USE OF TANF FUNDS: OPPORTUNITIES

1)Substantial State MOE and Federal TANF funds available to invest 2)Critical need for services to support working families and clients with multiple barriers. 3)Tremendous flexibility and opportunities to develop new service strategies, to innovate, and to create new, collaborative partnerships. ACF/Office of Family Assistance 3 Key Points

$16.8 Billion Federal Block Grant$16.8 Billion Federal Block Grant $10+ Billion in State Maintenance of Effort: 80% of 1994 spending, or 75% if meets participation requirements$10+ Billion in State Maintenance of Effort: 80% of 1994 spending, or 75% if meets participation requirements High Performance BonusHigh Performance Bonus –$200 million each year for 5 years –First 2 years criteria: job entry, retention, wage progression Illegitimacy BonusIllegitimacy Bonus Contingency Funds (for economic downturns) and loansContingency Funds (for economic downturns) and loans TANF Funding

“Leaver” studies show 50-60% employed year of exit“Leaver” studies show 50-60% employed year of exit Census shows 1/3 of former clients working a year laterCensus shows 1/3 of former clients working a year later 18% of recipients employed18% of recipients employed Work First

30% with mental health diagnosis or addiction to alcohol or drugs30% with mental health diagnosis or addiction to alcohol or drugs 25-40% of adults with learning disabilities25-40% of adults with learning disabilities 15-20% of adults and another 15-20% of children with developmental disabilities15-20% of adults and another 15-20% of children with developmental disabilities 15-20% of women subject to domestic violence each year, with 60% over lifetime15-20% of women subject to domestic violence each year, with 60% over lifetime Multiple Barriers

Flexibility No entitlementNo entitlement States decide rules for benefits and servicesStates decide rules for benefits and services May continue waiversMay continue waivers Few Federal rulesFew Federal rules

CONSIDERATIONS IN DECIDING HOW TO USE FUNDS What are the benefits, services, activities you wish to provide (I.e., "assistance" or other benefits)? What are the eligibility criteria? Financial criteria for the needy Objective criteria Which funds should you use? Federal or State What requirements, restrictions, limitations apply? To individuals receiving the service With respect to the selected activity or service

Federal TANF GrantState MOE Funds Segregated Federal TANF Commingled State & Federal TANF Segregated State TANF Separate State Program TANF PROGRAM Potential Funding Options Transfer to: CCDF & SSBG

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 [A State may transfer up to 30% of funds to other block grants: CCDBG(30%); SSBG (10%).] ACF/Office of Family Assistance TANF Funds May Be Used

15% Administrative Cap15% Administrative Cap No Medical ServicesNo Medical Services No TANF “assistance” to certain clients: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 lawSubject to OMB circular A-87 and general appropriations law ACF/Office of Family Assistance Limitations on Federal Funds

ACF/Office of Family Assistance Basic: Must spend at least 80% of what spent in FY 1994, unless Meet Work Rates: Must spend at least 75% of what spent in FY 1994 MOE TANF

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.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 assistanceCash assistance Child care assistanceChild care assistance Educational activities designed to increase self-sufficiency, job training, and work (general educational expenditures are excluded)Educational activities designed to increase self-sufficiency, job training, and work (general educational expenditures are excluded) Administrative costs not to exceed 15%Administrative costs not to exceed 15% Any other activities reasonably calculated to accomplish TANF purposes.Any other activities reasonably calculated to accomplish TANF purposes. ACF/Office of Family Assistance MOE Activities

Expend MOE Funds in One of Three Ways Co-mingled with Federal TANF funds: 1) Co-mingled with Federal TANF funds: –Subject to all TANF requirements and restrictions Segregated from Federal funds but spent in the TANF program 2) Segregated from Federal funds but spent in the TANF program –Subject to many TANF requirements –Not subject to time limits, teen parent requirements and general prohibitions on use of Federal Funds Separate State programs 3) Separate State programs –Not subject to general TANF requirements and prohibitions, except 15% administrative cap : e.g., re pre-existing programs and double-counting Certain limitations apply: e.g., re pre-existing programs and double-counting

Work Activities Contract with vocational rehabilitation agency to provide services to clients with physical or mental disabilitiesContract with vocational rehabilitation agency to provide services to clients with physical or mental disabilities Provide job retention, employee assistance programs and supportive services to clients no longer eligible for cash assistanceProvide 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 programsShare with employers the costs of skill enhancement or education programs ACF/Office of Family AssistanceExamplesExamples

Child Care Provide full day, full year quality child care services by expanding or extending the hours of programs with high educational and developmental standards, such as Head StartProvide full day, full year quality child care services by expanding or extending the hours of programs with high educational and developmental standards, such as Head Start Increase child care subsidy for infant and toddler careIncrease child care subsidy for infant and toddler care Expand child care staff recruitment activitiesExpand child care staff recruitment activities ACF/Office of Family AssistanceExamplesExamples

Special Needs Use MOE funds to provide substance abuse treatmentUse MOE funds to provide substance abuse treatment Use MOE funds to provide health insurance coverage for clients with developmental disabilitiesUse MOE funds to provide health insurance coverage for clients with developmental disabilities Fund fatherhood initiativesFund fatherhood initiatives ACF/Office of Family AssistanceExamplesExamples