1. Virginia Department of Social Services
Overview of the Division of Benefit Programs for
the
State Board of Social Services
December 10, 2014

2. Mission
To design and implement financial assistance programs that provide quality services to assist needy low-income Virginians.

3. Organization
Virginia is a state-supervised, locally administered social services system
State develops policy and regulations and provides training, technical assistance and sub-recipient monitoring
Localities determine eligibility for assistance based on state developed policy and regulation
120 local social services agencies in Virginia
Virginia is one of 12 states nationwide that is state-supervised locally administered.
It creates unique opportunities for the Department and local social services agencies to work jointly to serve the needy citizens of the Commonwealth.

4. Assistance Programs Temporary Assistance for Needy Families (TANF)
Supplemental Nutrition Assistance Program (Food Stamp)
Medical Assistance
Medicaid
Family Access to Medical Insurance Security (FAMIS)
Energy Assistance
General Relief

5. TANF
Provides cash and other assistance to eligible needy families with children
Funded through an annual $158 million federal block grant
The state has flexibility to design programs that address the needs of Virginia’s low-income families.
State is required to spend $128 million annually in state funds (Maintenance of Effort.)
This represents 75% of the amount the state spent on welfare spending in 1994.
We currently spend about $18M of our TANF block grant to fund programs outside the Department that do not provide direct cash assistance to needy families.
Wage Advancement Grants - $5.5M
DHCD – $4.9M
Healthy Families/Healthy Start - $2M
The Healthy Families model is designed to promote positive parenting, improve child health and development, and reduce child abuse and neglect. The model uses home visiting as the cornerstone of the approach to reach families with young children
CHIP of Virginia - $1.1M
CHIP of VA programs are local public/private partnerships, which provide comprehensive health supervision, family support and referral to medical and dental services for low-income at-risk children.
CSA Trust Fund - $1M

6. TANF TANF programs must meet the following federal requirements:
Must assure children can be cared for in their own homes or homes of relatives;
Must end dependence of parents on government benefits by promoting work and marriage;
Must reduce the incidence of out-of-wedlock pregnancies; and
Must encourage the formation of two-parent families.
Must:
Assure Children are cared for in their own homes
End dependence of their parents on government programs through work and marriage
Reduce out-of-wedlock births
Encourage 2-parent families

7. TANF
There is a 60-month federal lifetime limit on receipt of cash assistance; 2-year state limit.
Recipients must participate in a program to enhance their employability as a condition of eligibility for assistance, unless exempt.
Virginia’s work component is the Virginia Initiative for Employment not Welfare (VIEW.)
State must have 50% of recipients in an allowable work activity or face federal sanctions.
Most TANF benefits are issued through a debit card or direct deposit.
Our work program is called the Virginia Initiative for Employment not Welfare (VIEW)
The sanction for failure to meet the WPR is 5% of the federal block grant or $7.9 million for each year that the WPR is missed up to a maximum of 21% ($33M)
Plus an increase in required MOU spending to 80% on 1994 spending ($8.5M)

8. TANF
TANF was reauthorized in 2005 – Deficit Reduction Act (DRA), should have been reauthorized again in 2010 – currently operating on a Continuing Resolution
Last reauthorization implemented significant changes in work requirements – narrowly defined work activities.
Changed the baseline for the caseload reduction credit.
For each percent that the caseload reduces from the base year, states can reduce their required work participation rate by an equal percentage.
When welfare reform was first implemented the baseline was 1995 – caseload was roughly 70,000 - new baseline 36,686.
As the caseload continues to increase, we lose our ability to claim a caseload reduction credit

9. TANF
TANF income eligibility threshold is eligibility is about 19% of the federal poverty limit ($320 for a family of 3.)
Virginia’s benefits are 15th lowest in the nation, only states like Mississippi, South Carolina and Georgia being lower.
By comparison, Virginia ranks 8th highest in per capita income.

10. TANF
Funding for TANF is dependent on the state meeting a 50 percent work participation rate (WPR) – having 50 percent of all adults in an approved work activity.
Failure to meet the WPR results in a 5 percent reduction in the TANF block grant - $7.9M.
Additionally, the state must increase its MOE from 75 to 80 percent - $8M.

11. TANF
States can offset their 50 percent WPR with a caseload reduction credit – a percent reduction in the required WPR for each percentage reduction in the caseload since 2005.
FFY 2011, the most recent data available, Virginia’s WPR was 44 percent.
The revised target based on the caseload reduction credit was 37.8% percent.
Virginia has met the WPR every time the feds have released numbers, most recently in April 2014 when the 2011 numbers were released.

12. Supplemental Nutrition Assistance Program (SNAP)
SNAP is intended to alleviate hunger and malnutrition by permitting low-income households to obtain a more nutritious diet through normal channels of trade.
SNAP benefits may be used at federally approved grocery stores to purchase food or food products for home consumption, including seeds and plants that will produce food.
In Virginia, SNAP can also be used at approved Farmers’ Markets and direct marketing farmers.
Other than hot prepared foods, there are no restrictions on the kind of food individuals can purchase with their food stamps.
They may choose to purchase expensive cuts of meat, candy or sodas.
Through Nutrition Education, we offer information on healthy eating habits and how to purchase healthy foods on a limited budget.

13. SNAP
SNAP benefits are accessed electronically through a card similar to a debit card.
SNAP Benefits are 100% federally funded.
The average monthly caseload for SFY 14
was 451,000 households.
For SFY 14 SNAP expenditures exceeded $1.4 billion.
According to USDA, every $5 in SNAP expenditures generates $9.20 in total economic activity in a community.
Today, the FS caseload is 255,000

14. SNAP
Between July 2007 and August 2013 the SNAP caseload increased over 98 percent, from 232,000 cases to over 460,000 cases.
Nearly 1 million Virginians rely on SNAP each month to meet their nutritional needs – nearly I of every 8 Virginians
Virginia has been under a court order since 1991 to process 97 percent of all SNAP applications timely.

15. SNAP
Congress passed the Agriculture Act of 2014 in February reauthorizing the Farm Bill for 5 more years.
The biggest change was a change to the “Heat and Eat” provision.
I also want to remind the Board that the official name of the FS Program changed to SNAP on October 1.
While from a program impact standpoint this is an insignificant change, it is an administrative change that we will have to make.

16. SNAP
In 2012, Virginia was awarded a $2.3M high performance bonus by USDA for having the most improved payment error rate in the nation in FFY 2011.
In 2013, we received another $2M high performance bonus for having one of the best payment error rates in the nation in FFY 2012.
In 2014, Virginia received a $1.7M high performance bonus for having the best payment error rate in the nation at .44%

17. Medicaid Program
Provides medical insurance to income eligible individuals who meet one of the following categories:
Individuals who are aged (over 65), blind or disabled;
Individuals in need of long-term (nursing home) care;
Families with children;
Pregnant women

18. Medicaid Program
The Department of Medical Assistance Services is the single-state agency responsible for the Medicaid Program – they have regulatory authority for the Program.
Local departments of social services determine eligibility under an MOU between DSS and DMAS.
The cost of the Medicaid Program is shared between the federal and state government.
The state’s share of the cost is determined by a federal formula that compares the state’s per capita income to the national per capita income.

19. Medicaid Program
The federal share will never be less than 50% of the costs.
In Virginia, the federal government pays 52% of the costs.
In SFY 2012, total program expenditures will be nearly $8 billion.
After public education, Medicaid is the single largest budget item in Virginia.

20. Medicaid Program
The Patient Protection and Affordable and Affordable Care Act proposed to cover 400,000 additional Virginians through an expansion of the Medicaid Program.
The expansion would eliminate categorical eligibility requirements and cover all Virginians between 19 and 64 with incomes up to 138% of the federal poverty limit.
The federal share of the cost of the expansion group is 100 percent the first 2 years, decreasing to 90% in 2020.

21. Medicaid
The Supreme Court ruled that states could not be mandated to expand their Medicaid Programs.
Virginia has opted not to expand Medicaid, appointing a Commission to monitor the implementation of “comprehensive, value-driven, market based reforms of the Virginia Medicaid/FAMIS Programs” that will control program costs.
Stanley amendment prohibits Medicaid expansion without General Assembly approval.

22. Medicaid Overdue Medicaid renewals are a problem in Virginia.
Due to the caseload increase in SNAP, some local departments of social services did not complete Medicaid renewals in order to process SNAP applications timely.
The majority of the problem is confined to 9 local agencies (73%).

23. Medicaid Challenges: Timely Application Processing
Timely Renewal Processing

24. Medicaid
Challenges primarily in response to the implementation of the ACA, especially in Northern VA
62% increase in applications in the first 9 months, largely influenced by Medicaid expansion in Maryland and DC
Also challenges with implementing a new eligibility system

25. FAMIS
FAMIS is Virginia's program that provides the children in working families who are not eligible for Medicaid with health insurance (Virginia’s SCHIP Program.)
DMAS is the regulatory authority.
Children are eligible if their family income is below 200% of the federal poverty level.
The federal government pays 65% of the cost of FAMIS, the state pays the balance.
The majority of FAMIS cases are processed by a central processing unit.
200% FPL is $42,400 for a family of four

26. FAMIS Governor McAuliffe’s Healthy Virginia Plan
Expands FAMIS eligibility to the children of low-wage state employees.

27. Energy Assistance
There are three components to the Energy Assistance Program
Fuel Assistance helps pay for winter heating costs
Crisis helps pay for repair or replacement of heating equipment (November – March)
Cooling helps pay for summer cooling costs (June 15 – August 15)

28. Energy Assistance
The Energy Assistance Program is funded through a federal block grant.
For FFY 2014, Virginia received $90 million.

29. General Relief
The GR program is a local option designed to provide maintenance or emergency assistance that cannot be provided through other assistance programs.
Due to budget reductions all components of the GR Program except for Unattached Children – children living with a non-relative – were eliminated.
Seven of the 83 account for about 64 percent of total program expenditures.

30. General Relief
General Relief is funded through a combination of state (62.5%) and local (37.5%) funds.
In SFY 2014, expenditures for General Relief were $ .5 million.
Proposed budget cuts will significantly reduce the scope of the GR Program
All components except unattached children will be eliminated
Unattached children provides assistance to individuals caring for children for which there is not a blood relation.
Elimination of the component could have resulted in an increase in Foster Care cases.

31. Issues Eligibility Modernization SNAP participation
TANF – General Assembly enacted legislation restrict the use of TANF benefits at undesirable location and for undesirable purchases.
SNAP participation