HB 479-FN – AS INTRODUCED
2009 SESSION
05/09
HOUSE BILL 479-FN
AN ACT relative to time limits on eligibility for Temporary Assistance to Needy Families (TANF).
SPONSORS: Rep. Wendelboe, Belk 1; Rep. F. Holden, Hills 4; Rep. Groen, Straf 1; Rep. Ingbretson, Graf 5; Rep. W. O'Brien, Hills 4
COMMITTEE: Health, Human Services and Elderly Affairs
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0703
05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT relative to time limits on eligibility for Temporary Assistance to 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.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
09-0703
01/15/09
HB 479-FN - FISCAL NOTE
AN ACT relative to time limits on eligibility for Temporary Assistance to Needy Families (TANF).
FISCAL IMPACT:
The Department of Health and Human Services states this bill will have an indeterminable impact on state expenditures and increase local expenditures by an indeterminable amount in FY 2010 and each year thereafter. This bill will have no fiscal impact on state, county, and local revenue, or county expenditures.
METHODOLOGY:
The Department estimates 1,398 clients would be impacted by this bill on January 1, 2010. The Department assumes 280 of these clients will be granted hardship extensions, resulting in 1,118 cases that will no longer be eligible for TANF cash assistance on January 1, 2010. The Department estimates there would be an additional 38 cases closed each month thereafter. 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 with income below the Financial Assistance to Needy Families (FANF) payment standard will seek support from cities and towns when the 24-month time limit is reached. The average monthly case assistance grant equals $502.50 per month (or $6,030 per year) as of November 30, 2008. This amount is assumed to be the amount that the local welfare agency would be asked to contribute to clients whose need extends beyond 24 months. The Department assumes a greater number of clients will reach the 24-month time limit than the number who reach the 60-month time limit. The Department states the fiscal impact for the state is indeterminable as it is assumed that the costs incurred by local welfare agencies is equal to the savings realized by the state, and that any state savings would be redirected from cash assistance to the additional administrative and programmatic costs associated with the implementation and continued administration of this bill. The Department is unable to determine the demands on state funding related to childcare, foster care and other services provided to children by the Division for Children, Youth and Families (DCYF) and/or the Division for Juvenile Justice Services (DJJS) under RSA 169 and 170. The Department does not estimate any potential state general fund savings associated with this change since the Department will continue to provide state general funds to meet the MOE requirement ($32.1 million) in order to preserve the full value of New Hampshire’s TANF federal fund allocation
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($38.5 million), and avoid reductions and penalties associated with failure to meet MOE requirement. 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 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. Assuming 1,156 cases on January 1, 2010, 38 additional cases monthly thereafter, and an average monthly benefit of $502.50, the Department estimates local expenditures will increase by approximately $3,771,765 in FY 2007, $9,605,790 in FY 2008, $12,355,470 in FY 2009, and $15,105,150 in FY 2010.
The Department also states as of November 1, 2008 the average TANF household includes 1.55 children. There are 558 cases currently exempt from work participation requirements due to caring for a child under 12 months of age. There is no availability of childcare for infants and toddlers. Currently 21.4% of the eligible FANF households take advantage of the childcare subsidy. The Department expects that a greater percentage of cases would request childcare subsidies as a result of the time limit reduction. Federal TANF regulations require states to maintain assistance to an adult, single custodial parent who cannot obtain childcare for a child under age 6. A federal penalty of 5% of the TANF financial assistance grant will be imposed if the state fails to meet this requirement. The exact fiscal impact cannot be determined at this time.
The Department currently spends $5.8 million for contracted services to provide employment support services to clients, and estimates an increase of 31.6% availability (approximately $1.8 million) of contracted services will be needed to meet the reduced time limit. An increase in funding will be required for employment support services such as transportation, car repairs, tools of the trade, clothing, and other items. Additional staffing of the New Hampshire Employment Program (NHEP) will be necessary to intensify the case management of clients
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toward meeting the 24-month time limit. The Department currently contracts for staff and for space at the One Stop locations for NHEP teams, and these costs would be expected to increase, as additional staff is required to intensify the case management activities for clients. The exact fiscal impact cannot be determined at this time.
This bill does not establish positions or contain an appropriation.