***DRAFT***DRAFT***DRAFT***
TANF Reauthorization - Proposals
(version dated 6/22/01)
NOTE: This document provides a range of proposals developed for consideration
during upcoming discussions related to TANF Reauthorization. The proposals
reflect views across the political spectrum. This listing is by no means
exhaustive. We have tried to represent accurately organization and individual
proposals. This has resulted in separate listing of some very similar proposals,
and it is also possible that there are some notes of support or opposition
that are not truly reflective of an individual's or organization's position.
We apologize for any errors and welcome corrections. (Organizations and
individuals associated with each proposal are provided in parentheses and
there is a glossary of acronyms and affiliations of individuals on the
last page)(Proposals related to Family Formation have not yet been included.)
Funding and TANF Block Grant Structure
Substantial concern exists that, with welfare caseloads down and more
welfare recipients working, Congress may choose during TANF Reauthorization
to view "welfare reform" as an accomplished fact and divert a substantial
portion of TANF Block Grant funding to other purposes. The likelihood of
an economic slowdown is also giving rise to urging that the TANF Block
Grant should have a cyclical component. Another concern is the possibility
that Congress may decide to impose new restrictions on states and their
use of federal TANF Block Grant funding. The following proposals deal with
these matters:
-
1. Maintain TANF Block Grant funding at least at its current level (APHSA,
NGA)].
-
2. Maintain the TANF Block Grant structure (APHSA, NGA)
-
3. Avoid "set-asides" or further restrictions on the use of TANF funds
by states (APHSA, NGA)
-
4. Allow states necessary funding to assist families with multiple barriers
to employment and self-reliance (NGA).
-
5. Allow states necessary resources to promote job retention, job advancement,
and increased earnings (NGA).
-
6. Allow states adequate funding and flexibility to promote work supports
such as child care and transportion (NGA)
-
7. Increase the amount in the Contingency Fund to assist states in the
event of economic downturn (APHSA, NGA).
-
8. Provide for a block grant increase to individual states to be triggered
by increases in the unemployment rate (Blank).
-
9. Increase the amount available in the state loan program to allow states
in economic downturn to borrow money if they expend their TANF Block Grant
funds (Haskins).
-
10. Enhance state flexibility and simplify federal regulations (NGA).
-
11. Allow states to maintain realistic "Rainy Day Funds" as a cushion against
economic downturn (NGA).
-
12. Maintain State Maintenance of Effort (MOE) at its current level (APHSA).
-
13. Restore Title XX--Social Services Block Grant--funding and transferability
(APHSA).
-
14. Revise rules for supportive programs so that service deliverty can
be coordinated and aligned, e.g., Food Stamps, Child Welfare, TANF, housing
programs, transportation, workforce development, child support, child care,
vocational rehabilitation, and Medicaid (NGA).
Families with Multiple Barriers to Self-reliance
There appears to be broad acknowledgment that a sizable proportion
of families who enroll in TANF and a progressively larger proportion of
families left on TANF and approaching/reaching time limits have multiple
barriers to becoming employed and/or of reaching self-reliance. The following
are proposals for ways to address this issue as part of TANF Reauthorization
discussions:
-
1. Establish clearer federal requirements to assist families with serious
barriers (Center for Law and Social Policy, hereafter cited as CLASP).
-
2. Strengthen requirements for initial assessment and tie tick of the clock
to receipt of appropriate interventions (CLASP).
-
3. Offer states demos to test programs to provide work experience to parents
with multiple barriers (Blank, Haskins).
-
4. Ensure that states have adequate resources to develop and implement
processes that identify hidden disabilities and other barriers, track families
who have difficulty navigating the "work-first" TANF environment (including
those who have been sanctioned), and develop processes that link the most
disadvantaged families with appropriate, expert services (Zedlewski, Loprest).
-
5. Allow states to exempt a higher percentage of their caseloads from time
limits to enable maximum certainty that families with multiple problems
have truly received appropriate interventions before they are terminated
from assistance (Zedlewski, Loprest).
-
6. Permit states to have different pathways in areas of high unemployment
(Blank, Haskins)
-
7. Offer states performance bonuses for getting families employed at above-poverty
wages in areas of high unemployment (NCAI).
-
8. Create more programs for adults with multiple barriers (Blank, Haskins).
-
9. Create a policy mechanism that acknowledges some TANF parents will always
need some financial support, and therefore are not subject to time limits.
(These individuals should not be included in any percentage of allowable
exemptions to time limits--such as the current 20 percent of average annual
caseload provision--that may be established or retained during TANF Reauthorization
(Blank).
-
10. Provide states with the means to acknowledge and respond helpfully
to families when resource shortages for families with barriers exist, e.g.,
in rural areas, on Indian Reservations (NCAI).
-
11. Provide incentives to states to launch demonstration programs that
place women unable to find private sectors jobs into public sector employment
(Blank, Schmidt propose this specifically as a strategy for economic slowdown,
but it appears to also apply for difficult to employ parents with multiple
barriers).
Family Support
Although welfare caseloads are down and more current and former welfare
recipients are working, there is growing awareness that the majority still
need supportive services to be able to continue working and to make ends
meet. The following proposals relate to this issue:
-
1. Add "to provide supports and assistance to the working poor" as a purpose
of the TANF Program (CLASP).
-
2. Give states the tools to provide adequate assistance to families who
are unable to attain self-reliance (CLASP).
-
3. Allow unobligated TANF money to be used for any family support purpose
(APHSA).
-
4. Allow-mandate states to adopt more appropriate pathways in areas lacking
supportive resources such as mental health, substance abuse, and domestic
violence treatment; child care; transportation; and job training (NCAI).
-
5. Make sure that work pays, e.g., raise the minimum wage and the Earned
Income Tax Credit, and expand Medicaid to cover working families in the
absence of employer-provided health care benefits (Mead).
-
6. Condition EITC eligibility on some minimum of working hours in order
to encourage more parents to work full-time (Mead).
-
7. Resist calls to return to the education and training strategy of the
Family Support Act, rather the emphasis needs to remain directly connected
to work effort (Mead).
-
8. Avoid increasing emphasis on efforts to deter unwed pregnancy or otherwise
directly assault family problems until the public mandate on this is more
clear and more effective programs can be identified, and instead stay focused
on enforcing work on mothers, requiring payment of child support, and helping
working families to "make it." (Mead).
Employment retention, job advancement, and increased earnings
There appears to be broad recognition that most families who have left
welfare for work are working at below-poverty wages and frequently lack
benefits such as health care coverage. The next phase of welfare reform
is thought by many to be an opportunity to focus on a variety of strategies
to help families to keep moving forward, out of poverty. The following
are some of the proposals:
-
1. Make the reduction of poverty a purpose of the TANF Program (CLASP,
NCAI, Primus).
-
2. Add a TANF purpose with an express goal of reducing family poverty and
promoting family economic well-being, and making it clear that the goal
of promoting work includes supporting employment retention and workforce
advancement for needy families (CLASP).
-
3. Make reduction of poverty a state performance measure (CLASP).
-
4. Require states to describe in their state plans how TANF and other resources
will be used and coordinated in efforts to promote employment retention
and advancement and enhance family economic well-being.
-
5. Revise state performance measures to place a strong emphasis on poverty
reduction, sustained employment, earnings growth, and higher wages (CLASP).
-
6. Replace existing participation rate measures of state performance with
results-oriented performance standards that measure outcomes for families,
both those receiving TANF and for a broader group of low-income families
who have left TANF assistance or never enrolled (CLASP).
-
7. If the device of participation rates is continued, significantly broaden
the list of countable activities so that individuals engaged in activities
in their individualized employment plan are counted in participation rate
calculations, and end the reward for caseload reduction without regard
to whether families have entered employment (CLASP).
-
8. Provide performance bonus money to states that make the greatest progress
in reducing child and family poverty (Primus)
-
9. Make assisting families to obtain jobs with above-poverty wages a performance
measure (APHSA).
-
10. Use TANF Performance Bonus money to reward states that help former
welfare mothers get better jobs (Haskins).
-
11. Expand education and training use for working, former welfare mothers
to help them with job advancement and earnings increase (Haskins).
-
12. Provide grants to states to experiment with and evaluate job retention
and advancement programs for low-wage workers (Blank, Haskins).
-
13. Allow states greater flexibility to place persons in training programs
in addition to work-first job search programs (Blank, Schmidt).
-
14. Allow states greater flexibility to place persons in training and education
programs in addition to work-first job search programs, especially in areas
with higher unemployment and for sub-populations that traditionally have
suffered higher than average unemployment rates (Walsh & Weathers).
-
15. Encourage firms or regional alliances to provide private sector training
and job mobility opportunities that help less-skilled workers increase
wages over time (Blank, Schmidt).
-
16. Provide incentives to states to launch demonstration programs that
place women unable to find private sectors jobs (particularly in times
of economic slowdown) into public sector employment (Blank, Schmidt).
-
17. Create new financial incentives that are tied to full-time work (Michalopoulos,
Berlin).
-
18. Increase the maximum amount that families can receive from the federal
EITC and phase out the credit at a slower rate (Michalopoulos, Berlin).
-
19. Expand the EITC only for people who work at least 30 hours a week (Michalopoulos,
Berlin).
Performance Measures, Work Requirements, and Related Matters
Many believe state and family performance that must be tracked, measured,
and reported to the federal government--often under threat of some type
of financial penalty--is not only burdensome, but also misdirected. Exactly
how, is a matter of some difference of opinion. Some expect performance
reporting around topics such as "work requirements" will not go away, so
they recommend more flexibility for states; others will urge more substantive
modifications to what is tracked, wanting changes in the direction of positive
outcomes for families. Still others see performance measures as a way for
Congress to provide encouragement to states to focus in particular directions
without reducing their flexibility to design their own programs. The following
proposals are emerging:
-
1. Allow educational or training programs requiring substantial time commitment
to count as a work activity without also requiring work (Blank).
-
2. Give states incentives to experiment with public sector job creation
programs (Blank).
-
Give states requirements or incentives to keep a percentage of their welfare
caseload in work experience programs (Haskins).
-
3. Require all TANF families to to engaged in work preparation of some
type, rather than count only specific kinds of activities as part of the
state participation rate (APHSA)
-
4. Allow states to define "work activity" (APHSA, NCAI)
-
5. Diversity TANF work requirements to fit local job markets; allow/mandate
states to adopt more realistic pathways in areas of high unemployment (NCAI).
-
6. Increase the use of job training as "work preparation" (CLASP, NCAI).
-
7. Allow states to decide about work-for-welfare programs (Blank).
Time Limits and Exemptions
The imposition of lifetime limits on the receipt of financial assistance
was one of the most controversial changes contained in 1996 Congressional
welfare reform law. Although welfare recipients in most states have not
yet reached time limits--the majority of states adopted Congress's 60 month
time limit--a number of states instituted shorter time limits and some
have already been reached. Most observers see little likelihood that Congress
will move away from time limits in 2002, but a wide range of proposals
have been developed that would modify the practice, especially with regard
to exemptions to time limits. Here are some of these recommendations:
-
1. Require/allow that states stop the TANF time clock when parents are
working more than 25 hours per week (CLASP, Blank, Bloom, Pavetti, Michalopoulos,
Berlin).
-
2. Specify that exemptions to time limits for domestic violence shall fall
outside of any percentage of caseload-driven exemption policy (CLASP).
-
3. Allow exemptions to time limits to families with disabled members (CLASP).
-
4. Ensure that states guard due process in imposing time limits (Blank,
Haskins).
-
5. Abolish the 60 month time limit, but if politically infeasible, give
states more leeway in their use of extensions to time limits (Blank).
-
6. Allow extensions to time limits for working families (CLASP).
-
7. Retain time limits and current rules on extensions until states demonstrate
that either are causing harm to families truly making efforts because states
are hitting the extension limit (Haskins).
-
8. Eliminate the 20 percent exemption rule and, instead, base exemptions
on identifiable barriers to work that either they or the administering
institution have been unable to address within the state or federal time
limit (Blank).
-
9. Ensure that research is done on outcomes for families whose cases were
closed due to time-limits (Blank, Haskins).
-
10. Allow exemptions from time limits to families with infants (CLASP).
-
Ensure that whatever exemptions policy may be put in place can realistically
fulfill the intended function even in times of economic slowdown (Scmidt,
Blank).
-
11. Eliminate the "lifetime" aspect of time-limits and, instead, give states
encouragement and the flexibility to respond to continuing need for assistance,
at least by less-skilled parents in a more normal or depressed economic
[state and local] situations (Schmidt, Blank).
-
12. Eliminate time limits altogether and rely instead--for meeting goals
of ensuring recipients participate in activities that will lead to work--on
state systems with full-family sanctions for non-participation. Additionally,
allow states to broaden the range of allowable activities to help address
the needs of families who have been sanctioned and longer-term recipients
who may reach time limits without specific interventions not currently
countable (Bloom, Pavetti).
Sanctions
A substantial proportion of caseload reductions actually resulted from
sanctions. Among others, Utah's Social Research Institute, Graduate School
of Social Work, University of Utah found that sanctioned families are significantly
less likely to be working and tend to have multiple barriers to employment.
Some researchers suggest that many families who would have been expected
to reach and be terminated due to time limit were already off the rolls
because of sanctions. Some proposals reflect concern about these families:
-
1. Ensure that research is done on outcomes for families suffering terminations
due to sanctions (Blank, Haskins).
-
2. Ensure that states guard due process in imposing sanctions (Blank, Haskins).
-
3. Require all states to have and employ a thorough, documented conciliation
process prior to sanctioning (CLASP).
American Indians
The Personal Responsibility and Work Opportunity Reconcilation Act
(PRWORA) made provision for Indian Tribes to design and administer TANF
Programs and a number of Tribes have done so. However, among people running
these programs or otherwise following the process, there is broad recognition
that many areas need to be addressed. Moreover, most American Indian TANF
families are still being served by state-run TANF Programs. There are a
number of proposals for change:
-
1. Provide Tribes with funding to get into the business of administering
welfare programs, e.g., technology, infrastructure, data collection systems,
reporting systems, administration, staff training (NCAI).
-
2. Treat tribal entities like states in terms of administrative funding,
contingency funds, etc. (NCAI).
-
3. Extend access to performance bonuses and other incentive monies to Tribes
(NCAI).
-
4. Provide construction funding to Tribes to allow colocation of services
(NCAI).
-
5. Allow Tribes to grant hardship exemptions to more than 20 percent of
the average annual caseload (NCAI).
-
6. Require states to consult with Tribes on the TANF state plan to ensure
that the needs of American Indians in state TANF Programs are taken into
account (NCAI).
-
7. Extend to Tribes access to evaluation and technical assistance currently
offered to states (NCAI).
-
8. Increase flexibility for Tribal employment and training services to
facilitate addressing individually the needs of a wide variety of people
on welfare, those transitioning off welfare, and those at risk of enrolling
(NCAI).
-
9. Allow the U.S. Department of Health and Human Services, in consultation
with Tribes, to develop more appropriate reporting requirements for Tribal
TANF Programs (NCAI).
-
10. Allow Tribes to receive direct funding under Title XX (Social Services
Block Grant), Food Stamps, and title IV-E Foster Care Assistance (NCAI).
-
11. Allow Tribes to define their service areas and service populations
(NCAI).
-
12. Create and adequately fund an employment and training program to be
run by Tribes and based on a government-to-government relationship (NCAI).
-
13. Give states discretion in the definition of "work activities" and "work
preparation" (NCAI)
-
14. Create a separate TANF Block Grant for Tribal governments with 100
percent federal funds and no state MOE requirement (APHSA).
-
15. Provide Tribes with funding for secondary education (NCAI).
-
16. Allow Tribes to determine eligibility for Medicaid, Food Stamps, and
other key programs (NCAI).
-
17. Reduce below 50 percent the on-Reservation unemployment rate required
before residents can be exempted from time limits and revise the requirement
for statistical justification of the unemployment rate to fit actual data
collection practices (UDIA).
-
18. Modify the provision related to unemployment rate-driven exemptions
from time limits so that it functions effectively for "checkerboarded"
Reservations (UDIA).
Child Well-being
The major thrust of TANF policies are directed at parents, causing
questions about how welfare reform has affected their children--the most
numerous group of welfare recipients. Here are some proposals for the next
phase of welfare reform designed to maximize the positive impacts of welfare
changes on children:
-
1. Reward states for providing families with some combination of cash rewards
and in-kind supports for mandated work (Duncan & Chase-Lansdale)
-
2. Exert deliberate and aggressive efforts to create after-school and community
programs that provide supervision and mentoring for pre-adolescent and
adolescent children (Dunan & Chase-Lansdale).
-
3. Ensure that policies do not discourage fathers from co-residing or in
other ways spending time with and providing financial support to their
children (Duncan & Chase-Lansdale).
-
4. Focus on the provision of a collection of diverse programs to address
the equally diverse needs of children of different ages and in different
family circumstances, not on one specific program that will purport to
benefit all children in welfare families (Duncan & Chase-Lansdale).
Glossary of Acronyms
APHSA American Public Human
Services Association
CLASP Center for Law and
Social Policy (Julie Strawn, Mark Greenberg, Steve Savner)
NCAI National
Congress of American Indians
NGA
National Governors Association
UDIA Utah
Division of Indian Affairs
Individual Affiliations
Berlin, Gordon
Manpower Demonstration Research Corporation
Blank, Rebecca
University of Michigan, Gerald R. Ford School of Public Policy
Bloom, Dan
Manpower Demonstration Research Corporation
Chase-Lansdale, Lindsay Northwestern University
Duncan, Greg
Northwestern University
Haskins, Ron
Formerly Staff Director of the House Committee on Ways and Means
Loprest, Pamela
The Urban Institute
Mead, Lawrence
New York University, Department of Politics
Michalopoulos, Charles Manpower Demonstration Research
Corporation
Pavetti, LaDonna
Mathematica Policy Research, Inc.
Primus, Wendell
Center on Budget and Policy Priorities
Schmidt, Lucie
University of Michigan, Department of Economics
Zedlewski, Sheila
The Urban Institute
C:\UREAPTANFpropls.htm