EXPANDING CalWORKs FOR COLLEGE STUDENTS: Creative ways to ensure benefits for students

CalWorks Association Statewide Training InstituteAntionette Dozier, WCLPApril 27, 2010

Overview

AB 4X 4 (ACL # 09-46)ExemptionsVolunteers

AB 4X 8 60-Month Time Limit ExceptionsDomestic violence waivers Inability maintaining employment

TANF Reauthorization

Where are we?

Cuts, cuts, and more cutsSB X3 1 provided $2.8 billion in budget

solutions if the state did not get $10 billion in offsets from the federal stimulus. We won’t get the offsets so, cuts went into effect

CalWORKs Cuts - a 4 percent grant cut (approximately $30 from a family of three receiving the maximum grant of $723)

Budget Proposals: more cuts…

$269 Million in cuts to low-income children and their families: A 15.7 percent cut to CalWORKs grants - This will

cut the maximum grant for a family of three from $694 a month to $586 a month, a $109 a month cut

Reduction in rate paid to child care providers $123 million cut to Stage 3 child care impacting

30% of Stage 3 Kids Elimination of Recent Non-Citizen Entrants

Program, estimated 24,000 people

AB 4 X 4

New incentives to create subsidized employmentTied to federal ARRA funding

New WTW exemptions for families with children

AB 4X 4: Subsidized Employment and Federal ARRA Funding

Counties and Colleges can use ARRA $Expand subsidized employment

Up to 35,000 positionsOne time nonrecurring needs for families up

to 200% FPL (noncustodial parent eligible)Reimbursement: 80% of increased costsNo 50% state match (AB 98) for

subsidized employment through Sept. 30 2010

AB 4X 4: TANF ECF Subsidized Employment

Subsidized wages are excluded from income

Drug and fleeing felons can be provided TANF ECF funded subsidized employment if their family meets the definition of a needy family (ACIN # I-31-10)

Cannot be used to fund health careDisplacement rules apply

AB 4X 4: WTW Exemptions

Families with children under age 23 months 60-month clock stops if child is 12-23 months

Families with 2 children under age 6 60-month clock stops

Good cause for lack of supportive services 60-month clock stopsNote: exempts may volunteer to participateNote: expires July 1, 2011Note: exempts will start to be integrated into WTW

activities beginning Jan. 1, 2011

AB 4X 4: WTW Exemptions cont..

Exempts may volunteerVolunteers can participate in WTW activities

if funding is available for supportive servicesCounty must provide all of recipient’s

“necessary” supportive services If county says supportive services unavailable

try reevaluating “necessary” supportive servicesPersonal loansNote: Include time limit statements, i.e. a

semester

AB 4X 4: Too Good to Be True?

New exemptions intended to apply to new applicants firstCuts in SAF may prompt counties to apply

exemptions broadly even when not in participants’ interest

Counties must develop logical criteria based on an examination of the county budget

AB 4X 8: Changes on the Horizon

Increases sanction penalties Changes in 60-month time limits

Exceptions: inability to maintain employment Exemptions still available, including DV waivers

Changes in safety net grants*Notes: the above not effective until 7/1/11

Eliminates statutory cost of living adjustment (COLA)

Note: DSS expects to release ACL in June 2010; mailer to recipients in July 2010.

AB 4X 8: the Bad Sanctions

3 stages of graduated sanction process Stage 1—family loses parent’s portion of the

grant (max grant: $694 for family of 3 to $566)

Stage 2 –if no compliance after 90 days, 25% cut to child’s grant (from $566 to $420)

Stage 3 – if no compliance for 90 more days, another 25% cut (from $420 to $283)

Note: existing sanction process still applies

AB 4X 8: Sanction Process

Before stages 2 and 3, a social worker or employment service workers mustAssess circumstances for noncompliance Identify barriers to participation & good faith

to remedyAssess needs for services or resourcesProvides “tools” to connect individuals to

servicesNote: failure to follow process stops sanction

AB 4X 8: Self-Sufficiency Review

SSR of sanctioned participants every 6 monthsTo identify possible exemptions and barriers

to participationFailure to do SSR

50% grant cut with 30-day noticeUnless good cause

Personal contact or reminder notice 5 days before effective date of 50% cut

AB 4X 8: Changes to Time Limits

Existing law: 60 months on aid and WTW 7/1/11: 48 + 12

After 48 months on aid, must get off aid for 12 consecutive months

Can get back on aid after off for 12 months

Sanction months count toward 48 and 60 month clocks.

Develop strategies for 12 months off of aid

AB 4X 8: The Not-So-Good Safety Net Changes

Children’s safety net grantsCut by 25% if timed out parents don’t do 32

hours/weekAnother 25% cut after 90 days of not

meeting 32 hour requirementAlso, reduces grants by up to 50% for

children whose parents are not eligible for CalWORKs due to immigration status or being a drug/fleeing felon.

AB 4X 8: Safety Net Changes

No cut if county doesn’tprovide child care

Many counties don’t provide child care Doesn’t review for possible exemptionsAttempt to make personal contactProvide transportation if Legislature gives

county funding

AB 4X 8: The Horrible Elimination of Statutory COLA

No more automatic COLA for CalWORKs (and SSP)

Now need 2/3 vote in each house

2010 TANF Reauthorization: Our Best Hope

Deficit Reduction Act (2006 Reauthorization) expires Sept. 2010

States want a return of flexibilityAdvocates want more emphasis on

outcomes and less on caseload reduction and WPR

2010 Reauthorization may lead to changes in AB 4X 8– stay tune….

TANF Reauthorization

Suggestions developed from WCLP discussion with legislators, counties, and advocatesChange in Calculation of WPR “Outcome-Oriented” Approach

Premium on educationPremium on services that lead to self-sufficiency

TANF Reauthorization Cont…

Instead of “Case load Reduction Credit” give a WPR credit for: Each family that meeting federal TANF 30 hour

work requirements No separate 2 parent calculation Give bonus credits if family meets 30 hour work

requirements and Does job training or education programs Participates in work study or subsidized employment Participates in activities relating to English proficiency,

disabilities, MH/SA, DV

TANF Reauthorization: WPR calculation

Instead of reduction in case load, states get lower WPR for: Increasing the percentage of poor families receiving

assistance Reducing deep poverty among children Families leaving cash aid for employment and who

remain off cash aid and working. Assisting families with Family Violence Option

services Increases in Participation in EITC by TANF

recipients. Moving children or adults to SSI or SSDI.