•
The amount requested by the group.
•
Financial need.
Maximum payment amount multiplied by number in group. For many years, the maximum payment amount per group member has been $150. A 2-person group is eligible for a grant of $300 and a 3-person group is eligible for a grant of $450. The current grant amounts for homelessness and impending homelessness are insufficient for smaller households to obtain or retain a permanent living accommodation. The Department's analysis of housing costs for low-income families found that average rental costs are higher than $470 for the smallest households in the counties where a majority of Emergency Assistance grants are issued, and rent does not increase proportionally with each new group member. Housing costs for families with 2 – 4 members are similar, and housing costs for families of 5 or more are similar with some increases for larger families. In SFY 09, Emergency Assistance grants issued to smaller size families of 2 to 3 members were 55.2% of total grants.
The proposed rule changes the payment amounts that eligible families will receive by increasing the amounts for smaller size families and decreasing the amounts for larger size families. The amounts were arrived at by attempting to make the overall fiscal impact cost neutral and within the existing amount of funds allocated for the Emergency Assistance program. The maximum payment amounts will be $258 per group member when the group is 2 members, $172 per group member when the group is 3 members, $129 per group member when the group is 4 or 5 members, and $110 per group member when the group is 6 or more members. This will result in the following total payment amounts:
2 to 4 members $516
5 members $645
6 members $660
7 + members $110 for each additional member
Notice of changes to the maximum payment amounts will be published in the Administrative Register.
The rule complies with the statutory requirement that the Department establish the maximum amount of aid to be granted per family member by having different maximum payment amounts for members of groups of different sizes.
Amount requested by the group. The proposed rule repeals the “amount requested by the group" as an option for the payment amount to ensure that families do not receive a smaller payment because they were not informed of the full payment for which they were eligible.
Financial need. Under the current rule, when a payment is based on financial need, the amount is determined by adding all unpaid expenses for the group and the costs of needs due to the emergency and subtracting all available income and resources. The rule provides a list of 9 types of needs due to the emergency.
The proposed rule provides for payment amounts based on financial need that are specific to the type of need. For need due to impending homelessness, a payment based on financial need would be the amount of unpaid rent and related late fees and court costs. For need due to homelessness, a payment based on financial need would be the amount of the first month's rent, security deposit, and necessary household items. For need due to fire, flood, or natural disaster, the payment based on financial need would be the total need in any of the following categories: temporary housing, first month's rent and security deposit, clothing, food, medical care, transportation, necessary appliances and household items, and necessary home repairs.
Energy crisis
Under the current rule, an Emergency Assistance group is eligible for assistance if need has resulted from an emergency due to energy crisis, including lack of or imminent loss of essential home heating, with an immediate threat to the health or safety of the group either existing or likely to exist. The payment amount is the lowest of the amount requested by the group or the total financial need due to the emergency. Financial need may include heating fuel, electricity, and repair or replacement services necessary to obtain or maintain the basic heat and electricity requirements of an average household.
There is currently no maximum payment amount for Emergency Assistance due to an energy crisis. For all other types of need, there is a maximum payment amount based on group size. The average Emergency Assistance grant for all types of need is approximately $512. Some grants for energy crisis have been as high as $3,300. From July 2007 to September 2008, approximately 6% of Emergency Assistance grants for energy crisis were $1,000 or above, totaling over $41,000.
This proposed rule establishes a maximum payment amount per group for need due to energy crisis. The initial maximum payment amount will be $500 and changes to that amount will be announced in the Administrative Register. A group is eligible for assistance if the group meets the following criteria:
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The group has exhausted resources available through the Wisconsin Home Energy Assistance Program (WHEAP), assistance available through local utility companies as required by the Public Service Commission, and any other available energy resources.
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The group needs financial assistance to obtain or maintain essential utility service.
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The lack or imminent loss of essential utility service is or is likely to be an immediate threat to the health or safety of the group.
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The energy crisis is due to reasons beyond the control of an adult member of the group or constitute good cause as determined by the W-2 agency.
The WHEAP program had $147 million available for low income energy assistance this past heating season. The total Emergency Assistance available for all types of emergency for FY10 is $6.5 million.
Summary of factual data and analytical methodologies
The policy changes in this rule are based on recommendations of a workgroup comprised of representatives of W-2 agencies and advocacy groups.
Impending homelessness due to foreclosure.
Section
49.138 (1m) provides that a family is homeless or facing impending homelessness if the family is not in a fixed, regular, and adequate residence. A family is not in a fixed, regular, and adequate residence if they have been notified that they will be removed from their rental housing due to a foreclosure action against the owner and the removal of the group is scheduled to occur within 30 days.
The statistics on the increase in foreclosures in Wisconsin are from
Home foreclosures up 81% in U.S., 62% in Wisconsin,
http://www.madison.com, January 15, 2009.
The estimate on the number of foreclosures that are one- to four-family rental properties is by Nicolas P. Retsinas, Director of the Joint Center for Housing Studies, quoted on the website of the National Coalition for the Homeless,
http://www.nationalhomeless.org/foreclosure/index.html, March 9, 2009.
Payment amounts
The Department analysis of the housing costs of low-income families is based on data from the Food Share program for December 2007.
Energy crisis
Section
49.138 (1m), Stats., provides that the Department shall establish the maximum amount of aid to be granted, except for cases of energy crisis, per family member. The statute is silent on whether the Department may establish a maximum payment amount based on any criteria other than per family member for cases of need due to energy crisis. The rule establishes a maximum payment amount per group regardless of group size.
Comparison with federal requirements
Emergency Assistance is a Temporary Assistance to Needy Families (TANF) program option available to states under previous Aid to Families with Dependent Children (AFDC) statutes to provide short-time assistance to needy families with children. Wisconsin chose to continue the Emergency Assistance program when Wisconsin repealed the AFDC program and accepted federal TANF block grant funds.
There are no federal requirements related to this rule, except that TANF funds must be used to provide assistance to families with children.
Comparison with rules in adjacent states
None of the adjacent states appear to have an Emergency Assistance program that is as similar to the AFDC-related Emergency Assistance program as that of Wisconsin. These states do have a variety of crisis assistance and prevention programs that are administered in different ways. The programs are generally not limited to families with children.
Analysis used to determine effect on small businesses
W-2 agencies will be affected by the proposed rule, but the effect will be minimal. Agency representatives have requested these changes.
Small Business Impact
The proposed rule will affect small businesses as defined in s.
227.114 (1), Stats., but will not have a significant economic impact on a substantial number of businesses.
The Department's Small Business Regulatory Coordinator is Elaine Pridgen, (608) 267-9403, elaine.pridgen@ wisconsin.gov.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The proposed rule changes the amounts eligible families would receive by increasing the amounts for smaller size families and decreasing the amounts for larger size families. The amounts were arrived at by attempting to make the overall fiscal impact cost neutral that is within the existing amount of funds allocated for emergency assistance. Average family sizes receiving emergency assistance grants in SFY 07-08 were used in the calculation.
The rule also changes the amount payable to an eligible family due to energy crisis from the current unlimited level to a maximum of $500. This change will allow the agency to use funds otherwise going to pay for energy services to pay for other emergencies.
In addition, the rule allows a payment to families who are renters and in a situation where the building they are living in is subject to foreclosure. While this will increase the number of cases eligible for emergency assistance it is estimated to be within what the current allocation can absorb.
The proposed rule also changes the method for determining financial eligibility to make it similar to the eligibility criteria for W-2. This change is not expected to have a significant fiscal effect because many agencies already applied the W-2 criteria due to confusing language in the current rule.
State fiscal effect
None.
Local government fiscal effect
None.
Long-range fiscal implications
None.
Agency Contact Person
Notice of Hearing
Employee Trust Funds
The Wisconsin Department of Employee Trust Funds proposes an order to revise Chapters
ETF 10,
11,
20,
52, and
60, relating to technical and minor substantive changes in existing ETF administrative rules.
Hearing Information
A public hearing on this proposed rule will be held:
September 10, 2009 Conference Room GB
at 1:00 p.m. Dept. of Employee Trust Funds
801 West Badger Road
Madison, Wisconsin
Persons wishing to attend should come to the reception desk up the stairs (or by elevator) from the main entrance to the building.
Submission of Written Comments
Written comments on the proposed rule may be submitted to David Nispel, General Counsel, Department of Employee Trust Funds, 801 W. Badger Road, P. O. Box 7931, Madison, WI 53707. Written comments must be received at the Department of Employee Trust Funds no later than 4:30 p.m. on Friday, September 11, 2009.
Copies of Proposed Rule
Copies of the proposed rule are available without cost from the Office of the Secretary, Department of Employee Trust Funds, P. O. Box 7931, Madison, WI 53707-7931. The telephone number is: (608) 266-1071.
Analysis Prepared by the Department of Employee Trust Funds
Statute interpreted
Various statute sections in ch.
40, Wis. Stats., regarding the Public Employee Trust Fund.
Statutory authority
Explanation of agency authority
By statute, the DETF Secretary is expressly authorized, with appropriate board approval, to promulgate rules required for the efficient administration of any benefit plan established in ch.
40 of the Wisconsin statutes. Also, each state agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency if the agency considers it necessary to effectuate the purpose of the statute.
Related statute or rule
The various statute sections in ch.
40, Wis. Stats., and the existing administrative rules promulgated by the Department of Employee Trust Funds are related to this technical rule.
Plain language analysis
The purpose of this rule is to revise existing administrative rules of the Department of Employee Trust Funds to reflect enactment of
2007 Wisconsin Act 131, other changes made to ch.
40, Wis. Stats., and current practices of the department.
Comparison with federal regulations
The only federal regulations that may be affected by this proposed rule are provisions of the Internal Revenue Code regulating qualified pension plans. The Wisconsin Retirement System is required to be maintained as a qualified plan by s.
40.015, Stats.
Comparison with rules in adjacent states
Periodically, retirement systems in adjacent states promulgate technical rules to update existing administrative rules.
Summary of factual data and analytical methodologies
The department is proposing this rule to update existing rules and create other rules in light of
2007 Wisconsin Act 131, and in order to reflect current interpretations of existing statutes.
Analysis and supporting documents used to determine effect on small business
The rule does not have an effect on small businesses because private employers and their employees do not participate in, and are not covered by, the Wisconsin Retirement System.
Small Business Impact
There is no effect on small business.
