In Focus

Aug 8, 2014  |  PERMALINK »

Less TANF Spending on Cash, Work Activities, Child Care

By Randi Hall

According to the most recent Temporary Assistance for Needy Families (TANF) financial data, $31.6 million in federal TANF and state funds claimed toward the Maintenance of Effort (MOE) were spent or transferred in FY 2013, a slight increase of $291 million from the previous year. However, spending on core TANF purposes (including basic assistance, child care and work-related activities) continued to decline. Basic assistance spending saw the largest decline, falling by $244.3 million. In FY 2013, just 27.6 percent of TANF dollars were spent on basic assistance. The average monthly number of families receiving assistance TANF assistance in the U.S. fell by over 125,000 caseloads.  In 7 states, spending on basic assistance made up 10 percent or less of total TANF-related spending.

Funds used for refundable tax credits, including refundable Earned Income Tax Credits, also fell by $161.2 million. Combined TANF and MOE spending for all work related activities, including employment subsidies, education and training, and other work-related activities fell by $129 million (6 percent). TANF spending on child care (both direct spending and transfers to the Child Care Development Block Grant, or CCDBG) fell by $114 millionAnalysis of the most recently available CCDBG expenditure data shows that spending within that program fell to a 10-year low in FY 2012.

The category of TANF spending with the largest increase was “out-of-wedlock pregnancy prevention,” which rose by $609.4 million—a 31 percent growth from the previous year. The five states which most contributed to this increase were California, New Mexico, Oklahoma, Pennsylvania and South Carolina. States report a range of activities under this category, making it difficult to determine what these expenditures support.   The new quarterly report forms issued by the U.S. Department of Health and Human Services’ Administration for Children and Families will require states to break down expenditures into more specific categories, such as early care and education, programs that provide sex education and abstinence education, and youth work supports. These new requirements will help us better understand how funds are being used.

In addition, the new reporting requirements should reduce the share of TANF-related funds reported in broad categories such as “other nonassistance” and “authorized under prior law.”  In FY 2013, $4.6 billion or 14.6 percent of total spending was classified as “other nonassistance” and another $44.3 million was reported as “authorized under prior law.” The new reporting categories take effect in FY 2015 and should provide advocates and policymakers better data with which to analyze future TANF spending. 

Jul 1, 2014  |  PERMALINK »

A Step in the Right Direction, Minnesota Expands Access to TANF Education and Training Activities

By Lavanya Mohan

The state of Minnesota is taking steps towards increasing access to education activities for poor adults receiving TANF. Signed into law by Governor Mark Dayton (D-MN), bill HF2458, which was sponsored by state Senator Jeff Hayden (D-MN) and Representative Susan Allen (D-MN), expands access to adult basic education (ABE), General Educational Development (GED), English as a Second Language (ESL) and postsecondary education for participants receiving cash assistance from the Minnesota Family Investment Program (MFIP), the state administered TANF program. The legislation, which takes effect July 1, 2014, allows MFIP participants unlimited participation in these education activities as part of their employment plan without requiring enrollment in other work activities.

Almost 40% of MFIP adults have not earned a high school diploma or GED. Prior to the new law’s passage, an MFIP participant who wanted to pursue a degree or credential had to jump through a number of procedural hoops in order to have these activities included in their work plans and could be required to participate in other countable work activities in addition to their studies. This legislation removes these barriers by easing time and hour limitations on education and training work activities and by alleviating the burden of documentation previously required to participate in ABE, ESL or post-secondary activities. Furthermore, MFIP participants will now have the opportunity to pursue four-year degree programs while receiving TANF benefits, and caseworkers must inform participants with a high school diploma or GED that they have the opportunity to participate in postsecondary education or training while receiving TANF. Poor parents, who are MFIP participants, can now pursue educational activities without harsh restrictions.

Another component of the Minnesota legislation allows all participants 12 weeks to pursue job search activities, rather than the previously allowable 6 weeks of job search. This flexibility will provide MFIP participants more opportunity to secure a well-paying job. The changes in the legislation will affect the nearly 70,000 parents – and their children – in the state of Minnesota who receive TANF benefits.

This legislation was promoted by a broad coalition of state advocates in a campaign called “Prosperity for All.”  The campaign highlighted that these changes to the MFIP rules would be good for employers and the economy, as well as participants and their children:

  • Increased educational attainment will lead to increased earnings for parents. In Minnesota, wages for those who have four-year and advanced degrees have risen while wages for high school graduates have stagnated and fallen, making it hard for poor families to make ends meet.
  • As mothers pursue postsecondary education activities, children also fare better academically.
  • Minnesota is facing a skills gap – two out of three employers cannot find skilled employees. Allowing MFIP participants to acquire skills through credentials and degrees will help meet employers’ needs. By 2018, about 70% of jobs in Minnesota will require some postsecondary education.

Arbitrary restrictions on education and training for TANF recipients are poorly matched to the demands of today’s economy, and trap TANF families in poverty. CLASP applauds the success of Prosperity for All and Minnesota lawmakers in expanding access to education and training activities and urges other states, and the federal government, to follow suit.  

Jun 30, 2014  |  PERMALINK »

TANF, SNAP Improvements Come to New York City

By Lavanya Mohan and Elizabeth Lower-Basch

In May, Steven Banks, the new Commissioner under Mayor de Blasio of the Human Resource Administration (HRA), the city’s social services agency,  announced key initiatives that will improve access to income supports and training, thereby reducing barriers to self-sufficiency for poor people. In the past, New York City has pioneered innovative anti-poverty programs, such as a pilot that expands the Earned Income Tax credit (EITC) for low-income childless workers, including non-custodial parents.  However, the city has not previously focused on improving access to Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF).

One of these key HRA initiatives is accepting a federal waiver to ease restrictions for receipt of Supplemental Nutrition Assistance Program (SNAP) benefits by Able-Bodied Adults Without Dependents (ABAWDs) due to high unemployment rates. Without the federal waiver, ABAWDs are subject to strict eligibility rules – only receiving SNAP benefits for three months out of every three years if they are not employed at least 20 hours per week or in a qualifying work activity (for more information, see SNAP Works: SNAP Work Requirements and Time Limits). Childless workers, including non-custodial parents, often do not qualify for any other safety net benefits. The change in rules will affect 40,000 SNAP recipients in New York City who fall within this category. 

Another important reform that HRA plans to adopt will allow TANF recipients the opportunity to meet their work requirements by attending school leading to a four-year college degree.  This does not remove the time limit on full-time education and training, but lifts the arbitrary limit on the type of degrees that may be counted. TANF recipients will also be able to count school, homework and work-study hours in their employment plan. This reflects a corresponding change in the state rules passed as part of the New York State budget earlier this year.

Along with these reforms, additional measures aim to improve agency follow-up and engagement with SNAP applicants and recipients.  The final approved budget met HRA’s request of $9.7 billion, an increase of $195 million from the previous year. The budget will also provide universal free school meals for all students at public middle schools in New York City.  CLASP applauds these efforts that decrease barriers poor individuals face as they strive to secure employment and become self-sufficient.

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