SECTION 8. AID TO FAMILIES WITH DEPENDENT CHILDREN AND RELATED PROGRAMS (TITLE IV-A) * --------------------------------------------------------------------------- * The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 changed this program; see appendix L for details. --------------------------------------------------------------------------- CONTENTS Overview Basic Federal Rules Treatment of Income and Resources Unearned Income Earned Income and Disregards Resources Accounting Period and Monthly Reporting The AFDC Unemployed Parents Program Interaction Between AFDC and Other Programs Medicaid Food Stamps Earned Income Credit (EIC) Child Support Enforcement SSI and Social Security Other Benefit Programs Participation in Multiple Means-Tested Programs Spending for Cash and Noncash Benefits for Persons of Limited Income Job Opportunities and Basic Skills (JOBS) Training Program Purpose and Administration Assessment, Employability Plan, Case Management, and Orientation JOBS Activities Participation Requirements Targeting of JOBS Funds Funding of JOBS and Supportive Services Indian Tribes and JOBS Supportive and Transitional Services Welfare-to-Work Efforts: Some Assessments Title IV-A Emergency Assistance Waivers From Federal AFDC Law--Section 1115 Demonstration Projects Child Care for Families at Risk of AFDC Receipt AFDC Benefit Levels and Trends Maximum Benefits (State AFDC Guarantees) Need and Payment Standards Trends in Benefits Income Eligibility Limits AFDC Benefits for Special Needs Federal and State Funding of AFDC Benefit Payments and Administrative Costs AFDC Caseload Data Characteristics of AFDC Families National Data About AFDC Families State Data About AFDC Families The AFDC Quality Control System Description of AFDC Quality Control System Quality Control and JOBS Performance Standards Recent Quality Control Statistics Welfare Dynamics Exits and Returns to AFDC Endings and Beginnings of AFDC Spells Length of Time on Welfare and Turnover Within the AFDC Caseload Relationship of Personal Characteristics to Duration of AFDC Welfare Dependency Intergenerational Transmission of AFDC Receipt Adolescent and Out-of-Wedlock Childbearing and Use of AFDC Trends Over Time First Births to Unmarried Women Links to AFDC Use Legislative History References OVERVIEW Aid to Dependent Children was established by the Social Security Act of 1935 as a cash grant program to enable States to aid needy children without fathers. Later renamed Aid to Families with Dependent Children (AFDC), the program provides cash welfare payments for needy children who have been deprived of parental support or care because their father or mother is absent from the home continuously, is incapacitated, is deceased or is unemployed. AFDC benefits also are paid to the child's needy caretaker relative (usually the mother) and, in some States, may be paid to another person in the home who is deemed essential to the child's well-being. All 50 States, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands operate an AFDC Program. Although 1988 legislation allowed American Samoa to participate in the AFDC Program, as of April 1996 it had not chosen to do so. States define ``need,'' set their own benefit levels, establish (within Federal limitations) income and resource limits, and administer the program or supervise its administration. States are entitled to unlimited Federal funds for reimbursement of benefit payments, at ``matching'' rates known as Medicaid matching rates, which are inversely related to State per capita income. States must provide aid to all persons who are in classes eligible under Federal law and whose income and resources are within State-set limits. Thus, an individual's entitlement to AFDC varies from State to State. Federal funds currently pay from 50 to about 78 percent of AFDC benefit costs in a State (55 percent on average) and 50 percent of administrative costs in all States. As Table 8-1 indicates, AFDC enrollment and benefit outlays in fiscal year 1994 rose to all-time high levels. That year a monthly average of 14.2 million persons (9.6 million children) in 5 million families received benefits totaling $22.8 billion. However, in fiscal year 1995 enrollment dropped by 0.6 million persons (0.3 million children), average family benefits rose only $1.00 monthly, and total benefit outlays fell by $0.8 billion. Table 8-1 summarizes AFDC enrollment and spending trends from 1970 to 1995. In that quarter-century period, the number of AFDC families more than doubled, from 1.9 million to 4.9 million, but, because family size shrank, the number of recipients rose only 83 percent. The proportion of the U.S. population enrolled in AFDC increased from 3.6 percent in fiscal year 1970 to 5.5 percent in 1993 and 1994, a 53 percent rise. In the same period the share of families with children served by AFDC more than doubled, from 6.6 percent to 14.8 percent. Measured in constant value (1995) dollars, AFDC benefit expenditures increased 35 percent, from $16.4 billion in 1970 to $22 billion in 1995. Administrative costs remained almost the same in both years, after adjusting for inflation, at $3.5 billion. AFDC administrative costs were 22 percent of benefit payments in 1970, when they included some services, and 16 percent in 1995. The average monthly family benefit measured in 1995 dollars, fell from $713 in 1970 to $377 in 1995, a 47 percent drop. BASIC FEDERAL RULES AFDC is a voluntary program for States, but participating States must submit plans for approval. They must operate the program statewide and apply their need standards uniformly within the State or locality to all families in similar circumstances. States may adopt separate urban and rural benefit schedules and may vary benefits by region, with differences usually reflecting shelter costs. States are at liberty to pay as much in benefits as they choose, or as little, with one exception. Medicaid law forbids them to reduce AFDC payment standards below those of May 1, 1988 (or, if higher, those of July 1, 1987). Eligibility for AFDC ends on a child's 18th birthday, or at State option upon a child's 19th birthday if the child is a full-time student in a secondary or technical school and may reasonably be expected to complete the program before reaching age 19. Since October 1, 1990, State AFDC Programs have been required to offer AFDC to children in two-parent families who are needy because of the unemployment of one of their parents (AFDC-UP). Eligibility for AFDC-UP is limited to families whose principal wage earner is unemployed but has a history of work. States that did not have an Unemployed Parent Program as of September 26, 1988 may limit benefits under the AFDC-UP Program to as few as 6 months in any 13-month period. TABLE 8-1.--SUMMARY OF KEY AFDC PROGRAM ELEMENTS, SELECTED YEARS 1970-95 [In dollars, \1\ except for caseload numbers and enrollment percentages] -------------------------------------------------------------------------------------------------------------------------------------------------------- Year Program element -------------------------------------------------------------------------------------------------------------------- 1970 1975 1980 1985 1988 1990 1991 1992 1993 1994 1995 -------------------------------------------------------------------------------------------------------------------------------------------------------- Total AFDC Benefit expenditures (millions) \2\ 4,082 8,153 11,540 14,580 16,663 18,539 20,356 22,240 22,286 22,797 22,032 In 1995 dollars............... 16,350 23,829 21,839 20,707 21,562 21,809 22,795 24,172 23,513 23,432 22,032 Federal share (millions)........... 2,187 4,488 6,224 7,817 9,125 10,149 11,165 12,252 12,270 12,511 12,018 In 1995 dollars (millions)..... 8,460 13,117 11,779 11,102 11,808 11,939 12,503 13,316 12,945 12,859 12,018 Administrative cost (millions)..... \3\881 1,082 1,479 1,779 2,353 2,661 2,673 2,764 2,956 3,282 3,524 In 1995 dollars................ 3,529 3,162 2,799 2,527 3,045 3,130 2,993 3,004 3,119 3,373 3,524 Federal share (millions)........... \3\572 552 750 890 1,194 1,358 1,373 1,422 1,518 1,670 1,770 In 1995 dollars................ 2,291 1,613 1,419 1,264 1,545 1,598 1,538 1,546 1,602 1,716 1,770 Average monthly numbers (thousands): \4\ Families....................... 1,909 3,269 3,574 3,692 3,748 3,974 4,375 4,769 4,981 5,046 4,869 Recipients..................... 7,429 10,960 10,497 10,813 10,920 11,460 12,595 13,625 14,144 14,226 13,619 Children....................... 5,494 7,821 7,220 7,165 7,326 7,755 8,515 9,225 9,539 9,590 9,275 Average family size................ 4.0 3.2 3.0 3.0 3.0 2.9 2.9 2.9 2.8 2.8 2.8 Average monthly benefit per family. 178 208 269 329 370 389 388 389 373 376 377 In 1995 dollars............... 713 608 509 467 479 458 434 423 394 386 377 Percent of families with children enrolled \5\...................... 6.6 10.9 11.5 11.9 11.7 12.3 13.5 14.6 15.0 14.8 NA Percent of population enrolled..... 3.6 5.1 4.6 4.5 4.5 4.6 5.0 5.3 5.5 5.5 5.2 AFDC-Basic and AFDC-UP Benefit expenditures (in millions of 1995 dollars): AFDC-Basic..................... 15,424 22,771 20,528 18,498 19,725 20,068 20,749 21,869 21,088 20,961 19,820 AFDC-UP........................ 925 1,058 1,312 2,210 1,838 1,741 2,046 2,303 2,425 2,471 2,212 Average monthly number of families (thousands): AFDC-Basic..................... 1,831 3,168 3,433 3,431 3,538 3,770 4,107 4,447 4,622 4,683 4,534 AFDC-UP........................ 78 101 141 261 210 204 268 322 359 363 335 Average monthly benefit per family (in 1995 dollars): AFDC-Basic..................... 702 599 498 449 465 444 421 410 380 373 364 AFDC-UP........................ 988 873 775 706 729 711 636 596 563 567 550 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Current dollars and constant value (1995) dollars. The latter were adjusted for inflation on the basis of the Consumer Price Index for Urban Consumers (CPI-U). \2\ AFDC benefit expenditures have not been reduced by child support enforcement collections. Data are from table 8-22, but (unlike that table) exclude foster care payments made in 1975 and 1980. \3\ Includes expenditures for services. \4\ AFDC enrollment data are from table 8-25, but (unlike that table) exclude foster care recipients for 1975 and 1980. \5\ Based on the number of U.S. families with children under age 18. NA--Not available. Source: Administration for Children and Families, U.S. Department of Health and Human Services, and U.S. Bureau of the Census. Table prepared by the Congressional Research Service. The Family Support Act of 1988 (Public Law 100-485) substantially revised the work and training requirements of the AFDC Program. Since October 1, 1990, States have been required to have a Job Opportunities and Basic Skills Training (JOBS) Program. This program, which replaced the Work Incentive (WIN) and WIN Demonstration Programs, seeks to help needy families avoid long-term welfare use. The JOBS Program must include specified educational activities. States are required to enroll able-bodied persons whose youngest child is at least age 3, provided State resources are available. Families receiving AFDC are automatically eligible for Medicaid. The Family Support Act also requires that States provide transitional Medicaid benefits of up to 12 months for those who lose AFDC eligibility as a result of increased hours of, or increased income from, employment or as a result of the loss of earnings disregards (special treatment of earned income by which some income is ignored for the purpose of computing AFDC eligibility and benefits). The Family Support Act requires that States guarantee child care found necessary for an individual's employment or participation in education or training activities approved by the State, and requires that transitional child care of up to 12 months be provided for families who lose AFDC eligibility as a result of increased hours of, or increased income from, employment or as a result of the loss of earnings disregards. The law provides unlimited matching funds for this child care. In addition, the AFDC statute entitles States to capped matching funds for child care for families that need child care in order to work and that, without child care, would be at risk of becoming eligible for AFDC. Finally, Federal law requires AFDC mothers (and applicants), as a condition of AFDC eligibility, to assign their child support rights to the State and to cooperate with welfare officials in establishing the paternity of a child and in obtaining support payments from the father. TREATMENT OF INCOME AND RESOURCES Federal AFDC law requires that all income received by an AFDC recipient or applicant be counted against the AFDC grant except income explicitly excluded by definition or deduction. Moreover, AFDC law requires that certain persons be considered part of the AFDC assistance unit and that part of the income of certain other persons be counted in determining the AFDC eligibility status and benefit amount. In 1981, Congress required that a portion of the income of a stepparent be counted in determining AFDC eligibility and benefit amounts. However, in a few States (seven as of April 1996), all stepparents must assume the legal responsibility of a natural or adoptive parent. In these States, all of the stepparent's income must be counted in determining the AFDC eligibility status and/or benefit amount of the children and spouse. In 1984, a standard definition of the AFDC assistance unit was established for the first time. Under this requirement, the parent(s) of a dependent child and any dependent brothers or sisters who are in the home are to be included in the AFDC unit, with eligibility and benefits based on the income and circumstances of this family unit. SSI recipients, stepsiblings, and children receiving foster care maintenance payments or adoption assistance are not counted as part of the AFDC unit. In addition, if a minor who is living in the same home as her parents applies for aid as the parent of a needy child, a portion of the income of the minor's parents is to be counted as available to the filing unit. The law also requires that income from a nonrecurring lump sum payment that exceeds the monthly AFDC need standard be taken into account in determining AFDC eligibility and/or benefit amount. Lump sum payments in excess of the State's need standard--for the given family size--render a family ineligible for AFDC for a period of time equal to the lump sum payment divided by the State's monthly need standard. Unearned Income States are required by Federal law to disregard certain income in determining the eligibility and benefits of families applying for or receiving AFDC. Unearned income not counted by the AFDC Program includes the following: the first $50 of current monthly child support payments received by the family; any student financial assistance provided under the Higher Education Act; the value of Department of Agriculture donated foods; benefits from child nutrition programs or nutrition programs for the elderly; payments to VISTA workers; some payments to certain Indian tribes; any amounts paid by a State welfare agency from State-only funds to meet the needs of AFDC children if the payments are made under a statutorily- established State program that has been continuously in effect since before January 1, 1979; payments for supporting services or reimbursement of out-of-pocket expenses made to volunteers serving as foster grandparents, senior health aides, or senior companions; and Agent Orange settlement payments. Earned Income and Disregards States are required by Federal law to disregard certain earned income when determining the amount of benefits to which a recipient family is entitled. States must disregard all the earned income of each dependent child receiving AFDC who is a student (full or part time) at a school, college, university, or vocational training course and not a full-time employee. States may disregard all or part of the earned income of a dependent child who is a full-time student and an applicant for AFDC if the child's earnings are excluded in determining the family's total income. States may disregard, for up to 6 months, earnings derived from Job Training Partnership Act (JTPA) Programs by a dependent child applying for or receiving AFDC. With respect to self-employment, ``earned income'' is defined by Federal regulations as the ``total profit from a business enterprise, farming, etc., resulting from a comparison of the gross receipts with the business expenses, i.e., expenses directly related to producing the goods or services and without which the goods or services could not be produced.'' However, under AFDC regulations, items such as depreciation, personal business and entertainment expenses, personal transportation, purchase of capital equipment and payments on the principal of loans for capital assets or durable goods are not considered business expenses. Before OBRA 1981, in order to provide a financial incentive for recipients to seek and maintain employment, Federal law required the deduction of an initial $30 in monthly earnings plus one-third of remaining earnings, plus work expenses (child care costs, payroll taxes, transportation, and similar expenses reasonably attributable to the earning of income). Under this rule, a person did not lose AFDC eligibility until monthly gross earnings equaled 150 percent of the AFDC payment standard, plus $30, plus 150 percent of work expenses. When making an initial determination of eligibility, however, only work expenses were disregarded. Amendments in OBRA 1981 standardized and limited the disregard for work expenses to $75 per month, capped the child care disregard at $160 per child per month, specified that the HHS Secretary could lower these sums for part-time work, and changed the order of disregards. The $30 plus one-third disregard was limited to a period of 4 consecutive months; recipients who left AFDC and then returned could not again qualify for this disregard for 12 months. States were prohibited from paying AFDC to any family with a gross income above 150 percent of the State's standard of need and were required to assume that working AFDC recipients received a monthly earned income credit (EIC), if they appeared eligible for it and regardless of when or if they actually claimed the credit. The standard $75 expense disregard and child care disregard were applied before the one-third (this lowered the point at which counted earnings ended eligibility). Previously, the EIC was counted only when received; most AFDC recipients did not receive the EIC on a monthly basis. Taken together, these changes substantially reduced the amount of earnings a recipient could have and remain eligible for an AFDC payment. In 1984, Congress further revised these disregards. The gross income limit was increased to 185 percent from 150 percent of the State standard of need, the work expense disregard of $75 per month was applied to both full- and part- time workers, and the $30 disregard--originally a part of $30 and one-third--was extended for an additional 8 months beyond the 4-month limit. The 1984 legislation also returned to prior law policy with respect to the earned income credit: it was to be counted only when actually received. The Family Support Act of 1988 further revised the treatment of earned income effective October 1, 1989. The work expense disregard is now $90 per month, the maximum child care expense allowance is $175 per month per child ($200 for children under age 2), and the child care disregard is calculated after other disregard provisions have been applied. Furthermore, States are now required to disregard the earned income credit in determining eligibility for and benefits under the AFDC Program. Table 8-2 illustrates the impact of the 1981, 1984, and 1988 changes on benefits payable to a mother with 2 children working full time at a low wage. The table also shows how gross earnings limits were reduced by the changes in treatment of earnings. Two AFDC benefit standards are illustrated: $600 represents the AFDC payment standard for a family of three in a high benefit State and $400 is slightly above the payment standard for a three-person family in the median benefit State (January 1996 data). As the table shows, before the 1981 law, a mother would not work her way totally off AFDC until gross earnings reached $1,185 per month in the high benefit State ($600 payment standard) and $885 per month in the near-median benefit State ($400 payment standard). The corresponding limits today, after 1 year on a job, are $790 and $590, respectively. The table also shows the growth in the earned income credit (EIC) over this period, from $32 to $232 monthly for a worker (with two children) earning $581. In some States, the rise in the EIC equals the cut in AFDC benefits caused by the less generous treatment of earnings. Several States use a method of paying AFDC that allows working families to retain a greater portion of their AFDC grant as earnings increase. This method of payment, commonly referred to as ``fill-the-gap,'' provides greater financial incentives for families to work than the standard payment method. Under the standard payment method, the AFDC grant is determined by subtracting countable income (e.g., earnings less disregards) from the State's payment standard. Most States set payment standards below their need standards--the amount the State recognizes as essential for a family's needs. Further, several States have maximum benefits below the payment standard. (To compare State need standards and maximum benefits for a typical AFDC family of three with each other and with payment standards, see tables 8-12 and 8-17, respectively.) Some States having AFDC payment standards below their need standard allow families to fill part or all of the gap between the payment and need standard with earnings, before reducing the AFDC grant. Other States set a maximum payment below the payment standard, allowing families to ``fill-the-gap'' only up to the payment standard. Most States with AFDC payment standards below their need standard do not use a fill-the-gap policy--they begin to reduce the AFDC grant dollar for dollar for earnings in excess of the standard earnings disregards. In January 1994, 10 States were using some form of ``fill-the- gap'': Mississippi, Tennessee, Kentucky, North Carolina, Georgia, Utah, South Dakota, Colorado, Wyoming, and Maine. Working mothers in these States have higher net income at equivalent earnings than mothers living in States with similar AFDC payment levels that do not use a ``fill-the-gap'' payment method (Gabe and Falk, 1995). TABLE 8-2.--CALCULATION OF MONTHLY AFDC BENEFITS AND ELIGIBILITY LIMITS FOR A WORKER WITH LOW EARNINGS UNDER PRE-OBRA, OBRA, DEFRA, AND CURRENT LAW -------------------------------------------------------------------------------------------------------------------------------------------------------- OBRA (1981) DEFRA (1984) Current AFDC Pre-OBRA --------------------------------------------------------------------------------------- (1979) First 4 After 4 First 4 After 4 After 12 First 4 After 4 After 12 months months months months months months months months -------------------------------------------------------------------------------------------------------------------------------------------------------- Income: Gross earnings..................................... 581 581 581 581 581 581 581 581 581 Earned income credit \1\........................... 32 32 32 41 41 41 232 232 232 -------------------------------------------------------------------------------------------------- Gross income................................... 613 613 613 622 622 622 813 813 813 ================================================================================================== Disregards: \2\ Initial disregards \3\............................. -30 -105 -75 -105 -105 -75 -120 -120 -90 One-third of rest.................................. -184 (\4\) (\4\) (\4\) (\4\) (\4\) -154 (\4\) (\4\) Child care......................................... -100 -100 -100 -100 -100 -100 -100 -100 -100 One-third of rest.................................. (\4\) -136 (\4\) -125 (\4\) (\4\) (\4\) (\4\) (\4\) Other expenses..................................... \5\-70 (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) (\4\) Earned income credit \6\........................... -32 (\4\) (\4\) -41 -41 -41 -232 -232 -232 -------------------------------------------------------------------------------------------------- Total disregards............................... -416 -341 -175 -371 -246 -216 -606 -452 -422 ================================================================================================== Net countable income........................... 197 272 438 251 376 406 207 361 391 AFDC benefits: $600 payment standard.............................. 403 328 162 349 224 194 393 239 209 $400 payment standard \7\.......................... 203 128 0 149 24 0 193 39 \8\ 0 Eligibility limits \9\ (in earnings): $600 payment standard.............................. 1,185 \10\ 1,10 5 \10\ 775 1,105 805 775 1,170 820 790 $400 payment standard.............................. 885 \10\ 805 \10\ 575 805 605 575 870 620 590 -------------------------------------------------------------------------------------------------------------------------------------------------------- Note.--OBRA = Omnibus Budget Reconciliation Act of 1985; DEFRA = Deficit Reduction Act of 1984. \1\ Earned income credit amounts reflect credit rates in effect for a tax filer with two children in 1979, 1981, 1984, and 1996 (current law). Until 1991, the rate was the same for one or more children. \2\ Initial disregards, one-third disregards, child care and other expense disregards are based on gross earnings and subtracted from them. In 1981 column only, gross earnings include the EIC. \3\ Pre-OBRA: $30 disregard. OBRA: Standard work expense deduction of $75 plus $30 in first 4 months. DEFRA: Standard work expense deduction of $75 plus $30 disregard in first 12 months. FSA: Standard work expense deduction of $90 plus $30 disregard in first 12 months. \4\ Not applicable. Note: In columns 2 and 4 (1st 4 months, OBRA and DEFRA) there is a one-third residual disregard, but not until after deduction of child care costs (as shown). \5\ Itemized work expenses (including payroll deductions and transportation) are assumed to be $70. \6\ EIC disregard applied in all years shown except 1981. \7\ Slightly above the payment standard for a family of three in the median State, January 1996. \8\ To receive an AFDC check, the benefit amount must equal at least $10. (Here the calculated benefit would be $9.) \9\ Except in 1979, earnings limits for payment of an actual benefit would be lower than shown ($15 less monthly, first 4 months of a job, and $10 less monthly thereafter) because of the rule enacted in 1981 against paying a benefit amount below $10. \10\ Including EIC, treated as counted earnings in 1981. Source: Table prepared by the Congressional Research Service. Resources Allowable resources are limited, by Public Law 97-35, to $1,000 (or a lower amount set by the State) in equity value (i.e., market value minus any encumbrances) per family, excluding the home and one automobile if the family member's ownership interest does not exceed a limit chosen by the Secretary of Health and Human Services. In addition, States must disregard from countable resources burial plots and (up to $1,500) funeral agreements for each member of the assistance unit. Also, for a limited time, States must exclude real property the family is making a ``good faith'' effort to sell, but only if the family agrees to repay benefits. HHS regulations set $1,500 as the outer limit (in equity value) for an automobile (Indiana and Louisiana have lower limits) and permit States to exclude from countable resources ``basic items essential to day to day living,'' such as clothing and furniture. Previous regulations permitted States to adopt a counted resource limit as high as $2,000 per family member, and to treat the home and auto as counted resources. Neither law nor Federal regulations mention capital equipment as being exempt from the resource requirement, but the compilation of State AFDC plans indicates that about half of the States exclude from countable resources farm machinery, livestock, and tools and equipment essential to employment, livelihood, or income. Accounting Period and Monthly Reporting AFDC eligibility and benefits are determined monthly. Public Law 97-35 required States to determine eligibility on the basis of the family's circumstances in the current month. Payment amounts were to be determined ``retrospectively''--on the basis of the family's countable income and resources in the preceding month (or, at the discretion of the Secretary of Health and Human Services, in the second preceding month). In addition, States were to require recipients to provide monthly reports on income, family composition, and resources. However, a State could adopt less frequent reporting for specified categories of families if it demonstrated that this would be cost-beneficial. In 1984, Public Law 98-369 revised these rules. Retrospective budgeting was made mandatory only for families that file a monthly report. Monthly reporting was required for families with earned income or a recent work history and whenever cost effective. The Omnibus Budget Reconciliation Act of 1990 gave States the option of specifying which categories of AFDC families, if any, must file monthly (or less frequent) reports and permitted them to apply retrospective budgeting to those required to file periodic reports. Effective in fiscal year 1994, Public Law 103-432 gave States the option to apply retrospective budgeting to categories of their choice. Regulations require States that specify retrospective budgeting to provide a monthly reporting form plus a stamped, self-addressed envelope, to recipients who have earnings. THE AFDC UNEMPLOYED PARENTS PROGRAM The original Social Security Act permitted States to give AFDC only to needy children in one-parent homes unless the second parent was incapacitated. Then, as now, most AFDC children lived in fatherless homes. For the first 25 years of the program, if a father lost his job and his family became needy, State AFDC Programs were forbidden to help the family so long as the father lived at home. In 1961, as an antirecession measure, the law was changed so that families with jobless fathers at home could qualify for AFDC. Since May of that year States were permitted to give AFDC to needy children of unemployed parents. This program is known as AFDC for Unemployed Parents--AFDC-UP. In 1988, the Family Support Act required all States, effective October 1, 1990, to provide AFDC to two-parent families who are needy because of the unemployment of the principal wage earner. (As a result of a 1994 amendment (Public Law 103-432), the requirement does not take effect for American Samoa, Puerto Rico, Guam, and the Virgin Islands until funding ceilings for AFDC benefits in these areas are removed.) The two-parent program reverts to optional status for all States after September 30, 1998. The 29 jurisdictions (including Guam and Washington, DC) that had an AFDC-UP Program as of September 26, 1988, were required to continue operating the program without any time limit on eligibility. Other States have the option to impose a time limit. In exercising this option, a State may not deny AFDC to a family unless the family has received AFDC under the Unemployed Parents Program in at least 6 of the preceding 12 months. As of February 1996, the following 12 States have time limits on eligibility: Arizona, Arkansas, Colorado, Florida, Georgia, Nevada, North Dakota, South Dakota, Texas, Utah, Virginia, and Wyoming. AFDC-UP families, like other AFDC families, are automatically eligible for Medicaid. The Family Support Act of 1988 requires States that time-limit AFDC-UP benefits to provide Medicaid to all members of the family without any time limitation. When AFDC-UP began, States were allowed to define ``unemployment.'' Some States included in the program families in which the principal wage earner worked as many as 35 hours a week. Since 1971, Federal regulations have specified that an AFDC parent must work fewer than 100 hours in a month to be classified as unemployed, unless hours are of a temporary nature for intermittent work and the individual met the 100- hour rule in the two preceding months and is expected to meet it the following month. The Family Support Act of 1988 required the DHHS Secretary to enter into agreements with up to eight States for demonstrations to test a definition of unemployment less restrictive than the present 100-hour rule and authorized projects with no limitation on hours worked. Resulting projects in California, Wisconsin, and Utah set no limit on hours worked by AFDC-UP recipients and based eligibility on income alone. As of February 1996, evaluations of these demonstrations were not completed. However, additional experiments with AFDC-UP rules are underway. As of late 1995, 22 States had received Federal waivers, and another 6 had applications pending, to test elimination of the 100-hour rule. Some of these end the hour limit for applicants as well as AFDC-UP recipients. Attachment to the labor force is one condition of eligibility for AFDC-UP. The principal earner must: (1) have 6 or more quarters of work in any 13-calendar-quarter period ending within 1 year before application for assistance; or (2) have received or been eligible to receive unemployment compensation within 1 year before application. A quarter of work is a quarter in which an individual earns at least $50 or participated in the JOBS Program. At State option, attendance in elementary or secondary school, vocational or technical training, or participation in JTPA, may be substituted for up to 4 of the 6 required quarters of work. Some States have waivers to test ending the work history rule, as well as the 100-hour rule. INTERACTION BETWEEN AFDC AND OTHER PROGRAMS Medicaid States must provide Medicaid to families receiving cash assistance under AFDC. Beginning in 1986, Congress extended Medicaid coverage, at regular Federal matching rates, to groups of women and children not enrolled in AFDC. The most important of these groups include (1) pregnant women, and children up to age 6, with family incomes up to 133 percent of the poverty level; (2) children born on or after October 1, 1983, with family incomes below the Federal poverty level (this provision is phased in to cover all children up to age 19 by the year 2002); and (3) certain persons whose family income and resources are below the AFDC standards but who fail to qualify for AFDC for other reasons, such as family structure (these include first-time pregnant women). In addition, States have the option to provide coverage to pregnant women and infants under age 1 with incomes that do not exceed 185 percent of the Federal poverty level. When families lose AFDC eligibility, Medicaid eligibility also frequently ends, except under income circumstances outlined above, or if the family qualifies for transitional Medicaid benefits established under the Family Support Act of 1988. This act requires States to extend Medicaid coverage for 12 months to families who lose AFDC eligibility because of earnings. During the first 6 months of coverage, the States must provide each family the same Medicaid coverage that the family had while receiving AFDC. States are not permitted to impose premiums for this coverage, but States do have a Medicaid ``wraparound'' option. Under this option, States may use Medicaid funds to pay a family's expenses for premiums, deductibles and coinsurance for any health care coverage offered by the employer of the caretaker relative. The employer coverage would then be treated by the Medicaid Program as a third party liability. During the second 6 months of coverage, the States have a number of options. First, they may limit the scope of the Medicaid coverage to acute care benefits, dropping nursing home coverage and other nonacute benefits. Second, States may impose a monthly premium on families with incomes, less necessary child care expenses, in excess of 100 percent of the Federal poverty level. The monthly premium on these families could not exceed 3 percent of gross income. Premiums would be determined on the basis of quarterly reports from families on earnings and child care costs. Third, States have the option of offering families the choice of (1) basic Medicaid coverage (either the same as offered to cash assistance beneficiaries or the more limited acute care package) or (2) one or more types of alternative coverage. These alternative coverages could include enrollment in an employer group health plan, a State employee plan, a State health plan for the uninsured, or a health maintenance organization. Families would always have a choice of staying with their basic Medicaid coverage, although they could not elect both the basic Medicaid and one of the alternative coverages. With respect to the basic Medicaid coverage, States would have the same ``Medicaid wraparound'' option as during the first 6-month period. In general, transitional coverage would terminate if a family no longer had a child, failed to report earnings on a quarterly basis, failed to pay any required premium, or fraudulently obtained cash assistance benefits. States are required to provide full Medicaid coverage to all members of AFDC-UP families even in months when cash benefits are not paid because of a State-established time limit (described above). In the mid-1980s, some States sought to cover more pregnant women and children under the Medicaid Program. However, they did not want to raise AFDC income eligibility levels in order to cover them under both programs. Congress gave States the option of extending Medicaid to pregnant women and children with incomes below the poverty lines but above AFDC limits. Congress later made this coverage mandatory. To prevent States from reducing AFDC benefits (because the targeted populations would receive Medicaid irrespective of the AFDC Program), Public Law 100-360 prohibited the Secretary of Health and Human Services from approving a State's Medicaid plan if the State reduced its AFDC payment levels below those in effect on May 1, 1988 and prohibited reimbursement for Medicaid to certain pregnant women and children if a State reduced AFDC payment levels below those in effect on July 1, 1987. Food Stamps Most AFDC families are also eligible for and participate in the Food Stamp Program, which provides an important in-kind supplement to the cash assistance paid under AFDC. Although the law permits State AFDC Programs to count as income the value of a family's food stamps to the extent that this duplicates the amount for food in the State's maximum payment schedule, no State does so. However, the Food Stamp Program does consider AFDC payments to be countable income and it reduces the food stamp benefit by about 30 cents for each extra AFDC dollar. At the same time, when AFDC payments decline, food stamps are increased by about 30 cents per lost AFDC dollar. Thus, if an AFDC recipient is penalized by one dollar for violating a program rule, food stamps reduce the net loss to 70 cents. The interaction between AFDC and the Food Stamp Program has important financial implications for a State that desires to increase the income of its AFDC recipients. The State must increase AFDC by $1.43 to obtain an effective $1 increase in the recipient's total income ($1.00/0.7 = $1.43). Earned Income Credit (EIC) Parents with modest earnings, including AFDC parents who leave welfare because of work, are eligible for a cash supplement from the U.S. Treasury in the form of an earned income credit (EIC). For tax year 1996, the maximum credit for a tax filer with one child is $2,152, received for earnings between $6,330 and $11,610. For two or more children the maximum credit is $3,556, received for earnings between $8,890 and $11,610. At higher levels credits are phased out, and they end at adjusted gross income of $25,078 (one child) and $28,495 (two or more children). EIC is a refundable credit; persons with income below the taxation threshold receive the credit as a direct payment from the U.S. Treasury. In fact, about 85 percent of the $25 billion the Federal Government expects to spend on the EIC in 1996 will be refunded. Federal law requires that EIC be ignored as income in determining eligibility and benefit amount in the programs of AFDC, food stamps, Medicaid, Supplemental Security Income (SSI) or some housing programs. (Lump sum EIC payments must be ignored as assets for 1 year by food stamps and for 2 months by the other programs.) Table 8-3 and chart 8-1 illustrate the interaction of AFDC with food stamps, Medicaid, and the earned income credit (EIC) for a mother with two children at various earning levels. The example assumes the family lives in Pennsylvania. Calculations are made after the mother has been working for 4 months and has lost the disregard of one-third of ``residual'' earnings (those remaining after subtraction of a $120 standard allowance). Child Support Enforcement As a condition of eligibility for aid, Federal law requires AFDC families (and applicants) to assign their support rights to the State and to cooperate with the State in establishing the paternity of a child born outside of marriage and in obtaining support payments. Families receiving AFDC benefits automatically qualify (free of charge) for CSE services, and their cases are referred to the State child support agency. The provision requiring the AFDC applicant or recipient to assign to the State her rights to support covers both current support amounts and any accrued arrears, and lasts as long as the family receives AFDC. When the family no longer receives AFDC, the mother or caretaker relative regains her right to collect support, but if there are arrears, the State may claim those arrears up to the amount paid out as AFDC benefits. Child support payments made on behalf of a child receiving AFDC are paid to the child support agency rather than directly to the family. If the child support collection is insufficient to disqualify the family from receiving AFDC payments, the family receives its full monthly AFDC grant plus, pursuant to the 1984 Deficit Reduction Act, the first $50 of the child support payment made in the child's behalf for that month. This $50 is disregarded in AFDC benefit calculations. In several States where the need standard exceeds the maximum payment, additional amounts of child support are disregarded (see below). The remainder of the monthly child support payment is distributed to reimburse the State and Federal Governments in proportion to their assistance to the family. TABLE 8-3.--EARNINGS AND BENEFITS FOR A MOTHER WITH TWO CHILDREN WITH DAY CARE EXPENSES AFTER 4 MONTHS ON JOB, JANUARY 1996--(PENNSYLVANIA) -------------------------------------------------------------------------------------------------------------------------------------------------------- Taxes Food ------------------------------ Work ``Disposable'' Earnings EIC AFDC \1\ stamps \2\ Medicaid Social Federal State expenses \4\ income Security income \3\ income -------------------------------------------------------------------------------------------------------------------------------------------------------- $0..................................... $0 $5,052 $2,722 Yes.................. $0 $0 $0 $0 \5\ $7,774 2,000.................................. 800 4,892 2,410 Yes.................. 153 0 0 600 \5\ 9,349 4,000.................................. 1,600 3,292 2,530 Yes.................. 306 0 0 1,200 \5\ 9,916 5,000.................................. 2,000 2,492 2,590 Yes.................. 383 0 0 1,500 \5\ 10,199 6,000.................................. 2,400 1,692 2,650 Yes.................. 459 0 0 1,800 \5\ 10,483 7,000.................................. 2,800 892 2,710 Yes.................. 536 0 0 2,100 \5\ 10,766 8,000.................................. 3,200 0 2,798 Yes \6\.............. 612 0 0 2,400 \5\ 10,986 9,000.................................. 3,556 0 2,618 Yes \7\.............. 689 0 0 2,700 \5\ 11,785 10,000................................. 3,556 0 2,438 No \7\............... 765 0 0 3,000 12,229 15,000................................. 2,842 0 1,538 No \8\............... 1,148 0 420 4,200 13,612 20,000................................. 1,789 0 0 No................... 1,530 0 560 5,200 14,499 30,000................................. 0 0 0 No................... 2,295 1,628 840 5,400 19,837 50,000................................. 0 0 0 No................... 3,825 5,187 1,400 5,400 34,188 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Assumes these deductions: $120 monthly standard allowance (which would drop to $90 after 1 year on the job) and child care costs equal to 20 percent of earnings, up to maximum of $350 for two children. \2\ Assumes these deductions: 20 percent of earnings, $134 monthly standard deduction and child care costs equal to 20 percent of wages, up to maximum of $320 for two children. \3\ Head of household rates in effect for 1996. The dependent care tax credit reduces tax liability at earnings of $15,000 and above. \4\ Assumed to equal 10 percent of earnings up to maximum of $100 monthly, plus child care costs equal to 20 percent of earnings up to a maximum of $350 for two children. \5\ In addition, the benefits from Medicaid could be added, but are not, since the extent to which they increase disposable income is uncertain. \6\ Family would qualify for Medicaid because the mother, by law, would be deemed still an AFDC recipient, even though no AFDC would be paid; her calculated benefit would be below the minimum amount ($10 monthly) payable. \7\ Family would qualify for Medicaid for 12 months after leaving AFDC under the 1988 Family Support Act. State must offer Medicaid to all children up to age 6 whose family income is not above 133 percent of the Federal poverty guideline (ceiling of $17,290 for a family of three in 1996) and to children over age 6 born after September 30, 1983 (up to age 10\1/3\ in January 1996), whose family income is below the poverty guideline ($12,600 for a family of three). \8\ After losing her Medicaid transitional benefits, to regain eligibility, mother must spend down on medical expenses to State's medically needy income limit ($5,604 in August 1995). Source: Congressional Research Service. If the family's income, including the child support payment, is sufficient to make the family ineligible for AFDC payments, the family's AFDC benefits are ended, and future child support payments are paid from the noncustodial parent to the family, usually through an intermediary such as the local child support agency or office of the court clerk. CHART 8-1. DISPOSABLE INCOME AT VARIOUS WAGE LEVELS, MOTHER OF THREE, PENNSYLVANIA (1996) <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> Note.--Net wages equal earnings minus taxes and assumed work expenses other than child care costs. Food stamps, AFDC, and the dependent care tax credit take account of child care costs. Source: Congressional Research Service. Before 1975, when the new child support law requiring child support payments to be made to the child support agency rather than the AFDC family took effect, AFDC families in States with fill-the-gap policies (discussed above) were permitted to use some or all of their child support or other income to fill the gap between the State's payment standard and need standard. Section 402(a)(28) of the Social Security Act requires States that had a fill-the-gap policy in 1975 and that currently have such a policy to add to the AFDC benefit all or part of the child support collection (the amount which would have caused no reduction in the AFDC benefit if it had been paid directly to the family). Information obtained from HHS indicates that eight States that had fill-the-gap policies in July 1975 still had them in February 1996 and thus must follow the benefit calculation rules of section 402(a)(28). They are: Alaska, Georgia, Maine, Mississippi, South Carolina, Tennessee, Virginia, and Wyoming. Another 12 jurisdictions which had fill-the-gap policies in July 1975, no longer have them. SSI and Social Security In AFDC, Social Security benefits are treated as unearned income and thus AFDC benefits are reduced by $1 for each $1 of Social Security benefits. Under 1984 law, Social Security survivor benefits received by one AFDC child are counted as income available to other members of the family. Supplemental Security Income benefits received by a member of the family are treated differently. The Supplemental Security Income recipient (whether a child or an adult) is not regarded as a part of the AFDC unit. Thus, his needs are not taken into account in determining the AFDC benefit level. At the same time, all income and resources of the Supplemental Security Income recipient are ignored in determining the AFDC benefit. Other Benefit Programs AFDC enrollment qualifies children for free school meals (if their school has a meal program). Mothers enrolled in AFDC automatically meet income standards for benefits from the Special Supplemental Nutrition Program for Women, Infants and Children (WIC). AFDC recipients also are eligible for help from the Job Training Partnership Act (JTPA). States may grant automatic eligibility for the Low-Income Home Energy Assistance Program (LIHEAP) to AFDC families. Not all AFDC families receive benefits from these programs (see tables 16-1, 16-2, and 16-3). Some AFDC families receive housing subsidies (which reduce the family's rent to 30 percent of countable income). Thus, if a family's AFDC benefit rises (or falls), its public housing or section 8 housing subsidy generally declines (or rises) by 30 cents per dollar of the AFDC change. Although the law permits AFDC State Programs to count a family's housing subsidy as income to the extent that it duplicates the amount for housing in the AFDC maximum payment schedule, all but four States ignore housing subsidies (October 1990 data). If the AFDC grant includes a sum designated for actual housing costs, the family in subsidized housing must pay that amount as rent even if it exceeds 30 percent of countable income. Participation in Multiple Means-Tested Programs In 1994, according to the Census Bureau (U.S. Bureau of the Census, 1995), 4.819 million households included a member who received AFDC (or State/local General Assistance (GA)). These cash welfare benefits averaged $3,995 per household ($333 monthly). Noncash need-tested benefits received by members of some of these households were: --Food stamps, average household value $2,251 (received by 84.5 percent of AFDC households); --Free or reduced-price school lunches, average value $622 (53.8 percent of the households); --Housing assistance, average value $2,645 (29.7 percent of the households); --Supplemental Security Income (SSI) cash aid, average household value $4,983, (16.7 percent of the households); and --Medicaid, average ``fungible'' value $1,886 (97.5 percent of the households). The Census Bureau calculates the fungible value of Medicaid by counting Medicaid benefits to the extent that they free up resources that could have been spent on medical care. The Census Bureau also reports that in 1994, 67.5 million persons, 25.8 percent of the population, lived in households in which a member received means-tested cash aid (excluding EIC payments) or noncash aid. By form of aid, they numbered: cash welfare (AFDC, GA, or Supplemental Security Income) 27 million persons, 10.3 percent of the population; food stamps, 29.2 million persons, 11.2 percent; Medicaid, 42.9 million persons, 16.4 percent; public or subsidized housing, 11.7 million persons, 4.5 percent. CRS calculations (Burke, 1995) of Census data indicate that 7.5 million families with children were poor in 1993 before receiving cash aid from AFDC, general assistance, or the earned income credit (EIC)--4.6 million with a female householder and 2.9 million with a male householder (these numbers include unrelated subfamilies). Some means-tested aid went to all but 5 percent of the female-headed families and 8 percent of the male-present families. For male-present families, EIC was the dominant form of aid. In all, 67 percent of male-present families who were poor before transfers received the EIC; for 27 percent it was the only aid. Among female-headed families who were poor before transfers, 38 percent received the EIC; for 9 percent it was the only aid. A combination of AFDC or GA cash, food stamps, and Medicaid went to 24 percent of female- headed families and 11 percent of male-present families. Spending for Cash and Noncash Benefits for Persons of Limited Income More than 80 benefit programs provide cash and noncash aid that is directed primarily to persons who meet a test of low income. In fiscal year 1994 they cost almost $345 billion, of which Federal funds paid $246 billion. Section 18 lists these programs and shows how spending for them has grown since fiscal year 1968, in both current and inflation-adjusted dollars. It displays Federal and State-local expenditures separately and by form of benefit (medical aid, cash, food, housing, etc.). The section also shows changes over the last quarter century in the share of the Federal budget used for each form of income-tested aid. Again, not all families on AFDC receive benefits from these other means-tested programs. JOB OPPORTUNITIES AND BASIC SKILLS (JOBS) TRAINING PROGRAM The Family Support Act of 1988 established a new employment, education and training program for recipients of AFDC. This new program, called the Job Opportunities and Basic Skills (JOBS) Training Program, replaced the Work Incentive (WIN) Program. Purpose and Administration The purpose of the JOBS Program is to assure that needy families with children obtain the education, training and employment that will help them avoid long-term welfare dependence. Each State is required to have a JOBS Program, under a State plan approved by the Secretary of the Department of Health and Human Services (HHS). States were required to implement the program no later than October 1, 1990. No later than October 1, 1992, the program had to be available in every subdivision of the State where it was feasible to operate the program. According to the DHHS publication, ``Characteristics of State Plans for the Job Opportunities and Basic Skills [JOBS] Training Program: 1995-96 Edition,'' 12 States have found it infeasible to operate JOBS in all political subdivisions. Nine of these States (Alaska, Colorado, Florida, Kansas, Kentucky, Louisiana, Montana, Nevada, and West Virginia) meet a regulatory standard by offering a complete JOBS Program in all Metropolitan Statistical Areas and in political subdivisions with 75 percent of AFDC adults and a minimal program in areas where 95 percent of adults live. The other three States without a statewide program are Idaho, New Mexico, and Texas, which make JOBS available in certain counties and political subdivisions described in their plans. The JOBS Program is administered at the Federal level by the Assistant Secretary for Children and Families in HHS, and at the State level by the State welfare agency. The State welfare agency may offer services and activities directly, through Job Training Partnership Act (JTPA) administrative entities, through State and local educational agencies, and through other public agencies or private organizations (including community-based organizations). Assessment, Employability Plan, Case Management, and Orientation The State must make an initial assessment of the education, child care and other supportive service needs as well as the skills, prior work experience, and employability of each JOBS participant. On the basis of this assessment, the State must develop an employability plan for the participant. The State agency may require the participant to enter into an agreement with the State that specifies the participant's obligations under the program and the activities and services to be provided by the State. Table 8-4, based on JOBS State plans, shows that six States chose to require such an agreement (January 1994 data). The State agency may assign a case manager to each participant and the participant's family. The case manager must be responsible for assisting the family to obtain needed services to ensure effective participation in the JOBS Program. Table 8-4 shows that only two States--Iowa and Oklahoma--chose not to assign a case manager. Information about the JOBS Program and supportive services must be provided to applicants and recipients by the State agency. For example, the agency must inform AFDC applicants and recipients of the opportunities for which they are eligible, the obligations of the State agency, and the rights, responsibilities and obligations of participants. The agency must also provide detailed information about day care services and must inform applicants and recipients of all other supportive services, including transitional health care benefits (see below). TABLE 8-4.--SUMMARY OF JOBS PROGRAMS FROM STATE PLANS, JANUARY 1994 \1\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Exemption from Allow Optional participation if postsecondary Assign case Require agency State Name of program components child under age-- education? Any manager? participant \2\ limits? contract? -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama........................ JOBS................ OJT, alt. work .................. Yes; 2 year limit. Yes............... No exp., JS, other ed. & training. Alaska......................... JOBS................ OJT, alt. work .................. Yes; 30 Yes............... No exp., JS, other consecutive ed. & training. months limit. Arizona........................ JOBS................ Atl. work exp., 1................. Yes; 2 year limit. Yes............... No OJT, CWEP, JS, other ed. & training. Arkansas....................... Project Success..... Alt. work exp., 1................. Yes; 2 year limit. Yes............... No JS, OJT. California..................... GAIN................ OJT, work supp., .................. Yes; 2 year limit. Yes............... Yes CWEP, JS, alt. work exp.. Colorado....................... New Directions...... OJT, work supp., 1................. Yes; 24 month Yes............... No CWEP, JS. limit. Connecticut.................... JOBS................ OJT, JS, alt. work 2................. Yes; 2 years; 3 Yes............... No exp.. years for certified programs. Delaware....................... First Step.......... OJT, CWEP, JS..... .................. Yes............... Yes............... No District of Columbia........... ARC................. OJT, alt. work .................. Yes; 2 year limit. Yes............... No exp., JS, other ed. & training. Florida........................ Project Independence OJT, work supp., .................. Yes; 4 year limit. Yes............... No CWEP, alt. work exp., JS. Georgia........................ PEACH............... OJT, CWEP, alt. .................. Yes; 28 month Yes............... No work exp., JS, limit. work supp.. Guam........................... JOBS................ OJT, CWEP, JS..... .................. Yes............... Yes............... No Hawaii......................... JOBS................ OJT, CWEP, JS, .................. Yes............... Yes............... No other ed. & training. Idaho.......................... JOBS................ OJT, alt. work .................. Yes; 4 year limit. Yes............... No exp., JS, other ed. & training. Illinois....................... Project Chance...... OJT, work supp., .................. Yes; no limits.... Yes............... No CWEP, alt. work exp., JS, other ed. & training. Indiana........................ IMPACT: JOBS........ OJT, work supp., .................. Yes; 24 months.... Yes............... No alt. work exp., CWEP, JS, other ed. & training. Iowa........................... Promise JOBS........ OJT, alt. work .................. Yes; 30 month No................ No exp., JS, other limit for 2 year training. degree program; 40 month limit for 3 or 4 year programs. Kansas......................... Kan Work in 23 OJT, CWEP, JS, .................. Yes; up to BA/BS.. Yes............... No counties; minimal alt. work exp.. JOBS in balance of State. Kentucky....................... JOBS................ OJT, CWEP, alt. .................. Yes; limited to 6 Yes............... No work exp., JS. semesters for 2 and 3 year programs; 8 semesters for 4 year programs. Louisiana...................... Project Independence OJT, CWEP, JS..... 1................. Yes; 4 year limit. Yes............... No Maine.......................... ASPIRE/JOBS......... OJT, CWEP, JS, .................. Yes; limited to 6 Yes............... Yes other ed. & semesters for AA training, other degree, 12 training.. semesters for BA degree. Maryland....................... Project Independence OJT, alt. work .................. Yes............... Yes............... No exp., JS, work supp., other ed. & training. Massachusetts.................. Mass JOBS........... OJT, work supp., .................. Yes; limited to 3 Yes............... No JS, alt. work years for 2-year exp.. degree, voc-tech programs; 6 years for 4-year programs. Michigan....................... MOST................ OJT, work supp, 1................. No................ Yes............... No CWEP, JS, other ed.. Minnesota...................... Project STRIDE...... OJT, work supp, .................. Yes............... Yes............... No CWEP alt. work exp., JS, other training. Mississippi.................... JOBS................ Alt. work exp., JS .................. Yes; 5 year limit, Yes............... No 3 year vocational. Missouri....................... FUTURES............. OJT, CWEP, JS, .................. Yes............... Yes............... No work supp., alt. work exp. Montana........................ JOBS................ OJT, work supp., .................. Yes............... Yes............... Yes JS, CWEP, alt. work exp. Nebraska....................... JOBS................ OJT, CWEP, alt. 1................. Yes............... Yes............... No work exp., JS. Nevada......................... JOBS................ OJT, CWEP, JS, .................. No................ Yes............... No alt. work exp.. New Hampshire.................. JOBS................ OJT, CWEP, JS..... .................. Yes............... Yes............... No New Jersey..................... REACH............... OJT, work supp, 2................. Yes............... Yes............... No CWEP, JS, other ed. & training. New Mexico..................... Project Forward..... OJT, CWEP, alt. .................. Yes............... Yes............... No work exp., JS, other ed. & training. New York....................... JOBS................ OJT, work supp., .................. Yes, 2 year limit. Yes............... No CWEP, JS, other ed. & training. North Carolina................. JOBS................ OJT, CWEP, JS..... .................. Yes............... Yes............... No North Dakota................... JOBS................ OJT, CWEP, JS, .................. Yes; 45 months.... Yes............... No work supp., alt. work exp.. Ohio........................... JOBS................ OJT, work supp., .................. Yes; 2 year limit. Yes............... No CWEP, alt. work exp., JS. Oklahoma....................... Education, Training OJT, work supp., 1................. Yes; 5 year limit. No................ No and Employment. alt. work exp., JS, other ed. & training. Oregon......................... JOBS................ OJT, work supp., 1................. No................ Yes............... No CWEP, alt. work exp., JS, other training. Pennsylvania................... New Directions...... OJT, CWEP, alt. .................. Yes............... Yes............... No work exp., JS, other ed. & training. Puerto Rico.................... PASOS............... OJT, alt. work .................. Yes; 2 years...... Yes............... No exp., work supp., JS, other ed. & training. Rhode Island................... Pathways to CWEP, work supp., .................. Yes; 24 month Yes............... No Independence. OJT, JS, alt. limit. work exp.. South Carolina................. Work Support Program OJT, alt. work .................. Yes; 4 year limit. Yes............... No exp., JS, other ed. & training. South Dakota................... FIND................ OJT, JS, alt. work 1................. Yes; 4 year limit. Yes............... No exp.. Tennessee...................... JOBS/WORK........... OJT, alt. work .................. Yes; 4 year limit. Yes............... No exp., JS. Texas.......................... JOBS................ OJT, alt. work .................. Yes; 2 year limit. Yes............... No exp., JS. Utah........................... JOBS................ OJT, alt. work .................. Yes; with limits.. Yes............... Yes exp. (WEAT), JS. Vermont........................ Reach Up............ OJT, work supp., .................. Yes; 3 year limit Yes............... No CWEP, JS. for AA certificate, 5 years for BA degree. Virgin Islands................. JOBS/HOPE........... OJT, CWEP, work 2................. Yes; with limits.. Yes............... Yes supp., JS. Virginia....................... JOBS................ OJT, work supp., .................. Yes; 2 year limit. Yes............... No alt. work exp., JS, other ed. & training. Washington..................... JOBS/FIP............ OJT, alt. work .................. Yes; with limits Yes............... No exp., CWEP, work (BA/BS). supp., JS. West Virginia.................. JOBS................ CWEP, OJT, JS, .................. Yes; 2 year limit. Yes............... No alt. work exp.. Wisconsin...................... JOBS................ CWEP, OJT, work 2................. Yes; 2 year limit. Yes............... No supp., JS, alt. work exp.. Wyoming........................ Wyoming OJT, alt. work 1................. Yes; 4 year limit Yes............... Yes Opportunities for exp, JS. for AA & Work (WOW) Program. vocational; 6 year limit for BA. -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Information based on State JOBS Plan, filed for the biennium beginning October 1, 1994. \2\ Unless otherwise noted, State follows basic statutory approach and exempts the parent of a child under age 3. Note.--Optional components can include Job Search (JS), Alternative Work Experience, On-the-Job Training (OJT), Community Work Experience Program (CWEP), Work Supplementation, Other Education, and other activities. Source: Administration for Children and Families, U.S. Department of Health and Human Services. JOBS Activities A range of services and activities must be offered by each State under the JOBS Program; however, States are not required to operate the JOBS Program uniformly throughout the State. The four mandatory services a State must offer are: (1) education activities, including high school or equivalent education, basic and remedial education to achieve a basic literacy level, and education for individuals with limited English proficiency; (2) job skills training; (3) job readiness activities; and (4) job development and job placement. Supportive services also are required. In addition to these required activities, States must offer two of the following four optional activities: (1) group and individual job search; (2) on-the-job training; (3) work supplementation; and (4) community work experience (CWEP) or any other work experience program approved by the Secretary. In addition, States may offer postsecondary education to JOBS participants and other State-determined education, employment, and training activities approved by the Secretary. All jurisdictions but three (Michigan, Nevada, and Oregon) offer postsecondary education under JOBS. Table 8-4 shows which activities the individual States are offering, as of January 1994. A complete JOBS Program contains the four mandatory components above and at least two of the four optional components. A minimal program includes high school or equivalent education, one of the optional components, and information and referral to available non-JOBS employment services. When a parent aged 20 or over who lacks a high school diploma (or equivalent) is required to participate in JOBS, the State agency must include education services in her employability plan unless the individual demonstrates a basic literacy level or the plan identifies a long-term employment goal that does not require a high school diploma. Following is a more detailed discussion of the Federal requirements for job search, CWEP, and work supplementation programs. Job search States may require AFDC applicants and recipients to participate in a job search program beginning at the time of application. States may require up to 8 weeks of job search for applicants and up to 8 weeks of job search for AFDC recipients each year. Thus, in the first year, up to 16 weeks of job search may be required; up to 8 weeks per year may be required thereafter. A person may not be required to undertake additional job search activities unless job search is used in combination with some other education, training or employment activity that is designed to improve the individual's prospects for employment. In no event may a State require a person to participate in more than 3 weeks of job search before it conducts an employability assessment for that individual. Finally, job search cannot be treated for any purpose as a JOBS activity if a person has participated in job search for 4 out of the preceding 12 months. Community work experience The purpose of a CWEP Program is to provide experience and training for individuals not otherwise able to obtain employment. CWEP Programs must be designed to improve the employability of participants through actual work experience and training and to enable CWEP participants to move into regular employment. CWEP Programs must be limited to projects that serve a useful, public purpose in fields such as health, social service, environmental protection, education, urban and rural development and redevelopment, welfare, recreation, public facilities, public safety or day care. A State electing to operate a CWEP Program must ensure that a CWEP participant is not required to work more hours than the number derived by dividing the total AFDC benefit by the Federal minimum wage (or, if greater, the State minimum wage). Any AFDC benefit amount for which the State receives reimbursement through child support collection cannot be taken into account in making this calculation. After 9 months in a CWEP position, an individual cannot be required to continue in that assignment unless the maximum number of hours of required work is calculated on the basis of the rate of pay for individuals employed in the same or similar occupations by the same employer at the same site. At the conclusion of each CWEP assignment, but, in any event, after each 6 months of CWEP participation, the State agency must provide a reassessment, and revision, as appropriate, of the individual's employability plan. Work supplementation A work supplementation program permits a State to ``divert'' all or part of a family's AFDC grant to an employer to cover all or part of wages paid to the recipient. Recipients may be placed in jobs offered by private as well as nonprofit employers. Under JOBS, States may make work supplementation either mandatory or voluntary, and States are required to provide Medicaid to work supplementation participants. States operating a work supplementation program may adjust the level of their AFDC standard of need in order to carry out the program, and need standards may vary among areas of the State. Need standards may also vary among recipient categories, to the extent that the State determines the variation to be appropriate on the basis of the ability of the recipient to participate in the work supplementation program. States are able to make further adjustments to amounts paid to different categories of work supplementation participants in order to offset increases in benefits from non-AFDC means-tested programs. States also are permitted to reduce or eliminate the amount of earned income disregards for work supplementation families. On the other hand, States may offer them the $30 plus one-third earned income disregard for up to 9 months, 5 months longer than is allowed for other AFDC earners. Federal funding under the program is limited for each participant to the aggregate of 9 months' worth of the maximum AFDC grant that the participant family would have received if it had no income and were not participating in the work supplementation program. Participation Requirements Exemptions To the extent resources are available, a State must require nonexempt AFDC recipients to participate in the JOBS Program. Exempt applicants and recipients may participate on a voluntary basis. Exempt are persons who are: (1) ill, incapacitated, or of advanced age; (2) needed in the home because of the illness or incapacity of another family member (who need not be a member of the AFDC unit); (3) the parent or other relative of a child under age 3 who is personally providing care for the child (or, if provided in the State plan, any age that is less than 3 but not less than 1); (4) employed 30 or more hours a week; (5) a child under age 16 or attending, full time, an elementary, secondary or vocational school; (6) a woman who is in at least the second trimester of pregnancy; or (7) residing in an area where the program is not available. Table 8-4 shows that 40 jurisdictions exempt the parents of a child under 3; four lower the age threshold to age 2 (Connecticut, New Jersey, the Virgin Islands, and Wisconsin); and ten lower the threshold to age 1 (Arizona, Arkansas, Colorado, Louisiana, Michigan, Nebraska, Oklahoma, Oregon, South Dakota, and Wyoming). In fiscal year 1994, 40.5 percent of AFDC families had a child below age 3, and 12.6 percent had a child below age 1 (including 1.8 percent who were unborn). Special provisions The 1988 law conditions some participation rules on provision of child care. In general, the parent of a child under age 6 (but older than the age for an exemption) who is personally providing care for the child may be required to participate only if child care is guaranteed and required participation is limited to a maximum of 20 hours per week. In the case of an AFDC-UP family, the exemption relating to age of child applies to only one parent, unless child care is guaranteed. JOBS imposes a special educational requirement for high school dropouts. To the extent the JOBS Program is available and State resources permit, a State must require a custodial parent under age 20 who has not completed high school (or the equivalent) to participate in an educational activity. Even though such a parent is providing care for a child under 6 years of age, the State agency may require her to participate in the educational activity on a full-time basis, if the State guarantees child care. Alternative work or training activities may be provided if the parent fails to make progress in an educational activity, or if an educational assessment determines that participation in an educational activity is inappropriate. Participation in alternative activities is limited to 20 hours per week. If an individual is attending school or a course of vocational training at least half time at the time she would otherwise begin to participate in the JOBS Program, and if she is making satisfactory progress, the attendance may meet her JOBS participation requirement, but the costs of the school or training are not eligible for Federal reimbursement. The law forbids a State to require a JOBS participant to accept a job that would result in a net loss of cash income unless the State makes a supplementary payment. Only one jurisdiction, the Virgin Islands, has chosen to make supplementary AFDC payments to those who otherwise would lose income by taking a job. Minimum participation standards Certain minimum participation standards were established for fiscal years 1990-95 for the overall AFDC caseload (and for fiscal years 1994-98 for the unemployed-parent caseload). The minimum participation rates for the overall caseload were 7 percent (of the nonexempt caseload) in fiscal years 1990-91, 11 percent in fiscal years 1992-93, 15 percent in fiscal year 1994, and 20 percent in fiscal year 1995 (none thereafter). Special participation rules apply to the unemployed-parent caseload. At least one parent in each AFDC-UP family must participate at least 16 hours a week in a work activity. However, in low-benefit States, fewer than 16 hours of weekly CWEP participation are required since work hours calculated at the minimum wage cannot exceed the number needed to yield the family's AFDC benefit. Participation must be in work supplementation, community work experience or other work experience program, on-the-job training, or a State-designed work program approved by the Secretary. Except for Florida, Georgia, Nebraska, and the Virgin Islands (which has not implemented AFDC-UP), all State JOBS plans treat unsubsidized employment as a countable activity for AFDC-UP families. The percentage of AFDC-UP families required to meet this work rule was 40 percent in fiscal year 1994, 50 percent in fiscal year 1995, and 60 percent in fiscal year 1996, and is scheduled to rise to 75 percent in fiscal year 1997 and fiscal year 1998 and to end thereafter. A State may substitute participation in an educational program in the case of an AFDC-UP parent under age 25 who has not completed high school. The prescribed penalty for failing to meet the general participation rate is a reduction in the Federal matching rate, but the penalty can be waived under certain conditions and, to date, always has been. Definition of JOBS participant The law does not define ``participant,'' but Federal regulations require that JOBS participation rates be measured by a 20-hour-per-week standard. The welfare agency is to count as participants the largest number of persons whose combined and averaged hours in specified JOBS activities equal or exceed 20 per week. Creditable activities include any component of the State's JOBS plan except job development and job placement. Persons who enter a job are counted as participants only if they engaged in a JOBS activity (or received job development and placement services) during the month of job entry or the preceding month. Targeting of JOBS Funds As described in detail later, Federal matching for JOBS Program costs is available as a capped entitlement. The JOBS Program includes incentives for States to target funds toward certain populations. States face a reduced Federal match unless 55 percent of JOBS funds is spent on the following populations: (1) families in which the custodial parent is under age 24 and has not completed high school or has little or no work experience in the preceding year; (2) families in which the youngest child is within 2 years of being ineligible for assistance because of age; (3) families that have received assistance for 36 or more months during the preceding 60-month period; and (4) applicants who have received AFDC for any 36 of the 60 months immediately preceding application. Wyoming targets an alternate group--households in which a member has received AFDC in 24-35 of the last 60 months. Volunteers must be given first consideration within target groups. Funding of JOBS and Supportive Services Federal matching for JOBS Program costs is available as a capped entitlement limited to $1 billion annually in fiscal year 1996 and thereafter. (Authorized for previous years were these sums: $600 million in fiscal year 1989, $800 million in fiscal year 1990, $1 billion in fiscal year 1991, 1992 and 1993, $1.1 billion in fiscal year 1994, and $1.3 billion in fiscal year 1995.) The Federal match is 90 percent for expenditures up to the amount allotted to the States for the WIN Program in fiscal year 1987. Of additional amounts, the Federal match is at the Medicaid rate (between roughly 50 and 78 percent), but with a minimum Federal match of 60 percent for nonadministrative costs and for personnel costs for full-time staff working on the JOBS Program. The match for other administrative costs is 50 percent. The law provides for a reduction in the JOBS Federal match rate to 50 percent unless (1) 55 percent of funds are spent on target populations listed above, and (2) the States meet participation rate requirements. The entitlement cap for JOBS is allocated as follows: States receive an amount equal to their WIN allotment for fiscal year 1987 ($126 million across all States) and the remainder is allocated on the basis of each State's relative number of adult AFDC recipients. Federal program funds may not be used to supplant non-Federal funds for existing services and activities, and States must spend on JOBS, from State/local funds, at least as much as they did for comparable activities in fiscal year 1986. Child care during participation in JOBS and for employment is reimbursed as a separate, open-ended entitlement at the Medicaid matching rate. Transportation and other work-related expenses are reimbursed at a rate of 50 percent and are among expenditures subject to the JOBS entitlement cap. Table 8-5 provides information on fiscal year 1995 Federal allocations to the States for the JOBS Program, along with information on the amount of these funds States have expended and obligated. Authorized for JOBS was $1.3 billion; the Federal share of JOBS expenditures claimed by States as of March 29, 1996, however, was $875 million (only two-thirds of available Federal funds). Thirteen jurisdictions claimed all JOBS funds allocated to them after deduction of amounts set aside for Indians: (Alaska, Delaware, Hawaii, Idaho, Iowa, Kansas, Louisiana, New Jersey, North Carolina, Oregon, South Dakota, Virgin Islands, and Wisconsin). As of March 29, 1996, States had obligated another $137 million in fiscal year 1995 Federal JOBS funds; they have until September 30, 1996 to claim these funds for actual expenditures. The table also includes information on federally reimbursed expenditures for child care. For AFDC/JOBS and transitional child care, States claimed Federal reimbursement of $700 million in fiscal year 1994, and $893 million in fiscal year 1995. Indian Tribes and JOBS More than 80 Indian tribes and Alaska Native Organizations in 24 States conduct their own JOBS Programs. These programs, which are 100 percent federally funded, need not meet participation rules of the regular JOBS Program. Allocation of JOBS funds for Indian tribes and Alaska Native Organizations is based on the percentage of AFDC adult recipients within the State who live in their service area, and their grants are subtracted from the State's allocation. In fiscal year 1995, 0.7 percent of authorized JOBS funds ($9.3 million) was set aside for them. (The list of tribal JOBS grantees is now closed; the deadline for tribes to conduct their own programs was 6 months after enactment of the JOBS Program in 1988.) Supportive and Transitional Services State agencies must guarantee child care for a recipient if the care is necessary for the individual to work. In addition, the State must guarantee child care for education and training activities, including participation in the JOBS Program, if the State approves the activity and determines that the individual is participating satisfactorily. The State agency must also guarantee child care that is needed for an individual's employment in any case in which a family has ceased to receive AFDC assistance as a result of increased hours of, or increased income from, employment or as a result of the loss of earnings disregards. Transitional child care is limited to a period of 12 months after the last month for which the family actually received AFDC assistance. Unlimited Federal matching funds, at Medicaid matching rates, are provided for AFDC/JOBS child care and transitional child care. (AFDC child care assistance programs are described in more detail in section 10.) The State must provide payment or reimbursement for necessary transportation and other work-related expenses, including other work-related supportive services that the State determines are necessary to enable an individual to participate in JOBS. Federal matching is 50 percent, subject to the overall JOBS funding cap (see ``Funding'' above). There is no Federal limit on reimbursable expenses for an individual. TABLE 8-5.--FEDERAL ALLOCATIONS AND EXPENDITURES FOR THE JOBS PROGRAM BY STATE, 1993-95 [By fiscal year; in millions of dollars] -------------------------------------------------------------------------------------------------------------------------------------------------------- JOBS total Indian set- Awarded to Total obligated Total Title IV-A Child Care: States authoriz. aside 1995 States ------------------------------------ expended ----------------------- 1995 \1\ \2\ 1995 \3\ 1995 \5\ 1994 \5\ 1993 \5\ 1995 \4\ 1995 \6\ 1994 \6\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama..................................... 10.4 0.0 10.1 10.1 9.5 9.3 9.0 12.0 11.8 Alaska...................................... 4.0 1.4 2.5 4.0 3.3 1.8 2.5 2.7 1.9 American Samoa.............................. 0.1 0.0 0.0 0.0 0.0 .......... 0.0 0.0 0.0 Arizona..................................... 17.3 2.6 12.7 15.3 11.2 5.8 11.5 15.1 11.0 Arkansas.................................... 5.8 0.0 5.8 5.8 5.1 5.0 3.9 2.4 1.5 California.................................. 228.9 0.7 137.7 138.4 133.2 96.8 110.3 44.7 30.3 Colorado.................................... 12.2 0.0 10.8 10.8 8.0 6.7 10.5 6.0 5.7 Connecticut................................. 15.7 0.0 10.1 10.1 7.6 6.1 10.0 15.3 10.6 Delaware.................................... 2.7 0.0 2.7 2.7 2.3 2.1 2.7 4.4 3.4 District of Columbia........................ 7.0 0.0 5.5 5.5 4.7 4.7 5.4 4.0 3.2 Florida..................................... 54.3 0.0 18.9 18.9 17.5 15.9 15.7 29.0 22.0 Georgia..................................... 32.2 0.0 32.2 32.2 20.7 10.3 23.6 36.3 33.9 Guam........................................ 0.7 0.0 0.3 0.3 0.3 0.2 0.2 0.0 0.0 Hawaii...................................... 6.0 0.0 6.0 6.0 4.7 4.1 6.0 3.6 1.7 Idaho....................................... 3.0 (\6\) 2.9 3.0 2.6 2.3 2.9 1.3 1.4 Illinois.................................... 63.6 0.0 44.0 44.0 30.9 25.9 35.4 43.4 22.0 Indiana..................................... 19.6 0.0 15.1 15.1 11.2 8.1 12.3 21.1 15.1 Iowa........................................ 11.2 0.0 11.2 11.2 8.7 5.9 11.2 5.4 3.4 Kansas...................................... 8.0 (\6\) 8.0 8.0 6.8 6.4 8.0 6.2 6.8 Kentucky.................................... 19.3 0.0 16.4 16.4 15.3 13.7 10.4 12.5 12.6 Louisiana................................... 18.3 0.0 18.3 18.3 16.6 16.5 18.3 11.7 10.7 Maine....................................... 6.8 (\6\) 4.0 4.0 3.1 3.7 5.8 1.7 1.3 Maryland.................................... 20.4 0.0 13.7 13.7 16.0 14.1 10.7 17.7 17.5 Massachusetts............................... 32.0 0.0 21.7 21.7 20.5 20.5 23.0 38.7 31.8 Michigan.................................... 66.6 0.2 66.4 66.6 59.4 35.2 50.3 21.2 9.0 Minnesota................................... 18.5 1.1 14.1 15.2 14.7 11.7 15.1 18.0 16.6 Mississippi................................. 11.9 (\6\) 11.8 11.9 11.0 10.8 11.6 5.1 3.9 Missouri.................................... 23.8 0.0 14.3 14.3 11.6 9.8 15.2 18.8 15.0 Montana..................................... 3.7 0.5 2.5 3.1 2.6 2.5 2.9 2.4 2.2 Nebraska.................................... 4.1 0.1 3.7 3.8 2.5 2.7 2.8 7.9 8.7 Nevada...................................... 3.2 (\6\) 1.6 1.6 1.4 1.2 1.4 1.2 1.0 New Hampshire............................... 3.0 0.0 2.9 2.9 2.5 2.3 3.0 3.3 3.1 New Jersey.................................. 32.1 0.0 30.4 30.4 26.6 21.0 32.1 18.0 10.6 New Mexico.................................. 9.6 0.1 2.0 2.1 1.8 1.6 2.1 3.3 6.2 New York.................................... 122.8 (\6\) 119.7 119.8 98.5 85.2 93.6 82.3 44.1 North Carolina.............................. 29.7 0.1 27.7 27.8 20.7 17.7 27.7 62.2 53.4 North Dakota................................ 1.8 0.5 1.4 1.9 1.8 1.3 0.8 1.5 1.8 Ohio........................................ 65.2 0.0 62.8 62.8 52.0 58.6 53.1 52.9 44.6 Oklahoma.................................... 11.2 0.2 8.3 8.5 7.6 6.7 7.1 21.2 17.8 Oregon...................................... 13.2 0.1 13.1 13.2 11.9 11.4 13.1 16.0 14.9 Pennsylvania................................ 57.1 0.0 56.5 56.5 48.0 34.7 43.1 42.9 32.8 Puerto Rico................................. 15.6 0.0 13.0 13.0 11.1 9.6 11.0 0.0 0.0 Rhode Island................................ 6.2 0.0 5.3 5.3 5.1 4.8 4.3 5.6 4.9 South Carolina.............................. 10.4 0.0 5.8 5.8 5.0 5.4 6.8 5.4 3.3 South Dakota................................ 1.9 0.5 1.3 1.9 1.8 1.3 1.3 1.1 1.2 Tennessee................................... 25.7 0.0 10.7 10.7 5.8 7.8 12.5 35.3 30.2 Texas....................................... 62.9 0.0 41.7 41.7 35.6 37.2 35.9 42.6 40.1 Utah........................................ 5.3 0.0 5.1 5.1 4.8 4.5 5.0 9.6 9.8 Vermont..................................... 3.6 0.0 3.6 3.6 3.3 2.9 3.3 2.6 3.3 Virgin Islands.............................. 0.4 0.0 0.3 0.3 0.3 0.3 0.3 0.0 0.0 Virginia.................................... 17.1 0.0 11.4 11.4 10.8 9.1 11.1 13.7 11.5 Washington.................................. 31.6 0.6 16.4 17.0 18.2 23.9 21.8 35.8 30.4 West Virginia............................... 12.5 0.0 8.5 8.5 9.0 9.8 8.6 7.0 5.3 Wisconsin................................... 28.2 0.4 27.8 28.2 26.1 20.4 27.8 18.7 12.1 Wyoming..................................... 1.7 0.1 1.5 1.6 1.6 1.5 0.9 2.0 2.1 ----------------------------------------------------------------------------------------------------------- Totals................................ 1,300.0 9.3 1,002.4 1,011.8 873.0 738.8 875.0 892.9 699.7 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ JOBS--total authorization: Total Federal funds available for the JOBS Program for fiscal year 1995. \2\ Indian set-aside: Ratio of adult recipients in a tribal service area to the State's total of adult recipients multiplied by the State's total allocation. \3\ Excludes the Indian set-aside. \4\ Federal share of expenditures claimed by States for the JOBS Program. \5\ Total obligated: The amount of funds obligated by the State by September 30, 1995, 1994 and 1993. For example, if a contract is signed by the State to provide services based on a set fee, the amount owed for those services is an obligation. That obligation becomes an expenditure only when the invoice for the services is actually paid. \6\ Federal share of expenditures claimed by States for AFDC and Transitional Child Care.