South Dakota TANF/MOE Report

Office of Family Assistance

Annual Report on State TANF and MOE Programs - 2004
South Dakota

Administration for Children and Families
Office of Family Assistance
Aerospace Building, 5th Floor
370 L’Enfant Promenade, S.W.
Washington, D.C. 20447

Per instructions in TANF-ACF-PI-01-06 dated October 24, 2001 please find attached South Dakota’s FFY-2004 TANF Annual Report as required under 45 CFR 265.9 including ACF-204 forms for each area of MOE expenditures as reported on the final ACF-196 financial report.

If you have any questions, please contact James D. Valnes, Program Administrator at (605)773-4678.

In accordance with federal regulations at 45 CFR §265.9 (a)(1) South Dakota is filing a separate annual report containing information on the TANF program and the State's MOE expenditures.

South Dakota offers the following program components in order to achieve the participation standards as outlined in section 407:

1. Unsubsidized employment: A job or employment with either public or private sector that is not supplemented by federal, state or tribal funds.

2. Subsidized private sector employment: A job or employment in the private sector, which is subsidized by federal, state, or tribal funds. Subsidized private sector employment is limited to the following components:

• Try-out employment: Employment in the private sector for an available job opening. The department shall reimburse the recipient for work-related expenses for a period of not more than six weeks. Try-out employment must be for a position that at a minimum is at least a part-time position for 20 hours per week; or

• On-the-job training: Full-time paid employment in which the employer provides the training needed for the individual to perform the skills required for the position and receives a subsidy to offset the cost of the training provided. Upon completion of the training, the employer is expected to retain the participant as a regular employee.

3. Subsidized public sector employment: A job or employment in the public sector which is subsidized by federal, state, local, or tribal funds. On-the-job training (see section above) may be used to subsidize employment in the public sector; however, the TANF program gives priority to using this activity for subsidizing employment in the private sector.

4. Job Search and Job Readiness (limited to 4 consecutive weeks and a maximum of 6 weeks) Job-seeking activities as well as support services designed to assist the individual when applying for a job. Support services include services such as orientation to the world of work, basic job seeking and job retention skills, instruction in completing an application for employment, writing a resume, and instructions on conducting oneself during a job interview.

An individual in job search must complete the following activities: 1) register for work with the Department of Labor; 2) apply for unemployment insurance benefits, if eligible; 3) attend the training and workshops specified in the individual's personal responsibility plan; and 4) make employer contacts in person.

5. Community Work: In lieu of a paid employment, this activity allows the client to receive their TANF cash assistance while gaining "job related experience" . This is a job training experience at a supervised public or private not-for-profit agency, including federal, state, county, local and tribal governments and colleges, universities and school districts.

Managed work is an activity under community work that contains a strong work evaluation component. The TANF program reimburses the work site for the cost of hiring a supervisor who will have daily contact with each client. Each client will average 10 weeks in this component and the supervisor will average 10 clients. The supervisor is responsible to improve client work performance and help resolve work-related problems/barriers, such as how to relate to employers and co-workers, how to deal with sick children, how to keep child care, how to arrange for transportation, etc.

Community work is an extremely important training aspect of the state's TANF program because in many cases it is the first step that allows the client to learn important basic work skills.

6. Vocational education (limited to 12 months): Vocational training provides a recipient with the skills and a certification needed to become employed in a specific occupational area.

Vocational training has been identified as two levels. Level 1 includes courses at the traditional Vocational Technical Institutes. In addition, vocational courses offered through four-year institutions or community colleges are also recognized. Full time status as defined by the institution meets participation requirements. Level 2 vocational (occupational) education includes courses recognized by WIA and/or offered at Career Learning Centers. Courses must be at least 20 hours per week.

• The program must be consistent with the individual's personal responsibility plan and is directed toward a goal of employment.
• The training should prepare the participant for a job within the shortest reasonable time frame.
• The job outlook in the local labor market should be favorable or else the participant must agree to relocate.
• Students should be in full-time or at least a 20 hour week course and maintain acceptable academic performance in accordance with the standards of the institution.

7. Teen parent education: Teen parent education is educational activities directed toward the attainment of a high school diploma or its equivalent. Teen parent education is an activity for an unmarried teen parent (who is caring for a child who is at least 12 weeks old) who has not obtained a high school diploma or a high school equivalency diploma.

8. Short term job skills training directly related to employment: Short term structured training for a specific occupation. Primary characteristics of Job Skills Training:

• Training for individuals who lack skills or need training in a specific occupation.
• Must be less than 20 hours per week (e.g. a 10 hour computer course over 4 weeks) and may not exceed six months.
• The job outlook in the local labor market for individuals completing the training must be favorable.
• Courses can be offered by Career Learning Centers and/or other training providers.

9. Secondary education: Aside from teen parent education (see previous) this is an educational activity directed towards helping adults develop basic literacy (reading) skills, attainment of a high school diploma or its equivalent, or related education program, such as English as a second language.

10. Child Care Community Work: As part of the Community Work component, an individual may receive credit for hours spent providing child care services for an individual who is participating in a work activity.

South Dakota offers several services to families no longer receiving TANF assistance due to employment. These services include transitional employment allowance (TEA); transitional childcare, transitional medical benefits and a 12-month follow-up service.

• Transitional Employment Allowance (TEA):
A TEA payment helps transition families through the initial month after their TANF case closes due to employment. A TEA payment may be made if the employed parent is a member of the TANF assistance unit and is expected to average at least 80 hours of work per month and is anticipated to last at least 120 days.
A parent who has received a TEA payment is ineligible for future TEA payments until the parent has been a non-recipient of TANF for 12 consecutive months and again meets the TEA payment eligibility requirements.

• Transitional Child Care (TCC):
Transitional child care benefits are available for employed parents to help pay only work related child care costs. Payment amounts vary depending on the parent's ability to pay (based on actual child care cost and current monthly income). Payment benefits are limited to the time a parent is unable to care for their child(ren) due to work.

Transitional child care benefit may be available for children under age 13, or older if it has been verified that they are physically or mentally unable to care for themselves or who are under court supervision.

A family is eligible for TCC benefits for 12 months from the month the parent lost TANF due to employment. During this time a family must continue to meet certain requirements, such as keeping their job; paying part of the child care costs based on their ability to pay; continue to have a dependent child in the home and must continue to cooperate with the Office of Child Support Enforcement.

A family who becomes ineligible for TANF assistance due to employment may continue to qualify for Medicaid benefits. Medical eligibility is not connected to TANF eligibility. However, if a family loses eligibility for Section 1931 medical benefits due to earnings they may receive up to 12 months of Transitional Medical Benefits (TMB). In order to qualify for TMB, the family must have received Section 1931 medical benefits for at least 3 of the previous 6 months and the family must have lost Section 1931 medical benefits due to earnings.

Families who are eligible for TMB usually remain eligible throughout the first six month period provided the family stays off Section 1931 medical, a dependent child continues to live in the home, and the family continues to live in South Dakota. To remain eligible for the next six months of TMB the family must have received TMB throughout the first six month period. The family must also meet quarterly family income, family make-up, and day care cost reporting requirements. The average family income in the last 3 months must be less than 185% of the federal poverty level.

• Follow along job retention and Re-employment Services:
Another critical service, which is available statewide to former TANF recipients is a comprehensive follow-along job retention and re-employment service. This project helps reduce the numbers of families who reapply for benefits because fewer persons are likely to leave their jobs when they have a stronger support system. The follow-up produces accurate data about what happens to recipients after they leave TANF cash assistance due to employment.

The State’s process for reducing the amount of assistance payable when an individual refuses to engage in work without good cause consists of a written warning for the first occurrence, a one month 50% reduction of cash assistance for the second occurrence, and a one month disqualification for the third and subsequent occurrences.

Individuals in work activities that do not have direct payment of wages, such as community work are required to submit time sheets each month (through work site supervisors) and report the number of hours participated during the month. Failure to submit a time sheet or to complete the minimum number of participation hours without good cause, may result in a sanction.

Once a case is closed because of sanctioning, the assistance unit must submit another application to receive TANF cash assistance. For the subsequent application to be approved, the client must be participating in a recognized program activity.

Families that have been sanctioned more than once will be ineligible to apply for TANF benefits for a minimum of one month from the date the case was last sanctioned.

In South Dakota, childcare costs are not considered disregards in determining TANF eligibility or benefit level.

The state of South Dakota has not adopted the Family Violence Option. However, it should be noted that South Dakota considers family violence a major barrier to work and self-sufficiency and works with the client and other agencies to resolve the problem.

Special note: South Dakota State Plan contains family violence information.

Welfare diversion is an important service offered to South Dakota TANF applicants who meet certain requirements. First of all, the applicant must be "hypothetically" eligible for TANF (meets basic eligibility criteria). Only the applicants who "would" be eligible for TANF are eligible for diversion. The applicant must also be currently employed or have received a formal job offer (specific start date).

Staff assists applicants who have been diverted from TANF assistance with completing program applications for Medicaid, Food Stamps and Child Support and are referred to the appropriate program office.

The family may receive a diversion payment for employment-related expenses that cannot exceed twice the family's monthly payment standard.

An applicant who is diverted and receives payment will be ineligible for TANF cash assistance for three months, beginning with the first day of the calendar month following the month of TANF application. If the applicant reapplies for TANF within this three-month period, they will be required to reimburse the Department of Social Services for the diversion payment (pro-rated over the three-month period). To pay back the pro-rated amount, deductions will be made from the client's TANF cash assistance.

Family units can be diverted more than once during the 60-month life time limit. However, staff is very cautious about diverting a family a second time.

All employers who participate in a TANF subsidized work activity (on-the-job training, try-out employment, community work and managed work) must sign a Training Agreement. The employer agrees to certain conditions and assurances such as "no currently employed worker shall be displaced by any eligible participant. This includes partial displacement such as reduction in the hours of non-overtime work, wages, or employment benefits."

The South Dakota Department of Labor reserves the right to terminate the agreement upon the determination that conditions as necessary have not been or are not fully complied with.

Individual complaints are directed to the South Dakota Department of Labor. South Dakota Codified Law, Title 60 Labor and Employment clearly outlines the reconciliation efforts, violations of right to work laws as well as the investigation and prosecution of violations of labor laws. Notification to the public is provided through the announcement and publication of state laws.

South Dakota is taking actions to reduce the incidence of out-of-wedlock pregnancies by working with other stakeholders involved in this issue.

Special note: South Dakota State Plan contains activities to reduce out-of-wedlock pregnancies.

South Dakota encourages the formation and maintenance of two-parent families through several program activities. Program continues to allow supportive services (both financial and non-financial) to families who leave TANF due to employment and reunite with their spouse or parent of child(ren). Family/marriage counseling services (services not allowed/covered by Medicaid) are allowed under TANF to help families resolve marriage/family issues.

TANF families are encouraged and financially assisted in attending parenting class, which enable parents to better deal with over-all family situations and problems.

South Dakota has four areas/activities that we consider and refer to as subsidized employment. They are Community Work, Managed Work, On-the-Job Training, and Try-Out Employment.

For FFY-2004, the total estimated number of individuals who have participated are as follows: (Note: These numbers may be duplicated as it is possible to have participated in more than one activity while on the program).

Community Work - 436 average/month
Managed Work - 81 average/month
On-the-Job Training - 17 average/month
Try-Out Employment - 1 average/month

See: APPENDIX I: Annual Report on State Maintenance-of-effort Programs
ACF – 204 (attached).

South Dakota TANF CASH Program (basic assistance)
Transitional Employment Allowance (TEA)

The South Dakota TANF CASH Program provides a monthly cash grant based on the State's eligibility criteria.

A TEA payment helps transition families through the initial month after their TANF case closes due to employment.

To provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives.

__X_ This Program is operated under the TANF Program.
____ This Program is a separate State Program.

5. Description of Work Activities in the SSP-MOE program (i.e., Complete only if this program is a separate State program):

6. Total State Expenditures for the Program for the Fiscal Year: $5,236,453 (Basic)
$ 66,573 (TEA)
Total: $5,303,026

7. Total State Expenditures Claimed as MOE under the Program for the Fiscal Year: $5,236,453 (Basic)
$ 66,573 (TEA)
Total: $ 5,303,026

__X__ The average monthly total for the fiscal year.
_____ The total served over the fiscal year.

9. Eligibility Criteria for Receiving MOE-funded Benefits or Services under the Program:

Since South Dakota does not have any Separate State Programs, the only eligibility criteria applicable would be the State’s TANF CASH criteria.

A TEA payment may be made if the employed parent is a member of the TANF assistance unit and is expected to average at least 80 hours of work per month and is anticipated to last at least 120 days.
A parent who has received a TEA payment is ineligible for future TEA payments until the parent has been a non-recipient of TANF for 12 consecutive months and again meets the TEA payment eligibility requirements.

10. Prior Program Authorization: Was this program authorized and allowable under prior law (i.e., as defined at 260.30)? (check one)

11. Total Program Expenditures in FY 1995. ________________________
(NOTE: provide only if the response to question 10 is No.)

This Certifies that all families for which the State claims MOE expenditures for the fiscal year meet the State’s criteria for “eligible families.”

Child care expenses are paid for the time a TANF recipient is participating in a work activity. Also, if a TANF client lost eligibility due to employment, this person may be eligible for up to 12 months of TCC.

To help pay for child care assistance costs necessitated by the parents participation in a work or training activity while on TANF. If the parent is successful in securing employment and becomes ineligible for a TANF CASH payment and continues to work, the person may be eligible for up to 12 months of TCC. (Please refer to the discussion on TCC in the annual plan section number 2 – description of transitional services). These services will help end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage.

4. Program Type: (Check One)

__X_ This Program is operated under the TANF Program.
____ This Program is a separate State Program.

5. Description of Work Activities in the SSP-MOE program (i.e., Complete only if this program is a separate State program):

7. Total State Expenditures Claimed as MOE under the Program for the Fiscal Year: $802,914

__X_ The average monthly total for the fiscal year.
____ The total served over the fiscal year.

9. Eligibility Criteria for Receiving MOE-funded Benefits or Services under the Program:

Since South Dakota does not have any Separate State Programs, the only eligibility criteria applicable would be the State’s TANF CASH criteria. Applicable to TANF CASH recipients who are participating in work and/or training. For TANF CASH, financial eligibility in terms of resources is up to $2,000 and income is based on countable income being less than the State’s payment standard which for a family of three in an independent living arrangement is $501.

Also, for those who receive transitional child care they must continue to work and would receive benefits with a co-payment that changes based on a sliding fee scale basis up to 185% of poverty.

10. Prior Program Authorization: Was this program authorized and allowable under prior law (i.e., as defined at 260.30)? (check one)

11. Total Program Expenditures in FY 1995. ________________________
(NOTE: provide only if the response to question 10 is No.)

This Certifies that all families for which the State claims MOE expenditures for the fiscal year meet the State’s criteria for “eligible families.”

Work related activities/expenses include costs associated with the TANF contract which supports case management efforts. It also includes supportive service payments and Community Service payments.

The program includes a number of activities as prescribed in federal legislation. These activities are described in section (b)(1) of this report.

Applicable to the benefits and services provided and supported by the State’s MOE expenditures is the philosophy of South Dakota’s efforts under welfare reform. South Dakota’s philosophy is: TANF is “Temporary Assistance for Needy Families,” and is based upon the premise that parents want to support themselves and their children. Since a day at work is better than a day on welfare, and because parents who work are better role models for their children, getting a job is both the goal and the expectation. TANF gives people access to employment opportunities, the basic skills they need to be successful on the job, and community resources to help strengthen their families.

Provided case management services offer a wide range of actions that may assist an individual become self sufficient. Examples may include referral to many community services e.g. housing, child care, counseling, job advancement, and other employment related services. Costs necessitated by the parents participation in a work or training activity are made as supportive service or community service payments. These payments and efforts hopefully will enable the parent to be successful in securing employment.

In total, these services will help end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage.

__X_ This Program is operated under the TANF Program.
____ This Program is a separate State Program.

5. Description of Work Activities in the SSP-MOE program (i.e., Complete only if this program is a separate State program):

7. Total State Expenditures Claimed as MOE under the Program for the Fiscal Year: $1,091,940

__X_ The average monthly total for the fiscal year.
____ The total served over the fiscal year.

9. Eligibility Criteria for Receiving MOE-funded Benefits or Services under the Program:

Since South Dakota does not have any Separate State Programs, the only eligibility criteria applicable would be the State’s TANF CASH criteria. For TANF CASH, financial eligibility in terms of resources is up to $2,000 and income is based on countable income being less than the State’s payment standard which for a family of three in an independent living arrangement is $501.

10. Prior Program Authorization: Was this program authorized and allowable under prior law (i.e., as defined at 260.30)? (check one)

11. Total Program Expenditures in FY 1995. ________________________
(NOTE: provide only if the response to question 10 is No.)

This Certifies that all families for which the State claims MOE expenditures for the fiscal year meet the State’s criteria for “eligible families.”

Participation in work related activities/training may be compromised unless someone has the necessary transportation available to get to work sites, work shops, referrals, appointments, etc. etc. Transportation expenses are addressed through supportive service payments and include but are not limited to gas, minor car repair, bus passes, mileage.

The program includes a number of activities as prescribed in federal legislation. These activities are described in section (b)(1) of this report.

Transportation costs necessitated by the parents participation in a work or training activity are made as supportive service payments. These payments and efforts hopefully will enable the parent to be successful in securing employment.

In total, these services will help end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage.

__X__ This Program is operated under the TANF Program.
_____ This Program is a separate State Program.

5. Description of Work Activities in the SSP-MOE program (i.e., Complete only if this program is a separate State program):

7. Total State Expenditures Claimed as MOE under the Program for the Fiscal Year: $61,120

__X_ The average monthly total for the fiscal year.
____ The total served over the fiscal year.

9. Eligibility Criteria for Receiving MOE-funded Benefits or Services under the Program:

10. Prior Program Authorization: Was this program authorized and allowable under prior law (i.e., as defined at 260.30)? (check one)

11. Total Program Expenditures in FY 1995. ________________________
(NOTE: provide only if the response to question 10 is No.)

This Certifies that all families for which the State claims MOE expenditures for the fiscal year meet the State’s criteria for “eligible families.”

The investment in the support of a program through administration and system support services is key to the quality of program that can be delivered.

__X__ This Program is operated under the TANF Program.
_____ This Program is a separate State Program.

5. Description of Work Activities in the SSP-MOE program (i.e., Complete only if this program is a separate State program):

6. Total State Expenditures for the Program for the Fiscal Year: $1,281,000 – Administration
$ - 0 - Systems

7. 7. Total State Expenditures Claimed as MOE under the Program for the Fiscal Year: $1,281,000 – Administration
$ - 0 - Systems

__X__ The average monthly total for the fiscal year.
_____ The total served over the fiscal year.

9. Eligibility Criteria for Receiving MOE-funded Benefits or Services under the Program:
N/A

10. Prior Program Authorization: Was this program authorized and allowable under prior law (i.e., as defined at 260.30)? (check one)

11. Total Program Expenditures in FY 1995. ________________________
(NOTE: provide only if the response to question 10 is No.)

This Certifies that all families for which the State claims MOE expenditures for the fiscal year meet the State’s criteria for “eligible families.”