Assigned to FS & APPROP                                                                                                              FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2586

 

needy families programs; appropriation

 

Purpose

 

            Appropriates approximately $31 million over FY 2001-2002 and FY 2002-2003 from the federal Temporary Assistance for Needy Families (TANF) block grant to the Department of Economic Security (DES), the Department of Health Services (DHS) and the Department of Education (DOE) for various programs.  Expands TANF eligibility, increases TANF cash assistance payments for kinship foster care providers and requires DES to establish five after-school and summer pregnancy prevention pilot programs.

 

Background

 

            The federal TANF block grant provides flexible resources for a variety of activities within four goals to: (1) provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives; (2) end dependence of needy parents on government benefits by promoting job preparation, work and marriage; (3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and (4) encourage the formation and maintenance of two-parent families.

 

            States may carry forward unobligated TANF funds for use in future years, and Arizona initially set funds aside for future periods of economic downturns.  These funds are generally referred to as the “TANF reserve”.  As the economy remained strong and welfare caseloads decreased faster than expected, the Legislature began making significant investments in work supports and innovative programs for hard-to-serve TANF recipients, using the TANF reserves to do so.  The reserve balance as of June 30, 1998 was approximately $95 million.  The reserve balance is expected to be $20 million by June 30, 2001

 

            The bill appropriates $11.675 million in each of FY 2001-2002 and FY 2002-2003 to DES and $7.575 million in FY 2001-2002 to DES, DHS and DOE from the TANF block grant for various programs.  There are no limits on administrative costs the agencies may charge and no evaluation requirements.

 

The bill also contains an exception to the “family cap” ineligibility for parents who complete a marriage and communication skills program.  The Joint Legislative Budget Committee estimates that this provision could cost between $456,200 and $1,273,600 per year, but state on the Fiscal Note that the estimates are speculative.

 

           

 

 

 

Provisions

 

1.      Appropriates almost $31 million over FY 2001-2002 and FY 2002-2003 from the TANF block grant to three state agencies, as follows:

 

State Agency/Program

Amount

Fiscal Year

DES:

 

 

Education & training contracts

$ 5,000,000

2001-2002

                                

   5,000,000

2002-2003

After-school & summer pregnancy prevention

   2,000,000

2001-2002

                                                 

   2,000,000

2002-2003

Supplemental cash assistance for kinship care

   2,000,000

2001-2002

                                                 

   2,000,000

2002-2003

Rural business assistance

   1,500,000

2001-2002

                                

   1,500,000

2002-2003

Support for office of faith-based liaison

      675,000

2001-2002

                                                 

      675,000

2002-2003

Media campaign for marriage / com. skills program

      500,000

2001-2002

                                                 

      500,000

2002-2003

Study on effects of divorce

        75,000

2001-2002

     DES sub-total

$23,425,000

 

DHS:

 

 

County family planning services

$ 3,000,000

2001-2002

Pilot outreach to teens with neg. pregnancy test

      500,000

2001-2002

     DHS sub-total

$ 3,500,000

 

DOE:

 

 

Pregnant & parenting teens

$ 4,000,000

2001-2002

 

 

TOTAL BIENNIUM APPROPRIATIONS

$30,925,000

 

 

 

2.      Exempts the appropriations from lapsing.

 

3.      Requires school districts to match funds for the pregnant and parenting teens programs and specifies program goals and components.

 

4.      Limits family planning services to uninsured women with incomes up to 200 percent of the federal poverty level, requires service agencies to maintain accounting procedures to show that monies are not used for abortions and specifies services that may be provided.

 

5.      Adds an exception from the TANF ineligibility for a child born during specified time periods (“family cap”) if the parent completes a marriage and communications skills program.

 

6.      Increases payments to kinship foster care providers from $204 to $250 per child per month.

 

7.      Requires DES to submit a report on the divorce study to the Governor, President of the Senate and Speaker of the House by January 1, 2002.

 

Pregnancy Prevention Pilot Programs

 

8.      Requires DES to establish pilot programs in three rural and two urban counties for after school and summer pregnancy prevention programs for children in grades 4 through 11.

 

9.      Specifies pilot program components and staffing ratios.

 

10.  Requires DES to cooperate with specified organizations.

 

11.  Requires DES to ensure:

 

a)      Programs reinforce and complement regular school days.

b)      Adequate time and resources for staff to plan activities that maximize opportunities of participating children.

c)      Coordination of facilities and resources.

 

12.  Repeals the pilot programs on July 1, 2010.

 

13.  Provides for a general effective date.

 

House Action

 

HS                   2/27/01            DPA    6-4-0-0

APPROP         3/6/01              DPA    11-1-2-2

3rd Read           3/15/01                        45-8-7-0

 

 

Prepared by Senate Staff

April 2, 2001