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OCR Page 1 of 104Ed Lazere <[email protected]>
07/27/2000 03:10:00 PM
Please respond to Ed Lazere <[email protected]>
Record Type:
Record
To:
Margy Waller/OPD/EOP
CC:
Eileen Sweeney <[email protected]>
Subject: more supplantation stories
Here's what I could scrounge up. In some cases, you will see that the issue is threat of supplantation, and
it is not clear what the final outcome was. But I think that threats are worth noting even if we don't know
what happened. I can try to provide more detail on specific examples if you like, but I didn't have time to
get to it today.
ARIZONA: According to a key legislator on welfare issues, the state used $15 million in TANF for child
care so it could pull the same amt out of general fund child care, and it also supplanted $10 million within
the Department of Economic Security (welfare dept). Advocates note that the state has reduced spending
$51 miillon -- 48 percent -- since 1995. Part of this is a drop in MOE spending to about 80%, but not all.
Colorado: we worked with an advocate this year on a possible non-supplantation bill at the state level
because TANF f unds seemed vulnerable. This is what she had to say about supplantation that has
already occurred: As you may know our revenue and
spending limits are pushing the JBC to make difficult decisions regarding budget cuts in order to fund new
programs and expand current programs. The Governor and many other groups are interested in using
TANF funds for their programs since it is getting harder and harder to find
dollars. Some ideas are good and others not. We are concerned about supplantation issues. Legal
transfers are being made from TANF into child welfare and then child welfare dollars are being returned to
the general fund to fund, for example, the Gov's new read to achieve program.
So the transfer appears to be legitimate but in reality TANF funds will enable the ste to fund all kinds of
programs or tax cuts or ????
Massachusetts: According to an advocate, the state has used TANF transfers to CCDF to greatly reduce
state spending on non-welfare related child care.
Mississsippi: there was talk by the new Gov of using TANF to free up funds that could be used for teacher
salaries. I believe that idea was shelved.
New Jersey: The state used TANF transfers to SSBG to free up state $$ that can be used to help meet
the MOE. i.e, using TANF to meet the MOE requirement.
New York: you know about NY, I am sure, but I wanted to remind you since it wasn't in our paper of Dec
1999.
Oregon: The state is basically using a Ul-funded program to meet part of its MOE requirement (scouring
the budget to find MOE programs). They also are using a whopping $112 million (over two years) of
TANF for child welfare programs, a hint of supplantation. The $112 millio is about 1/3 of their annual
grant.
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