NH CARES Issues on Temporary Assistance to Needy Families (TANF)

 Child & Family Services of NH and NH Children’s Lobby  -  3/23/09

 

Temporary Income Support for Low Income Families (TANF Program)

 

Division of Family Assistance HB1 Pages:  Page 1405 and Page 1412, Line 501.

 

Page

Class

FY08

FY09

FY10 Gov

FY10 Req

FY11 Gov

FY Req

1405

501

28,688,761

33,877,197

23,254,181

25,375,479

23,254,181

25,375,479

1412

501

1,425,059

823,233

3,644,079

4,246,079

3,654,298

4,256,298

Total TANF

30,113,820

34,700,430

26,898,260

29,621,558

26,908,479

29,631,777

Elim Section 57 in HB 2 & SSI Deduction

2,800,000

 

2,800,000

 

 

Pages 1405 and 1412 make up the TANF Program.  Page 1405 is the traditional TANF paid from the federal TANF block grant.  Page 1412 is paid to people who have a seriously disabled family member, are unable to “participate” in TANF employment activities and are funded from state-only funds so as not to jeopardize NH’s over-all participation rate for employment and the TANF block grant.

 

Requested Action

 

TANF funding in the Governor’s Budget is likely to be inadequate because even with increasing TANF enrollments, the Governor’s FY 2010 TANF budget is $3,215,560 less than FY 2008 and FY 2011 is $3,205,341 less (see above).  Please eliminate Section 57 of HB 2 and insist that the Division of Family Assistance provide sufficient caseload data to allow adequate funding for TANF - which is likely to be at the FY 2008 actual spending level at a minimum.

 

Negative Impact of HB2 Section 57 Change Using SSI to Reduce TANF

 

The shortfall is presumably accounted for by the proposal in HB 2 sec. 57 to include SSI income in determining eligibility for TANF and the amount of any TANF grant. According to the Dept. of Health and Human Services, this will reduce TANF expenditures by $2.8m in SFY 10 and SFY 11. These are families in which either the parent or a child receives SSI from Social Security because of their disability.

 

If the average SSI assistance is approximately $600/month, the impact of this proposal will be to reduce benefits for some of the neediest families in the state by 50%. Approximately 35 families will lose their benefits completely.  A typical family affected will see their income drop from approximately $1200 a month to $600 a month. Although the entire state is facing a serious budget challenge, these families, among the most vulnerable in the state, have been facing the equally serious challenges. Parents with disabilities, or who must stay home to care for a seriously disabled child, cannot leave TANF and enter the workforce. They must attempt to raise children over the long term on incomes that, according to the report of the HB 1461 Commission on TANF, are already inadequate to meet basic needs.

 

Contact

 

Jack Lightfoot, Child and Family Services, LightfootJ@cfsnh.org  (603) 518-4145