HD26 - Annual Report on the Virginia Independence Program Implementation, Impacts, and Outcome Measures


Executive Summary:
The 1995 General Assembly passed into law Virginia's innovative welfare reform program - The Virginia Independence Program (VIP). The 2000 General Assembly, in the 2000 Appropriations Act, called for the development of a comprehensive spending strategy for federal Temporary Assistance for Needy Families (TANF) block grant funds and Social Services Block Grant (SSBG) funds. This is a report on the achievement of VIP program goals and the status of the SSBGITANF spending plan.

The Virginia Independence Program consists of two related but distinct sets of requirements for TANF recipients: eligibility requirements and work-related requirements. The policies governing eligibility requirements became effective statewide on July 1, 1995. The policies governing the work-related requirements were phased in over a two-year period ending in October 1997. The data shows that the TANF caseload fell 58 percent, from 70,797 families in June 1995 to 30,047 in September 2000. It also shows a low rate of eligibility sanctions, a high rate of employment, and high rates of participants leaving TANF with employment.

TANF recipients who are subject to the work-related requirements participate in the Virginia Initiative for Employment not Welfare program or VIEW. Between July 1995 and June 2000 more than 54,500 TANF recipients participated in VIEW. Of these, 72 percent, or 39,075, found unsubsidized employment and had earned more than $205 million by the end of SFY 2000. Studies of the closed TANF cases show that after the cases closed, former VIEW participants continued to work. Virginia had a net taxpayer savings of over $272 million from pre-welfare reform expenditures.

The 2000 Appropriations Act directed that federal TANF and SSBG funds be allocated for 17 specific initiatives. Many of these initiatives focus on TANF recipients who have barriers to self-sufficiency and are considered hard-to-serve. Programs funded with these TANF and SSBG funds are to be for the purpose of providing work subsidies and social services or other non-assistance benefits.

Virginia's determination to create a welfare replacement program that improves and protects the lives of individuals and families has been successful. Continuing that success will require expansion of the community partnerships and implementation of strategies to serve the hard-to-serve. The next challenge facing Virginia is having the hard-to-serve TANF recipients join the other TANF recipients who have become independent Virginians. With the continued support of the General Assembly, that challenge will be well-met.