HOUSE BILL REPORT

HB 1937

BYRepresentatives Brekke, Crane, Wineberry and P. King; by request of Governor Gardner

Modifying provisions relating to the family independence program.

House Committe on Human Services

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (6)

      Signed by Representatives Scott, Vice Chair; Leonard, Moyer, Padden, H. Sommers and Winsley.

Minority Report:  Do not pass.  (2)

      Signed by Representatives Brekke, Chair; and Anderson.

House Staff:Jean Wessman (786-7132)

AS REPORTED BY COMMITTEE ON HUMAN SERVICES FEBRUARY 4, 1988

BACKGROUND:

One of the primary governmental supports for needy families is the Aid to Families with Dependent Children program which provides cash and medical assistance to eligible children who have been deprived of parental support through absence, death, incapacity, relinquishment or unemployment.  While AFDC is a federal program and states are required to follow federal regulations in many areas of program eligibility, there is usually some latitude for states to request federal waivers in order to implement innovative programs which may reduce dependency and improve the well-being of participants. In 1987, Washington State authorized the Family Independence Program to replace its AFDC program, remaining within the foundation of Title IV-A of the Social Security Act of 1935.

The Family Independence Program will provide increased financial incentives for employment, training and education; expanded provision of child care and health benefits; and expanded opportunities for and coordination of available education and training.  The legislation enacted in 1987 authorized the basic outline of the program and the ongoing preparation for implementation subject to approval of the program by the U.S. Congress.  FIP was approved by Congress in December 1987 and according to the provisions of the legislation passed at the state level must now have the implementation plans be approved along with the federal-state agreements by the 1988 Washington State Legislature.

In addition, several clarifying changes are necessary within the sections on the Family Opportunity Councils, the preamble, and the evaluation plan.

SUMMARY:

SUBSTITUTE BILL:  The implementation plans submitted to the Legislature in January 1988 is approved.  The Governor or his or her designee is authorized to sign the federal-state agreements.

The preamble section is amended to include the corresponding reduction of caseload in relation to the goal of increased independence and self-sufficiency.  The Department in encouraging public-private cooperation includes community-based organizations who may be service providers through contractual arrangements with the Department.

The section on the Family Opportunity Councils is amended to allow for the reimbursement of dependent care expenses for recipients and former recipients when participating in the Family Opportunity Advisory Councils, the Executive Committee, and the Family Independence Program Advisory Committee.  The Department of Social and Health Services may, within available funds, provide grants to the Family Opportunity Councils to assist in their activities.

The first evaluation report shall be submitted December 1, 1989. The evaluation reports shall not include a report on changes in labor market opportunities for nonenrollees because of the Family Independence Program.

The termination date of the chapter is amended to 1993.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Community-based organizations who may provide job training, job readiness training, education and work opportunities are added to the preamble which encourages public-private cooperation.  The report on the effects of the Family Independence Program on labor market opportunities of nonenrolles is deleted.

Fiscal Note:      Requested January 28, 1988.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Mr. Jule Sugarman, Secretary, Department of Social and Health Services; and Mary Liebert and Laurie Dills, Committee on Adolescent Pregnancy Parenting, Statewide Steering Committee.

House Committee - Testified Against:      Lonnie Johns-Brown, Washington State National Organization for Women; and Pat Thibaudeau, Washington Women United.

House Committee - Testimony For:    This legislation is necessary to actually implement the Family Independence Program which the Legislature authorized last year. The program has been authorized by the United States Congress and the federal-state agreements are being finalized by the various federal departments concerned.  In order for the program to actually begin March 1, 1988, the state Legislature must approve this legislation.  The implementation plans submitted to the appropriate committees in January were approved and the evaluation plan has been approved by the Legislative Budget Committee. This is the final step the state needs to take before the program begins.

House Committee - Testimony Against:      There is still some doubt as to whether the Family Independence Program will be able to deliver all that it promises.  Without additional revenue up front, the first two years of the program will be spent putting people into low wage jobs as quickly as possible in order to have any money with which to operate the program in the final three years.  No additional resources appear to be going into education and training as promised by the media releases.  Community-based organizations are not being used by the departments in their planning for job training, job readiness training, education or work opportunities.  There is a real concern that this program may not actually lift people out of poverty or endow them with any additional ability to become economically independent or self- sufficient.