Report Title:

TANF authorization Act

Description:

Appropriates money for the TANF program and all associated programs. Provides performance measures for programs and methodology for rewards and penalties. Prohibits the implementation of new programs related to TANF funding without the prior approval of the Legislature. (SB101 HD1)

THE SENATE

S.B. NO.

101

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the state budget.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii, like other states, now receives limited federal temporary assistance for needy families (TANF) moneys to replace the previously open-ended categorical need system of welfare. TANF funding is a result of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). The four purposes of PRWORA are to:

(1) Provide assistance to needy families;

(2) End dependence on welfare by promoting job preparation, work, and marriage for needy families;

(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.

TANF moneys are subject to legislative approval. Section 901 of Public Law 104-193, also known as the Brown Amendment, states that any funds received by a state relating to block grants for TANF money shall be subject to appropriation by the state legislature.

The legislature also finds that performance-based budgeting is a goal that both the administration and legislature are actively working to improve. The current budget document submitted by the administration, entitled "The Multi-Year Program and Financial Plan and Executive Budget," includes performance measures, measures of effectiveness, program target groups, and program activities. A missing element in the current performance-based budgeting system is a methodology for rewards and penalties for success or failure in meeting program objectives. Implementing such an element, to supplement reporting by the administration, is a step in improving the performance-based budgeting system of the state of Hawaii.

This Act shall be known as, and may be cited as, the "Temporary Assistance for Needy FamiliesTANF Authorization Act" (TANF) of fiscal biennium 2005-2007.. The purposes of this Act areis to:

(1) Provide appropriations for the department of human services for the purposes of the TANF program;

(2) Improve the mechanism for the reporting of TANF expenditures by the department of human services;

(3) Update the performance measures and objectives for the TANF program;

(4) Establish a system of rewards and penalties based on the performance measures and objectives;

(4) Enhance the system of reporting on the performance measures and outcomes; and

(5) Limit the ability of the department of human services to implement new programs related to TANF without prior legislative authorization.

PART I

SECTION 2. Section 346-1, Hawaii Revised Statutes, is amended by adding new definitions to be appropriately inserted and to read as follows:

""Performance standard" means the expected level of performance associated with a particular performance indicator for a particular period.

"Performance indicator" means a statement identifying an activity, input, output, outcome, achievement, ratio, efficiency, or quality to be measured relative to a particular goal or objective in order to assess an agency’s performance."

SECTION 23. Chapter 346, Hawaii Revised Statutes, is amended by adding atwo new sections to be appropriately designated and to read as follows:

"§346-     Temporary assistance for needy families reporting; performance measures; sanctions; new programs. (a) The department shall prepare quarterly progress reports that shall be submitted to the legislature on March 15, June 15, September 15, and December 15 of each year. TheseSuch written progress reports shall include, but not be limited to, information on the department’s progress toward achievement of performance standards contained within the Ttemporary Aassistance for nNeedy Ffamilies Aauthorization Act, and such additional data as may be determined by the legislature. For each performance indicator included in the Ttemporary Aassistance for Nneedy Ffamilies aAuthorization Act, the department shall provide a comparison of the actual performance with the annual performance standard, including an explanation of any variance above or below five per cent.

(b) The progress reports shall be used by the legislature to assess the progress of the department in achieving the goals of the temporary assistance for needy families program to:

(1) Provide assistance to needy families (TANF Purpose 1);

(2) End dependence on welfare by promoting job preparation, work, and marriage for needy families (TANF Purpose 2);

(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 (TANF Purpose 3); and

(4) Encourage the formation and maintenance of two-parent families (TANF Purpose 4).

The director may, after reviewing the progress reports, recommend to the legislature that the department receive a reward or be imposed a penaltybe rewarded or penalized.

(c) Upon review of the progress reports and a finding by the legislature that the department has exceeded the performance standards for its performance indicators by at least five per cent for a particular fiscal year, the legislature may authorize a reward whichthat may include but shall not be limited to:

(1) Additional funding to be used for nonrecurring purposes, including new or enhanced employee training, or productivity enhancements, including technology and other improvements;

(2) Additional funding for the ensuing fiscal year or biennium; and

(3) Supplemental compensation to the employees of the department.

(d) Upon review of the progress reports and a finding by the legislature that the department has failed to achieve the performance standards for its performance indicators by more than five per cent for a particular fiscal year, or upon the failure of the department to submit a progress report, the legislature may impose a penalty whichthat may include but shall not be limited to:

(1) Reducing the department’s ability to transfer funds between programs of itsthe department;

(2) Increasing performance reporting requirements, or the execution of performance audits;

(3) Restructuring of the department, which may include, but not be limited to, transfer of programs to another department, or outsourcing all or part of the department’s responsibilities and activities;

(4) Recommending that other remedial or corrective actions be implemented by the department and reported to the legislature; and

(5) Requiring that a management audit be conducted by the state auditor.

The legislature shall provide for aA reward or penalty by the passage of a billshall be authorized by a separate act of the legislature.

§346-     Temporary assistance for needy families new programs. (a) The department of human services shall not implement new programs using temporary assistance for needy families funding without the prior approval of the legislature. Prior to approval, the department shall submit to the legislature a written report that shall include but not be limited to:

(1) Goals and initiatives of the new program;

(2) Measures of effectiveness related to the program;

(3) Measures of effectiveness related to this program that have been implemented by other states for similar purposes;

(4) Amounts projected to be expended by the department on the new program;

(5) Amounts to be spent on administrative costs;

(6) Amounts to be spent on direct assistance to temporary assistance to needy families recipients; and

(7) Evaluations on how the funding of the new program will affect the funding levels of existing programs.

(b) For purposes of this section, approval of the legislature shall be obtained by a separate act to appropriate temporary assistance for needy families funds for a particular purpose or amend the Temporary Assistance for Needy Families Authorization Act.

(c) As used in this section, "new program" means a new initiative that may satisfy one or more of the four temporary assistance for needy families purposes identified in section 346- that has not been implemented as of May 5, 2005."

" SECTION 3. Section 346-1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""Performance standard" means the expected level of performance associated with a particular performance indicator for a particular period.

"Performance indicator" means a statement identifying an activity, input, output, outcome, achievement, ratio, efficiency, or quality to be measured relative to a particular goal or objective in order to assess an agency’s performance."

SECTION 4. Chapter 346, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§346-     Temporary assistance for needy families new programs. (a) The department of human services shall not implement new programs utilizing temporary assistance for needy families funding without the prior approval of the legislature. Prior to approval, the department shall submit to the legislature a written report that shall include, but not be limited to:

(1) Goals and initiatives of the new program,

(2) Measures of effectiveness related to the program,

(3) Measures of effectiveness related to this program that have been implemented by other states for similar purposes,

(4) Amounts projected to be expended by the department on the new program,

(5) Amounts that will be spent on administrative costs,

(6) Amounts that will be spent on direct assistance to temporary assistance to needy families recipients, and

(7) Evaluations on how the funding of the new program will affect the funding levels of existing programs.

(b) For the purposes of this section, "new program" means a new initiative that may satisfy one or more of the four temporary assistance for needy families purposes identified in section 346- that has not been implemented as of May 5, 2005.

(c) For the purposes of this section, approval of the legislature shall be obtained by the passage of a bill appropriating temporary assistance for needy families funds for a particular purpose or the amendment of the temporary assistance for needy families authorization act."

PART II

SECTION 45. The following performance indicators and associated performance standards shall be included in the quarterly progress reports submitted by the department of human services. Where performance standard data are not listed, the department of human services shall report data for those performance standards.

Performance Standard

Performance Indicators: FY 2005-2006 FY 2006-2007

(1) Percentage of potentially 93% 96% eligible households receiving

TANF assistance

(2) Number of potentially eligible

households receiving TANF assistance

(3) Percentage of potentially 93% 96% eligible households receiving

TAONF Assistance

(4) Number of potentially eligible

households receiving TAONF assistance

(5) Percentage of mandatory 50% 55% households meeting TANF work

participation requirements

(6) Number of mandatory households

meeting TANF work participation

requirements

(7) Percentage of eligibility 90% 95% determinations completed

in a timely manner

(8) Number of eligibility determinations

completed in a timely manner

(9) Average time to process

eligibility determinations

(number of# days)

(10) Percentage of TANF recipients 50% 60% employed

(11) Percentage of TAONF recipients 43% 50% employed

(12) Percentage of TANF recipients 33% 40% in work programs exiting due

to earnings

(13) Percentage of TAONF recipients 27% 35% in work programs exiting

due to earnings

(14) Percentage of TANF clients 60% 65% who retain a job for

at least three months

(15) Average number of cases

per month

(16) Average number of cases

per case worker per month

(17) Total annual payments

(18) Amount expended for each of

the four purposes of the TANF

program (by means of financing

and by purpose)

(19) Percentage expended for each

of the four purposes of the

TANF program (by means of

financing and by purpose)

(20) Average monthly payment

(21) Average number of recipients

(monthly)

(22) Average hourly wage of TANF clients

(23) Number of TANF clients placed in jobs

(24) Number of TANF clients exiting

due to sixty-month duration

(25) Number of TANF recipients in

work program exiting due to

earnings (by work program)

(26) Number of TAONF recipients in

work programs exiting due to

earnings (by work program)

(27) Ratio of TANF recipients in work

program exiting due to earnings

to total population of TANF

recipients in the work program

(by work program)

(28) Percentage of dollars spent

per work program to total amount

spent on work programs

(by work program).

SECTION 56. There is appropriated out of the general revenues of the State of Hawaii the sum of $71,149,844 or so much thereof as may be necessary for fiscal year 2005-2006 and the same sum or so much thereof as may be necessary for fiscal year 2006-2007 for the purposes ofto implementing the Temporary Assistance for Needy Families program, and its associated programs.

SECTION 67. There is appropriated federal funds in the sum of $98,904,788 or so much thereof as may be necessary for fiscal year 2005-2006 and the same sum or so much thereof as may be necessary for fiscal year 2006-2007 for the purposes ofto implementting the Temporary Assistance for Needy Families program, and its associated programs.

SECTION 78. The sums appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 89. For the purposes of this Act, the four TANF purposes are identified as follows:

(1) Provide assistance to needy families (TANF Purpose 1);

(2) End dependence on welfare by promoting job preparation, work, and marriage for needy families (TANF Purpose 2);

(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 (TANF Purpose 3); and

(4) Encourage the formation and maintenance of two-parent families (TANF Purpose 4).

SECTION 910. Provided that anAny general funds appropriated shall only be used for TANF Ppurpose 1 and TANF pPurpose 2.

SECTION 101. Provided that aAny federal funds appropriated shall only be used for TANF Ppurpose 1 and TANF Ppurpose 2, with the exception of the following:

(1) For the purpose of transfer to the child welfare services block grant, an amount not to exceed twenty per cent;

(2) For the purpose of transfer to the social services block grant, an amount not to exceed ten per cent;

(3) For the purpose of after school programs, the department may expend an amount not to exceed ten per cent; and

(4) For the purpose of TANF purposes 3 and 4 (with the exception of after school programs), the department may expend an amount not to exceed ten per cent.

SECTION 112. Any amounts not expended within the fiscal year in which they were appropriated shall lapse to their originating source and be subject to re-appropriation by the legislature.

PART III

SECTION 123. New statutory material is underscored.

SECTION 134. This Act shall take effect on July 1, 2005.