FINAL RULES FOR STATE TANF PROGRAMS TIP For additional advice see Dale Carnegie Training® Presentation Guidelines

Status Summary Published in Federal Register on April 12, 1999 Effective Date: October 1, 1999 Available on-line at

Sources of Information Materials available –Internet Access through OFA Web page –Detailed summary –Subject index

Scope Work Penalties against States Data collection and reporting

Definition of Assistance -- Why Does It Matter? Determines which program requirements are applicable –Many requirements--such as time limits, child support assignment, work requirements, and data collection and reporting -- apply only to families receiving assistance

Definition of Assistance -- Basic Approach Narrow the definition significantly Exclude variety of work supports Provide more flexibility regarding nonrecurrent, short-term benefits

Definition of Assistance -- What’s Included? Benefits directed at basic needs Such benefits even when conditioned on participation in community service or work experience Child care, transportation, and supports for families that are not employed

Definition of Assistance -- What’s Excluded? Variety of recipient and employment- related services Work subsidies Supportive services, such as child care and transportation, provided to families who are employed

Definition of Assistance -- What’s Excluded? (cont.) Nonrecurrent, short-term benefits Refundable earned income tax credits IDAs Job Access transportation benefits to individuals not otherwise receiving assistance

Definition of Nonrecurrent, Short-Term Assistance Intended to deal with discrete crisis situation May be more than once a year Needs will not extend more than 4 months No limit on amount of back debt or on monetary amount

WtW Cash Assistance Affects whether clock on Federal assistance is running Must be assistance Must be for basic needs Must be convertible to currency

Separate State Programs-- What Are They States may contribute MOE funds to programs and activities that are either: – part of the TANF program; or – outside the TANF program. Those outside of TANF are “separate State programs.”

Separate State Programs Not subject to TANF rules May use without restriction (does not affect eligibility for penalty relief) For high performance bonuses and caseload reduction credits, must submit SSP-MOE report when SSPs provide assistance

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

Child-Only Cases These are families receiving assistance that do not include an adult. They are not included in work participation rate or time limit calculations Disaggregated reporting identifies child- only cases and cases that converted since prior month. HHS will monitor for changing trends

Welfare Reform Waivers-- What Are They? Under section 1115 of prior law, the Secretary could waiver statutory requirements for research and demonstration purposes. Under PRWORA, States may operate under waiver provisions approved prior to TANF to the extent that they are inconsistent with TANF.

Waivers--Regulatory Definitions Under rule, “inconsistent” means that compliance with TANF work or time limit requirements would necessitate a change in State policy. The term “waiver” encompasses a related cluster of provisions, not just the specific technical waiver the State received.

Waivers Rules address only work and time-limit waivers Final rules: – Do not rely on State purpose – Allow States to use JOBS or waiver hours*, activities, and exemptions in their participation rate calculations if they have a work waiver –Treat adult-only time limits differently * Based on written policies

Work-Related Waivers Must have had an explicit waiver that addressed exemptions, hours of work, allowable work activities, or sanctions If so, can operate under waivers and prior law rather than section 407 requirements Must submit certification by October 1 TANF target participation rate percentages and penalty amounts apply

Time-limit Waivers Must have had a waiver that limited assistance to families or individuals based on length of time on assistance Waiver that establishes work requirements based on time on assistance does not count

Time-limit Waivers (cont.) Months do not count as Federal assistance in adult-only time-limit cases Otherwise, if assistance is federally funded, State months and Federal months generally run concurrently

Treatment of Research Groups If a State continues an experimental design, the experimental and control groups may be subject to prior law, except as modified by the waiver

Treatment of Domestic Violence Victims Under Family Violence Option, States may implement programs to screen for domestic violence, refer victims to appropriate services, and waive program requirements.

Treatment of Domestic Violence Victims Good cause waivers that are federally recognized affect whether States get penalty relief (i.e., reasonable cause, penalty reduction, corrective compliance) if they fail work participation rate or time limit requirements.

Criteria for Federal Recognition-- General Under Family Violence Option No durational limit on waivers, but 6-month redeterminations Service plans: –Must be developed by trained individual –Must be designed to lead to work where safe

Criteria for Federal Recognition States have broad flexibility to extend time limits through waivers: –Based on past or current domestic violence or risk of domestic violence –Regardless of ability to work Annual report includes service strategies and procedures and number of waivers granted

Workplace and Recipient Protections New regulatory text at § §417 does not affect applicability of other employment and non-discrimination laws Reporting on displacement procedures

Caseload Reduction Credit The credit for the 2-parent rate, at State option, is based on either the decline in the 2-parent caseload or in the total caseload.

Caseload Reduction Credit “Eligibility Change” includes full-family sanctions and behavioral requirements (e.g., applicant job search).

Caseload Reduction Credit “Netting Out” We will use the net effect of eligibility changes, adding back in caseload increases due to eligibility changes.

Penalty Reduction 5 criteria for “degree of noncompliance” ä which rate the State failed ä amount by which it failed ä increase in the # of recipients engaged in work ä # of consecutive years failing rates ä number of rates failed

Reasonable Cause General Factors Three primary factors: –Natural disasters or other calamities –Formal Federal guidance that provided incorrect information –Isolated problems of minimal impact not indicative of a systemic problem Secretarial discretion to consider others

Reasonable Cause Additional Factor for Reporting Penalty Failure due to Y2K compliance activities –Applies only to 1st two quarters of FY 2000 –States must submit reports for first two quarters by September 30, 2000*

Corrective Compliance Plan Acceptable Time Frames For work rates and time limits -- by end of FY ending at least 6 months after ACF receives plan

Expenditures Final rules affirm that, for both Federal and State funds, only outlays count. This means only refundable tax credits are allowable expenditures.

MOE FOR PRE-EXISTING STATE AND LOCAL PROGRAMS, MOE claims are limited to “new spending”-- the amount by which total expenditures during the current fiscal year for eligible families exceed total expenditures in the program in ‘95

MOE “New spending” test applies to all MOE programs, not just separate State programs Expanded annual reporting on all MOE programs

Administrative Costs Administrative costs include general administration, program coordination, eligibility determination, and indirect (or overhead) costs. The nature of contract services determines whether contract costs count against the cap.

Major Data Provisions-- Reporting on TANF Programs Retained critical data, but significantly streamlined the reporting requirements. Reduced the number of required data elements and made some data elements optional for certain family members.

Major Data Provisions-- Reporting on SSP-MOE Programs Quarterly reporting only for those programs that provide assistance under the revised definition. States must submit SSP-MOE Data Report to receive Caseload Reduction Credit and High Performance Bonus (not for penalty reduction).

Major Data Provisions -- TANF Financial Report Added several categories of expenditures (to reflect the new definition of assistance.)

Major Data Provisions-- Annual Reporting Consolidated the Annual Reporting Requirements The annual report consists of: –MOE program data. –New reporting on child care disregards. –New requirements on characteristics of State programs (e.g., descriptions of State diversion programs, domestic violence strategies, displacement procedures, pregnancy prevention and family formation activities).

Appendices Two new forms: H: Caseload Reduction Report* I: Annual State MOE Report*