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Program C: Client Payments

Program Authorization: Social Security Act as amended by P.L. 100-485; R.S. 46:237.1-236.2

PROGRAM DESCRIPTION

The mission of the Client Payments Program is to pay financial benefits directly to, or on behalf of, those individuals and families who make application and are found eligible under the requirements of the appropriate program.

The goals of the Client Payments Program are:

1. Increase the ability of low-income individuals and families who are unable to provide for the themselves or their families through employment or their own resources, to obtain the basic necessities of live by providing temporary money grants to or on behalf of those who are eligible for assistance.

2. Reduce and avoid dependency on public assistance through the payment to custodial parents of child support collected from non-custodial parents, and to pay child support incentive payments to entities responsible for collections.

3. Supply funds directly to public assistance recipients, or through purchase of service contracts, for education and training services to enable them to achieve or move toward self-sufficiency.

4. Finance the provision of child care during education and training of Family Independence Temporary Assistance Program (FITAP) recipients, or to former FITAP recipients, during periods of transition to independence.

OBJECTIVES AND PERFORMANCE INDICATORS

Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).

 

 

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with General Fund and Federal Funds. Federal Funds are obtained from: The Temporary Assistance for Needy Families (TANF) block grant for temporary monthly cash payments; The Social Security Act, Section 1113 and P.L. 86-571 for payments to U. S. citizens returning from a foreign country due to mental illness or destitution; Refugee Resettlement Act of 1980 (P.L. 212) for payments to needy refugees, and The Child Care and Development Block Grant, for child care assistance payments.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

 

 

 

 

 

$40,453,492

$215,419,361

0

 

ACT 19 FISCAL YEAR 1998-1999

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

($600,000)

0

 

Transfer surplus Temporary Assistance for Needy Families (TANF) federal funds to the Client Services program for teen pregnancy prevention programs

$0

$26,000,000

0

 

Increase subsidized child day care payments from prior years undrawn and unbudgeted Child Care and Development Block Grant federal funds

$0

$7,323,750

0

 

Increase interagency transfer means of financing from the Office of Emergency Preparedness for disaster relief payments associated with hurricane Georges

 

 

 

 

 

$40,453,492

$248,143,111

0

 

EXISTING OPERATING BUDGET – November 20, 1998

 

 

 

 

 

$0

($9,073,000)

0

 

Workload – Reduce federal funds to reflect the continuing decline in the TANF caseload to an estimated average of 45,000 cases per month during FY 1999-2000

$0

($19,000,000)

0

 

Nonrecurring federal funds added by BA-7 for subsidized child day care, offset by the utilization of $8 million of surplus TANF federal funds for additional subsidized day care

$0

($7,323,750)

   

Nonrecurring interagency transfer means of financing from the Office of Emergency Preparedness for disaster relief payments associated with hurricane Georges

($4,700,000)

($4,700,000)

0

 

Eliminate general fund used to drawn down federal funds at the beginning of the fiscal year, and substitute a loan, or "seed" from the Department of the Treasury

($500,000)

($500,000)

0

 

Reduce funding in the Other Charges Line Item for TANF payments to prior year actual amounts

$1,489,137

$5,019,000

0

 

Provide funding to transfer to the Dept. of Education to continue the Starting Points Preschool Program providing early child care initiative services

($9,954)

$0

0

 

Means of Financing Substitution – Replace general fund with federal funds to reflect a change in the match rate for child care services

$0

$0

0

 

Means of Financing Substitution – Replace $9,585,855 of self-generated revenue with federal funds from the Client Services program to reflect revenue in the proper program

 

 

 

 

 

$36,732,675

$212,565,361

0

 

TOTAL RECOMMENDED

       

($3,720,817)

($35,577,750)

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 85.7% of the existing operating budget. It represents 97.3% of the total request ($218,456,656) for this program. Major changes include: decreased funding in the amount of $9,073,000 in the FITAP program to reflect a caseload reduction to an estimated 45,000 cases in FY 1999-2000; decreased funding in the amount of $19,000,000 to non-recur one time federal funds added by BA-7 during FY 1998-99 for child care assistance payments; a decrease of $7,323,750 to non-recur disaster assistance funds for hurricane Georges added by BA-7 during FY 1998-99, and a reduction of $4,700,000 to substitute a loan from the Treasury for general fund used to pay for services at the beginning of the fiscal year, and then reverted to the Treasury by the agency at the end of the year. These reductions were partially offset by an increase of $5,019,000 in funding to transfer to the Dept. of Education to continue the Starting Points Preschool Program child care initiative.

Included as a source of funding is the Temporary Assistance to Needy Families (TANF) federal block grant which is used in this program to provide temporary monthly cash assistance payments to eligible families. This grant is part of a comprehensive piece of federal legislation (The Personal Responsibility and Work Opportunity Reconciliation Act of 1996) that provides temporary cash assistance to needy families with children, and social services designed to reduce dependency by promoting job preparation, work and marriage. The legislation eliminated the open-ended federal Aid to Families with Dependent Children (AFDC) entitlement program, and placed a maximum five year time limitation on cash assistance. The legislation also made significant changes to the child care assistance, Food Stamp, Supplemental Security Income (SSI) for children, benefits for legal immigrants, and the child support enforcement programs. States must meet an 80% Maintenance-Of-Effort requirement to receive their full block grant allocation. The Maintenance Of Effort level is based upon a state's Fiscal Year 1994 spending on the AFDC, now called FITAP, and the JOBS, now called FINDWORK programs. For Louisiana the current maintenance of effort amount is $59.1 million of general fund.

PROFESSIONAL SERVICES

This program does not have funding for Professional Services for Fiscal Year 1999-2000.

OTHER CHARGES

$88,229,923

 

Payments to Family Independence Temporary Assistance Program eligibles

$69,946,303

 

Payments from the Child Care and Development Block grant for child care assistance

$43,443,591

 

Payments for the Findwork education, support and transportation program

$1,953,810

 

Payments for teen pregnancy prevention services

$593,854

 

Payments to needy refugees

$10,000

 

Payments to repatriated U.S. citizens

$100,000

 

Payments to custodial parents of lost child support enforcement checks until the funds are recouped

 

 

 

$204,277,481

 

TOTAL OTHER CHARGES

 

 

 

 

 

Interagency Transfers:

$5,019,000

 

Department of Education for the Starting Points Preschool Program

$1,984,457

 

Office of Community Services for child care services

$945,817

 

Vocational and Technical Colleges for Findwork training

$71,362

 

Office of Women’s Service for Findwork training

$11,000

 

Office of Community Services for refugee assistance

$210,054

 

DHH, Office of the Secretary for refugee medical services

$46,190

 

DHH, Office of Public Health for teen pregnancy prevention services

 

 

 

$8,287,880

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

This program does not have funding for Acquisitions and Major Repairs for Fiscal Year 1999-2000.


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