?
Separate state programs using MOE dollars are not subject to federal time limits, work participation rates, child support assignment, or data collection requirements. If you a have a separate state program and want to be eligible for a high performance bonus, receive work participation caseload reduction credit or receive penalty relief, you must collect data.
MOE -Funding Medical Assistance
MOE can fund medical assistance including medication, health insurance, and medical treatment.
MOE-New spending test
If a state spends MOE funds in an existing program, it can only count the amount it spends above what it spent in 1995 towards its maintenance of effort requirement.
Is your MOE spending consistent with TANF eligibility?
All MOE spending must coincide with TANF eligibility.
OTHER CONSIDERATIONS
Work Participation Requirements-Check how your state is doing.
As caseloads have declined, states received a caseload reduction credit, reducing the amount of individuals a state needs to claim to meet work participation rates. It also means states can spend 75% MOE rather than 80%
Monitor Unobligated Balances
State agencies are required to report quarterly on the amount of money they spend. It is a good idea to request these reports to ensure that appropriated money does not go unspent. If states fail to obligate money by October 1, they lose flexibility.
- Pay attention to implementation.
- Conduct oversight hearings.
- Evaluation is critical.
Evaluations can give state policymakers a good picture of how welfare reform is working. It gives a critical opportunity for mid-course correction by identifying unintended consequences, newly identified needs and areas for expansion and innovation.
For more information contact Sheri Steisel or Lee Posey 202-624-5400.
|
