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1994 SESSION

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SB 505 Welfare reform.

Introduced by: Charles J. Colgan | all patrons    ...    notes | add to my profiles

SUMMARY:

Welfare reform. Establishes from Welfare to Work, the Virginia Independence Program (VIP) to be administered by the State Department of Social Services. The Program is designed to include an agreement of mutual responsibility, intensive case management, supportive and transitional services for families, a disregard of earned income, a limit on public assistance for recipients who bear children while receiving AFDC for the first two years of VIP and a time-limit on the receipt of AFDC. AFDC recipients who meet the eligibility criteria for JOBS (Job Opportunity and Basic Skills Program) are required to participate in VIP, except that persons who meet certain exceptions will remain eligible for AFDC cash assistance indefinitely. The Department of Social Services will establish and administer the Virginia Initiative for Employment not Welfare (VIEW), a community work experience program for participants who are not able to find private sector employment. The Secretary of Health and Human Resources is directed to seek the appropriate federal waivers and the act will become effective upon the receipt of such waivers or July 1, 1994, whichever is later.

Advisory Commission on Welfare Reform--This Commission is established to promote business participation in VIP and to generate a pool of jobs for participants. Advisory Commission members include representatives of the business community, legislators, AFDC recipients and state and local government.

Intensive Case Management--VIP participants will work with case managers who have a caseload of not more than forty-five families. The participant and the case manager will develop and sign an agreement of mutual responsibility which identifies specific education, training or employment activities that will direct the participant towards self-sufficiency and sets out the responsibilities and expectations of both parties. Supportive services, such as day care, health care and transportation, will be available to participants if needed.

Standard of need--Virginia's AFDC standard of need will be revised and readjusted annually to reflect current living costs; however, the percentage of the need standard paid to VIP participants receiving AFDC financial assistance will be adjusted so that current benefit levels are maintained.

Income disregards and resource exclusions--Participating families that have earned income from a source other than VIEW may continue to receive AFDC financial assistance, but, if necessary, AFDC payments will be reduced so that when added to earned income they equal the standard of need. VIEW income is not considered earned income. Certain incentive payments and the fair market value of one motor vehicle, not to exceed $7,500, will be excluded from eligibility calculations.

Family cap--Participating families who give birth to an additional child will not be eligible for the increment in AFDC benefits to which the family would otherwise be entitled as a result of the child's birth. This limitation expires after VIP has been in effect for two years.

VIEW--Individuals may join VIEW, the community work experience program, ninety days after beginning VIP. VIP participants who have not secured independent employment after one year in VIP are expected to become a VIEW participant. Local governing bodies will determine whether a locality participates in VIEW. Persons unable to join VIEW may receive AFDC financial assistance for an additional year; otherwise AFDC financial assistance terminates at the end of one year in VIP. Guidelines for VIEW wages and employment terms are set out.

Hardship exceptions and appeal provisions. The State Board of Social Services will promulgate regulations providing exceptions, including extending AFDC financial assistance and VIEW participation, in certain instances. Program participants must receive notice of their appeal rights and may appeal disputes regarding the formation of the agreement of mutual responsibility, the denial of hardship exemptions or benefit extensions and failure to comply with the provisions of the Act.

Implementation--The Department of Social Services will develop guidelines to select, from Virginia's poverty areas, 3,000 AFDC recipients who have completed the JOBS program to be VIP participants in the first year of implementation, 3,000 additional participants beginning July 1, 1995, and another 3,000 beginning July 1, 1996. Statewide implementation of VIP is contingent upon the Department of Social Services' recommendation regarding statewide implementation and the appropriation of funds to fully implement all aspects of VIP.

Evaluation and reporting--Beginning December 1, 1994, the Commissioner of Social Services is required to file detailed reports on VIP with the Governor and General Assembly. In December 1996, the Department of Social Services is required to recommend to the Governor and General Assembly whether VIP should be implemented statewide. The Department is required to select, match and compare a control group of AFDC recipients with VIP participants.

Differences between HB 1322 and Senate Bill 505--There are three differences between the bills:

1. House Bill 1322 establishes the Virginia Targeted Jobs Grant Program and the Virginia Targeted Jobs Grant Fund to provide incentives to employers who hire persons who have been receiving AFDC for nine consecutive months. The Program will run for three years (1994, 1995, and 1996) and will provide employers with grants of up to $1000 per "qualified employee" who was hired and worked at least 1,000 hours in the preceding taxable year. Senate Bill 505 has no provisions for the Virginia Targeted Jobs Grant Program.

2. House Bill 1322 provides that single-parent families where the parent has a child under the age of eighteen months are exempt from participation in VIP and can continue to receive AFDC. Senate Bill 505 provides that this exemption is available for parents who have a child under the age of twenty-four months.

3. House Bill 1322 provides that single parent families that provide a physician's statement that participation in VIP would be deleterious to the health of a pregnant woman or to her child after birth are exempt from participating in VIP and can continue to receive AFDC. Senate Bill 505 does not contain this exemption.


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