LANSING – State Representative Dudley Spade (D-Tipton) today announced that the Department of Human Services (DHS) is nearing completion of a project that will allow them to draw down an addition $155 million in federal Temporary Assistance for Needy Families (TANF) Contingency Funds. Based on a high unemployment and food stamp rate, Michigan is eligible for $12.9 million per month, retroactively from the beginning of the fiscal year last October, for the current budget cycle.
The DHS has already received a federal award letter for $77.5 million for the first half of this fiscal year and is likely to continue to be eligible through the second half. The current recommendation is to use the money to expand employment and training activities, expedite implementation of the BRIDGES program, and replace existing TANF expenditures with contingency funds to allow the state more flexibility to expand other crucial programs and build on existing successes.
"While no state wants to be in an economic situation that qualifies it for these additional funds, it is imperative for our children and families that we take advantage of every single resource available to us," Rep. Spade said. "I want to commend the leadership within the Department and the administration for working to ensure that our children and families receive the resources they need in these tough economic times. The amount of work that our state departments have put into qualifying for these additional funds is truly exceptional."
TANF funds must be spent within the fiscal year in which the state qualifies and must be used to meet one or more of the following four TANF goals identified by the federal government:
- Provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;
- End the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;
- 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
- Encourage the formation and maintenance of two-parent families.
In order to qualify for FY 2008 TANF contingency funds, the state must identify $363.2 million in existing expenditures that meet one of the four goals. These funds, which can be any spending that falls into one of the four categories and is targeted at TANF eligible children, are required to show Maintenance of Effort (MOE) or a concerted effort on the part of the state to independent achieve the goals of the TANF program. Working in collaboration with other state departments, the DHS and their partners have been able to identify $352.7 million of the required amount and efforts are well underway to find the remaining $10.5 million. The likelihood of the state meeting MOE requirement for the remainder of this fiscal year is strong.