ALASKA STATE LEGISLATURE
LEGISLATIVE BUDGET AND AUDIT COMMITTEE

Division of Legislative Finance

P.O.Box 113200
Juneau, AK 99811-3200
(907) 465-3795
FAX (907) 463-4885

MEMORANDUM

DATE: February 4, 1998

TO: House and Senate Finance Co-Chairs

FROM: Mike Greany, Legislative Fiscal Analyst, Legislative Finance Division

By: Susan Taylor, Fiscal Analyst

SUBJECT: Department of Health and Social Services Alaska Temporary Assistance Program

We are estimating that the Alaska Temporary Assistance Program will require less funding in FY98 than was appropriated because of declining caseloads. Our preliminary estimate based on actual expenditures through January and projected expenditures for the rest of the fiscal year is that the program could lapse between $16.5 to $19.4 million: $6.5 - $7.8 million general funds and $10.0 - $11.6 million federal funds. The historical spending for the program is 50% federal and general funds. We have used this same spending allocation in our analysis.

The Temporary Assistance for Needy Families (TANF) federal block grant requires the state to spend a certain amount of general funds to get the full amount of the block grant. This is referred to as maintenance of effort requirement. Once the maintenance of effort requirement is met, the entire potential lapse could be re-directed at the legislature’s discretion. The TANF federal legislation also allows the state to transfer up to 30% of the block grant into childcare and Social Services Block Grant programs (SSBG). The SSBG federal funds are currently budgeted in the Division of Family and Youth Services. We plan on discussing the state’s maintenance of effort requirement with the Department of Health and Social Services as it relates to FY98 and FY99.

We will continue to update our projection with actual caseload and expenditure information until the end of the fiscal year. If you have any questions, please contact Susan Taylor at 465-5410.

cc: House and Senate Finance Subcommittee Chairs for Health and Social Services
Senate Welfare Reform Subcommittee Chair

Excel Spreadsheet (30 K *.xls pc file)