TANF Emergency Contingency Fund / Contingency Fund Maximization

Don’t leave federal money on the table that could help your state and the populations you serve. Let PCG Human Services help you access and retain the new federal TANF funds to meet the growing challenges of the current economic crisis. PCG Human Services consultants have more than 10 years of experience in TANF MOE identification, Contingency Fund strategies, and programmatic design work. PCG Human Services has several ’ready-to-go’ strategies to help states draw the maximum recovery funds immediately, without net additional state spending.

The American Recovery and Reinvestment Act (ARRA) includes an expansion of Temporary Assistance for Needy Families (TANF) program dollars available to states, if they demonstrate an increase in spending for programs that help low-income parents move toward self-sufficiency. States are eligible for these federal TANF Emergency Contingency Funds equal to 80% of increase in state expenditures in three target areas:

• Basic assistance (also requires increase in caseload)
• Non-recurrent short-term benefits
• Subsidized Work programs

Spending increases are determined on a quarterly basis by comparing expenditures to those from the same quarter in a base year of either FFY 2007 or FFY 2008. States are eligible to receive up to 50% of one year’s State Family Assistance Grant (SFAG), over the course of FFY 2009 and FFY 2010. The state share includes all dollars received from the regular Contingency Fund. All dollars must be spent on TANF-eligible programs.

• Extends TANF Supplemental Grants provided to 17 states through FFY 2010;
  
• Holds states harmless for caseload growth in FFY 2009 and FFY 2010; and
  
• Allows states with carry forward dollars from previous fiscal years to spend those dollars on any TANF allowable activity. Carry forward dollars are generally restricted and can only be spent on basic assistance.

Public Consulting Group (PCG), a national leader in TANF consulting, understands the importance for states to maximize the benefit from the ARRA – and in a short time period. The current national economic emergency, state budget shortfalls,and increased need for TANF services make finding new revenue even more critical. PCG’s Human Services expert consultants can help states position themselves to take advantage of this opportunity effectively and efficiently.

PCG Human Services can help states maximize current expenditures to position them for the Emergency Contingency Fund. This would include:

• Re-alignment of Expenditures: The ARRA provides the opportunity to realign expenditures to ensure maximum benefit. PCG Human Services will review states’ current and base year claims to ensure compliance with federal guidance and to facilitate expenditure adjustments as appropriate.
  
  
• Targeted TANF MOE Identification: States currently operate numerous programs that meet TANF programmatic requirements, many of which are not claimed. A targeted search for TANF MOE programs in cash assistance, short term benefits and subsidized work could qualify states for the Emergency Contingency Fund without obligating new state dollars.
  
  
• Leverage the Use of Carry-forward Dollars: PCG Human Services can help states leverage their existing carry-forward dollars to ensure maximum benefit to states, including filling budget gaps and ensuring that states maximizes the benefit of the Emergency Contingency Fund.

PCG Human Services can help states design Diversion programs that would be 80% federally funded through FFY 2010. PCG Human Services has experience designing diversion programs to serve the most work-ready TANF applicants, and we can leverage that experience to design or redesign your state’s Diversion program.