CHAPTER 2. EXPENDITURES

This chapter focuses on Social Services Block Grant (SSBG) expenditures by State, by service, and in comparison with expended funds from other sources.

SSBG EXPENDITURES TRENDS

During 2005, SSBG expenditures for all States, including the SSBG allocation (67%) and the Temporary Assistance for Needy Families (TANF) Block Grant transfer (33%), totaled $2.513 billion.

Highlights of the SSBG expenditure trends for 2005 are listed below.

• Expenditures of the SSBG allocation in 2005 were $1.681 billion.
• Since 2001, expenditures of the SSBG allocation decreased by almost 2 percent.
• Since 1997, States' reports of SSBG expenditures have included the TANF transfer. During the past 5 years, the expenditure of TANF transfer funds peaked during 2002, when 48 States reported expenditures of $955 million.
• During 2005, 45 States spent $832 million in funds transferred from TANF, which was a 13 percent decrease from 2001 ($949 million for 42 States). (See figures 2-1 and 2-2.)

SSBG EXPENDITURES BY STATE

The Federal Government allocates SSBG funds annually to States based on population.¹⁶As would be expected, States with large populations report larger SSBG expenditures. In addition, the amount of a State's SSBG expenditures is greatly influenced by the amount of TANF funds that the State transfers into the SSBG.

California reported $292 million in SSBG expenditures ($86 million of which were TANF transfer funds), followed by New York ($228 million in expenditures, $122 million of which were TANF transfer funds) and Florida ($158 million, $60 million of which were TANF transfer funds). Four other States reported SSBG expenditures of more than $100 million--Ohio ($141 million, $74 million of which were TANF transfer funds), Texas ($138 million, $26 million of which were TANF transfer funds), Pennsylvania ($115 million, $31 million of which were TANF transfer funds), and Michigan ($103 million, $44 million of which were TANF transfer funds). These seven States accounted for 47 percent of all SSBG expenditures. In 11 States, SSBG expenditures were less than $10 million. (See figure 2-3.)

Figure 2-3 SSBG Expenditures by State, 2005 (in millions)
State	SSBG Allocation	TANF Transfer
California	$206.27	$85.58
New York	$105.62	$122.00
Florida	$97.17	$60.47
Ohio	$66.58	$74.26
Texas	$112.38	$26.02
Pennsylvania	$83.54	$30.98
Michigan	$58.60	$43.91
Illinois	$73.63	$14.46
Massachusetts	$36.65	$45.94
New Jersey	$47.34	$15.63
Virginia	$42.94	$15.08
Georgia	$54.22	$3.47
Maryland	$32.02	$22.91
Missouri	$33.18	$21.71
Arizona	$32.11	$22.61
North Carolina	$48.73	$5.63
West Virginia	$10.53	$33.51
Washington	$35.64	$7.88
South Carolina	$32.60	$10.00
Louisiana	$26.20	$16.22
Connecticut	$19.51	$22.80
Wisconsin	$31.81	$8.91
Alabama	$26.16	$10.85
Colorado	$25.90	$9.90
Oklahoma	$20.41	$15.38
Minnesota	$30.21	$4.79
Tennessee	$22.68	$12.29
Indiana	$32.49	$2.00
Oregon	$32.87	$0.00
Iowa	$18.12	$11.90
Mississippi	$15.43	$9.58
Kentucky	$23.49	$0.00
Kansas	$15.85	$4.33
Utah	$15.30	$3.01
Maine	$7.22	$7.52
Arkansas	$13.83	$0.00
Nevada	$12.47	$1.25
Hawaii	$7.41	$5.68
New Mexico	$10.90	$1.50
Nebraska	$10.11	$0.00
Idaho	$8.48	$1.44
New Hampshire	$6.96	$1.46
Vermont	$3.60	$4.74
District of Columbia	$3.49	$3.94
Rhode Island	$6.22	$1.06
Delaware	$4.86	$2.40
South Dakota	$4.99	$2.20
Alaska	$3.77	$3.29
Montana	$4.24	$1.98
North Dakota	$3.68	$0.00
Wyoming	$2.91	$0.00

PER CAPITA EXPENDITURES

Nationally, the average SSBG appropriation for 2005 represented approximately $5.71 per person.¹⁷However, State SSBG per capita expenditures varied from this amount if a State reported a TANF transfer, carried over funds from previous years, or carried forward funds for use during the next year.¹⁸During 2005, the average of State per capita SSBG expenditures was $8.67, ranging from $4.98 (Arkansas) to $24.24 (West Virginia). (See figure 2-4.)

Figure 2-4 SSBG Per Capita Expenditures by State, 2005
State	SSBG Allocation	TANF Transfer
West Virginia	$5.80	$18.44
District of Columbia	$6.34	$7.15
Vermont	$5.78	$7.60
Massachusetts	$5.73	$7.18
Ohio	$5.81	$6.48
Connecticut	$5.56	$6.50
New York	$5.49	$6.34
Maine	$5.46	$5.69
Alaska	$5.68	$4.96
Hawaii	$5.81	$4.45
Michigan	$5.79	$4.34
Iowa	$6.11	$4.01
Oklahoma	$5.75	$4.33
South Carolina	$7.66	$2.35
Maryland	$5.72	$4.09
Missouri	$5.72	$3.74
Louisiana	$5.79	$3.59
South Dakota	$6.43	$2.84
Arizona	$5.41	$3.81
Pennsylvania	$6.72	$2.49
Oregon	$9.03	$0.00
Florida	$5.46	$3.40
Delaware	$5.76	$2.85
Mississippi	$5.28	$3.28
Alabama	$5.74	$2.38
California	$5.71	$2.37
Colorado	$5.55	$2.12
Virginia	$5.67	$1.99
Utah	$6.19	$1.22
Wisconsin	$5.75	$1.61
Kansas	$5.78	$1.58
New Jersey	$5.43	$1.79
Idaho	$5.93	$1.01
Washington	$5.67	$1.25
Illinois	$5.77	$1.13
Minnesota	$5.89	$0.93
Rhode Island	$5.78	$0.98
Montana	$4.53	$2.12
New Hampshire	$5.32	$1.12
New Mexico	$5.65	$0.78
Georgia	$5.98	$0.38
North Carolina	$5.61	$0.65
Texas	$4.92	$1.14
Tennessee	$3.80	$2.06
North Dakota	$5.78	$0.00
Nebraska	$5.75	$0.00
Wyoming	$5.72	$0.00
Nevada	$5.16	$0.52
Kentucky	$5.63	$0.00
Indiana	$5.18	$0.32
Arkansas	$4.98	$0.00

SSBG EXPENDITURES BY SERVICE

Thirty-eight States collectively spent $359 million for child foster care services (14% of all SSBG expenditures); 41 States reported $257 million of SSBG expenditures for child protective services (10%); 27 States reported $255 million of SSBG expenditures for special services for individuals with disabilities (10%); and 42 States reported $241 million of SSBG expenditures for child day care (10%). (See figures 2-5 and 2-6.)

Figure 2-5 Percentage of SSBG Expenditures by Service, 2005
Service	Percentage
21 Additional Services	23%
Prevention and Intervention	6%
Case Management	6%
Protective Services--Adults	7%
Home-Based Services	7%
Day Care--Children	10%
Special Services--Disabled	10%
Protective Services--Children	10%
Foster Care Services--Children	14%
Administrative Costs	7%

Figure 2-6 SSBG Expenditures by Service, 2005 (in millions)
Service	SSBG Allocation	TANF Transfer
Foster Care Services--Children	$144	$215
Protective Services--Children	$130	$127
Special Services--Disabled	$242	$12
Day Care--Children	$118	$123
Administrative Costs	$140	$49
Home-Based Services	$153	$23
Protective Services--Adults	$150	$19
Case Management	$113	$47
Prevention and Intervention	$48	$97
Other Services	$94	$23
Residential Treatment	$58	$35
Special Services--Youth at Risk	$65	$6
Adoption Services	$24	$14
Family Planning Services	$16	$22
Counseling Services	$22	$3
Home-Delivered Meals	$20	$1
Health-Related Services	$17	$2
Information and Referral	$15	$5
Legal Services	$18	$1
Education and Training Services	$16	$1
Transportation	$13	$4
Foster Care Services--Adults	$15	$0
Housing Services	$9	$6
Employment Services	$13	$0
Day Care--Adults	$12	$0
Independent/Transitional Living	$7	$1
Pregnancy and Parenting	$5	$3
Substance Abuse Services	$6	$1
Congregate Meals	$6	$0
Recreation Services	$1	$0

Table 2-1 shows the total SSBG expenditures--comprising the SSBG allocation and the TANF transfer--for each of the 29 service categories and administrative costs.

Table 2-1 SSBG Expenditures by Service, 2005
SSBG Service Categories	SSBG Allocation	TANF Transfer	Total SSBG Expenditures	Number of States
Adoption Services	$24,463,444	$13,585,471	$38,048,915	30
Case Management	$113,273,732	$47,402,831	$160,676,563	28
Congregate Meals	$5,901,356	$198,547	$6,099,903	11
Counseling Services	$21,937,477	$2,948,283	$24,885,760	23
Day Care--Adults	$11,899,774	$473,154	$12,372,928	22
Day Care--Children	$117,829,453	$123,445,727	$241,275,180	42
Education and Training Services	$16,439,584	$1,109,325	$17,548,909	16
Employment Services	$13,233,358	$281,620	$13,514,978	11
Family Planning Services	$15,805,420	$21,981,688	$37,787,108	13
Foster Care Services--Adults	$15,385,362	$200,096	$15,585,458	14
Foster Care Services--Children	$143,949,909	$215,426,565	$359,376,474	38
Health-Related Services	$17,101,518	$2,463,691	$19,565,209	15
Home-Based Services	$153,385,511	$22,711,690	$176,097,201	34
Home-Delivered Meals	$20,480,915	$593,584	$21,074,499	18
Housing Services	$8,720,924	$6,086,237	$14,807,161	11
Independent/Transitional Living	$7,273,437	$1,155,543	$8,428,980	18
Information and Referral	$14,558,253	$4,684,797	$19,243,050	18
Legal Services	$17,748,497	$592,520	$18,341,017	14
Other Services	$94,140,859	$22,544,147	$116,685,006	25
Pregnancy and Parenting	$5,465,696	$2,500,615	$7,966,311	12
Prevention and Intervention	$47,834,649	$97,279,075	$145,113,724	35
Protective Services--Adults	$150,342,866	$18,646,246	$168,989,112	37
Protective Services--Children	$129,595,714	$126,968,833	$256,564,547	41
Recreation Services	$1,300,609	$321,914	$1,622,523	9
Residential Treatment	$57,821,811	$35,093,801	$92,915,612	23
Special Services--Disabled	$242,452,727	$12,195,479	$254,648,206	27
Special Services--Youth at Risk	$65,345,439	$5,929,031	$71,274,470	19
Substance Abuse Services	$5,824,822	$624,905	$6,449,727	12
Transportation	$12,727,218	$3,656,832	$16,384,050	21
Administrative Costs	$129,095,772	$41,350,683	$170,446,455	41
TOTAL	$1,681,336,106	$832,452,930	$2,513,789,036	51

TANF TRANSFER EXPENDITURES

States reported by service categories how they used the TANF transfer funds. Forty-five States spent $832 million of TANF transfer funds. Across these States, the highest proportion of TANF transfer expenditures was for children's services. Twenty-five States collectively spent $215 million of TANF transfer funds for child foster care services (26% of all TANF transfer expenditures). In addition, 24 States spent $127 million of TANF transfer funds for child protective services (15%), and 19 States reported spending $123 million for child day care (15%). (See figure 2-7.)

Figure 2-7 TANF Transfer Expenditures by Service, 2005
Service	TANF Transfer	Number of States
Foster Care Services--Children	$215,426,565	25
Protective Services--Children	$126,968,833	24
Day Care--Children	$123,445,727	19
Prevention and Intervention	$97,279,075	19
Case Management	$47,402,831	13
Residential Treatment	$35,093,801	10
Home-Based Services	$22,711,690	13
Other Services	$22,544,147	14
Family Planning Services	$21,981,688	6
Protective Services--Adults	$18,646,246	9
Adoption Services	$13,585,471	18
Special Services--Disabled	$12,195,479	8
Housing Services	$6,086,237	5
Special Services--Youth at Risk	$5,929,031	6
Information and Referral	$4,684,797	5
Transportation	$3,656,832	7
Counseling Services	$2,948,283	8
Pregnancy and Parenting	$2,500,615	3
Health-Related Services	$2,463,691	7
Independent/Transitional Living	$1,155,543	6
Education and Training Services	$1,109,325	4
Substance Abuse Services	$624,905	2
Home-Delivered Meals	$593,584	4
Legal Services	$592,520	4
Day Care--Adults	$473,154	3
Recreation Services	$321,914	4
Employment Services	$281,620	3
Foster Care Services--Adults	$200,096	4
Congregate Meals	$198,547	3

For four services, the TANF transfer portion of SSBG expenditures was greater than the SSBG allocation portion. Funds from the TANF transfer accounted for 67 percent of SSBG expenditures for prevention and intervention services, 59 percent for child foster care, 58 percent for family planning services, and 51 percent for child day care services.

SSBG AND OTHER SOURCES OF FUNDS

States reported on total expenditures, which included expenditures of funds from other sources. Regulations also require States to report all other Federal, State, and local funds for each service funded by SSBG. State SSBG contacts were consulted about the extent to which they were able to provide these data. With some variation, States met this requirement in one of the two ways listed below.

• A State reported on all Federal, State, and local funds spent in conjunction with SSBG expenditures for specific programs or providers. For example, a State that supported a day care center with the SSBG reported other sources of funds supporting the center as well. This State did not report the other sources of funds for all day care centers located throughout the State.
• A State reported on all Federal, State, and local funds for the service category for the entire State. For example, if SSBG supported any child day care services, the State included all funding for child day care throughout the State on the SSBG postexpenditure report.

These varied methods for reporting total expenditures result in different interpretations of the SSBG's support of a service, relative to other sources. Therefore, the following analysis is based only on data from the 41 States that indicated that total expenditures included all other sources of funds used for the service category.¹⁹

The proportion of total expenditures of SSBG funds provided for specific service categories ranged from 2 percent to 57 percent. SSBG expenditures accounted for 57 percent of the total expenditures for adult foster care services, 50 percent of total expenditures for family planning services, and 45 percent of total expenditures for special services for youth at risk. At least 25 percent of funding for eight other services was through SSBG expenditures. These services were adult day care, education and training services, home-delivered meals, legal services, pregnancy and parenting services, adult protective services, recreation services, and transportation services. The amount that the States used to support the remaining 21 services was less than 25 percent. (See figure 2-8.)

Figure 2-8 SSBG Percentage of Total Expenditures by Service, 2005
Service	SSBG Expenditures	Other Sources of Funds
Substance Abuse Services	1.58%	98.42%
Independent/Transitional Living	3.59%	96.41%
Other Services	3.70%	96.30%
Day Care--Children	3.78%	96.22%
Adoption Services	5.15%	94.85%
Special Services--Disabled	6.13%	93.87%
Protective Services--Children	7.06%	92.94%
Employment Services	9.20%	90.80%
Residential Treatment	11.24%	88.76%
Counseling Services	12.55%	87.45%
Foster Care Services--Children	12.90%	87.10%
Case Management	15.07%	84.93%
Housing Services	16.42%	83.58%
Congregate Meals	17.15%	82.85%
Prevention and Intervention	17.76%	82.24%
Health-Related Services	19.79%	80.21%
Home-Based Services	20.57%	79.43%
Information and Referral	21.04%	78.96%
Transportation	25.64%	74.36%
Legal Services	25.65%	74.35%
Recreation Services	26.06%	73.94%
Home-Delivered Meals	26.58%	73.42%
Pregnancy and Parenting	28.18%	71.82%
Education and Training Services	41.08%	58.92%
Day Care--Adults	41.97%	58.03%
Protective Services--Adults	42.44%	57.56%
Special Services--Youth at Risk	44.71%	55.29%
Family Planning Services	50.17%	49.83%
Foster Care Services--Adults	56.59%	43.41%