EXPANDING CalWORKs FOR COLLEGE STUDENTS: Creative ways to ensure benefits for students

1. EXPANDING CalWORKs FOR COLLEGE STUDENTS: Creative ways to ensure benefits for students CalWorks Association Statewide Training Institute Antionette Dozier, WCLP April 27, 2010

2. Overview • AB 4X 4 (ACL # 09-46) • Exemptions • Volunteers • AB 4X 8 • 60-Month Time Limit Exceptions • Domestic violence waivers • Inability maintaining employment • TANF Reauthorization

3. Where are we? • Cuts, cuts, and more cuts • SB X3 1 provided $2.8 billion in budget solutions if the state did not get $10 billion in offsets from the federal stimulus. We won’t get the offsets so, cuts went into effect • CalWORKsCuts - a 4 percent grant cut (approximately $30 from a family of three receiving the maximum grant of $723)

4. Budget Proposals: more cuts… • $269 Million in cuts to low-income children and their families: • A 15.7 percent cut to CalWORKs grants - This will cut the maximum grant for a family of three from $694 a month to $586 a month, a $109 a month cut • Reduction in rate paid to child care providers • $123 million cut to Stage 3 child care impacting 30% of Stage 3 Kids • Elimination of Recent Non-Citizen Entrants Program, estimated 24,000 people

5. AB 4 X 4 • New incentives to create subsidized employment • Tied to federal ARRA funding • New WTW exemptions for families with children

6. AB 4X 4: Subsidized Employment and Federal ARRA Funding • Counties and Colleges can use ARRA $ • Expand subsidized employment • Up to 35,000 positions • One time nonrecurring needs for families up to 200% FPL (noncustodial parent eligible) • Reimbursement: 80% of increased costs • No 50% state match (AB 98) for subsidized employment through Sept. 30 2010

7. AB 4X 4: TANF ECF Subsidized Employment • Subsidized wages are excluded from income • Drug and fleeing felons can be provided TANF ECF funded subsidized employment if their family meets the definition of a needy family (ACIN # I-31-10) • Cannot be used to fund health care • Displacement rules apply

8. AB 4X 4: WTW Exemptions • Families with children under age 23 months • 60-month clock stops if child is 12-23 months • Families with 2 children under age 6 • 60-month clock stops • Good cause for lack of supportive services • 60-month clock stops Note: exempts may volunteer to participate Note: expires July 1, 2011 Note: exempts will start to be integrated into WTW activities beginning Jan. 1, 2011

9. AB 4X 4: WTW Exemptions cont.. • Exempts may volunteer • Volunteers can participate in WTW activities if funding is available for supportive services • County must provide all of recipient’s “necessary” supportive services • If county says supportive services unavailable try reevaluating “necessary” supportive services • Personal loans • Note: Include time limit statements, i.e. a semester

10. AB 4X 4: Too Good to Be True? • New exemptions intended to apply to new applicants first • Cuts in SAF may prompt counties to apply exemptions broadly even when not in participants’ interest • Counties must develop logical criteria based on an examination of the county budget

11. AB 4X 8: Changes on the Horizon • Increases sanction penalties • Changes in 60-month time limits • Exceptions: inability to maintain employment • Exemptions still available, including DV waivers • Changes in safety net grants *Notes: the above not effective until 7/1/11 • Eliminates statutory cost of living adjustment (COLA) Note: DSS expects to release ACL in June 2010; mailer to recipients in July 2010.

12. AB 4X 8: the Bad Sanctions • 3 stages of graduated sanction process • Stage 1—family loses parent’s portion of the grant (max grant: $694 for family of 3 to $566) • Stage 2 –if no compliance after 90 days, 25% cut to child’s grant (from $566 to $420) • Stage 3 – if no compliance for 90 more days, another 25% cut (from $420 to $283) • Note: existing sanction process still applies

13. AB 4X 8: Sanction Process • Before stages 2 and 3, a social worker or employment service workers must • Assess circumstances for noncompliance • Identify barriers to participation & good faith to remedy • Assess needs for services or resources • Provides “tools” to connect individuals to services Note: failure to follow process stops sanction

14. AB 4X 8: Self-Sufficiency Review • SSR of sanctioned participants every 6 months • To identify possible exemptions and barriers to participation • Failure to do SSR • 50% grant cut with 30-day notice • Unless good cause • Personal contact or reminder notice 5 days before effective date of 50% cut

15. AB 4X 8: Changes to Time Limits • Existing law: 60 months on aid and WTW • 7/1/11: 48 + 12 • After 48 months on aid, must get off aid for 12 consecutive months • Can get back on aid after off for 12 months • Sanction months count toward 48 and 60 month clocks. • Develop strategies for 12 months off of aid

16. AB 4X 8: The Not-So-Good Safety Net Changes • Children’s safety net grants • Cut by 25% if timed out parents don’t do 32 hours/week • Another 25% cut after 90 days of not meeting 32 hour requirement • Also, reduces grants by up to 50% for children whose parents are not eligible for CalWORKs due to immigration status or being a drug/fleeing felon.

17. AB 4X 8: Safety Net Changes • No cut if county doesn’t • provide child care • Many counties don’t provide child care • Doesn’t review for possible exemptions • Attempt to make personal contact • Provide transportation if Legislature gives county funding

18. AB 4X 8: The Horrible Elimination of Statutory COLA • No more automatic COLA for CalWORKs (and SSP) • Now need 2/3 vote in each house

19. 2010 TANF Reauthorization: Our Best Hope • Deficit Reduction Act (2006 Reauthorization) expires Sept. 2010 • States want a return of flexibility • Advocates want more emphasis on outcomes and less on caseload reduction and WPR • 2010 Reauthorization may lead to changes in AB 4X 8– stay tune….

20. TANF Reauthorization • Suggestions developed from WCLP discussion with legislators, counties, and advocates • Change in Calculation of WPR • “Outcome-Oriented” Approach • Premium on education • Premium on services that lead to self-sufficiency

21. TANF Reauthorization Cont… • Instead of “Case load Reduction Credit” give a WPR credit for: • Each family that meeting federal TANF 30 hour work requirements • No separate 2 parent calculation • Give bonus credits if family meets 30 hour work requirements and • Does job training or education programs • Participates in work study or subsidized employment • Participates in activities relating to English proficiency, disabilities, MH/SA, DV

22. TANF Reauthorization: WPR calculation • Instead of reduction in case load, states get lower WPR for: • Increasing the percentage of poor families receiving assistance • Reducing deep poverty among children • Families leaving cash aid for employment and who remain off cash aid and working. • Assisting families with Family Violence Option services • Increases in Participation in EITC by TANF recipients. • Moving children or adults to SSI or SSDI.