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Memorandum
No. TANF-ACF-IM-2006-1 |
Date: |
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TO: |
State
Agencies Administering the Temporary Assistance for Needy Families (TANF)
Program and Other Interested Parties |
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SUBJECT: |
Work
Participation Rates For FY 2004 |
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BACKGROUND: |
The
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(PRWORA) established mandatory work requirements and minimum annual work
participation rate standards for States operating a TANF program. States are subject to these minimum
participation rate requirements beginning July 1997 or six months after the
State implementation of the TANF program.
The Act establishes separate minimum participation rates each year for
all families and two-parent families.
The minimum work participation rate standards for fiscal year (FY) 2004
are 50 percent for the all families rate and 90 percent for the two-parent
families rate. PRWORA
provides for a reduction in the minimum work participation rate standards if
the State’s average monthly assistance caseload decreased the previous year
in comparison to its average monthly caseload in FY 1995. The all families participation rate
standard is reduced by the number of percentage points the overall caseload
declined. The two-parent participation
rate standard is reduced, at State option, by either (1) the number of
percentage points the two-parent caseload declined or (2) the number of
percentage points the overall caseload declined. However, the law specifies that any
caseload reductions resulting from changes in State or Federal eligibility
rules are excluded in calculating the credit.
Adjustments of FY 2004 minimum participation standards, called the
“caseload reduction credit,” are based on the caseload changes from FY 1995
(in the State’s title IV-A program under prior law) to FY 2003. The
Act also provides States the option to retain approved welfare reform waiver
provisions that are inconsistent with the TANF provisions. Such waiver provisions may affect who is
required to participate, the required hours of participation, and the
countable activities. Thus, the participation
rate calculation may apply differently for States retaining inconsistent
waiver provisions. |
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CONTENT: |
This
memorandum transmits the work participation tables for FY 2004. All States were required to report work
participation information for all of the October 2003 - September 2004 fiscal
year and are subject to the work participation standards for FY 2004 based on
this information. The
FY 2004 national average all families work participation rate is 32.0
percent. This represents a 2.2 percent increase from the 31.3 percent work
participation rate attained in FY 2003.
The FY 2004 national average two-parent families work participation
rate is 47.4 percent. This represents
a 2.1 percent decline from the 48.4 percent work participation rate attained
in FY 2003. Forty-eight States, the All
States and Territories, except Guam, received a reduction in their minimum
participation rates for the all families rate and all States and Territories
with a two-parent TANF program, except Guam, received reductions in their
minimum participation rates for the two-parent families rate as a result of
the application of the caseload reduction credit. Twelve States met the all families work
participation rate standard before application of the caseload reduction
credit. Three States ( As
shown in the attached work activity tables, an average of 494,761 adults
participated in work activities each month for an average of 27.6 hours per
week. This represents about 42.5 percent of all adults receiving TANF
assistance. Of these participating
adults over 307,784 adults participated for a sufficient number of hours in
work activities to include the family in the count toward meeting the
participation rate. About 48.3 percent
of the participating adults were engaged in unsubsidized employment. Another 18.0 percent were engaged in job
search and 21.2 percent were engaged in either work experience or community
service. (Because some individuals
were engaged in multiple activities, the table total is in excess of 100
percent.) There
are no statutory work requirements or minimum participation rate standards
for families in “Separate State Programs” funded solely with State
funds. Thirty-two States have
established Separate State Programs that provide “assistance.” Twenty-three States (Alabama, California,
Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Maine,
Maryland, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Jersey,
Rhode Island, Tennessee, Texas, Utah, Virginia, and West Virginia) have moved
all or part of their two-parent families to Separate State Programs. For Separate State Programs the FY 2004
national average all families work participation rate is 33.4 percent and the
FY 2004 national average two-parent families work participation rate is 31.7
percent. States
have been individually notified of their participation rates for FY 2004. States that failed to meet their minimum
work participation rate for either all families or two-parent families are
subject to a penalty as required by section 409(a)(3) of PRWORA. However, States will have an opportunity to
file a claim for good cause and/or submit a corrective compliance plan to
correct any failure to meet their FY 2004 minimum work participation rate
standard(s) before the Secretary will impose a penalty. |
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ATTACHMENT: |
TANF
Work Participation Rate Tables For FY 2004 (October 2003-September 2004) |
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INQUIRIES: |
Inquiries
should be directed to the appropriate ACF Regional Administrator |
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________/s/____________ |
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Sidonie Squier |
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