RD55 - Interim Report on the Virginia Independence Program Implementation, Impacts and Outcome Measures


Executive Summary:
The federal Temporary Assistance for Needy Families (TANF) block grant funds a host of important and effective programs throughout the Commonwealth including the Virginia Independence Program (VIP). VIP consists of two related but distinct sets of requirements for TANF participants, eligibility requirements and work requirements. The policies that mandated 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 that requires participants to be employed or engaged in a work activity. 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 TANF caseload has dropped from 70,797 to a little less than 32,000 in June 2003, a decrease of more than 55 percent. Of the 81,434 TANF recipients enrolled in VIEW since 1995, more than 59,218 found employment and joined the work force by June 2003. This caseload decline contributed to a net savings in federal and state funds of over $507 million.

Virginia received two high performance bonuses totaling $15.8 million in TANF funds from the U.S. Department of Health & Human Services. The bonuses were received for two fiscal years - $7.9 million for the state’s performance in fiscal year 2001 and $7.9 million for 2002. This bonus amount is the maximum Virginia is eligible to receive. Virginia ranked fourth in the nation in 2002 in helping place welfare recipients in jobs. That ranking improved from ninth in the nation in 2001 for “job entry.”

TANF was originally authorized by Congress through September 30, 2002. Congress has not passed a reauthorization bill. Rather, Congress has passed several extensions. Currently, TANF is operating under a continuing resolution through March 31, 2003. It is unclear as to whether the continuing resolution will be extended or a reauthorization bill will be passed. When reauthorization does occur, the program requirements could change. Regardless of the outcome of federal legislation, Virginia has an opportunity to create a more efficient and effective service delivery system by building upon past success and taking advantage of the flexibility afforded by the block grant.