HB 1658-FN – AS INTRODUCED
2012 SESSION
05/09
HOUSE BILL 1658-FN
AN ACT limiting financial assistance for mothers who have additional children while receiving Temporary Assistance to Needy Families (TANF).
This bill provides that, with certain limited exceptions, TANF recipients shall not receive an increase in financial assistance payments as the result of the birth of a child.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
12-2795
05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT limiting financial assistance for mothers who have additional children while receiving Temporary Assistance to Needy Families (TANF).
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Temporary Assistance to Needy Families; Birth of a Child During Period of Benefit Eligibility. Amend RSA 167 by inserting after section 81-a the following new section:
167:81-b Birth of a Child During Period of Benefit Eligibility; Effect on Financial Assistance Benefits; Exceptions.
I. The level of financial assistance benefits payable to an assistance group with dependent children shall not increase as a result of the birth of a child during the period in which the assistance group is eligible for benefits, or during a temporary period in which the assistance group is ineligible for benefits pursuant to a penalty imposed by the commissioner for failure to comply with benefit eligibility requirements, subsequent to which the assistance group is again eligible for benefits.
II. The limitation on benefits established in this section shall not apply to medical assistance or food stamp benefits provided to the assistance group.
III. In the case of an assistance group with dependent children in which the adult or minor parent recipient gives birth to an additional child during the period in which the assistance group is eligible for benefits, or during a temporary penalty period of ineligibility for benefits subsequent to which the assistance group again becomes eligible for benefits, the commissioner shall provide that in computing the amount of financial assistance benefits to be granted to the assistance group, the following shall be deducted from the monthly earned income of each employed person in the assistance group: the applicable earned income disregards under RSA 167:82, VII and after application of the earned income disregards, the total countable income shall be compared for eligibility purposes and subtracted for financial assistance benefit calculation purposes from the eligibility standard for the assistance group size, adjusted to include any person for whom financial assistance has not been received due to the application of the provisions of paragraph I.
IV. The provisions of this section shall not apply to:
(a) An individual in an assistance group with dependent children who gives birth to a child fewer than 10 months after applying for and receiving cash assistance benefits; or
(b) The birth of a child that occurs as a result of rape or incest.
2 Family Assistance Program; Reference Added. Amend RSA 167:84, IV to read as follows:
IV. Financial assistance payments shall be pursuant to RSA 167:82, VII, subject to the limitation established in RSA 167:81-b.
3 Effective Date. This act shall take effect January 1, 2013.
LBAO
12-2795
12/23/11
HB 1658-FN - FISCAL NOTE
AN ACT limiting financial assistance for mothers who have additional children while receiving Temporary Assistance to Needy Families (TANF).
FISCAL IMPACT:
The Department of Health and Human Services states this bill will increase state expenditures by $167,810 and decrease state revenue by $15,138 in FY 2013. State expenditures will decrease by $64,380 and state revenue will decrease by $30,276 in FY 2014 and each year thereafter. The Department and the New Hampshire Municipal Association state this bill will have an indeterminable fiscal impact on local revenue and expenditures. There will be no fiscal impact on county revenue or expenditures.
METHODOLOGY:
The Department of Health and Human Services states this bill would disallow an increase to Temporary Assistance to Needy Families (TANF) financial assistance when the increase would be due to the birth of a child. The bill would not apply to cases where the child is born fewer than 10 months after the family applies for and receives assistance, or in cases of rape or incest.
The Department estimated the fiscal impact of this bill based on upon the following assumptions:
• There were a total of 219 cash assistance cases with births during fiscal year 2011. 74 of the births occurred over 10 months after the assistance case was opened. The remainder, or 145 births, would not be affected by this bill.
• Of the 74 births, 38 were to New Hampshire Employment Program (NHEP) participants, 14 were to Interim Disable Parent Program (IDP) participants, and 22 were to Family Assistance Program (FAP) participants.
• The funding sources for the NHEP and FAP programs are 44% federal funds, 14% child support collections, and 42% state general funds. The IDP program is funded 100% with state general funds.
• The Department assumes the birth rate and program participation would be the same in future years and the average births per month would be 6 (74 per year/ 12 months).
• The average monthly increase in assistance attributable to a birth is $72.50.
• One-time changes to the eligibility management system would be necessary at a cost of $200,000.
• The TANF block grant requires the state to meet a Maintenance of Effort (MOE) level of spending. State funds reduced in one area would be used to satisfy the MOE in other areas.
• Families who cannot meet their basic financial needs through cash assistance offered by the state TANF program may seek additional support for housing and food from local welfare offices.
• The legislation would be effective January 1, 2013.
FY 2013 - 1/2 year |
FY 2014 |
FY 2015 |
FY 2016 | |
New Hampshire Employment Program |
||||
38 cases x $72.50 monthly grant X # of months (6 months in FY 2013) |
($16,530) |
($33,060) |
($33,060) |
($33,060) |
Federal Funds 44% |
($7,273) |
($14,546) |
($14,546) |
($14,546) |
Other Revenue - Child Support Collections 14% |
($2,314) |
($4,628) |
($4,628) |
($4,628) |
General Funds |
($6,943) |
($13,886) |
($13,886) |
($13,886) |
Family Assistance Program |
||||
22 cases x $72.50 monthly grant X # of months (6 months in FY 2013) |
($9,570) |
($19,140) |
($19,140) |
($19,140) |
Federal Funds 44% |
($4,211) |
($8,422) |
($8,422) |
($8,422) |
Other Revenue - Child Support Collections 14% |
($1,340) |
($2,680) |
($2,680) |
($2,680) |
General Funds |
($4,019) |
($8,038) |
($8,038) |
($8,038) |
Interim Disabled Parent Program |
||||
14 cases x $72.50 monthly grant X # of months (6 months in FY 2013) - All General Funds |
($6,090) |
($12,180) |
($12,180) |
($12,180) |
Federal Revenue |
($11,484) |
($22,968) |
($22,968) |
($22,968) |
Other Revenue - Child Support Collections |
($3,654) |
($7,308) |
($7,308) |
($7,308) |
Total Revenue |
($15,138) |
($30,276) |
($30,276) |
($30,276) |
Expenditures |
($32,190) |
($64,380) |
($64,380) |
($64,380) |
Eligibility Management System Changes (one-time) |
$200,000 |
$0 |
$0 |
$0 |
Total Expenditures |
$167,810 |
($64,380) |
($64,380) |
($64,380) |
Net State Impact Cost / (Savings) |
$182,948 |
($34,104) |
($34,104) |
($34,104) |
The New Hampshire Municipal Association states this bill may result in additional costs to municipal welfare programs, but is not able to determine the fiscal impact.