SENATE BILL REPORT

E2SHB 448

BYHouse Committee on Ways & Means (originally sponsored by Representatives Brekke, Winsley, Braddock, Dellwo, H. Sommers, P. King, Wang, Holm, B. Williams, Haugen, Fuhrman, Heavey, L. Smith, Miller and Barnes; by request of Governor Gardner)

Establishing the family independence program.

House Committe on Human Services

Rereferred House Committee on Ways & Means

Senate Committee on Human Services & Corrections

Senate Hearing Date(s):March 25, 1987; April 1, 1987

Majority Report:  Do pass as amended and refer to Committee on Ways & Means.

      Signed by Senators Wojahn, Chairman; Stratton, Vice Chairman; Anderson, Deccio, Johnson, Kiskaddon, Kreidler, Peterson, Tanner.

Senate Staff:Jean Soliz (786-7755)

                  April 2, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):April 2, 1987

Majority Report:  Do pass as amended.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Deccio, Moore, Rasmussen, Rinehart, Talmadge, Vognild, Warnke, Williams, Wojahn.

Senate Staff:Suzanne Petersen (786-7715)

                  April 3, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 2, 1987

BACKGROUND:

The public assistance caseload in Washington has been increasing rapidly in Washington.  One major factor in the caseload growth is the fact that the average length of stay on the Aid For Dependent Children Caseload is increasing.  The current public assistance program contains financial disincentives which hamper the ability of public assistance recipients to find work and leave the program.

Opportunities program is the current mandatory public assistance work program.  This program focuses on job search activities.  A lack of additional services such as child support, job training, education and job creation resources limits the number of placements in the Opportunities program.

SUMMARY:

A new chapter entitled the Family Independence Program (FIP) is established.  The purpose of FIP is to assist recipients in achieving economic independence through the provision of child care, education, training and job placement services.

The welfare reform program will target new AFDC applicants and is a separate statutory five-year demonstration project.  Current AFDC recipients will remain on the regular program unless FIP can be expanded to include them in the final years of the project.

The Governor is authorized to negotiate with Congress for necessary waivers of portions of the Social Security Act.  Waivers will be sought to use AFDC funds for child care, job training, incentive payments, and other program services.  A waiver from the Department of Agriculture will also be sought to give recipients cash instead of food stamps.  A third type of waiver will be sought to avoid federal work disincentives.

An implementation plan must be ratified by the Legislature before the program can begin.  An executive committee is created to plan and operate the program.  An advisory committee must be consulted on significant matters.

The FIP plan includes assessment, child care services, job training, education and job creation services for recipients.  Recipients who participate will receive incentive payments and may receive child care and medical assistance benefits on a copayment basis for a year after they reach the maximum income level set by the executive committee.  The Legislature will be presented with a specific employment and training and child care plan, along with copies of the federal-state contracts, in the 1988 session.

SUMMARY OF PROPOSED HUMAN SERVICES & CORRECTIONS AMENDMENT:

The delegation of authority to the Governor is narrowed to allow negotiation of proposed federal-state contracts for restructuring the AFDC funding relationship.  These contracts must be submitted to the Legislature with the implementation plans before authority is delegated to complete the agreements.  Implementation of the program shall occur only in regions where the average unemployment rate is less than twice the state average.

Mandatory participation may be required only in regions where more than 50 percent of job-ready participants are being placed within three months after they become job-ready.  Caretaking parents are exempt until the youngest child is three years old, unless the recipient has been on assistance longer than three years, in which case the exemption is only until the youngest child is six months old.  No recipient who is on assistance for the first time may be required to participate for six months after becoming eligible for assistance.

A system of family opportunity councils will be established in each of the six DSHS regions, to select members to the advisory committee and to assist in providing services to enable public assistance recipients achieve self-sufficiency.

The executive committee is expanded to include two nonvoting former public assistance recipients who have been successful in achieving economic independence.  The executive committee must consult with the advisory committee on matters relating to contracts with service providers, modifications of incentive payments and all reports to the Legislature.

SUMMARY OF PROPOSED WAYS & MEANS AMENDMENT:

The provisions of the Human Services & Corrections Committee amendment above are incorporated with two changes:  (1) mandatory participation could be required only in areas where 115 percent and 135 percent incentive benefits are paid to those working under FIP; and (2) FIP will be implemented only in counties where the average unemployment rate is less than twice the statewide average.  Technical changes are proposed.

Fiscal Note:      available

Senate Committee - Testified: HUMAN SERVICES & CORRECTIONS:  Jule Sugarman, Secretary, DSHS; Isiah Turner, Commissioner, Employment Security Department; Cindy Sheppard, Fair Budget Action Campaign; Larry Gosset, Central Area Motivation Project; Mary Ellen O'Keefe, Program for Early Parent Support; Susan Campbell, Washington Alliance Concerned with School Age Parents; Lonnie Johns-Brown, National Organization of Women; Carol Sasaki, H.O.M.E.; Sean Bleck, Evergreen Legal Services

Senate Committee - Testified: WAYS & MEANS:  Jule Sugarman, Secretary,  DSHS; Isiah Turner, Commissioner, Employment Security Department