RD149 - Final Report on the Virginia Independence Program


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 approximately 35,500 in June 2004, a decrease of more than 50 percent. Of the 92,060 TANF recipients enrolled in VIEW since 1995, more than 67,000 found employment and joined the work force by June 2004. This caseload decline contributed to a net savings in federal and state funds of over $550 million.

Virginia has received four high performance bonuses totaling $31.6 million in TANF funds from the U.S. Department of Health & Human Services. The bonuses were received for four fiscal years - $7.9 for 1999 and the same amount for each year 2001-2003. Virginia ranked tenth in the nation in the job-entry category in 1999, ninth in 2001, fourth in 2002 and seventh in 2003. Virginia received over $6,300,000 for its efforts in job-entry in 2003. Another $1,500,000 was awarded for improvement in job retention and wage advancement.

TANF was originally authorized by Congress through September 30, 2002. Are authorization bill has not, as yet, been passed by Congress. Currently, TANF is operating under a continuing resolution through March 31, 2005. 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.