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Countdown to Implementation of the Deficit Reduction Act of 2005

Countdown to Implementation of the Deficit Reduction Act of 2005. Agency for Workforce Innovation Spring 2006 Training. Background. Florida’s welfare system changed significantly in 1996 with the passage of the Personal Responsibility and Work Opportunity Reconciliation Act

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Countdown to Implementation of the Deficit Reduction Act of 2005

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  1. Countdown to Implementation of the Deficit Reduction Act of 2005 Agency for Workforce Innovation Spring 2006 Training

  2. Background • Florida’s welfare system changed significantly in 1996 with the passage of the Personal Responsibility and Work Opportunity Reconciliation Act • The Temporary Assistance for Needy Families (TANF) program replaced the old AFDC program, which was an entitlement program • Established time limits, work requirements and federal funding through the TANF block grant

  3. TANF Reauthorization • TANF was scheduled to expire 9/30/02 • The 107th Congress began, but did not complete, the process of renewing (“reauthorizing”) TANF • Subsequently, 12 resolutions were passed that extended funding for TANF through 3/31/06 • TANF was included in the 2006 budget reconciliation discussions as a result of TANF Reauthorization being unresolved • The Deficit Reduction Act, which included the reauthorization of TANF, passed in February 2006

  4. Elements/Provisions Included in the New TANF Bill (Deficit Reduction Act) • Reauthorized the TANF Block Grant through Fiscal Year 2010 • Florida’s annual TANF block grant is $562.34 million

  5. Elements/Provisions Included in the New TANF Bill (Deficit Reduction Act) • The Caseload Reduction Credit will be recalibrated • Credit will be based on the reduction of the caseload by comparing the year in question to Federal Fiscal Year (FFY) 2005 • We must be prepared to meet an all families rate of 50% • Requires families receiving assistance in separate state programs to be included in participation rate calculations • Effective 10/1/06 we must meet a two-parent participation rate of 90% • Two-parent families will be included in the all families calculation effective 10/1/06

  6. Elements/Provisions Included in the New TANF Bill (Deficit Reduction Act) • Failure to meet the all families rate will result in a penalty of up to 5% of the adjusted block grant • Failure to meet the two-parent rate will result in a penalty proportional to the size of the two-parent caseload in relation to the total cash assistance caseload • A failure to meet either rate will require the State to meet an increase MOE amount

  7. Elements/Provisions Included in the New TANF Bill (Deficit Reduction Act) • States must establish and maintain documentation/verification procedures by 9/30/06 based on new federal regulations • Certain child only cases may be included in the participation rate based on the new Federal Regulations • Sanctioned families that continue to receive cash assistance through a Protective Payee may be included in the calculation as child only cases

  8. Funding Basics • How is the Welfare Transition Program funded? • Federal dollars from the Temporary Assistance for Needy Families (TANF) block grant, and • State funds

  9. Participation Rate • To receive federal TANF funds states are required to meet participation rates based on how well they succeed in helping • Adults in all families, as well as two-parent families, find work and participate in work activities • Florida’s participation rate is based on how well our 24 regions succeed in helping participants find work and participate in work activities • The participation rate is a “State” rate • We’re all in this together—it’s “our” participation rate

  10. What is the All-Family Rate? • The percentage of adults and minor heads-of-household receiving Temporary Cash Assistance (TCA) who participate the minimum number of hours required per week in countable work activities • NOTE: A minor head-of-household is a teen parent receiving TCA in their own name; not all teen parents are considered head-of-household

  11. What is the Two-Parent Rate? • The percentage of two-parent families receiving TCA who participate the minimum number of hours required per week in countable work activities

  12. How Is the Monthly Participation Rate Calculated by HHS? # of families that include an adult and minor heads-of-household who participated the minimum number of hours required for the month # of families that include an adult and minor heads-of-household receiving TCA for the month (minus single parent families subject to sanction and families with a child under 12 months who did not participate the required number of hours for the month) Numerator = Rate Denominator NOTE: Divide the numerator by the denominator

  13. Fiscal Year Participation Rate • Our participation rate for a FFY is the average of our participation rates for each month in the fiscal year • This rate is calculated by HHS

  14. Understanding the Calculation • Families will NOT be removed from the denominator if they have been subject to sanction for more than three months during the previous 12 months • Example • If a sanction request is entered in OSST on 6/17/06 the family is considered to be subject to sanction until the effective date of the sanction • DCF will look back 12 months to June of 2005 to see how many months the family has been subject to sanction during that time period • If the family has been subject to sanction for three months or more during that time period, the family will not be removed from the denominator

  15. Understanding the Calculation • Only families on the Recurring Benefit Payroll are included in the denominator • Denominator for the all family rate includes all families receiving cash assistance except those who meet one of only two federal exemptions • Single parent families with a child under the age of 12 months • Removed no more than 12 months for any family • Not removed if they can count in the numerator • Families subject to sanction

  16. Understanding the Calculation • Denominator for the two-parent rate includes all two parent families receiving cash assistance except those that are deemed “disabled” • Definition of disabled • Federal exemptions remove families from the denominator • Certain child only cases • State exemptions do not (necessarily) remove families from the denominator • Caring for a disabled family member

  17. Minimum Requirements for the All Family Numerator

  18. Minimum Requirements: Basic Hours • To be counted in the All-Family Rate • The family must complete the minimum required hours in countable work activities • The family must be engaged in a minimum of 20 of the required hours in a basic activity • The family may be engaged in a basic countable work activity for all of the required hours • The family may complete hours in a basic plus activity and receive credit if the required hours in a basic countable activity are met

  19. Minimum Requirements for the Two-Parent Family Numerator

  20. Minimum Requirements: Basic Hours • To be counted in the Two-Parent Rate • The family must complete the minimum required hours in countable work activities • The family must be engaged in a minimum of 30 of the required hours in a basic activity if • The family receives federally funded childcare and one of the parents is disabled or • The family does not receive federally funded childcare • The family must be engaged in a minimum of 50 of the required hours in a basic activity if • The family receives federally funded childcare

  21. Meeting Requirements: Basic Hours • The family may be engaged in a basic countable work activity for all of the required hours • The family may complete hours in a basic plus activity and receive credit if the required hours in a basic countable activity are met

  22. Teen Parent Work Requirements • To be counted in the participation rate, the minor head(s) of the household must • Attend school in a satisfactory manner • Attend Education Directly Related to Employment activity for a minimum of 20 hours per week • The engagement requirements apply to each minor head of household included in the household

  23. All Family Work Requirement Cheat Sheet

  24. Two-Parent Family Cheat Sheet

  25. Frequently Asked Question • If the parent is a single parent with a four year old (child under 6), can I just assign the 20 hours to meet participation rate requirements? • Not necessarily, you need assign the minimum required hours based on the RWB’s local operating procedures

  26. Frequently Asked Question • If the two parent family receives federally funded childcare (with no disabled parent), can we require 40 hours per week (80 total) if the participation rate only requires 55? • Yes, you need assign the minimum required hours based on the RWB’s local operating procedures

  27. Numerator—OSST Actual hours of participation recorded on JPR screens Some information is captured from the FLORIDA system Minors in school Employment reported and budgeted Denominator—FLORIDA Families receiving TCA from the Recurring Benefit Payroll that include an adult or minor head-of-household minus Families subject to sanction Families with a child under the age of 12 months Data for the Calculation

  28. All Family Calculation Example 16,028 Number participating the minimum required weekly hours (from the JPRs) NUMERATOR 32,500 Adults and minor heads-of-household receiving TCA from the Recurring Benefit Payroll -2,670 Subject to Sanction -1,352 Single parent families with a child under age 12 months without enough hours to count in the numerator 28,478ADJUSTEDDENOMINATOR 16,028 = 56.28% 28,478

  29. Two-Parent Family Calculation Example 600 Two-parent families participating the minimum required weekly hours 1,500 Two-parent families receiving TCA from the Recurring Benefit Payroll -80 Subject to Sanction 1,420 ADJUSTED DENOMINATOR 600 = 42.25% 1,420

  30. Sample vs. Full File • Florida submits a sample rather than the full file to HHS • Research is being conducted to determine if submission of the full file would benefit the state • A sample of 275 cases are submitted to HHS each quarter • Sample size of 275 cases per month was determined by HHS • Not all 275 cases are included in the denominator sent to HHS • Cases removed include child only cases, exempt families, families subject to sanction

  31. Sample File • DCF identifies • Cases that are subject to sanction for no more than three of the previous 12 months • Single parent cases with a child under the age of 12 months that do not have enough hours to count in the numerator • Child only cases • Participation hours are obtained from OSST for the numerator • Data is submitted to HHS within45 days after the end of the federal quarter • HHS calculates the official rate, not DCF

  32. JPR Screens • Should be updated by the 10th of the following month • Actual participation MUST be entered—not scheduled or anticipated hours • Entries MUST be based on documentation received • If documentation is not received, enter zeroes • Leaving the week blank indicates the JPR field has not been updated • If a zero is entered, the actual hours may be entered upon receipt of documentation as long as it is within the federal quarter • Do not enter hours in anticipation of receipt of documentation • Example: Do not enter 35 hours and then go back and change it to 5 hours when documentation is received

  33. What are the Requirements for Counting in the Numerator? • Must participate the minimum required hours per week • Must participate in countable activities • Based on the number of Mondays in the month • 4 Mondays • Requires 80 or 120 for all family rate • Requires 140 or 220 for two-parent family rate • Why? • 5 Mondays • Requires 100 or 150 for all family rate • Requires 175 or 275 for two-parent family rate • Why?

  34. Numerator • If the last day of a month is a Monday the first six days of the following month will count for the previous month • What does that mean? • July has five Monday’s and the 31st is a Monday, therefore, participation for August 1-6 will be included in July’s calculation • If documentation is required every two weeks or only monthly, you may lose participation credit • There is no partial credit

  35. Which Activity Categories are Countable for Participation Rate Purposes? • There are 12 work activity categories in federal legislation • The states create activities that meet category requirements

  36. Work Activity Categories • 9 activity categories are countable for all of the required hours, which are termed basic activities • 3 activity categories are countable for an adult only if they are combined with the minimum required hours for the family type from the basic activities. These are called the basic-plus activities • Minors can participate in the 3 basic plus activities full time to meet participation rate requirements

  37. Unsubsidized Employment Subsidized Private-Sector Employment Subsidized Public-Sector Employment Work Experience On-the-Job Training Job Search and Job Readiness Activities Community Service Vocational Education Providing child care services to an individual participating in a community service program “Basic Countable” Activity Categories

  38. “Basic-Plus” Activity Categories (Countable Above the Minimum Required Hours in “Basic Activities”) • Job skills training directly related to employment • Education directly related to employment for those without a high school diploma or GED (Florida restricts this activity to teens 19 years of age or younger) • Satisfactory attendance at a secondary school or in a GED class, for those without a high school diploma or GED

  39. Frequently Asked Question • Does the person have to do a certain number of hours in a “basic plus” activity, or can (s)he do all his/her hours in a basic activity? • The individual can do all of his/her hours in a basic countable work activity • The option to enter a basic plus activity is available (and counted in participation rate numerator) if the individual has met the required hours in a basic countable work activity for his/her family type

  40. Frequently Asked Question • If the teen does have a diploma or a GED, what can the teen do and be included in the participation rate? • The teen becomes included as an “adult” once a GED or diploma is obtained • The teen needs to be engaged in work activities required for an adult • If the teen (teen parent, teen or minor head of household) does not have a diploma or GED • Education directly related to employment for those without a high school diploma or GED (Florida restricts this activity to teens 19 years of age or younger) • Satisfactory attendance at a secondary school or in a GED class, for those without a high school diploma or GED

  41. Limitations on Counting Activities for Participation Rate Purposes • Federal limits apply to: • Job Search and Job Readiness Activities • Vocational Education • Stop and think about this before assigning individuals to these activities

  42. Limits on Receiving Participation Credit for Job Search and Job Readiness Activities • For participation rate purposes these two activities are considered as one • Can only be included in the numerator for a maximum of six weeks in a FFY • Will not count for more than four consecutive weeks • If even one hour from these activities is needed for the family to be included in the numerator is counts as a week used • What does this mean?

  43. Limitations on Counting Vocational Education in the Numerator • Can only be included in the numerator for a total of 12 months for any individual • 12 months in their lifetime on assistance since 1996 • Deficit Reduction Act did not re-start the clock on this limitation • If even one hour is used for the family to be included in the numerator for a month, it counts as a month toward the 12-month limit • Not more than 30% of the families in the numerator can be included as a result of participation in Vocational Education

  44. Major Challenges • Currently, certain populations removed from the sample may not be removed after 10/1/06 based on federal regulations to be released July 2006 • Certain child-only cases • Currently, states have a lot of flexibility to define work activities • Federal Regulations will be providing work activity definitions • Currently, the states have the flexibility to define documentation requirements • Federal Regulations will be providing documentation requirements

  45. Major Challenges (Continued) • Recalibration of the Caseload Reduction Credit • Meeting the 90% requirement for two-parent families • Current performance has not been calculated, however, it is probably between 30% and 40% • Research is being conducted by a policy workgroup and a data workgroup from AWI, DCF and WFI to identify issues that will adversely effect the participation rate

  46. Major Challenges (Continued) • Participation requirements for members of two-parent families are different from single parent families • Focus has not been on meeting a two-parent rate

  47. Review • Effective October 1, 2006, we will be responsible for meeting a 50% all families rate and a 90% two-parent rate • Regions must ensure that • Participants are engaged timely • Participants are engaged in appropriate activities • JPR screens are updated accurately and timely, based on documentation received

  48. We All Have a Piece of the Puzzle • In order for us to meet our participation rates, we all have to work together • It’s like putting a puzzle together—it’s not complete until all of the pieces work together

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