TO:

State Agencies Administering the Temporary Assistance for Needy Families (TANF) Program and Other Interested Parties

SUBJECT:

Formula for Awarding the High Performance Bonus in Fiscal Year (FY) 2000

PURPOSE:

The purpose of this transmittal is to advise States and other interested parties of the measures and formula the Department of Health and Human Services (DHHS) intends to use for awarding the High Performance Bonus (HPB) for performance in FY 1999.

BACKGROUND:

Section 403 (a) (4) of the Social Security Act makes $1 billion available over a five-year period to reward States that achieve high performance levels in meeting the goals of the TANF program. The formula and measures for the first year HPB (FY 1999) were developed in consultation with the National Governors Association, the American Public Human Services Association (formerly the American Public Welfare Association), the National Conference of State Legislatures, and State representatives. The FY 1999 specifications were released as program instructions (TANF-ACF-PI-98-1 and TANF-ACF-PI-98-5).

We are drafting a notice of proposed rule making (NPRM) to address bonuses for future years. We hope to publish this NPRM in the near future. However, the time frames involved in issuing the proposed and final rules are not compatible with providing timely notice to States on the policies and specifications for awarding the second year HPB, i.e., FY 2000. In addition, we believe that the work measures specified for the first year bonus address directly or indirectly 3 of the 4 goals established by Congress for the TANF program. Their continued use for the second year program. Their continued use for the second year bonus will also facilitate HPB data collection and reporting. We expect the regulation to cover bonus years Fys 2001-2003. This program instruction will govern the FY 2000 bonus year.

INSTRUCTIONS:

The formula and measures for the FY 2000 bonus year will be those specified in the program instructions governing the first year bonus (TANF-ACF-PI-98-1 and TANF-ACF-PI-98-5). We may, after consultation, issue technical modifications to these specifications after we have submitted for the FY 1999 bonus award.

EFFECTIVE
DATE:

Immediately

INQUIRIES:

For further information you should contact the appropriate Regional Administrator.