HD29 - Report on Virginia Independence Program Implementation, Impacts and Outcome Measures


Executive Summary:
The Virginia Independence Program (VIP) consists of two related but distinct sets of requirements for recipients of Temporary Assistance for Needy Families (TANF), eligibility requirements and work requirements. The policies that mandated the eligibility requirements were effective statewide on July 1, 1995. The Virginia Initiative for Employment not Welfare program (VIEW), is the work-related portion of VIP. Implementation of VIEW was phased in over a two-year period beginning in July 1995 and ending in October 1997.

Since VIP was implemented in July 1995, the total TANF caseload has dropped by about 42,000 cases, from 70,797 to just over 29,000 in June 2001, a total decrease of almost 60 percent. The caseload decline contributed to a net savings in federal and state funds of over $357 million. Of the approximately 66,000 TANF recipients enrolled in VIEW since 1995, more than 47,000 found employment and joined the work force by June 2001. The program continues to achieve a high rate of employment, and high rates of participants leaving TANF with employment.

To implement the Commonwealth's welfare reform program, on July 1, 1995, Virginia had to obtain waivers of federal regulations. In August 1996, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) was enacted, granting block grants to states to operate their own assistance programs. With the passage of federal welfare reform and the devolution of program rules to the states, Virginia had the authority to legally operate the program without the waivers. However, under PRWORA, states with approved waivers prior to enactment of TANF in August 1996, were allowed to continue to operate their TANF programs according to the terms of the waivers until the expiration date of the waiver authority.

Continuing the waivers provides certain benefits to Virginia. First, waivers allow the state to calculate the required federal work participation rate in a way that is more favorable to Virginia. Second, waivers allow the state to exempt from the federal 60-month time limit those families that do not participate in VIEW.

With the expiration of federal welfare reform waivers on July 1, 2003, the Commonwealth's welfare reform program is at an important juncture. The program has to change to comply with federal law and regulations and to meet the goal of achieving economic independence for recipients of TANF. A revised welfare reform program will assist more people in reaching self-sufficiency, and will bring Virginia into compliance with federal requirements.