Using TANF and MOE Dollars

Programs and Services Funded With TANF and MOE

By Dana Reichert and Jack Tweedie

Individual Development Accounts-Allows welfare recipients and low-income individuals to establish special savings accounts to be used for purchase of a home, educational advancement, or to start a business. Indiana is using MOE dollars to fund the establishment of 800 accounts and will provide $3 for every $1 deposited by recipients. Iowa and Oklahoma are using welfare dollars to fund IDA's as well.

Educational Accounts-Florida, Oregon and Wisconsin fund specialized accounts to help give former recipients or their children access to post-secondary education. In Florida, accounts are for children of recipients. Parents can "earn" money for their child's education by becoming and staying employed. Oregon requires employers and the department to invest $1 for every hour a participant works in a subsidized job. Families can access accounts after they have left welfare and been employed for 6 months. Wisconsin appropriated $1 million to provide $500 for additional training to former recipients who have been employed for 9 month who can provide a match

Adult Basic Education/GED/Literacy-Through the Department of Education, in California, recipients can access courses in literacy, English as a second language, adult basic education, GED, vocational/technical and secondary education as well as pre-employability training at adult schools that are part of local school districts. Courses are taught by state certified teachers. Caseworkers can refer recipients in need of specific skills necessary for employment to appropriate education or training courses. Oklahoma and Wisconsin are also providing specialized basic education and literacy services to adults.

Services for Low-Income Fathers-Programs to help low-income fathers pay child support and reconnect with their children through job training, employment counseling, life skills management and peer support. Arizona, California, Florida, Iowa, North Carolina, Ohio, Wisconsin and West Virginia have targeted welfare dollars on services for low-income fathers.

Employer Stipends-Grants employers who hire welfare recipients a monetary sum of $500 per month for six months if recipient stays employed. After 12 months, an employer can collect $1000. Utah is using TANF dollars to fund this program.

Caseworker Incentives- Washington developed cash bonuses for caseworkers who help recipients find high wage jobs with good benefits. Graduated bonuses are available if recipients stay in jobs over time.

County Incentives-California provides counties with incentive payments for case exits due to employment, grant reductions due to earnings and diversion of applicants. Counties are eligible for incentive payment for exiting recipients when exit rate is over the base rate and when the exit has lasted over six months. After recipients have been off of assistance for 7-12 months counties are eligible for additional payments.

Teenage pregnancy prevention-Develops a strategy focused on reducing teenage pregnancy. California, Georgia, Iowa, Louisiana, Minnesota, North Carolina, Oklahoma and Wisconsin are all using welfare dollars to fund programs. Minnesota and Oklahoma are also funding abstinence education initiatives.

Services for Teen Parents-Helps teen parents by providing assistance with GED or high school completion, job counseling and support services. Illinois has targeted MOE dollars for a program to serve teen parents. California developed specialized services for teens including child care, transportation and educational expenses. Provides monetary incentives for good grades up to four $100 dollar rewards. Participants are eligible for $500 if they receive a high school diploma or GED.

Tax credit for low-income families-Wisconsin provides a state earned income tax credit for working families who qualify.

Substance abuse treatment-Allows non-medical substance abuse treatment for welfare recipients using MOE dollars. New Mexico established two programs; one targeted at Native Americans TANF recipients, the other at non-native TANF recipients. Oregon developed a substance abuse treatment program through local community colleges. North Carolina placed substance abuse professionals in county offices to help identify clients with substance abuse problems. Extends the state employee assistance program to working recipients enabling access to treatment services. California provides residential treatment services for pregnant women.

Domestic Violence Training for Caseworkers-California provides funding to the University of California at Davis for development of a domestic violence training curriculum to train staff serving welfare recipients. Standards include skills for interviewing adult and children victims of domestic abuse, how to identify potential indicators of domestic abuse, understanding the impact of drug and alcohol abuse on family members, how to address additional mental health issues and how to obtain information about the batterers and possible referrals.

Domestic Violence Prevention-Arizona provides shelter and supportive services to domestic violence victims through local domestic violence programs. Promotes awareness and prevention.

Women's Programs through Department of Corrections-California offers three programs for women with children who are in prison, released from prison and as an alternative to prison. Services include residential treatment for women offenders and their children after being released from prison, a 12-month aftercare program as an alternative to serving prison time. The Mother Infant Program offers an opportunity to move to a community-based facility for women in prison for nonviolent crimes with children under 6 years for whom they are the primary care givers.

Post Employment Services-Arkansas and Tennessee provided intensive case management services to former recipients to make sure they can keep jobs once the get them. They have developed mentoring programs to provide both emotional support and positive reinforcement for welfare recipients who have recently entered the work force. Mentors provide guidance with such issues as time management, balancing commitments at work and home, financial budgeting, professional relationships and work ethics. Tennessee and Maryland have developed hot lines to help handle crisis for newly employed recipients. Hot line operators can make service referrals or act as mediators between recipient and employers.

Post Employment Training-Arizona offers vocational and occupational training for ex-recipients who have jobs to help them acquire more valuable job skills allowing them to retain their jobs or obtain better jobs.

Employment Retention & Job Skills-Arizona provides services to recipients to help adapt to workplace demands, develop communication skills and problem-solving skills and promote self-sufficiency. Wisconsin is developing a similar service.

Micro-Enterprise-Helps certain recipients become entrepreneurs by developing their own business. Arizona helps those in rural communities develop businesses and assists in conducting market analyses for selected communities, establishing projects in communities that match skills to needs and developing financial resources. West Virginia uses funds to promote micro-enterprise as an alternative.

Housing Vouchers-Provide a supplement to families to pay for the cost of housing. New Mexico provides a $100 subsidy to families that do not receive federal housing assistance. Connecticut provides similar benefits.

Utility Assistance-Helps recipients pay for utility bills. Arizona, Georgia and Montana targeted welfare dollars to provide recipients with help paying the high cost of utilities

Immigrant Services-Provides services to legal immigrants who are TANF eligible. Illinois and New Jersey have used MOE dollars to provide nutritional services to immigrants who lost eligibility for food stamps. Children's nutrition, naturalization and employment assistance is a part of Illinois' program.

Expanding Head Start-Expands child care services that prepare at risk children for kindergarten. New Mexico provides services targeting pre-kindergarten preparation.

Early Childhood Education/Pre-Kindergarten-California provides pre-school opportunities for children from families under federal poverty level. Provides funding for development of learning guidelines to address developmental milestones for pre-kindergarten age group and for development of ongoing training program for providers on how to implement learning guidelines. Iowa, Ohio and Wisconsin also provide early childhood services using welfare dollars.

Literacy and Reading Program for Children-Ohio developed a specialized program for children to enhance reading skills and literacy using welfare dollars.

Homeless Shelter-Grants services to homeless or at-risk families at local shelters. Illinois uses MOE to provide homeless or at risk families with access to support services, counseling and local shelter services. Arizona provides a similar service.

Getting Cars to Low-Income families-Programs that solicit car donations in exchange for a tax credit and then sell cars to low-income families. Arizona has targeted MOE dollars for this purpose.

Tuition vouchers-Gives selected welfare recipients an opportunity to further their education by attending a community college or technical college. Arizona appropriated $1.9 million to pay for recipients to attend vocational school targeted on high wage jobs. Michigan appropriated $4 million to pay for high wage skills training for former recipients or working recipients.

Safety Net Services-Connecticut and New York provide services and vouchers to families who have lost eligibility for welfare either through time limits or sanctions.

For More Information contact: Jack Tweedie at NCSL's Denver Office 303-830-2200.

Human Services Project Welfare Reform Project