2009     

State TANF  Emergency  Contingency Fund  Analysis   

April Kaplan  On Behalf of the Annie E. Casey Foundation  12/31/2009 

Contents 

Introduction .................................................................................................................................................. 3  Colorado ...................................................................................................................................................... 4  Connecticut ................................................................................................................................................. 6  Indiana ......................................................................................................................................................... 8  Iowa ............................................................................................................................................................ 10  Kentucky .................................................................................................................................................... 12  Maryland .................................................................................................................................................... 14  Rhode Island ............................................................................................................................................. 16  Texas .......................................................................................................................................................... 17  Washington ............................................................................................................................................... 18   

State TANF Emergency Contingency Fund Analysis   

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Introduction Through the American Recovery and Reinvestment Act of 2009 (ARRA), the Emergency Contingency Fund for State TANF Programs (Emergency Fund or TECF) was established. The Emergency Funds provides up to $5 billion to help States, Territories, and Tribes in fiscal year (FY) 2009 and FY 2010 that have an increase in assistance caseloads or in certain types of expenditures. Funds are intended to support work and work activities for families. States may apply for funds if they meet any of three conditions. Conditions for States to receive funds are based on average monthly assistance caseload, expenditures for non-recurrent short-term benefits, and/or expenditures for subsidized employment. Funds are available until the end of Fiscal year 2010. A jurisdiction that qualifies under one or more of the aforementioned conditions will receive 80 percent of the amount by which Federal TANF expenditures and qualified State expenditures (Maintenance-of-Effort, or MOE) in the quarter for which it is requesting emergency funds exceed such expenditures in the corresponding base-year quarter. Once funds are received, all financial and programmatic rules that apply to federal TANF block grant funds also apply when using the emergency funds. Funds can be used to provide benefits and services to families that comply with the four statutory purposes of the Temporary Assistance for Needy Families (TANF) program. The four purposes are: (1) to provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives; (2) to end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; (3) to prevent and reduce the incidence of out-of-wedlock pregnancies and establish numerical goals for preventing and reducing the incidence of these pregnancies; and (4) to encourage the formation and maintenance of two-parent families.   State TANF Emergency Contingency Fund Analysis   

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Colorado (Colorado Works) Caseload Status Colorado has seen an increase in recipients receiving TANF from October 2008 to June 2009, the most recent time period the Department of Human Services has numbers for. The TANF program is state run but county administered which means that they have 60 slightly different welfare programs (60 counties). Award Status The state has drawn down a little over $11 million of their $68 million they are eligible to draw down. They do intend to draw down all the funds. Plans The initial $11 million was drawn down due to increase in caseloads and increase in non recurring short term benefits in the first three quarters of 2009. The larger portion of the increase in short term benefits came from an increase from about $1 million to $7 million going to the Low Income Energy Assistance Program (LEAP) and increases in diversion assistance. Colorado Works (name of the state welfare program) had already been working hard with counties to see if diversion would be better than clients going on the TANF caseload at the time that the ARRA was passed. Their diversion program provides a variety of services, including work expenses, like clothing and equipment; child care cost that are provided while clients are in the application waiting period (1-3 months); and transportation costs. The counties currently find themselves in a unique financial situation. They have $11 million in TANF reserves that they will be using to begin a new subsidized employment program. Neither the state nor the counties have a subsidized employment program at this time so the funding spent on the program is all new making any increase of spending an increase of the base years. The development of a subsidized employment program is consistent with the message the state has been sending to the counties, that it is important to not only move people off the TANF caseload but to help families become self sufficient. They see this new State TANF Emergency Contingency Fund Analysis   

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subsidized employment program as an opportunity to provide skills to TANF recipients’ to become employed. Clients will be eligible for the subsidized employment if they are TANF eligible according to the state plan. The target group anticipated to be using the subsided employment program includes those individuals timing out of unemployment insurance or who have already timed out. They expect the $11 million will be used on wages for folks in the subsidized employment program and that funding from the Emergency TANF Funds will replenish the program. Other work supports like child care will likely come from the workforce sites. They are currently working on the 4th quarter application, which will show an increase in caseloads as well as an increase in non recurring short term benefits. Contacts Sara Marsh and Dan Daly, Colorado Department of Social Services Recommendation Colorado is strongly county run and services are provided by the counties. With additional funding available to the counties and the strong emphasis on employment, the state has articulated that there might be opportunity for Making Connections. The site team should work with the county and state to discuss their strategies within the context of how the funds can be used.

State TANF Emergency Contingency Fund Analysis   

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Connecticut (Jobs First) Caseload Status The total number of recipients on TANF has stayed fairly consistent from October 2008 to June 2009 as has the total number of families on the TANF caseload. In recent conversations with the state they noted that the caseloads have begun to increase as of July 2009 with the most recent quarterly increase being 900. Caseloads have remained stable primarily, it is believed by the state, because clients have reached the 21 month or the 60 month time limit and have to go off the caseload. Award Status Connecticut has not currently drawn down any of their $133,394,054. The state does intend to apply for funds based on the non recurring short term assistance provision. When funds come to the state, they will go into the general revenue and be used for basic assistance. Plans They are concerned with how they get the additional funding to draw down the Emergency funds and are also concerned that if they increase spending to clients now they may end up in a position that they do not have funding later down the line to continue to support those clients. The human service agency has tried to look across the state agencies to get money for extra MOE. They have spoken with Jack Tweedie from the National Conference of State Legislatures to help with this. They are also talking with third party organizations. At the time of our conversation, they were getting ready to meet with a group of advocate organizations in the state. The state does have a concern about the reporting requirements and how to calculate the base year since each organization may have different quarters of higher expenses and the increase in spending on one organization may eliminate the increase in spending in another organization. The state would benefit from some guidance on calculating increase in spending with third party organizations when the third parties are a variety of organizations that are pooling their expenses together to make up the increase. All the agencies that the state is talking with, serve TANF eligible clients, some of whom are on the TANF caseloads and all who are at 75% of the state median income level. State TANF Emergency Contingency Fund Analysis   

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Contacts Julie Bisi and Peter Palemero, both with the Human Service Agency (TANF administering agency) and Elaine Zimmerman with the Legislatures office Recommendations There is clearly a difference of opinion between the legislature and the human service agency. As activities with third party organizations evolve, Casey may want to get involved by talking with the legislature’s staff and the state human service folks about the role third party agencies can play in drawing down the ETCF. Casey does currently have a consultant in place to address such action.

State TANF Emergency Contingency Fund Analysis   

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Indiana (IMPACT- Indiana Manpower Placement and ComprehensiveTraining)

Caseload Status They have not seen an increase in caseload for families or recipient from October 2008 to June 2009, the most recent quarters the Department of Health and Human Services had data available for. The state has actually seen a decrease in their caseloads while seeing an increase in expenditures. According to the state, the reason for the decrease in caseloads but an increase in spending is that the state has stressed employment and training and spent money on those programs, therefore, seeing more people going off the caseload and into employment and training. In addition, increases in spending is due to the changing of who is on the TANF caseload. While overall the caseloads have gone down those that are on the caseloads are increasingly two parent families who receive a larger benefit than single families. The two parent family caseloads have increased due to the change in TANF eligible criteria which focuses solely now on the income of a family. Award Status Indiana has not drawn down any of their Emergency TANF Contingency Funds. The State has $103,399,555 to draw down. Plans Currently the state does not have a subsidized employment program and will not be looking at developing a program. They believe they do not have the staff or resources to develop the program. They are looking at their Earned Income Tax Credit (EITC) as a way of drawing down Emergency Funds. The state is doubling the EITC starting January to 6% from 3%. They may have to project what the increase would be as they may look at not only the increase from 2009 to 2010 but also may cross reference 2007 to 2009 to see what part of the EITC pot was not being counted towards MOE. They anticipate that there may be a part of the population with kids that are eligible for the EITC that weren’t counted before. With the help of the Benefit Bank and Purdue University, the state might create a short term supplemental one time program. The state is awaiting a proposal from Purdue State TANF Emergency Contingency Fund Analysis   

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University as to how the one time benefit program would work. What is known by the state now is, The Benefit Bank and Purdue University will work in partnership with nonprofit organizations to run a benefit bank to determine if someone could receive a onetime payment. It is anticipated that the nonprofits will pay the additional 20%. While the state would apply for the fund, the administration, tracking and financial requirements would be handled through Purdue. Walgreens approached the state and said they would provide gift cards to purchase things that Medicaid would not pay for. The state did not want to participate because they are a bit skeptical about sole sourcing. State procurement rules come into play since Walgreens wants them to purchase all the cards up front and the state doesn’t know if it necessarily can purchase all from one company. Contacts Angela Abbot- [email protected] 765-496-2488. The state uses Purdue Extension for food outreach. James Dunn- Indiana Department of Human Services. Recommendations Making Connections and the LME have had some conversations with Purdue and the Benefit Bank about how they may partner with the state to develop a short term supplemental program. To the extent that the site can be part of those conversations and track how the arrangement between the state, the Benefit Bank and Purdue works, there may be opportunity to document best practice and lessons learned for other states. Additionally, Making Connections will be a good resource for identifying candidates for the Benefit Bank services at a local level.

State TANF Emergency Contingency Fund Analysis   

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Iowa (FIP-Family Investment Program) Caseload Status Iowa has seen a steady increase in families and recipients on the TANF caseloads from October 2008 to June 2008, the most recent time period available from the Federal Department of Health and Human Services. According to the Iowa Human Service Department, based on actual caseloads and costs for FY 2009 and projected caseloads and costs for FFY 2010, the department estimates the state will be eligible for a total of slightly more than $10.5 million in TANF Emergency funds under the caseload increase criteria. These funds are needed to meet rising TANF costs resulting from increased caseloads. Award Status The state is eligible for $65,496,976 in TANF Emergency Funds and has currently drawn down $817,512 for basic assistance. Plans Iowa’s use of federal TANF and state maintenance of effort (MOE) funds under the increased expenditures for non-recurrent, short term benefits category has been rather limited, with expenditures of slightly more than half a million dollars in FFY 2007 and slightly less than half a million in FFY 2008. Reported expenditures for FFY 2009 through June 2009 are only around $133,000. This trend is expected to continue for the rest of FFY 2009 and 2010. Consequently, they don’t anticipate applying for Emergency Funds for increases in short term non recurring benefits. They did mention though that they may look into the refundable tax credit as a short term benefit. However, the potential exists for the state to identify expenditures by local government agencies as well as expenditures by third parties or entities other than government agencies that have not historically been considered in meeting the state’s maintenance of effort requirement under TANF. It is this potential that is the primary focus of how the department hopes to draw down the remainder of their funds. They have reached out to community action agencies, the United Way, and the Department of Human Rights who works with CAP agencies. The main problem with the third parties they are finding out is they serve multiple populations so who they are serving that is TANF eligible is difficult to determine. Iowa’s second request has recently been submitted based on increases in caseloads. State TANF Emergency Contingency Fund Analysis   

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All the funds drawn down will go toward cash assistance to maintain what they are currently doing. Some funds may be used for some backfilling. TANF funding to counties has been reduced because of cuts in state funding and therefore funds that come into the state may go to the counties. Contacts Rob Krebs, Department of Human Services, TANF administering agency Recommendations Iowa is looking to work with third party organizations such as CAP agencies and United Ways. Casey could benefit from having a conversation with the Making Connection site about how the site may work with the CAPs, United Ways and larger local agencies. Extra funding could be available if the state is able to draw down the full funding. The state could benefit from having consulting services similar to Connecticut as to where the additional expenditures may come from.

State TANF Emergency Contingency Fund Analysis   

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Kentucky (K-TAP- Kentucky Transitional Assistance Program) Caseload Status Kentucky has seen a small increase in recipients as well as families on their TANF caseloads between October 2008 and June 2009, the most recent time period the U.S Department of Health and Human Services has data available for. Award Status They have received $1.2 million of the possible $90,643,835 they are eligible for through the TANF Emergency Contingency Fund. The state has a pending application in to the U.S Department of Health and Human Services for $1.6 million for basic assistance. Plans One potential reason the caseloads may not have gone up during the poor economy is the state has extended unemployment insurance and TANF eligible clients are receiving unemployment rather than TANF. This dynamic may change when unemployment insurance runs out. They have added funding from 2007 to 2009 to their work study program and anticipate they will be able to draw down money under the subsidize employment criteria. Funding that has been drawn down will be used to fill in the hole where funding has been is lacking Additional funding drawn down may be used for one time payments but the absolute use of any additional Emergency Funds is undetermined at this time as is how much they intend to draw down. The state will assess monthly what their caseload looks like as well as how much money they are spending on their work study program. They have currently not looked at any third party organizations though are thinking of working with the Office of Employment and Training which is the WIA agency in the state. As much as the state would like to draw down their Emergency Funds, the state is currently very focused on work participation rates. The state did not meet the rate for all families and is at risk of penalty for not meeting the rate. They have recently submitted State TANF Emergency Contingency Fund Analysis   

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a request to be exempt from meeting the rate but if not exempt they will need to work on a corrective compliance plan so they do not have a work participation penalty. Contacts Virginia Carrington- Department of Human Services, TANF administering agency Recommendations Kentucky’s Department of Human Services had many questions about how they will draw down the ETCF and appear to be open to technical assistance along these lines. They are at the beginning phases of deciding what the funding may be used for beyond backfilling, making this a good time for Making Connections to offer consulting support to the state. They do not appear to be ready to give funds to any local third party organizations but could possibly if guided through how they might work with others, which could be beneficial for Making Connections.

State TANF Emergency Contingency Fund Analysis   

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Maryland (FIP -Family Investment Program) Caseload Status Maryland has seen a steady increase in TANF recipients on the caseloads from October 2008 through June 2009 and has also seen an increase in families on the TANF caseloads during the same time period. Award Status The state has a total of $114,549,016 they are allowed to draw down under the TANF Emergency Contingency Fund. The state has currently drawn down $29,690,294. Emergency Funds were spread across a continuum of services to give local departments additional funds. The funds have helped Maryland respond to a variety of needs. Initial funds were used for assistance payments, but they have also been able to use funds for short term types of assistance programs. Plans They are planning to use third party expenditures to help meet the match. While the state has used subsidized employment in the past, they are exploring more aggressive subsidized employment in targeted sectors. They see the Emergency Funds as an opportunity where they can engage with the business community and private philanthropic colleagues to leverage funds and expand. They are currently in the exploration stage of trying to determine and confirm which of the costs associated with subsidized employment in terms of private dollars could be used toward MOE. The Department of Human Resources (TANF agency) is partnering with the Department of Business and Economic Development and the Department of Labor, Licensing and Regulation. The three state agencies are teaming together under a state-wide initiative promoted by the governor entitled -- "No Spare Marylander". The three way partnership makes each agency more appealing because they can present themselves to businesses and other private entities as a comprehensive package of services.

State TANF Emergency Contingency Fund Analysis   

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Maryland is piggybacking from the standpoint of all the ARRA dollars that come into the state. Working across agency lines is a primary goal of the state to draw down as much money as possible and maximize funds as much as possible.   Contacts Stacy Rogers and Kevin McGuire, Department of Human Resources, the TANF administering agency Recommendations No additional TA is recommended at this time, however documenting how they use their funds and work with other organizations may benefit other states that have similar legislative restrictions and geographic similarities.

State TANF Emergency Contingency Fund Analysis   

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Rhode Island (FIP-Family Independence Program)  Caseload Status Rhode Island has not seen an increase in TANF caseloads for either families or recipients. Their caseloads have gone down from October 08 to June 09, the most recent time period data is available for. Award Status Currently the state has not drawn down any the funding. Contact Donalda Carlson- R.I. Department of Human Services Recommendations Based on the interview with the state, they have some initial ideas of how to draw down funds and were interested in discussing this further. Attempts have been made to follow-up. Need to discuss further with the Making Connections site as to next steps.

State TANF Emergency Contingency Fund Analysis   

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Texas (Texas Works) Caseload Status Texas has not seen an increase in TANF caseloads for either families or recipients. Their caseloads have gone down from October 08 to June 09, the most recent time period data is available for. Award Status They have received one award for $5,295,838. They are eligible to draw down $243,128,376. Currently the $5,295,838 was able to be drawn down by Texas Health and Human Services Commission’s (HHSC) as a result of the state increasing their August 2009 annual school subsidy payment. The funds were already used to for the school subsidy program. Plans HHSC is discussing a variety of issues with the budget staff but need to develop them and seek guidance from executive staff to draw down additional funds. Once they have these conversations they will be able to discuss what they plan on doing. Workforce Texas (Workforce agency for the state) and HHSC work very closely together. In speaking with Workforce Texas they noted that they are still working through the details on what they are going to do to pull down the Emergency Funds. They are looking at both subsidized employment initiatives and short term non recurrent benefits. Ideas mentioned were expanding a non custodial parent employment program with the Attorney General’s office and using child care expansion as a diversion as well as after school programs. Contacts Cathy Rose and Eric McDaniel- Health and Human Services Commission, TANF administering office and Workforce Texas: Larry Temple and Nicole Verver Recommendations Recommendations will be forthcoming as the state develops the application they are submitting to the Federal Department of Human Services. This will be one state to track as they have a very experience group working on developing the ECTF application. The Making Connections staff may want to get involved as ideas are generated and take more form. State TANF Emergency Contingency Fund Analysis   

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Washington (WorkFirst) Caseload Status Washington has seen a fairly significant increase in both their recipient and family caseloads from October 2008 through June 2009, the most recent time period the Department of Health and Human Service has data available for. Award Status Washington State is eligible to receive a total of $190.5 million during federal fiscal years (FFY) 2009 and 2010. At this time, The Office of Workforce Programs (TANF agency) anticipates the state will receive $114.5 million in TANF stimulus funds for FFYs 2009 and 2010 based on caseload increases. Plans Spending levels for the Community Jobs (CJ) program in state fiscal years 2010 and 2011 have been increased in order to draw down additional TANF stimulus funds. These dollars (about $1.9 million per year) will be spent on full-time Community Jobs slots. Washington was awarded $48.3 million in TANF stimulus funds on July 17, 2009. According to current expenditure data for FFY09, the state is eligible for an additional $2.8 million, and they have submitted a request for this increase with the FFY10 first quarter report. All TANF stimulus funds are being used to backfill rising caseload costs and help Washington State balance any holes in the TANF program; none of the dollars have been earmarked for a specific program or activity. They do not intend to be in a situation where they need to get additional funds since they are not going to need to find innovative ways to draw. The program that is in place is very liberal so when the economy is poor the cases tend to increase quickly. Their program is helpful to people who need services more than in some other states. If the stimulus wasn’t there the state would be in pretty bad shape. Contacts Amber Gillum, Office of Workforce Programs - TANF administering agency Recommendations Washington State will not need help in drawing down funds but once they use funding for backfilling position they may have additional funds. At this point the money is not State TANF Emergency Contingency Fund Analysis   

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earmarked, giving a possibility for Making Connection to work with local offices to get funding or even talk with the state as they get in a better financial situation. Casey and Making Connections representatives should stay in touch with the state.

State TANF Emergency Contingency Fund Analysis   

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