work and penalties general session. potential penalties u misuse of tanf funds u intentional misuse...
DESCRIPTION
Penalties (cont.) u Failure to sanction for noncooperation with child support u Failure to repay loan u Failure to meet basic MOE u Failure to comply with 5-year limit on Federal assistance u Failure to remit contingency fundsTRANSCRIPT
WORK AND PENALTIESWORK AND PENALTIES
General Session
Potential PenaltiesPotential Penalties Misuse of TANF funds Intentional misuse of TANF funds Failure to report required data Failure to meet work rates Failure to participate in IEVS
Penalties (cont.)Penalties (cont.) Failure to sanction for noncooperation
with child support Failure to repay loan Failure to meet basic MOE Failure to comply with 5-year limit on
Federal assistance Failure to remit contingency funds
Penalties (cont.)Penalties (cont.) Failure to maintain assistance to single
custodial parent who cannot obtain care for child under 6
Failure to replace penalty amounts Penalty equal to WtW grant for
failure to meet basic MOE Failure to impose pro rata sanctions
Penalties (cont.)Penalties (cont.) NOTE: Failure to comply with child
support enforcement program requirements is covered by separate rulemaking.
Sequential Penalty Process:Sequential Penalty Process:ACF Notifies
State of Penalty
State Submits Reasonable
Cause Claim
60
DaysState Submits
Corrective Compliance Plan
60 Days
ACF Grants Reasonable
Cause
60Days
State May Appeal
ACF Responds
ACF Accepts or Denies
60 Days
Basic StepsBasic Steps
60 Days
Reasonable CauseReasonable Cause
Determining Reasonable CauseDetermining Reasonable Cause State has burden of proof
Reasonable cause not available for:– 3 MOE penalties– Failure to repay a loan– Failure to replace penalty amounts
Consideration given to:– State’s efforts– Duration and severity of circumstances
Reasonable CauseReasonable CauseGeneral FactorsGeneral Factors
Three primary factors:– Natural disasters or other calamities– Formal Federal guidance that provided
incorrect information– Isolated problems of minimal impact not
indicative of a systemic problem
Secretarial discretion to consider others
Additional Factors for Work Additional Factors for Work Participation PenaltyParticipation Penalty
Federally recognized domestic violence waivers
Assistance to refugees in Fish-Wilson projects
Reasonable CauseReasonable Cause
Reasonable CauseReasonable Cause
Federally recognized domestic violence waivers
Additional Factor for Time Additional Factor for Time Limit PenaltyLimit Penalty
Reasonable Cause Reasonable Cause Additional Factor for Additional Factor for
Reporting PenaltyReporting Penalty
Failure due to Y2K compliance activities– Applies only to 1st two quarters of FY
2000– State submits required data by September
30, 2000*
Corrective Compliance PlanCorrective Compliance Plan
Corrective Compliance Corrective Compliance Not Available For:Not Available For:
3 MOE penalties
Failure to repay a loan
Failure to replace penalty amounts
Plan Must Include:Plan Must Include: Analysis of reasons for failure
How State will fix problem
Time frames
Milestones, including interim process and outcome goals
Certification by Governor of commitment
Corrective Compliance Plan Corrective Compliance Plan Acceptable Time FramesAcceptable Time Frames
For work rates and time limits -- by end of FY ending at least 6 months after ACF receives plan
Negotiable for other penalties
No penalty if problem completely fixed
Reduction of penalty if State Demonstrates:– Significant progress– Natural disaster or regional recession– Federally recognized domestic violence waivers
(discretionary for work & time limit penalties)
Corrective Compliance Corrective Compliance Possible OutcomesPossible Outcomes
orkork
States are accountable for moving families from welfare to self-sufficiency through work.
Work – Part 261Work – Part 261 Individual Responsibility State Accountability Work Activities Caseload Reduction Credit Work Penalties Waivers Nondisplacement
Participation RatesParticipation RatesTwo separate rates for each State
Overall rate -- success in engaging total caseload in work
2-Parent rate -- success in engaging 2-parent families in work
Overall Rate
Participation RatesParticipation Rates
25%30%
35%40%
45% 50%
1997 1998 1999 2000 2001 2002+
Fiscal Year
2-Parent Rate
Participation RatesParticipation Rates
75% 75%90% 90% 90% 90%
1997 1998 1999 2000 2001 2002+
Fiscal Year
All families with: 2 natural or adoptive parents of the
same minor child, receiving assistance, and living in the home.
Participation RatesParticipation RatesMinimum Definition of 2-Parent Family
Caseload Reduction CreditCaseload Reduction Credit
Caseload Reduction CreditCaseload Reduction Credit Reduces a State’s minimum
participation rate for a year.
Reduces the rate by:– the actual caseload decline from 1995 to
prior year minus– net caseload decline due to eligibility
changes and Federal requirements.
Caseload Reduction CreditCaseload Reduction Credit
The credit for the overall rate is based on the decline in the total caseload.
The credit for the 2-parent rate, at State option, is based on either the decline in the 2-parent caseload or in the total caseload.
Each rate (overall & 2-parent) is subject to a caseload reduction credit.
Caseload Reduction CreditCaseload Reduction Credit Calculation includes cases in
separate State programs used to meet MOE requirement.
No caseload reduction credit without case-record information for SSPs that provide assistance.
Caseload Reduction CreditCaseload Reduction Credit
“Eligibility Change” includes full-family sanctions and behavioral requirements (e.g., applicant job search).
Caseload Reduction CreditCaseload Reduction Credit“Eligibility Change” does not include the calculable effects of enforcement mechanisms or procedural requirements (e.g., fingerprinting) enforcing existing criteria, to the extent that they identify or deter ineligible families.
Caseload Reduction CreditCaseload Reduction Credit“Netting Out”
Caseload declines due to eligibility changes do not count toward the credit, but
We will use the net effect of eligibility changes, adding back in caseload increases due to eligibility changes.
Caseload Reduction CreditCaseload Reduction Credit Steps in Calculating the Credit
1) We compare 1995 AFDC/UP data to prior year TANF and SSP-MOE data the State reports.
2) State submits Caseload Reduction Report with data on eligibility changes and their impacts.
3) We compare and analyze State’s methodology and estimates to determine if plausible; may request additional information within 30 days.
Caseload Reduction CreditCaseload Reduction CreditDue Dates
A State must submit the Caseload Reduction Report by December 31.
We will notify the State of its caseload reduction credit no later than March 31.
State AccountabilityState Accountability
A State that fails to meet participation rates is subject to a monetary penalty.
The base penalty is 5% of the grant, increased by 2% for each successive failure.
Penalty ReductionPenalty Reduction
A State may qualify for a reduced work penalty based on the “degree of noncompliance.”
(required reduction)
1) Reduce for failing only the 2-parent rate
2) Test for meeting 2 thresholds
3) Reduce based on severity of failure– degree of failure– adjustment factor– years of failure & number of rates failed
(multiply all 3 severity factors for reduction)
Penalty ReductionPenalty Reduction3 Steps
Penalty ReductionPenalty Reduction
Failing only the 2-parent rate
We reduce the maximum penalty based on the proportion of 2-parent families in the caseload.
Threshold tests
Penalty ReductionPenalty Reduction
achieve 50% of target rate (50% threshold)
increase the number of work participants over the prior year
To qualify for further reduction, the State must:
Penalty ReductionPenalty Reduction
Amount by which State failed
If the State meets the threshold tests, we make a proportional reduction for its achievement above the 50% threshold.
Penalty ReductionPenalty ReductionAdjustment factor
Adjusts for a State’s success in engaging more recipients in countable activities.
If a State meets the threshold tests, the adjustment rewards it for increasing the working recipients by at least 15%.
Penalty ReductionPenalty ReductionConsecutive failures &Number of rates missed
In 1st year of failure: miss one rate, receive full reduction; miss both rates, receive of reduction.In 2nd year of failure: miss one rate, receive of reduction; miss both rates, receive of reduction.In 3rd year of failure: no reduction.
Reduce based on proportion of 2-parent cases.
Test for meeting both thresholds.
Reduce on severity of failure– degree of failure– adjustment factor– years of failure & number of rates failed
Penalty ReductionPenalty ReductionSummary
Corrective ComplianceCorrective Compliance General corrective compliance plan
criteria apply.
Failure must be corrected by the end of the fiscal year that ends at least 6 months after we receive the plan.
Corrective ComplianceCorrective ComplianceSignificant Progress
We will only reduce the penalty further if the State fills at least half the gap between the rate it achieved in the penalty year and the rate required for the compliance period.
Two-Parent FamiliesTwo-Parent Families
Choice on the basis of the caseload reduction credit for the 2-parent rate;
Ability to “net out” eligibility changes that increase the caseload;
Penalty for failing just the 2-parent rate based on proportion of 2-parent families.
Provisions in the final regulations that help States with 2-parent families:
General Rules--Time LimitGeneral Rules--Time Limit
No Federal TANF funds for assistance to a family with an adult or minor-child head-of-household or spouse of the head of household who has received assistance for more than 5 years.
Lifetime limit
5 years = 60 cumulative months
State defines “family” and who receives assistance
Penalty is 5% of adjusted SFAG
Penalty does not apply to State’s shorter time limit
If Federal time limit inconsistent with State’s waiver, waiver policies continue
More General Rules--More General Rules--Time Limit Time Limit
Time Limit Time Limit Months Count When:Months Count When:
Family receives “assistance”
Federal TANF funds are used
Family includes an adult, minor-child, or pregnant minor head-of-household or spouse of the head-of-household
A noncustodial parent who is the spouse of the head-of-household, receives Federal TANF assistance
Time Limit Time Limit Months Do Not Count When:Months Do Not Count When:
Family does not receive “assistance” No Federal TANF funds are used Family is a “child-only” family Head-of-household and spouse do not
receive assistance Family lives in Indian country or a Native
Alaskan Village where at least 50% of the adults are unemployed
20% Exception to Time Limit20% Exception to Time Limit
Assistance may extend beyond 5 years for up to 20% of cases
Assistance may be extended based on:– Hardship, as defined by State, or– Battery or extreme cruelty, as defined in statute
Exceptions apply after family reaches 60-month limit
20% Exception to Time Limit 20% Exception to Time Limit (cont.)(cont.)
For a fiscal year, the 20% exception is:
(avg. mo. # of families with assistance > 60 mos.)divided by
(avg. mo. # of all families with assistance)
WtW Cash AssistanceWtW Cash Assistance
Affects whether clock on Federal assistance is running
Must be assistance Must be for basic needs Must be convertible to currency
Time LimitTime LimitTreatment of Months When Treatment of Months When
Only WtW Is ReceivedOnly WtW Is Received Months do not count when an adult receives
only WtW noncash assistance Months count when a family receives WtW
cash assistance WtW cash assistance can be provided after
the TANF time limit is reached.