DRAFT Letter re: TANF/MOE Spending  

Sent to Legislators from organizations belonging to the Connecticut Alliance for Basic Human Needs (CABHN)

 

To: All Legislators

Every year, the state is eligible to receive $267 million from the federal government through the TANF (Temporary Assistance to Needy Families) block grant. The money must be used to achieve the purposes of the federal welfare reform program, which are generally to provide assistance to needy families with children and to assist these families in achieving self-sufficiency. The state must match this funding with $184 million in state spending, called maintenance of effort spending.  

·          We are concerned that this pool of $450 million is not being targeted to meet the needs of poor families which have emerged as families move from welfare to work. 

·          We are concerned that the Legislature has little knowledge of how this money is being spent and little control over the spending of this important pool of funds. 

·          We are concerned that $40 million of Connecticut’s federal TANF block grant were unspent at the end of the last federal fiscal year. 

·          And we are most concerned that Connecticut is using TANF funds to replace state dollars previously spent on needed services to poor families. The state dollars are then spent on other state programs which do not address the needs of poor families. 

This practice could result in the loss of TANF block grant funds not only for Connecticut but for states across the country. The attached letter from Rep. Nancy Johnson to state governors indicates her concern that short-term gains for state budgets will result in long-term loss of federal support. 

TANF funds are designed to be flexible so that they can be used creatively to assist families moving from welfare to self-sufficiency. Here are a few possible ways to use TANF/MOE funds:  

·          Education and training for parents in low-wage jobs: HB 5322 proposes funding for work/study slots and support services for needy parents attending institutions of higher education. Estimated cost: $5 million 

·          Early assessment and case management services for TFA recipients. (SB 519) 

·          Individual Development Accounts. (HB 5018) 

·          Refundable Earned Income Tax Credit for working families. Estimated cost: $19 million 

·          Job retention services 

·          Housing assistance for needy families (is there an appropriate bill?)