HB1728 (2006) Detail

Relative to time limits on eligibility for Temporary Assistance for Needy Families (TANF).


HB 1728-FN-LOCAL – AS INTRODUCED

2006 SESSION

06-2886

05/01

HOUSE BILL 1728-FN-LOCAL

AN ACT relative to time limits on eligibility for Temporary Assistance for Needy Families (TANF).

SPONSORS: Rep. Crane, Hills 21

COMMITTEE: Health, Human Services and Elderly Affairs

ANALYSIS

This bill requires the department of health and human services to limit eligibility for financial assistance under the Temporary Assistance for Needy Families (TANF) program to 24 months during any consecutive 60-month period.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2886

05/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to time limits on eligibility for Temporary Assistance for Needy Families (TANF).

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Temporary Assistance For Needy Families; Duration of Assistance.

I. The department of health and human services shall amend the state plan for Temporary Assistance For Needy Families (TANF) to provide that an individual may receive TANF financial assistance for a maximum of 24 months during any consecutive 60-month period.

II. The department shall establish, by rule under RSA 541-A:

(a) The eligibility criteria for such financial assistance.

(b) Any applicable exemptions or exceptions to the 24-month benefit limitation.

(c) The manner in which the 24-month benefit limitation shall be calculated.

(d) A procedure to notify an individual of the date on which his or her TANF financial assistance is scheduled to be terminated and the procedure to be followed if the individual believes that he or she is entitled to an extension of benefits.

III. On or before November 1, 2006, the department shall provide a copy of the proposed amendment to the house committee on health, human services and elderly affairs and the senate committee on health and human services. On or before January 1, 2007, the department shall submit the amendment to the state TANF plan to the United States Department of Health and Human Services. Implementation of the 24-month benefit limitation shall coincide with the state plan reauthorization date.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

06-2886

Revised 2/1/06

HB 1728 FISCAL NOTE

AN ACT relative to time limits on eligibility for Temporary Assistance for Needy Families (TANF).

FISCAL IMPACT:

      The Department of Health and Human Services and New Hampshire Municipal Association state this bill will increase state revenue and expenditures, and county expenditures by an indeterminable amount in FY 2007 and each year thereafter. This bill will increase local expenditures by $7,095,651 in FY 2007, $17,858,861 in FY 2008, $22,282,272 in FY 2009, and $26,905,683 in FY 2010. This bill will have no fiscal impact on county and local revenue.

METHODOLOGY:

    The Department of Health and Human Services (DHHS) assumes that RSA 165, requiring cities and towns to provide all manner of assistance to persons unable to support themselves will remain in full force and effect, and that clients not employed or who are employed with earnings below the TANF payment standard will seek support from cities and towns when the 24-month time limit is reached. Clients receiving assistance for more than 24 months on average would receive an additional 12.5 months of assistance. The Department assumes that federal TANF funding of $38,500,000 and the state general fund MOE requirement of $32,100,000 will remain constant through FY 2010, and total program funding will remain constant at $70,600,000. Penalties for failure to maintain MOE are progressive reductions of the state’s TANF grant that can only be remedied through additional state general fund spending. The Department assumes the TANF caseload will remain constant at 6,051 (which is the 12 month moving average as of 8/30/05). The Department states there will be an indeterminable administrative expense for New HEIGHTS system changes required to implement this legislation. There will be additional one-time costs associated with revisions to existing forms, pamphlets, and brochures used by the Division of Family Assistance (DFA). There will also be cost associated with staff training on the revisions to the New Hampshire Employment Program (NHEP) based on a reduced time limit, as well as one-time mailing costs associated with client notices to citizens currently enrolled in the NHEP. The Department states that failing a city or town’s ability to provide adequate financial support to meet the basic standard of need, other programs such as foster care administered through the Division for Children, Youth, and Families (DCYF) will increase. Counties are required to share in 25% of the non-federal cost of services provided by DCYF to children, which will impact county expenditures and state revenue.

    The Department states additional childcare slots would be required and made available to meet the additional needs of clients reaching the 24 month time limit who become employed. The Department assumes additional general funds would be made available to expand the availability of childcare slots and subsidies to meet the increased need for clients to participate in work related activities during their 24 month period of assistance, and as they become employed.

    The fiscal impact to the state is indeterminable as it is assumed that the costs incurred by the local welfare agencies is equal to the savings realized by the state, and that the savings would be redirected from cash assistance to the additional administrative and programmatic costs associated with the implementation and continued administration of this legislation. The Department does not know what demands on state funding will be made relative to childcare, foster care, and other services provided to children by DCYF and/or DJJS under RSA 169 and 170. Local welfare administrators will bear responsibility for the maintenance of needy families without the benefit of federal or state general fund support. Without the funding of or ability to provide case management and employment support services, or during periods of economic downturn, the length of time of dependence on local public assistance will increase and likely extend beyond the 12.5 months experienced through the New Hampshire Employment Program. The impact on the additional length of time a client will require assistance is indeterminable. The Department is unable to estimate the administrative costs to the cities and towns associated with an increased number of clients requiring local welfare assistance. The Department states on January 1, 2007 there will be 2,266 cases no longer eligible for TANF cash assistance which will seek assistance from legal welfare agencies. Assuming local agencies will receive 66 additional cases monthly and an average monthly benefit of $486.47, the Department estimates local expenditures will increase by $7,095,651 in FY 2007, $17,858,861 in FY 2008, $22,282,272 in FY 2009, and $26,905,683 in FY 2010.

    The New Hampshire Municipal Association states this bill would establish a two year maximum on the receipt of federally funded TANF benefits. Currently, New Hampshire’s TANF Program allows for the receipt of the full 60 month TANF benefit allowance. The reduction will result in TANF recipients seeking financial assistance from local welfare programs sooner. The TANF Program is funded through a combination of state and federal dollars, while local welfare is funded 100% with local property tax dollars. The Association is unable to determine the exact fiscal impact at this time since it is dependent on a number of variables such as where a terminated TANF recipient might apply for local welfare and the recipient’s basic living costs. It is possible that a person who is terminated from the TANF program after two years could receive more assistance from a municipality than they received in TANF assistance because TANF operates on a flat grant system, whereas local welfare programs are required by statute to meet an eligible recipient’s actual need.