Ohio welfare and aid recipients might see increases in cash assistance on the horizon for the first time in five years.
The Ohio Department of Job and Family Services submitted a new plan for the Temporary Assistance for Needy Families program to the Ohio House yesterday. The plan proposes a 10 percent increase in Ohio Works First -a cash assistance program that is a part of TANF. The increase would be the first for the fund in five years.
The increased allocation is projected to be $24.4 million and $32.5 million for 2006 and 2007, respectively. Without the proposed increases, about $320 million is projected for the Ohio Works First program for the next two years.
The increase in funding will come from a $608 million surplus -as of the end of this year -that the state has built up since TANF was created in 1996. The surplus comes from savings set aside by the state, under spending by counties and roll-over funding.
Ohio receives $728 million annually from the federal government for TANF and allocates about another $390 million from a combination of the state general fund and county revenue. The projected costs of the program for state fiscal years 2006 and 2007 are about $1.2 billion and about $1.5 billion, respectively.
By the end of 2007, the department is expected to spend $343 million of the surplus on various programs within TANF, said Jon Allen, Ohio Department of Job and Family Services spokesman.
I don't think anyone would advocate to have a zero balance... to spend whatever amount was available without any kind of balance. There is certainly debate about what the correct amount is. The plan addresses concerns about money being put to use... changes that will be sustainable in the future
he said.
There has been some discussion in the past about spending money from the surplus.
A lot of (money) they've just been sitting on. That isn't the goal of the federal government giving money to the states. It needs to be given to the families said Tracy Galway, Athens County Department of Job and Family Services spokeswoman.
TANF assists a variety of Ohioans with cash assistance, employment retention and childcare, among other initiatives.
In 2004, about 192,000 Ohioans received cash assistance grants, with about 14,000 people from Athens County receiving the grants, Galway said.
The increase for cash assistance will benefit recipients, but it will be limited because there has not been an increase in many years, Galway said.
The increase did not even keep up with the adjustment of the federal poverty guidelines. The increase in cash benefits basically cancels (inflation) out -it doesn't make them any closer to getting out of poverty she said.
Another proposal was made by Athens County Department of Job and Family Services Director Jack Frech, who suggested an increase of $100 per month of cash assistance to families, representing a 30 percent increase costing $100 million as compared to the 10 percent increase costing about $57 million proposed by the state.
But a problem within the TANF program is whether or not there is funding to sustain proposed initiatives every year, Allen said.
We don't believe that an extra $100 million per year in cash grants is sustainable
he said. This would spend down the balance and ignores the other things proposed that are spending down that balance.
The department has surveyed families receiving cash assistance about how they spent their money -with almost every survey being completed, Galway said. In 2004, Athens spent about $2.2 million on cash assistance.
The first things they listed were to take care of kids
paying for rent and food -being able to pay for the basic needs. A lot of it is heart breaking. They just want to be able to take care of their kids
she said.
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