RD73 - Interim Report on Projects Funded with the Temporary Assistance for Needy Families Block Grant - June 1, 2003 - Julye 30, 2004


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). The VIP consists of two related but distinct sets of requirements for TANF participants, eligibility requirements and work requirements. The policies that mandate eligibility requirements became 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.

Between July 1995, and June 2003, the TANF caseload dropped from 70,797 to 31,998, a decrease of 55 percent. There has been a slight increase from July 1, 2003, to June 2004. At the end of June 2004, the TANF caseload stood at 33,218. Of the 100,637 TANF recipients enrolled in VIEW since 1995, almost 72,000 found employment and joined the work force by June 2004.

TANF was scheduled to be reauthorized by Congress before September 30, 2002. However, Congress ha s passed several continuing resolutions without passing comprehensive reauthorization legislation. Currently the program is operating under a continuing resolution through September 30, 2004. It is unclear whether the continuing resolution will be extended or a reauthorization bill will be passed this year.

Along with the unknown circumstances of federal legislation, the Commonwealth faced the significant barrier this year of an unbalanced TANF budget. Virginia receives a yearly block grant of slightly more than $158 million. Unspent amounts remain in reserve for the Commonwealth for future years. In the initial stages of the block grant, Virginia developed a considerable surplus of funds attributed to the precipitous decline in TANF caseloads. Programs were then funded with the surplus amount. To balance the TANF budget for SFY 05, $34 million needed to be cut from TANF spending. Mandatory programs were funded such as TANF cash assistance, the VIEW (including funds for hard-to-serve services) and the statutory rape awareness program. In addition, certain other programs were funded either at no reduction or at a 10% reduction. A competitive grant process has been initiated for the remaining TANF funded programs. To further balance the TANF budget, the General Assembly cut SFY 06 spending by $6.9 million by adjusting the child support pass-through from $7.8 million to $3.9 million and eliminating the $3.0 million TANF Reauthorization contingency.