Why reform is needed

1. CSHB 3759TestimonyHouse Human Services CommitteeApril 19, 2007Celia Hagert, Senior Policy Analyst 512-320-0222 x110 hagert@cppp.org

2. Why reform is needed • Recent changes in federal TANF rules have put states in a tight spot • Texas TANF work program (“Choices”) is designed to help able-bodied parents with relatively low barriers to employment • Choices is NOT designed to help parents with greater barriers to employment become employable

3. Why reform is needed 4) Texas has done a good job getting able-bodied parents into low-wage jobs; BUT we need to do more to support the transition from low-wage jobs to true self-sufficiency 5) Texas needs a compliance-oriented approach to improve the effectiveness of full-family sanctions. The full-family sanction policy was adopted to increase compliance with program rules and get more recipients working; INSTEAD it has pushed tens of thousand of families off of welfare, leaving them jobless and in poverty.

4. TANF at a Glance • Limited eligibility: • Income cannot be higher than $188/month (family of 3) to qualify • Small benefit: • Average benefit is $200/month; maximum is $220 • By definition, our TANF population is hard-to-serve

5. The Work Participation Rate • Federal law requires states to engage 50% of adults in federally approved work activities for a minimum number of hours per week (30 for single parents, 35 or more for two-parent families). • Feds include most adults in the calculation, with limited exceptions • *States can exempt adults even if they are included in the WPR Numerator Denominator Adults meeting the work requirement Adults subject to work participation*

6. Primary challenges • Over the last decade, the TANF population has become harder-to-serve due to time limits, work rules, and strict sanctions • Persons with serious barriers to employment now make up a greater share of our caseload, which makes it harder for Texas to meet federal work participation requirements. • We have more hard-to-serve people in the “denominator” and fewer able-bodied adults

7. Feds have made things worse • Recent changes in federal rules restrict what work activities “count” and limit states’ flexibility to reduce work hours • Rules also subjected more people to federal work participation, i.e., increased “denominator” • This makes it harder for Texas to design effective work program for persons with barriers to employment

8. CSHB 3759 provides solutions • Increases the number of families meeting the work requirement (“the numerator”) • Work support program • Post-sanction review increases compliance • Decreases the number of families subject to federal work participation (“the denominator”) • Solely state-funded program (also caseload reduction credit)

9. CSHB 3759 helps low-income parents • Gets more families to work by increasing compliance • Helps recent welfare leavers make the transition from low-wage work to self-sufficiency • Ensures that parents who can’t work, or who need specialized services or more time to overcome barriers to get this assistance

10. CSHB 3759 increases program integrity and effectiveness • Establishes a standardized good cause process to ensure caseworkers are following policy and imposing sanctions fairly • Gives the Legislature the tools to judge the effectiveness of full family sanctions