# Presentation: 398848

## TANF – Helping Families Gain Employment Skills

***TANF – Helping Families Gain Employment Skills***

**Mack Storrs**
**Office of Family Assistance**
**Administration for Children and Families**

**Notes:**
Pleasure to be with you to discuss TANF reauthorization and the implications for WIA collaboration.

Want to do 3 things:  1) outline accomplishments and context of TANF reauthorization debate; 2)  provide overview of Administration's reauthorization proposal/HR-4/Senate Finance; and 3) suggest ideals for improved One Stop workforce collaboration between WIA and TANF – whether WIA reauthorization requires it or not.

## Welfare Reform Changes

**Work has dramatically increased**
**900,000 clients enter work each year**
**Encouraging retention rates**
**Caseloads have fallen dramatically**
**Nearly 60%, from 14.1 to 5.4 million**
**Poverty among children has declined**
**Continuing economic struggles**
**Devolution**
**Public and community support**

**Notes:**
Record #s of people moving from welfare to work.  Retention rates=77%; Earnings increase=30%;
5 times more recipients working in 99 (33%) than in 1992 (7%)
Urban Institute survey: 69% left rolls for work, another 18% income, marriage.
GAO - 63-87%of adults have worked.
All States met overall participation rate (35 thru CRC); most met 2-parent rate. 38% of adults on welfare were meeting work requirements
59% reduction in caseload from 14.1 to 5.8 million
Transformed the way people think about welfare

## Employment Among Single Mothers Under 200% of Poverty 

- Source: CPS Data

**Notes:**
Dramatic increases in employment of single mothers
Millions of mothers previously dependent on welfare have proven themselves capable of holding jobs.

## Caseload Over Past Three Years

**Notes:**
Tremendous accomplishment – caseload receiving assistance reduced by over 50%.  Over 60% in many States.  Even under the recession, caseload continues a slight decline nationally, although clearly leveling off, nationally and increasing in quite a few States.  But, unlike prior recessions, our former clients have more work experience or are much more resilient than under AFDC.

Data issue – what is clearly not well know, is the millions of clients that receive services and benefits that are not assistance.  Just as an example, New York spends nearly $350 million on a refundable State tax credit to over 900,000 families.  Michigan: intervention services to 20,000 learning disabled children at $12 million; medical and counseling services for 265,000 pupils at $40 million. 

##  Poverty Rates Past Six YearsPoverty All Persons1996-2001

**Notes:**
Poverty is down, due to the increase in work among women, the EITC and welfare reform policies.  Still too high among industrial nations. 

## Wages above minimum wage, but below poverty
Services have little impact on wage growth over 5 years 
Multiple Barriers to Work
30% with mental health diagnosis or addiction 
25-40% of adults with learning disabilities
15-20% of adults and 15-20% of children with developmental disabilities
15-20% of women subject to domestic violence each year, with 60% over lifetime
Skills/education deficits & limited English proficiency
Need effective models of barrier reduction and post-employment supports for wage growth and career development. 

**Services have little impact on wage growth over 5 years **
**Multiple Barriers to Work**
**30% with mental health diagnosis or addiction **
**25-40% of adults with learning disabilities**
**15-20% of adults and 15-20% of children with developmental disabilities**
**15-20% of women subject to domestic violence each year, with 60% over lifetime**
**Skills/education deficits & limited English proficiency**
**Need effective models of barrier reduction and post-employment supports for wage growth and career development. **

*Challenges Remain*

**Notes:**
Work pays -- MDRC NEWWS -- Nearly all programs helped parents work more and earn more
All programs reduced welfare receipt/cost
Income largely not affected -- welfare, food stamps replaced with earnings/EITC
Income did not increase above low levels of control group.
Work-focused programs out performed education focused programs.  Even after 5 years, educational improvements were small. 
Estimates vary by study -- what is clear is that a much higher proportion of our clients have such barriers.
Clients with barriers often not identified or addressed -- commonly exempted from requirements

## $16.5 Billion Federal Block Grant
$10+ Billion in State Maintenance of Effort:  80% of 1994 spending, or 75% if State meets participation requirements
High Performance Bonus
$200 million each year for 5 years
Criteria:  job entry, retention, wage progression
Illegitimacy Bonus
$100 million/year to top 5 States

**$10+ Billion in State Maintenance of Effort:  80% of 1994 spending, or 75% if State meets participation requirements**
**High Performance Bonus**
**$200 million each year for 5 years**
**Criteria:  job entry, retention, wage progression**
**Illegitimacy Bonus**
**$100 million/year to top 5 States**

***TANF Funding***

**Notes:**
Funding based on highest ever caseloads -- caseload reduced by 48%  (over 90% in 2 States)
GAO-states at least $4.7 billion better off.
Depending on how  you count  it:  in excess of $4 billion or $8 billion of TANF unspent:  Nancy Johnson letter

MOE=State/local expenditures

HPB--announced today

Illegitimacy=$20 million each to CA, AL, DC, MI, MA.

## 1) In any manner reasonably calculated to accomplish the purpose of TANF:
Provide assistance to needy families
End dependence of needy parents by promoting job preparation, work, and marriage
Reduce out-of-wedlock pregnancies, and
Encourage formation of two-parent families

2) In any manner the State was authorized under AFDC, JOBS, EA, and related child care programs
Kinship care, State foster care and child welfare
Juvenile justice services

3) State may transfer up to 30% of funds to other block grants:  CCDBG (30%); SSBG (4.25%)

**Provide ****assistance**** to ****needy**** families**
**End dependence of ****needy**** parents by promoting job preparation, work, and marriage**
**Reduce out-of-wedlock pregnancies, and**
**Encourage formation of two-parent families**
**2) ****In any manner the State was authorized under AFDC, JOBS, EA, and related child care programs**
**Kinship care, State foster care and child welfare**
**Juvenile justice services**
**3)**** ****State may transfer up to 30% of funds to other block grants:  CCDBG (30%); SSBG (4.25%)**

- ACF/Office of Family Assistance

***TANF Funds May Be ******Used***

**Notes:**
Reasonably calculated
1)  Children with parents/relatives
Temporary absence
Juvenile justice/non-relative foster care prohibited, except as previously authorized;
Non-custodial parent could receive assistance.
2) Needy parents -- including  low income non-custodial parents - unable to meet child support requirements.  
Engage fathers in the lives of their children.
3) Non-needy:  fund school based pregnancy prevention programs, after school programs, etc
4) Family formation
Fragile families

## Key Points

**TANF expenditures need not be limited to families receiving  cash assistance**
**States may change eligibility criteria for different services and benefits**
**In TANF, all expenditures are either ****“assistance”**** or “nonassistance”**
**Assistance**** expenditures are subject to TANF requirements – work, time limits, data collection**
**Nonassistance has fewer restrictions, can provide range of opportunities for families **

## To a needy family consisting of a child living with a relative  -- only
Triggers applicable TANF rules
Includes:  Payments directed at ongoing, basic needs (food, shelter, clothing); supports like transportation & child care for unemployed families
Excludes:  Non-recurrent, short-term benefits; work subsidies; supports like child care & transportation for employed families; counseling, case management, peer support,  job retention & advancement services, other employment-related services that don’t provide basic income support 

**Triggers**** applicable TANF rules**
**Includes:  ****Payments directed at ongoing, basic needs (food, shelter, clothing); supports like transportation & child care for unemployed families**
**Excludes:****  ****Non-recurrent, short-term benefits; work subsidies; supports like child care & transportation for employed families; counseling, case management, peer support,  job retention & advancement services, other employment-related services that don’t provide basic income support**** **

***“******Assistance”***

**Notes:**
260.31 of final rule
 “Assistance” only provided to a needy family as described above -- even if provided per TANF purpose 3 or 4. 
“assistance” also excludes refundable EITCs, contributions to & distributions from IDAs.
Example:  medical and nonmedical substance abuse treatment services are not “assistance.”

## 15% Administrative Cap
No Medical Services
No TANF “assistance” to certain clients:
Families with adult who reached 60 month time limit
Teen parents not meeting school attendance or living arrangements requirements
Not cooperating with child support
Specified immigrants; etc.
Subject to OMB circular A-87 and general appropriations law

**No Medical Services**
**No TANF “assistance” to certain clients:**
**Families with adult who reached 60 month time limit**
**Teen parents not meeting school attendance or living arrangements requirements**
**Not cooperating with child support**
**Specified immigrants; etc.**
**Subject to OMB circular A-87 and general appropriations law**

- ACF/Office of Family Assistance

***Limitations on Federal Funds***

## 	Qualified State expenditures must be spent on “eligible families”

Needy under TANF income standards (a State may create separate income/resource standards for different services/benefits)
Have a child living with a parent or adult relative

As long as the family is eligible, it need not be receiving services or benefits

**Needy under TANF income standards (a State may create separate income/resource standards for different services/benefits)**
**Have a child living with a parent or adult relative**
**As long as the family is eligible, it need not be receiving services or benefits**

- ACF/Office of Family Assistance

***Maintenance of Effort (MOE) Funds***

## Cash assistance
Child care assistance
Educational activities designed to increase self-sufficiency, job training, and work (general educational expenditures are excluded)
Administrative costs not to exceed 15%
Any other activities reasonably calculated to accomplish TANF purposes

**Child care assistance**
**Educational activities designed to increase self-sufficiency, job training, and work (general educational expenditures are excluded)**
**Administrative costs not to exceed 15%**
**Any other activities reasonably calculated to accomplish TANF purposes**

- ACF/Office of Family Assistance

***MOE Activities***

## Potential Funding Options

**Federal TANF Grant**

**State MOE Funds**

**Segregated Federal TANF **

**Commingled State & Federal TANF**

**Segregated**** ****State TANF**

**Separate State Program**

**TANF PROGRAM**

***Potential Funding Options***

**Transfer to: CCDF**** & ****SSBG**

- ACF/Office of Family Assistance

**Notes:**
Child Care:
First half of ‘99, States transferred 736 million to CDF
Spent $248 million in TANf
Spent $578 in MOE
Total=$1.6 billion in first half of year

## FY 2002 -- Expenditures

**Notes:**
Because of your efforts and success, welfare has been transformed.

Slide demonstrates the tremdous change from a program of cash assistance to one of work and work supports.  "Assistance" now accounts for less than 50% of expenditures.

Even in what we consider the best of data (expenditures), there are still lots of gaps in knowledge.   50% of the "other" category of expenditures is "other".  Leads Congress and advocates to want more information.

Data collection/reporting has a definite cost -- what's important is that we all work together to identify critical information you need to manage program and others need to monitor performance and outcomes.

New Hire data shows over 600,000 families enter employment each year.

## Housing

**Pay security deposit**
**First and last month’s rent**
**Temporary rent (up to 4 months)**
**Rent voucher or subsidy (assistance)**
**Down-payment or lump-sum payment  **
**Loan or loan guarantee**

- ACF/Office of Family Assistance

## Provide education, literacy & vocational skills training to parents
Fund a community work program
Provide or make loans for a car
Compete community grants to private/public agencies to develop and implement innovative strategies
Provide training stipends to working parents to upgrade skills

**Fund a community work program**
**Provide or make loans for a car**
**Compete community grants to private/public agencies to develop and implement innovative strategies**
**Provide training stipends to working parents to upgrade skills**

***Employment***

- ACF/Office of Family Assistance

**Notes:**
Refundable tax credits -- in excess of what family paid in tax.
Loans: -- MS considering $25,000 downpayment
Scholarships,

## Contract with vocational rehabilitation agency to serve clients with disabilities

Provide job retention, employee assistance programs and supportive services to clients no longer eligible for cash assistance

Share with employers the costs of skill enhancement or education programs

Provide work support stipend

**Provide job retention, employee assistance programs and supportive services to clients no longer eligible for cash assistance**
**Share with employers the costs of skill enhancement or education programs**
**Provide work support stipend**

***Employment***

- ACF/Office of Family Assistance

**Notes:**
Recent OCR guidance on Title II of American with Disabilities Act and Section 504 of the Rehabilitation Act, require:
individualized treatment;
effective and meaningful opportunity;
reasonable accomodations

Work support:  TX = $200;  Florida considering.

## TANF - Reauthorization

**Full  Engagement**
**Work and Other Participation**
**Healthy Marriage Promotion and Research**
**Welfare and Workforce Integration Waivers**
**Child Support Enforcement Improvements **

**Notes:**
Key elements of the President’s proposal, HR-4 and Senate Finance Chairman’s Mark which was passed on September 10th.

Clear and deliberate consideration of increased challenges, balanced by flexibility.

Generally universal  support for “full engagement”, Healthy Marriage Promotion, Child Support improvements, and even on the principles about work/participation. 

## Most Adults Have No Hours

**Notes:**
57% of adults have no hours reported by States.  May be somewhat of an overstatement, because some States may not bother reporting hours that wouldn’t count.  But, we know that most States do report the data.  

Fundamental question driving the need for an increase in the participation rate, (an the greatest implicit criticism of States under welfare reform) is if work is the key to independence and self-sufficiency for most families, how can we let the time clock run on 57% of the caseload not participating???

## Total Reported Hours of TANF Participation, by Activity U.S. Monthly Average, FY 2001

**Notes:**
One issue in the reauthorization is the never-ending human capital investment (education) versus work first debate about how to improve the lives of families and what activities should count in participation. As slide reflects, current State programs are heavily oriented toward direct work activities with 70% in actual jobs or work experience programs.  

The Administration, HR-4 and Senate Finance retain this emphasis on work activities over expanded eduction. 

## Work & Other Participation

**Avg. Participation: from 50% to 70% by 2008**
**Standard: 40 total hours per week:**
** ****24 hours of work**
** ****16 hours of other self-sufficiency activities – State decides**
**Partial credit beginning at 24 hours**
**3 months (within 24) can be FULL-TIME treatment, rehabilitation, training, etc. – State decides**
**Case opening month – State option to exempt**
**Employment Credit – Caseload Reduction Credit (HR-4)**
**Eliminates separate 2 parent rate**
**Carry-over balances not limited to cash assistance**

**Notes:**
Full engagement model -- leave no family behind.  Within 60 days, Self-sufficiency plan that takes into consideration the needs of every family member, mother, each child and even the non-custodial father.
Equity -- eliminate 90% participation to 2-parents
Simulated, full work week of 40 hours-- 24 in work, OJT, supervised community work experience or community service.  16 in flexible activities (education, literacy, participate with child.
Work credit for short term (90 days in 24 months).
Count pro-rata credit, if meet 24 hour.  

HR-4 retained an adjusted caseload reduction credit  

## Welfare & Workforce ProgramIntegration Waivers

**HR -4 New State program integration waivers -HHS, HUD, Ag, ED, and Labor programs  (“Super Waiver”)**
**Senate Finance – 10 State Demonstrations for TANF, CCDF & SSBG**
**The challenge of moving more clients to work and independence is the nexus for TANF & WIA**
**How do we blend employment, training & lifetime learning programs into a vital, integrated one-stop system that provides universal access and opportunities for all clients?**
**It’s at the practical, day-to-day community level where solutions of local implementation are finding effective strategies, and policies and practices that promote integration **

**Notes:**
Programs include:
TANF
Food Stamps
WIA
Wagner-Peyser
Housing and homeless programs
GED & post-secondary education

Accountability = objectives, and outcomes