Minnesota Temporary Assistance for Needy Families Expenditures Task Force Final Report

Minnesota Temporary
Assistance for Needy Families
Expenditures Task Force
Final Report

Children and Family Services

February 2015
For more information contact:
Minnesota Department of Human Services
Children and Family Services
P.O. Box 64244
St. Paul, MN 55164-0244
651-431-3830
1

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Table of Contents
I.

Executive Summary

II.

Legislation

III.

Introduction

10

IV.

The Minnesota Family Investment Program (MFIP)

12

V.

Benefit Levels

13

VI.

Current TANF Funding

15

VII.

What is known about Poverty affecting Childhood Development and Outcomes

17

VIII.

Recommendations

19

IX.

Appendix A

21

X.

Appendix B

37

XI.

Appendix C

38

I.

Executive Summary

Report mandate
The 2014 Minnesota Legislature directed the Minnesota Department of Human Services to
convene the Minnesota Temporary Assistance for Needy Families (TANF) Expenditures Task
Force, and to staff and provide technical assistance to the group. The duties of the task force
include analyzing past federal TANF expenditures and making recommendations as to which, if
any, programs receiving TANF funding should be funded by the general fund to allow a greater
portion of TANF funds to go directly to families receiving assistance through the Minnesota
Family Investment Program (MFIP).
This is the second of two reports. The first report was submitted in November 2014 and can be
found at the Legislative Reference Library1 or by following this link. This final report includes
an analysis of past TANF expenditures and makes recommendations as to which programs
should be funded by the general fund rather than TANF.
Overview and History
The Minnesota Family Investment Program and Diversionary Work Program (DWP) are
Minnesotas Temporary Assistance for Needy Families (TANF) program. TANF is a block grant
funded by the federal government which requires states to use funds to achieve four purposes:

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 incidence of these pregnancies, and
Encourage the formation and maintenance of two-parent families.

In December 2013, 28,664 adults and 69,603 children received cash assistance through MFIP or
the Diversionary Work Program. Families participating in TANF funded programs tend to be
young, with an average adult age of 31. A child under the age 6 is involved in 67 percent of
TANF funded cases. The majority of eligible adults are female (81 percent of MFIP-eligible and
75 percent of DWP-eligible adults); about 20 percent of cases have two caregivers present.2
Since 1986, the MFIP cash grant has not changed. For a family of three on MFIP, the maximum
cash grant is $532, the same as it was 28 years ago. The average cash grant in December 2013
for MFIP child-only cases was $312; for eligible adult MFIP cases, $353, and for DWP cases,
$359. In 1986, the cash grant provided families with a cash resource that met approximately 70
percent of the federal poverty level. Today, the MFIP cash grant is only worth 32 percent of the
federal poverty level, far below the federal definition of deep poverty, which is 50 percent of
federal poverty guidelines. In 2012, Minnesota had 78,000 children living in deep poverty.

Minnesota Temporary Assistance for Needy Families Expenditures Task Force Initial Report
http://archive.leg.state.mn.us/docs/2014/mandated/141178.pdf
2
Minnesota Family Investment Program and the Diversionary Work Program: Characteristics of December 2013
Cases and Eligible Adults: https://edocs.dhs.state.mn.us/lfserver/Public/DHS-4219P-ENG

Taskforce findings include:

The current MFIP cash grant has not increased since 1986.
In 1986, the MFIP cash grant supported a family at 70
percent of the federal poverty guideline. Today, the MFIP
cash grant supports a family at just 32 percent of the federal
poverty guidelines. Income below 50 percent of the federal
poverty guideline is considered to be deep/extreme poverty.
Childhood poverty in Minnesota has more than doubled,
increasing 105 percent since 2000. In 2012, 78,000
Minnesota children lived in deep poverty.3
Past TANF expenditures have been lawful and in accordance
with the four purposes of TANF, as defined in federal law.
TANF expenditures fund many worthwhile programs that
directly benefit MFIP families through tax credits, access to
child care, employment supports, home visiting services and
emergency assistance.
There is a correlation between deep poverty and long-term
adverse childhood outcomes related to educational
attainment, social and emotional development, future
earnings and employment, health, and future quality of
parenting by the child.
The Working Family Credit, in conjunction with the Earned
Income Tax Credit (EITC), is one of the most successful
anti-poverty programs4
The home visiting program, the primary beneficiary of grants
administered by the Minnesota Department of Health (MDH)
funded by TANF, has a significant return on investment of
$5.70 for every dollar invested.5

In 1986, the cash

grant provided
families with a cash
resource that met
approximately 70
percent of the federal
poverty level. Today,
the MFIP cash grant is
only worth 32 percent
of the federal poverty
level, far below the
federal definition of
deep poverty, which is
50 percent of federal
poverty guidelines.

Recommendations
The task force is required to make recommendations as to which programs, if any, currently
receiving TANF funding should be funded by the general fund. To meet this requirement, the
taskforce, by a majority vote, makes the following recommendation:

The legislature should redirect TANF funds that currently fund programs outside of the
Minnesota Department of Human Services and repurpose those dollars to increase cash
grants. Specifically, the task force recommends that TANF funds directed towards the
Working Family Credit (WFC), about $45 million in 2016-2017, and TANF funds

Minnesota Kids Count Data Book 2007 http://www.cdf-mn.org/research-library/2007-kcdb.pdf and Minnesota Kids
Count 2014 http://www.cdf-mn.org/sites/2014-publications/2014-minnesota-kids-count.pdf
4
Earned Income Tax Credit Promotes Work, Encourages Childrens Success at School, Research Finds
http://www.cbpp.org/files/6-26-12tax.pdf
5
Family Home Visiting Program, Minnesota Department of Health. Report to the Minnesota Legislature 2012
http://www.health.state.mn.us/divs/fh/mch/fhv/documents/fhvprogreport_legis2012.pdf

distributed to the Minnesota Department of Health, about $23 million in 2016-2017, be

redirected to increase MFIP grants.
There is a deep concern however, by the task force that this recommendation would negatively
impact overall funding of effective programs such as the Working Family Credit and programs
funded by grants administered by the Minnesota Department of Health, particularly home
visiting programs. The task force, by a strong consensus, also makes the following
recommendation:

General fund resources must be used to replace every TANF dollar that currently funds
the Working Family Credit, home visiting programs, and other programs funded through
the Minnesota Department of Health grants. Without full replacement of these funds by
general fund dollars, the task force, in unanimity, would no longer make its initial
recommendation.

Task force members recognize that the above recommendations do not make enough progress
toward addressing 28 years of stagnant resources to our poorest children. Therefore, it also
recommends that the following needs to be goals of this state and legislature:

At a minimum, MFIP grants should no longer be eroded by the effects of inflation and
increased living expenses. A cost of living adjustment should be forecasted within the
grant.
No child should live in deep poverty, defined as 50 percent of the federal poverty level.
The MFIP grant should allow participants to minimally achieve this level.
In 1986, cash grants provided enough resources to meet 70 percent of the federal poverty
level. Achieving this level today would require significant investment beyond available
TANF funds; however, this should to be the ultimate goal towards enabling children to
move out of deep poverty.
Employ programs that encourage asset building and financial literacy. For example, the
Family Assets for Independence in Minnesota (FAIM) should be funded to maximize
federal matching funds.
Adopt policies to encourage work, skill-building through training and education, and
increased compliance with child support orders. Strategies to consider could include:
o Disregard child support received by MFIP families as income
o Disregard income associated with training and education activities as income.
o Provide for an increased and uniform disregard of earned income.

II.

Legislation

Laws of Minnesota 2014, Chapter 291, Article 1, Section 12.

MINNESOTA TANF EXPENDITURES TASK FORCE.

Subdivision 1. Establishment. The Minnesota TANF Expenditures Task Force is
established to analyze past temporary assistance for needy families (TANF) expenditures
and make recommendations as to which, if any, programs currently receiving TANF
funding should be funded by the general fund so that a greater portion of TANF funds
can go directly to Minnesota families receiving assistance through the Minnesota family
investment program under Minnesota Statutes, chapter 256J.
Subd. 2. Membership; meetings; staff. (a) The task force shall be composed of the
following members who serve at the pleasure of their appointing authority:
(1) one representative of the Department of Human Services appointed by the
commissioner of human services;
(2) one representative of the Department of Management and Budget appointed by
the commissioner of management and budget;
(3) one representative of the Department of Health appointed by the commissioner
of health;
(4) one representative of the Local Public Health Association of Minnesota;
(5) two representatives of county government appointed by the Association of
Minnesota Counties, one representing counties in the seven-county metropolitan area
and one representing all other counties;
(6) one representative of the Minnesota Legal Services Coalition;
(7) one representative of the Children's Defense Fund of Minnesota;
(8) one representative of the Minnesota Coalition for the Homeless;
(9) one representative of the Welfare Rights Coalition;
(10) two members of the house of representatives, one appointed by the speaker of
the house and one appointed by the minority leader; and
(11) two members of the senate, including one member of the minority party,
appointed according to the rules of the senate.
(b) Notwithstanding Minnesota Statutes, section 15.059, members of the task force
shall serve without compensation or reimbursement of expenses.
7

(c) The commissioner of human services must convene the first meeting of the
Minnesota TANF Expenditures Task Force by July 31, 2014. The task force must meet at
least quarterly.
(d) Staffing and technical assistance shall be provided within available resources by
the Department of Human Services, children and family services division.
Subd. 3. Duties. (a) The task force must report on past expenditures of the TANF
block grant, including a determination of whether or not programs for which TANF funds
have been appropriated meet the purposes of the TANF program as defined under Code of
Federal Regulations, title 45, section 260.20, and make recommendations as to which,
if any, programs currently receiving TANF funds should be funded by the general fund.
In making recommendations on program funding sources, the task force shall consider
the following:
(1) the original purpose of the TANF block grant under Code of Federal Regulations,
title 45, section 260.20;
(2) potential overlap of the population eligible for the Minnesota family investment
program cash grant and the other programs currently receiving TANF funds;
(3) the ability for TANF funds, as appropriated under current law, to effectively help
the lowest-income Minnesotans out of poverty;
(4) the impact of past expenditures on families who may be eligible for assistance
through TANF;
(5) the ability of TANF funds to support effective parenting and optimal brain
development in children under five years old; and
(6) the role of noncash assistance expenditures in maintaining compliance with
federal law.
(b) In preparing the recommendations under paragraph (a), the task force shall
consult with appropriate Department of Human Services information technology staff
regarding implementation of the recommendations.
Subd. 4. Report. (a) The task force must submit an initial report by November
30, 2014, on past expenditures of the TANF block grant in Minnesota to the chairs and
ranking minority members of the legislative committees with jurisdiction over health and
human services policy and finance.
8

(b) The task force must submit a final report by February 1, 2015, analyzing past
TANF expenditures and making recommendations as to which programs, if any, currently
receiving TANF funding should be funded by the general fund, including any phase-in
period and draft legislation necessary for implementation, to the chairs and ranking
minority members of the legislative committees with jurisdiction over health and human
services policy and finance.
Subd. 5. Expiration. This section expires March 1, 2015, or upon submission of the
final report required under subdivision 4, whichever is earlier.
EFFECTIVE DATE. This section is effective the day following final enactment.

III.

Introduction

The purpose of the task force is to review past TANF expenditures; determine whether the
appropriations met the purposes of the program as defined under federal regulations (Code of
Federal Regulations, title 45, section 260.20); and to make recommendations as to whether
programs that currently receive TANF funding should be funded by the general fund so that a
greater portion of TANF funds go directly to families.
An initial report was submitted to the Minnesota Legislature in November 2014 pursuant to
Laws of Minnesota 2014, Article 1, Section 12. (Appendix A)
This final report builds on the initial report of the TANF expenditures task force. Minnesota
Department of Human Services staff prepared this report after task force meetings in 2014 on
July 30th, Oct. 13th, Nov. 20th, Dec. 18th and Jan. 12th, 2015. Department staff presented:

An overview of TANF program rules and requirements related to allowable use of funds.
Summaries of expenditures.
General background information.
Reports as requested by the task force.
Scenarios and timelines for making recommendations for using TANF expenditures
towards increasing the MFIP cash grant.

See Appendix B for a list of task force members and their affiliations.

10

Bobbi Smith

Bobbi Smith was a few credits shy of graduating from

college when her husband became severely disabled.
In need of employment to support her family, the
mother of three from Stevens County went to her local
Rural Minnesota Concentrated Employment Program

The nonprofit organization funded by federal, state and county dollars prepares
people for work in 19 northwestern Minnesota counties Becker, Beltrami, Cass,
Clay, Clearwater, Crow Wing, Douglas, Grant, Hubbard, Lake of the Woods,
Mahnomen, Morrison, Otter Tail, Pope, Stevens, Todd, Traverse, Wadena and
Wilkin.
As a Minnesota Family Investment Program (MFIP) recipient, Bobbi was eligible
for education and training services. MFIP, administered by the Department of
Human Services, and delivered by local counties helps lowincome Minnesotans
with children achieve selfsufficiency through temporary job counseling, financial
assistance and nutrition assistance.
At Rural Minnesota CEP, Bobbi received job search, rsum and interviewing
assistance. The organization also provided help with gas vouchers, a car repair
and work attire to make sure Bobbi would be successful in her job search. Bobbi
said the staff was amazing to work with kind, helpful and outgoing all the way!
After learning how to showcase her abilities through her rsum, she had a
phenomenal first interview with a law firm. While she was not selected for that
job, they recommended her to another firm that was hiring. Rural Minnesota CEP
contacted that agency following her interview to offer an onthejob training
contract. The contract defrays the cost of training for applicants without previous
experience in the field.
Bobbi landed the position and the firm is excited to have her on board as an
executive legal assistant. In December 2011, she graduated with honors from the
University of Minnesota, Morris, with a Bachelor of Arts in management. Her
family is no longer receiving MFIP assistance and moved out of subsidized
housing to a home just blocks from Bobbi's new job.
We now live in a house. I work fulltimeand life is great, Bobbi said.

11

IV.

The Minnesota Family Investment Program

The federal TANF program is a block grant to states to help needy families become selfsufficient. States have broad flexibility in developing programs that meet the purposes of the
TANF block grant, as outlined in federal law.
The Minnesota Legislature determines how TANF funds are used. Since 1998, these funds have
been used to support a variety of programs and services that meet federal goals and purposes of
the program. Federal TANF funds have also been used in place of state dollars to maintain
programs and services during budget reductions.
The Minnesota Family Investment Program and the Diversionary Work Program are
Minnesotas TANF programs. Eligibility for MFIP and DWP requires that a participant:

A United States citizen or qualified, legal noncitizen.

A Minnesota resident, with a child in the assistance unit.
Countable earned and unearned income below the current family wage level, which is
approximately 67 percent of federal poverty guidelines.

Characteristics of MFIP/DWP cases (December 2013 cases):

MFIP and DWP cases continue to decrease. Caseloads fell by 4 percent between
December 2011 and 2012, and by 6 percent between December 2012 and 2013.
The average age of MFIP caregivers is 31 years.
Rates of serious mental health diagnoses have increased over the last six years, with 41
percent of child-only cases, 54 percent of MFIP cases with caregivers, and 33 percent of
DWP cases having at least one caregiver with a serious mental health diagnosis within
the last three years.
The average cash grant for MFIP child-only cases was $312, eligible adult MFIP cases
$353 and DWP, $359.
In total, 69,603 children participated in MFIP or DWP. There were 44,901 children
eligible in MFIP-eligible adult cases, 19,889 children eligible in MFIP child-only cases,
and 4,813 children eligible on DWP.
The average age of the youngest child in MFIP child-only cases is 8 years; in MFIP
cases, 6 years; and in DWP cases, 5years.

Age distribution of children in MFIP cases:

Age
Less than 1 year old
1-5 years old
6-10 years old
11-12 years old
13-15 years old
More than 15 years old

Child-only
527 (4.8%)
3,514 (32.2%)
2,985 (27.4%)
1,036 (9.5%)
1,568 (14.4%)
1,272 (11.7%)

MFIP
4,672 (20.7%)
10,823 (47.9%)
3,830 (17.0%)
921 (4.1%)
1,221 (5.4%)
766 (3.4%)

DWP
235 (9.2%)
1,233 (48.1%)
551 (21.5%)
125 (4.9%)
146 (5.7%)
107 (4.2%)

12

V.

Benefit Levels

Families today receive the same dollar amount of monthly assistance when they turn to cash
assistance as families received in 1986. In 1986, the MFIP cash benefit supported a family at 70
percent of the federal poverty guidelines. What once paid the rent for families in crisis now will
pay only half the cost of a two-bedroom apartment in the metro area, according to the United
States Department of Housing and Urban Development (HUD) published Fair Market Rent
levels. Current assistance levels keep families in deep or extreme poverty, defined as living
below 50 percent of the federal poverty line. The Minnesota Family Investment Program
provides income support to the poorest children and their families, yet it cannot adequately house
a family when facing a crisis such as a lost job, serious illness, or domestic violence.
Since the last increase in cash benefits in 1986, fair market rents have increased 108 percent and
inflation has increased 215 percent. Compared to other states, Minnesotas MFIP benefit has
declined in value by 33.7 percent since 1996, which is a decline greater than that of 28 other
states.6
Minnesota has more children living in deep poverty today than children living in MFIP
households. A contributing factor includes a declining rate of families who meet eligibility for
MFIP but not enrolling in MFIP. Currently 32 percent of potentially eligible families enroll in
MFIP, this is down from 44 percent in 2005 (Appendix C). The eroding value of the MFIP cash
grant coupled with increased program complexity could be factors contributing to this.
DeeppovertyandMFIP
TheproportionofMinnesotaschildrenin
povertywhoareactuallyindeeppoverty
Thenumberofchildrenindeeppovertyin
Minnesota,2012
ThenumberofchildreninMFIPhouseholds,
December2012

42%
78,000
72,377

TANF Cash Benefits Have Fallen by More Than 20 Percent in Most States and Continue to Erode. Center on
Budget and Policy Priorities. http://www.cbpp.org/cms/?fa=view&id=4222

13

184,000
children
livingin
poverty
78,000 children living in
deep/extreme poverty

72,377
childrenin
MFIP

Rentsandcashassistancelevels

Amountofmonthlycash
assistanceaMinnesotafamily
ofthreereceived
1986
2015

$532
$532

Rentforatwobedroom
apartmentintheTwinCities
(perHUDFairMarketRent
levels)
$4807
$9968

Fiscal Year 2014 Fair Market Rent History for Hennepin County, MN
http://www.huduser.org/portal/datasets/fmr/fmr_il_history/history_fmr.odn?inputname=METRO33460M33460*He
nnepinCounty%2B2705399999&county_select=yes&statename=Minnesota&statefp=27&stusab=MN&fmr_year=2
014&il_year=2014&area_choice=county
8
Fiscal Year 2015 Fair Market Rent Documentation System
http://www.huduser.org/portal/datasets/fmr/fmrs/FY2015_code/2015summary.odn

14

VI.
Current Uses of TANF
Funding
The TANF block grant provides
states with broad flexibility in
how to use TANF funds in
developing programs and
strategies to meet the four
federally established purposes for
TANF, which include:

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-ofwedlock pregnancies and
establish annual
numerical goals for
preventing and reducing
the incidence of these
pregnancies, and
Encourage the formation
and maintenance of twoparent families.

Jessica is a young mom, who lived in foster care

most of her teen years. She has two young children,
both in diapers and is separated from the father of
her children because of his drug and alcohol use. He
recently went through treatment. Jessica was on
maternity leave when she separated from him, and
lost her job when she found herself the sole
caregiver for the two young children. She owns her
mobile home, so her lot rent payment is $330 a
month. But the cost of baby supplies, which is not
covered by food support, and utilities, means that
there is no money left at the end of the month, and
will likely fall behind on utilities again. Fuel
Assistance did help with a back amount due, but
does not pay the ongoing amount. She has a car,
but struggles to pay the car insurance. The mobile
home park she lives in has limited bus service, so
she needs a car with her two young children. Her
former foster mother tries to help out, by paying for
her phone. Her MFIP grant is about $532.

Within the federal TANF goals, federally mandated components must be included within a states
TANF program to prevent a reduction in the states TANF block grant. These mandates require
states to:

Meet a Maintenance of Effort requirement where 75 to 80 percent of historic spending

must be spent on programs that meet the four purposes of TANF.
Meet federal Work Participation Requirement (WPR), where 50 percent of work-eligible
individuals receiving assistance must meet minimum hourly requirements in a federally
defined work activity which includes paid work, job search and job skills training.

Minnesota utilizes TANF funding primarily to fund the following components which support and
aid in the delivery of the Minnesota Family Investment Program:

15

Kim is a mother of one

living in central Minnesota
who recently lost her
server job when the
restaurant she was
working at abruptly
closed. Turning to MFIP,
Kims family receives a
$437 cash benefit which
doesnt meet her rent of
$752, not to mention her
utility bills, transportation
costs and other basic
living needs. Kim is trying
to find employment by
using a temp agency,
however, this work is
unpredictable, sporadic
and provides shiftwork in
the mornings, afternoon
and nights, which makes
finding child care
extremely difficult. To
make matters worse,
Kims car recently broke
down and is unable to pay
the $300 it will cost to fix
her car so she can get to
work. Although MFIP
provides a limited cash
resource and training
opportunities, responding
to and resolving crisis
moments with a limited
income takes months to
resolve, which only puts
her further into debt and
instability.

Consolidated Fund: Created in 2004 by combining funding from 11

programs and services, the consolidated fund is allocated to county and
tribal agencies primarily responsible for administering the MFIP
program. County agency use of consolidated fund allocations include
funding direct program costs for services provided to families,
including, counseling, job search, job placement, job retention, program
overview, interpreter costs, and other direct expenses including wages,
benefits, travel, office and phone, administrative costs for county, tribes
and private providers to administer social services and program
eligibility, emergency assistance payments such as costs to avert utility
shut-offs, and housing costs such as damage deposits, transportation,
employment-related costs, other costs related to wage subsidies, client
incentives, background checks and work supports. Consolidated fund
expenditures for the FY 2004-2005 biennium totaled $183.3 million. It
is projected that consolidated fund expenditures in the FY14-15
biennium will total $189.2 million.
Cash Assistance: Direct cash benefits to families and children in
MFIP. The cash assistance benefit has not increased since 1986.
Child Care: Minnesota transfers funds to the child care fund to provide
child care services to MFIP families. MFIP families are able to have
child care providers reimbursed for the care provided for their children
while the caregiver is participating in employment plan activities.
Working Family Credit: TANF funds have been used since 2000 to
fund a portion of the Working Family Credit (WFC), a tax credit
designed to encourage work, and is targeted especially to low-income
families with children. The WFC is Minnesotas counterpart to the
federal Earned Income Tax Credit (EITC), one of the nations most
effective anti-poverty strategies.
Minnesota Department of Health grants: Includes funds transferred
to other state agencies. TANF funds are appropriated to the Minnesota
Department of Health for Home Visiting Grants ($17.1 M for the
biennium), Family Planning grants ($2.3 million for the biennium) and
grants to decrease racial and ethnic disparities in infant mortality rates
($4 million for the biennium).
Administration: Administrative costs for the Minnesota Department of
Human Services, including oversight and policy development for the MFIP
program, appeals, federal reporting requirements, employment services
administration, MAXIS computer system costs related to issuance of
TANF benefits, fraud prevention activities, the TANF share of the contract
for federally required Income Eligibility Verification Systems (IEVS)
contract, and indirect costs for general support services, as required under
Minn. Stat. 16A.127.

16

VII.

What is Known About Poverty and Childhood Development and Outcomes?

Studies have shown a clear link that increased cash resources to families increase outcomes for
children living in deep poverty. A two-generational approach to addressing poverty is widely
regarded as being needed to adequately and positively impact the cycle of poverty, and must be
accomplished through promoting work, emphasizing education, improving parenting, and
reducing incidences of crimeall items that are improved when providing increased cash
resources to families in deep poverty.
Childhood poverty is correlated with poor performance in school. Providing an annual income
increase of $3,000 sustained for several years for very young children has shown a correlation to
better school performance.9 In this same study, an increase of $3,000 annually for a prenatal to 5
year-old is associated with a long-term impact to future adult earnings of 17 percent and an
additional 135 hours of work per year. Minnesotas mission to see improved educational
achievement and increased work productivity will rely on moving children out of poverty and
especially out of deep poverty.
Additionally, more family income has shown positive results in child development. An increase
in family income of $4,000 has shown to improve educational attainment by one full year,
reduce minor crime by 22 percent10, and improve the parental quality of children when they
themselves become parents.
Effects of childhood poverty:11

Poverty is linked with negative conditions such as substandard housing, homelessness,

inadequate nutrition and food insecurity, inadequate child care, lack of access to health
care, unsafe neighborhoods, and under-resourced schools which adversely impact our
nations children.
Poorer children and teens are at greater risk for several negative outcomes such as poor
academic achievement, school dropout, abuse and neglect, behavioral and socioemotional problems, physical health problems and developmental delays.
Economists estimate that child poverty costs an estimated $500 billion a year to the U.S.
economy; reduces productivity and economic output by 1.3 percent of gross domestic
product; raises crime and increases health expenditure.

Poverty and academic achievement:

Poverty has a particularly adverse effect on the academic outcomes of children,

especially during early childhood.

The Long Reach of Early Childhood Poverty, Greg Duncan and Katherine Magnuson, Pathways, Standford
University, Winter 2011, page 27.
https://web.stanford.edu/group/scspi/_media/pdf/pathways/winter_2011/PathwaysWinter11_Duncan.pdf
10
Parents Incomes and Childrens Outcomes: A Quasi-Experiment. William Copeland and Elizabeth J. Costello.
January 2010. American Economic Journal: Applied Economics, 2(1): 86-115. Author manuscript
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2891175/
11
Effects of Poverty, Hunger and Homelessness on Children and Youth. American Psychological Association.
http://www.apa.org/pi/families/poverty.aspx

17

Chronic stress associated with living in poverty has been shown to adversely affect
childrens concentration and memory, which may impact their ability to learn.
The National Center for Education Statistics reports that in 2008, the dropout rate of
students living in low-income families was about four and one-half times greater than the
rate of children from higher-income families (8.7 percent versus 2.0 percent).
The academic achievement gap for poorer youth is particularly pronounced for lowincome African American and Hispanic children compared with their more affluent
White peers.
Inadequate education contributes to the cycle of poverty by making it more difficult for
low-income children to lift themselves and future generations out of poverty.

Poverty and psychosocial outcomes include:

Children living in poverty are at greater risk of behavioral and emotional problems.
Behavioral problems that may include impulsiveness, difficulty getting along with peers,
aggression, attention-deficit/hyperactivity disorder (ADHD) and conduct disorder.
Emotional problems that may include feelings of anxiety, depression, and low selfesteem.
Poverty and economic hardship is particularly difficult for parents who may experience
chronic stress, depression, marital distress and exhibit harsher parenting behaviors. These
are all linked to poor social and emotional outcomes for children.

Poverty and physical health outcomes include:

Children and teens living in poorer communities are at increased risk for a wide range of
physical health problems.
Low birth weight.
Poor nutrition, which is manifested in the following ways:
o Inadequate food which can lead to food insecurity/hunger.
o Lack of access to healthy foods and areas for play or sports which can lead to
childhood overweight or obesity.
Chronic conditions such as asthma, anemia and pneumonia.
Risky behaviors such as smoking or engaging in early sexual activity.

18

VIII. Recommendations
Minnesota has used its TANF dollars on needed and valuable services which directly benefit
low-income families.
The task force is unanimous in its recommendation that any reduction of TANF funds to current
anti-poverty initiatives must be replaced using general fund dollars. Without the full replacement
of TANF dollars using the general fund, the task force, by consensus, could no longer support
the following recommendation.
The task force, with a majority opinion, recommends that TANF funds directed outside of
Minnesotas TANF program (MFIP) which includes the Working Family Credit through the
Minnesota Department of Revenue and grant funds administered by the Minnesota Department
of Health should be considered first for redirecting TANF dollars to the cash grant.
Task force members recognize the desire and need to adequately fund MFIP and redirect TANF
funds towards the cash grant. However, the lack of any increase to cash grants over the past 28
years has created a funding need much greater than can reasonably be met in the short term,
understanding current legislative budget constraints. By implementing the taskforces
recommendations, the additional TANF funds directed towards increasing cash grants would
result in a $80 a month increase in the cash grant for a family, while also keeping whole the
Working Family Credit and valuable programs funded through the Minnesota Department of
Health.
The fact that an MFIP cash grant ($532 for a family of three) supports a family at 32 percent of
the federal poverty level is problematic. In 1986 the cash grant was able to provide a family a
benefit equal to 70 percent of the federal poverty level. Task force members believe that
Minnesota should have a goal that the MFIP cash grant have an equal value as it did in 1986
which would allow for a family to move out of deep poverty, and would contribute to family
stability and many desirable long-term outcomes for MFIP children around education, future
earnings, health and quality parenting.
Working Family Credit
Currently, TANF funds provide approximately $45 million per biennium to the Working Family
Credit. The federal Earned Income Tax Credit (EITC) and Minnesota Working Family Credit
equal a percentage of the earnings of low-income individuals, up to a maximum amount. In
2010, about 350,000 Minnesota filers claimed federal EITCs totaling $666 million, and state
WFCs totaling $193.6 million, of which approximately $22-23 million per year is funded using
TANF funds. About 13 percent of all filers claimed the credits. The average EITC was $1,906;
the average WFC was $586.12
Recent research on the EITC and similar income-boosting measures, such as the Working Family
Credit, is noteworthy. It has been shown that the credit does much more than reduce poverty and
12

The Federal Earned Income Tax Credit and The Minnesota Working Family Credit. Research Department,
Minnesota House of Representatives, March 2013 http://www.house.leg.state.mn.us/hrd/pubs/feicwfc.pdf

19

provide a short-term safety net for low-income working families that receive it. For example,
children of EITC recipients do better in school, are likelier to attend college, and earn more as
adults. The EITC and WFC also provides income, employment, educational, and health benefits
that, for children, can extend into adulthood.13
Family Home Visiting Program
The Family Home Visiting program is the largest grant administered by the Minnesota
Department of Health funded by TANF dollars. Home Visiting services are delivered in the
home environment in an effort to:14

Link pregnant women with prenatal care.

Support parents early in their role as a childs first teacher.
Ensure that very young children develop in safe and healthy environments.

Overall, $23 million in TANF funds are appropriated to the Minnesota Department of Health
every biennium, in which $17.1 million goes towards the Family Home Visiting program.
Research-based family home visiting models have proven that for every public health dollar
invested, a return of up to $5.70 can be expected in savings to programs including Medicaid and
food support.15 In Minnesota, by a childs fifth birthday, state and local government cost savings
total $4,550 per family served by the Nurse-Family Partnership program.16
Impact to the MFIP Cash Grant
By adopting the task forces recommendations, MFIP cash grants could be immediately
increased to provide a family about $80 a month in additional resources to meet basic needs.
Although this increase falls short of making up for 28 years of inflation and still does not lift a
family out of deep poverty, task force members believes this is a modest first step towards
meeting some of the goals as outlined by the report from the Legislative Commission to End
Poverty by 2020.17 The task force also makes no recommendation or judgment related to the
phase-in of these recommendations. Due to lack of action related to any increase in MFIP cash
grants, the task force sees the imperative for increasing cash grants to occur as briskly as the MN
budget and Legislature would allow for.

13

Earned Income Tax Credit Promotes Work, Encourages Childrens Success at School, Research Finds. Center on
Budget and Policy Priorities. http://www.cbpp.org/cms/?fa=view&id=3793
14
Family Home Visiting Program. Minnesota Department of Health. Report to the Minnesota Legislature 2012
http://www.health.state.mn.us/divs/fh/mch/fhv/documents/fhvprogreport_legis2012.pdf
15
Karoly, L., Kilburn, M., Cannon, J.; Early Childhood Interventions: Proven Results, Future Promise; RAND
Corporation; 2005.
16
Miller, T. (February 2011). Cost Offsets of Nurse-Family Partnership in Minnesota. Calverton, MD: Pacific
Institute for Research and Evaluation.
17
Commission to End Poverty in Minnesota by 2020, Report to the Legislature. January
2009.http://www.commissions.leg.state.mn.us/lcep/LCEP_Final_Report_SinglePgs.pdf

20

IX. Appendix A

Minnesota Temporary
Assistance for Needy Families
Expenditures Task Force
Initial Report

Children and Family Services

November 2014
For more information contact:
Minnesota Department of Human Services
Children and Family Services
P.O. Box 64244
St. Paul, MN 55164-0244
651-431-3830

21

Minnesota Temporary Assistance for Needy Families Expenditures Task Force Final Report

This information is available in accessible formats to

individuals with disabilities by calling 651-431-4671.
Or by using your preferred relay service.
For other information on disability rights and protections,
contact the agencys ADA coordinator.
Minn. Stat. Chapter 3.197, requires the disclosure of the cost to prepare this report. The
estimated cost of preparing this report is under $1000.
Printed with a minimum of 10 percent post-consumer material. Please recycle.

22

Table of Contents
I.

Executive Summary ...........................................................................................................24

II.

Legislation..........................................................................................................................25

III.

Introduction ........................................................................................................................28

IV.

Temporary Assistance for Needy Families History and Background ...............................29

V.

TANF Expenditures ...........................................................................................................31

VI.

Refinancing History ...........................................................................................................33

VII.

Report Recommendations ..................................................................................................33

VIII. Appendix A ........................................................................................................................34

IX.

Appendix B ........................................................................................................................35

X.

Appendix C ........................................................................................................................36

XI.

Appendix D ........................................................................ Error! Bookmark not defined.

23

Executive Summary
The 2014 Minnesota Legislature directed the Minnesota Department of Human Services to
convene the Minnesota Temporary Assistance for Needy Families (TANF) Expenditures Task
Force, and to staff and provide technical assistance to the group. The duties of the task force
include analyzing past federal TANF expenditures and making recommendations as to which, if
any, programs receiving TANF funding should be funded by the general fund to allow a greater
portion of TANF funds to go directly to families receiving assistance through the Minnesota
Family Investment Program.
This is the first of two reports. This report includes a summary of past expenditures of the TANF
block grant in Minnesota. The final report, which must be submitted by Feb. 1, 2015, will
include an analysis of past TANF expenditures, and make recommendations as to which
programs, if any, should be funded by the general fund rather than TANF. This includes phase-in
periods if required to implement changes over time, and draft legislation necessary to implement
proposed changes.

24

Legislation
Legislation is effective the day following enactment.
Laws of Minnesota 2014, Chapter 291, Article 1, Section 12.
MINNESOTA TANF EXPENDITURES TASK FORCE.
Subdivision 1.
Establishment.
The Minnesota TANF Expenditures Task Force is established to analyze past temporary
assistance for needy families (TANF) expenditures and make recommendations as to which, if
any, programs currently receiving TANF funding should be funded by the general fund so that a
greater portion of TANF funds can go directly to Minnesota families receiving assistance
through the Minnesota family investment program under Minnesota Statutes, chapter 256J.
Subd. 2.
Membership; meetings; staff.
(a) The task force shall be composed of the following members who serve at the pleasure of
their appointing authority:
(1) one representative of the Department of Human Services appointed by the commissioner
of human services;
(2) one representative of the Department of Management and Budget appointed by the
commissioner of management and budget;
(3) one representative of the Department of Health appointed by the commissioner of
health;
(4) one representative of the Local Public Health Association of Minnesota;
(5) two representatives of county government appointed by the Association of Minnesota
Counties, one representing counties in the seven-county metropolitan area and one representing
all other counties;
(6) one representative of the Minnesota Legal Services Coalition;
(7) one representative of the Children's Defense Fund of Minnesota;
(8) one representative of the Minnesota Coalition for the Homeless;
(9) one representative of the Welfare Rights Coalition;
(10) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the minority leader; and
(11) two members of the senate, including one member of the minority party, appointed
according to the rules of the senate.

25

(b) Notwithstanding Minnesota Statutes, section 15.059, members of the task force shall
serve without compensation or reimbursement of expenses.
(c) The commissioner of human services must convene the first meeting of the Minnesota
TANF Expenditures Task Force by July 31, 2014. The task force must meet at least quarterly.
(d) Staffing and technical assistance shall be provided within available resources by the
Department of Human Services, children and family services division.
Subd. 3.
Duties.
(a) The task force must report on past expenditures of the TANF block grant, including a
determination of whether or not programs for which TANF funds have been appropriated meet
the purposes of the TANF program as defined under Code of Federal Regulations, title 45,
section 260.20, and make recommendations as to which, if any, programs currently receiving
TANF funds should be funded by the general fund. In making recommendations on program
funding sources, the task force shall consider the following:
(1) the original purpose of the TANF block grant under Code of Federal Regulations, title
45, section 260.20;
(2) potential overlap of the population eligible for the Minnesota family investment program
cash grant and the other programs currently receiving TANF funds;
(3) the ability for TANF funds, as appropriated under current law, to effectively help the
lowest-income Minnesotans out of poverty;
(4) the impact of past expenditures on families who may be eligible for assistance through
TANF;
(5) the ability of TANF funds to support effective parenting and optimal brain development
in children under five years old; and
(6) the role of noncash assistance expenditures in maintaining compliance with federal law.
(b) In preparing the recommendations under paragraph (a), the task force shall consult with
appropriate Department of Human Services information technology staff regarding
implementation of the recommendations.
Subd. 4.
Report.
(a) The task force must submit an initial report by November 30, 2014, on past expenditures
of the TANF block grant in Minnesota to the chairs and ranking minority members of the
legislative committees with jurisdiction over health and human services policy and finance.
(b) The task force must submit a final report by February 1, 2015, analyzing past TANF
expenditures and making recommendations as to which programs, if any, currently receiving
TANF funding should be funded by the general fund, including any phase-in period and draft
legislation necessary for implementation, to the chairs and ranking minority members of the
legislative committees with jurisdiction over health and human services policy and finance.
26

Subd. 5.
Expiration.
This section expires March 1, 2015, or upon submission of the final report required under
subdivision 4, whichever is earlier.
EFFECTIVE DATE.
This section is effective the day following final enactment.

27

Introduction
The federal TANF program is a block grant to states to help needy families become selfsufficient. States have broad flexibility in developing programs that meet the purposes of the
TANF block grant, as outlined in federal law.
The Minnesota Legislature determines how TANF funds are used. Since 1998, these funds have
been used to support a variety of programs and services that met federal goals and purposes of
the program. Federal TANF funds have also been used in lieu of state dollars to maintain
programs and services during budget reductions.
Recent discussions among legislators and others have raised concerns about the current uses of
the TANF block grant, and whether more funding should be directed to increase cash benefits for
families with children in the Minnesota Family Investment Program (MFIP). Cash benefits
through MFIP have not increased since 1986.
Task Force Duties
The purpose of the Task Force is to review TANF past expenditures; determine whether the
appropriations met the purposes of the program as defined under federal regulations (Code of
Federal Regulations, title 45, section 260.20); and to make recommendations as to whether
programs that currently receive TANF funding should be funded by the general fund.
This report is submitted to the Minnesota Legislature pursuant to Laws of Minnesota 2014,
Article 1, Section 12.
The Minnesota Department of Human Services prepared this report after Task Force meetings on
July 30, 2014, Oct. 13, 2014, and Nov. 20, 2014. Department staff presented an overview of
TANF program rules and requirements related to allowable use of funds, and a summary of
expenditures. See Appendix A for a list of Task Force members and their affiliations.

28

Temporary Assistance for Needy Families History and Background

The federal TANF block grant was created by congress in 1996, the successor to the Aid to
Families with Dependent Children program, part of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
States have broad flexibility to spend federal TANF funds that meet the purposes of the program:
260.20 What is the purpose of the TANF program?
The TANF program has the following four purposes:
(a) Provide assistance to needy families so that children may be cared for in their own homes or
in the homes of relatives;
(b) End the dependence of needy parents on government benefits by promoting job preparation,
work, and marriage;
(c) 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
(d) Encourage the formation and maintenance of two-parent families.
Minnesotas TANF block grant is $263.4 million per year. The amount of the block grant does
not change over time. To receive the federal block grant, there is also a state spending
requirement, called maintenance of effort (MOE). States must spend 75 to 80 percent of historic
spending amounts on programs that meet the purposes of TANF.
States must also meet a federal work participation requirement (WPR). This is a mandated work
performance requirement for states that have a TANF program. Fifty percent of work-eligible
individuals who receive TANF assistance must meet minimum hourly requirements in federally
specified work activities such as paid work, job search, and job skills training.
The state maintenance of effort spending requirement is based on whether it meets the work
participation rate requirement. In Minnesota, the maintenance of effort requirement is $176.6
million if the work participation rate is met, and $188 million if the state does not meet the WPR.

29

In federal fiscal years 2012-2013, Minnesota used the following state expenditures to meet the
basic maintenance of effort requirement of $176.6 million:
Maintenance of Effort Expenditures in Federal Fiscal Years 2012-2013
(dollars in thousands)
Category
Expenditures Percent of Total
State Administration

$2,276

.6

Emergency Assistance, Employment

and Training and County Administration

$36,010

10.2

Cash Assistance

$60,282

17.1

Child Care Assistance/Head Start

$125,803

35.6

Working Family Tax Credit (refundable

portion)

$129,014

36.5

Total

$353,3853

100%

30

TANF Expenditures
The Task Force reviewed the summary of expenditures provided by the department. There was
agreement that expenditures met the purposes of the TANF program. Task Force members are
continuing to discuss whether some expenditures should continue, or whether the funds should
be reinvested in the Minnesota Family Investment Program to increase benefits for low-income
families. These considerations will be included in the final report due Feb. 1, 2015.
See Appendix B for table of TANF expenditures.
Categories of expenditures in the table include:
Work Grants/Minnesota Family Investment Program Consolidated Fund
The MFIP Consolidated Fund was created in SFY 2004. 18 Funds are allocated to counties and
tribal agencies based on a formula in state statute. Expenditures include: Direct Program costs
for services to low-income families that include counseling, job search, job placement, job
retention; program overview; interpreter costs, and other direct expenses including wages,
benefits, travel, office and phone; administrative costs for county, tribes and private providers to
administer social services and program eligibility; emergency assistance payments such as costs
to avert utility shut-offs, and housing costs such as damage deposits; transportation;
employment-related costs; and other costs related to wage subsidies, client incentives,
background checks and work supports. See Appendix D for additional information on
expenditures in the MFIP Consolidated Fund.
Cash Assistance including Child Support Pass-through
Included in this category are Minnesota Family Investment Program and Diversionary Work
Program grants to individuals and the federal share of child support collections. Federal
regulations require that when the state collects child support for a family receiving assistance
through the federal TANF program, the state must send a portion of the amount collected to the
federal government to reduce the federal cost of the child support program. This amount is
based on the Federal Medical Assistance Percentage rate in place at the time the collection is
received 50 percent in Minnesota.
Transfers to the Child Care Development Fund
States may transfer up to 30 percent of the TANF block grant to either the Child Care
Development Fund or the Social Services Block Grant. Of the 30 percent, a maximum of 10
percent may be transferred to the Social Services Block Grant. Minnesota transfers about 18
percent to the Child Care Development Fund.
Working Family Tax Credit
18

In the 2003 legislative session, TANF and general fund appropriations for 11 programs and services were
redirected to a single, consolidated fund. Funds are allocated to county and tribal agencies to administer services to
help families become self-sufficient.

31

Since 2000, a portion of the refundable Working Family Tax Credit, a tax credit for low-income
working families, has been funded with TANF.
Other Grants
Other grants include expenditures for funds transferred to other state agencies. Currently, funds
are appropriated to the Minnesota Department of Health for Home Visiting Grants ($17.1 M for
the biennium), Family Planning Grants ($2.3 M for the biennium and grants to decrease racial
and ethnic disparities in infant mortality rates ($4 M/biennium).
Administration
Administrative costs for the Department of Human Services, including oversight and policy
development for the MFIP program, appeals, federal reporting requirements, employment
services administration, MAXIS computer system costs related to issuance of TANF benefits,
fraud prevention activities, the TANF share of the contract for federally required Income
Eligibility Verification Systems (IEVS) contract, and indirect costs for general support services,
as required under Minn. Stat. 16A.127.
Transfers to the Social Services Block Grant
A maximum of 10 percent may be transferred to the Social Services Block Grant, and is included
in the overall 30 percent maximum that may be transferred to both the Child Care Development
Fund and the Social Services Block Grant. Minnesota transfers about 2 percent to the Social
Services Block Grant.
American Recovery and Reinvestment Act (ARRA) of 2009
The expenditures shown in this report include one-time federal funding for TANF under the
American Recovery and Reinvestment Act (ARRA) of 2009. From Oct. 1, 2008 through Sept.
30, 2010, Minnesota earned $80.5 million through ARRA. These one-time funds were spent on
the following:

MFIP cash assistance: $30 million

Emergency Assistance: $21.7 million
Working Family Tax Credit: $15.5 million
Supported work for MFIP participants: $9.3 million
Summer youth employment program: $3.1 million
Summer food program for low-income children: $800,000.

32

Minnesota Temporary Assistance for Needy Families Expenditures Task Force Final Report

Refinancing History
Task Force members requested that information on expenditures of TANF funds that refinanced
state dollars be included in this report. Refinancing here includes any investment of TANF funds
that did not result in an increase in program activity for low-income populations. TANF
appropriations replaced state general fund investments, with no increase in program activity.
See Appendix C
Report Recommendations
This initial report includes information on expenditures of the federal TANF funds only: no
recommendations are required. A final report, including recommendations and draft legislation,
is due to the chairs and ranking minority members of the legislative committees with jurisdiction
over health and human services policy and finance by Feb. 1, 2015.

33

Minnesota Temporary Assistance for Needy Families Expenditures Task Force Final Report

Appendix A
Members of the task force:
Local Public Health Association (LPHA)
Joan Brandt, St. Paul/Ramsey County Public Health
Association of Minnesota Counties
Deborah Huskins, Hennepin County
Sheila Kiscaden, Olmsted County
MN Legal Aid
Jessica Webster, Staff Attorney
Childrens Defense Fund
Stephanie Hogenson
Minnesota Coalition for the Homeless
Katherine Wagoner
Minnesota Welfare Rights Coalition
Linden Gawboy
MN Management and Budget
Angela Vogt
MN Department of Health
Jim Koppel
Minnesota House of Representatives
Representative Diane Loeffler
Representative Nick Zerwas
Minnesota Senate
Senator Tony Lourey
Senator Julie Rosen

34
Minnesota Department of Human Services
February 2015

Minnesota Temporary Assistance for Needy Families Expenditures Task Force Final Report

Appendix B
Temporary Assistance for Needy Families Expenditures
The following table includes actual expenditures from the TANF block grant by biennia from 1998 through 2013 by category of spending. Estimated expenditures are provided for fiscal years
2014 through 2017, as per decisions at the end of the 2014 legislative session. Total expenditures vary significantly by category and between biennia depending on legislative and forecast
changes. In addition, from Oct. 1, 2008 through Sept. 30, 2010, Minnesota earned additional federal funds of $80.5 million through the American Recovery and Reinvestment Act of 2009 (see
page 12 for details).

Category
Work Grants/MFIP Consolidated Fund
Grant
Cash Assistance (includes Child
Support pass through)
Child Care and Development Fund
Working Family Tax Credit
Other Grants
Administration
Social Services Block Grant
Total Uses

1998-1999
2000-2001
2002-2003
Dollars
% Dollars
% Dollars
%
85,771 23% 114,257 20% 117,984 17%
264,320

71% 203,633

36% 328,335

47%

Dollars in thousands
Actuals
2004-2005
2006-2007
2008-2009
Dollars
%
Dollars
%
Dollars
%
183,329 37% 202,207 36% 226,007 41%

2010-2011
Dollars
%
253,945 42%

2012-2013
Dollars
%
196,483 36%

Estimated as of 2014 Session

2014-2015
2016-2017
Dollars
% Dollars
%
189,222 36% 192,622 37%

199,096

163,285

153,573

149,968

40%

185,448

33%

179,784

33%

27%

28%

28% 158,491

29%

791
0% 85,642 15% 52,857
8%
47,631 10%
92,155 16%
59,680 11%
81,602 13% 106,169 19%
96,550 18% 98,793 18%
0
0% 70,094 12% 59,606
9%
36,750
7%
35,438
6%
40,667
7%
62,511 10%
44,477
8%
43,951
8% 45,098
8%
0
0% 21,716
4% 86,037 12%
13,227
3%
28,216
5%
23,073
4%
23,727
4%
24,895
5%
23,706
4% 23,706
4%
11,937
3% 11,212
2% 11,529
2%
8,025
2%
12,903
2%
12,933
2%
12,504
2%
12,569
2%
15,456
3% 16,056
3%
10,300
3% 59,480 11% 39,080
6%
12,717
3%
9,554
2%
9,580
2%
9,580
2%
9,580
2%
9,580
2%
9,580
2%
373,119 100% 566,034 100% 695,428 100% $500,775 100% $565,921 100% $551,724 100% $607,154 100% $547,746 100% $528,433 100% 544,346 100%

35

Minnesota Temporary Assistance for Needy Families Expenditures Task Force Final Report

Appendix C - TANF Refinancing Benefiting the General Fund: SFY 1998 to SFY 2015, as of 2012 Session
thousandsofdollars

Social
Service
Block
Grant
SFY 1998
SFY 1999
SFY 2000
SFY 2001
SFY 2002
SFY 2003
SFY 2004
SFY 2005
SFY 2006
SFY 2007
SFY 2008
SFY 2009
SFY 2010
SFY 2011
SFY 2012
SFY 2013
SFY 2014
SFY 2015
Total

Child Care
Development
Fund

MFIP Cash

Working
Family
Credit

Other
Social
Services

Housing and
Economic
Development

Total

TANF
Spending
Actual and
End of
Session
2012
186,050
187,071
265,546
300,488
321,847
373,571
261,032
239,441
276,760
289,161
256,514
295,210
261,909
271,959
261,896
280,306

Percent
18.8%
18.2%
3.8%
3.3%
1.6%
1.4%
2.9%
11.0%
9.5%
14.3%
1.9%
2.6%
5.1%
13.7%

15,140
15,140
11,140
11,140
140
3,277
140
140
140
140
140
140
140
140

6,692
30,527
3,261
3,795
5,552
7,469
13,212
31,212

21,085
38,281
(596)
(500)
7,000

0
0
49,800
54,620
12,315
12,315
4,092
3,277
7,979
31,814
24,486
42,216
5,096
7,109
13,352
38,352

140

17,212

10,850

28,202

261,487

10.8%

140
57,377

17,212
191,880

10,850
90,922

28,202
363,227

259,042
4,849,290

10.9%
7.5%

27,751
6,554

1,175
1,175
1,175
1,175

5,500
4,000

3,952
1,147
1,147

6,554

4,700

11,794

Refinancing includes any investment of TANF funds directed by the Minnesota Legislature that did not result in an increase in program activity for low-income populations.
TANF funds replaced state general fund investments, with no increase in program activity. Refinancing may be a one-time funding change or ongoing.

36

Minnesota Temporary Assistance for Needy Families Expenditures Task Force Final Report
X. Appendix B
Members of the task force:
Local Public Health Association (LPHA)
Joan Brandt, St. Paul/Ramsey County Public Health
Association of Minnesota Counties
Deborah Huskins, Hennepin County
Sheila Kiscaden, Olmsted County
Minnesota Legal Aid
Jessica Webster, Staff Attorney
Childrens Defense Fund
Stephanie Hogenson
Minnesota Coalition for the Homeless
Katherine Wagoner
Minnesota Welfare Rights Coalition
Linden Gawboy
Minnesota Department of Human Services
Erin Sullivan Sutton
Minnesota Management and Budget
Angela Vogt
Minnesota Department of Health
Jim Koppel
Minnesota House of Representatives
Representative Diane Loeffler
Representative Nick Zerwas
Minnesota Senate
Senator Tony Lourey
Senator Julie Rosen

37

Minnesota Temporary Assistance for Needy Families Expenditures Task Force Final Report
XI. Appendix C Percent of eligible MFIP families enrolling in MFIP/DWP

38
Minnesota Department of Human Services
February 2015