LRB-1600/P5
EHS:amn
2023 - 2024 LEGISLATURE
DOA:......Rice, BB0421 - TANF allocations
For 2023-2025 Budget -- Not Ready For Introduction
An Act ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
health and human services
Public assistance
Child support debt reduction
The bill creates a new program administered by DCF to provide debt reduction for overdue child support. Under the bill, if a noncustodial parent completes an eligible employment program as determined by DCF, and the custodial parent agrees to a reduction, the parent is eligible for child support debt reduction in the amount of $1,500. Under the bill, a parent may not qualify for the debt reduction more than once in any 12-month period.
Temporary Assistance for Needy Families
Under current law, DCF allocates specific amounts of federal moneys, including child care development funds and moneys received under the Temporary Assistance for Needy Families (TANF) block grant program for various public assistance programs. Under this bill, TANF funding allocations are changed in the following ways, as compared to the funding allocation in the 2021-23 fiscal biennium:
1. For Wisconsin Works benefits, total funding is decreased by 10 percent.
2. For the Families and Schools Together program, total funding is maintained at $250,000, but an additional $250,000 is available if the grant recipient provides matching funds.
3. For homeless case management services grants, total funding is doubled.
4. For state administration of public assistance programs and overpayment collections, total funding is increased by 12 percent.
5. For grants to Wisconsin Trust Account Foundation, Inc., for distribution to programs that provide civil legal services to low-income families, total funding is doubled.
6. For the Transform Milwaukee and Transitional Jobs programs, total funding is increased by 18 percent.
7. For Jobs for America's Graduates, total funding is doubled.
8. For child care state administration and licensing activities, total funding is increased by 10 percent.
9. For child care quality improvement activities, total funding is tripled.
10. For payments to support the dependent children of recipients of supplemental security income, total funding is decreased by 32 percent.
11. For kinship care payments, total funding is increased by 62 percent.
12. For safety and out-of-home placement services, total funding is decreased by 39 percent.
13. For grants to the Boys and Girls Clubs of America, total funding is increased by a multiple of 12.
14. For the earned income tax credit supplement, total funding is increased by 69 percent.
15. The funding for the offender reentry demonstration project is eliminated, and the deadline for the project evaluation is extended to June 30, 2024. This was a five-year project ending in fiscal year 2022-23.
16. For all other programs under TANF, funding is continued with a funding change of less than 5 percent.
The bill adds a new TANF allocation item for the child support debt reduction program.
The bill also specifies that, with respect to a TANF-funded contract for services, “allocate” means to designate an amount of money equal to the amount under the contract that the department is obligated to pay.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
Section 1. 49.175 (1) (intro.) of the statutes is amended to read:
49.175 (1) Allocation of funds. (intro.) In this section, with respect to any of the following that fund a contract for services, “allocate” means to designate an amount of money equal to the amount under the contract that the department is obligated to pay. Except as provided in sub. (2), within the limits of the appropriations under s. 20.437 (2) (a), (cm), (dz), (k), (kx), (L), (mc), (md), (me), and (s) and (3) (kp), the department shall allocate the following amounts for the following purposes:
Section 2. 49.175 (1) (a) of the statutes is amended to read:
49.175 (1) (a) Wisconsin Works benefits. For Wisconsin Works benefits, $37,000,000 $30,717,200 in fiscal year 2021-22 2023-24 and $34,000,000 $32,913,100 in fiscal year 2022-23 2024-25.
Section 3. 49.175 (1) (b) of the statutes is amended to read:
49.175 (1) (b) Wisconsin Works agency contracts; job access loans. For contracts with Wisconsin Works agencies under s. 49.143 and for job access loans under s. 49.147 (6), $54,009,700 $52,580,300 in fiscal year 2021-22 2023-24 and $57,071,200 $59,854,900 in fiscal year 2022-23 2024-25.
Section 4. 49.175 (1) (d) of the statutes is amended to read:
49.175 (1) (d) Families and Schools Together. For the families and schools together program in 5 Milwaukee elementary schools to be chosen by the department, $250,000 in each fiscal year and an additional $250,000 in each fiscal year for this purpose to be distributed only if the recipient provides matching funds.
Section 5. 49.175 (1) (f) of the statutes is amended to read:
49.175 (1) (f) Homeless case management services grants. For grants to shelter facilities under s. 16.3085, $500,000 $1,000,000 in each fiscal year. All moneys allocated under this paragraph shall be credited to the appropriation account under s. 20.505 (7) (kg).
Section 6. 49.175 (1) (g) of the statutes is amended to read:
49.175 (1) (g) State administration of public assistance programs and overpayment collections. For state administration of public assistance programs and the collection of public assistance overpayments, $17,231,100 $19,160,100 in fiscal year 2021-22 2023-24 and $17,482,300 $19,569,100 in fiscal year 2022-23 2024-25.
Section 7. 49.175 (1) (k) of the statutes is amended to read:
49.175 (1) (k) Transform Milwaukee and Transitional Jobs programs. For contract costs under the Transform Milwaukee Jobs program and the Transitional Jobs program under s. 49.163, $9,500,000 $11,200,000 in each fiscal year.
Section 8. 49.175 (1) (Lm) of the statutes is amended to read:
49.175 (1) (Lm) Jobs for America's Graduates. For grants to the Jobs for America's Graduates-Wisconsin to fund programs that improve social, academic, and employment skills of youth who are eligible to receive temporary assistance for needy families under 42 USC 601 et seq., $500,000 $1,000,000 in each fiscal year.
Section 9 . 49.175 (1) (ms) of the statutes is created to read:
49.175 (1) (ms) Child support debt reduction. For the child support debt reduction program for low-income noncustodial parents under s. 49.226, $3,472,000 in fiscal year 2023-24 and $6,944,000 in fiscal year 2024-25.
Section 10. 49.175 (1) (p) of the statutes is amended to read:
49.175 (1) (p) Direct child care services. For direct child care services under s. 49.155 or 49.257, $376,700,400 $385,628,800 in fiscal year 2021-22 2023-24 and $383,900,400 $403,573,700 in fiscal year 2022-23 2024-25.
Section 11. 49.175 (1) (q) of the statutes is amended to read:
49.175 (1) (q) Child care state administration and licensing activities. For state administration of child care programs under s. 49.155 and for child care licensing activities, $42,117,800 $45,957,600 in fiscal year 2021-22 2023-24 and $41,803,100 $46,043,900 in fiscal year 2022-23 2024-25.
Section 12. 49.175 (1) (r) of the statutes is amended to read:
49.175 (1) (r) Children of recipients of supplemental security income. For payments made under s. 49.775 for the support of the dependent children of recipients of supplemental security income, $18,564,700 $12,762,400 in fiscal year 2021-22 2023-24 and $18,145,000 $12,188,900 in fiscal year 2022-23 2024-25.
Section 13. 49.175 (1) (s) of the statutes is amended to read:
49.175 (1) (s) Kinship care and long-term kinship care assistance. For kinship care and long-term kinship care payments under s. 48.57 (3m) (am) and (3n) (am), for assessments to determine eligibility for those payments, and for agreements under s. 48.57 (3t) with the governing bodies of Indian tribes for the administration of the kinship care and long-term kinship care programs within the boundaries of the reservations of those tribes, $28,727,100 $43,574,100 in fiscal year 2021-22 2023-24 and $31,441,800 $53,719,500 in fiscal year 2022-23 2024-25.
Section 14. 49.175 (1) (t) of the statutes is amended to read:
49.175 (1) (t) Safety and out-of-home placement services. For services provided to ensure the safety of children who the department or a county determines may remain at home if appropriate services are provided, and for services provided to families with children placed in out-of-home care, $10,314,300 $6,282,400 in each fiscal year. To receive funding under this paragraph, a county shall match a percentage of the amount received that is equal to the percentage the county is required to match for a distribution under s. 48.563 (2) as specified by the schedule established by the department under s. 48.569 (1) (d).
Section 15. 49.175 (1) (u) (title) of the statutes is amended to read:
49.175 (1) (u) (title) Prevention Child welfare prevention services.
Section 16. 49.175 (1) (y) of the statutes is repealed.
Section 17. 49.175 (1) (z) of the statutes is amended to read:
49.175 (1) (z) Grants to the Boys and Girls Clubs of America. For grants to the Wisconsin Chapter of the Boys and Girls Clubs of America to fund programs that improve social, academic, and employment skills of youth who are eligible to receive temporary assistance for needy families under 42 USC 601 et seq., focusing on study habits, intensive tutoring in math and English, and exposure to career options and role models, $2,807,000 $3,307,000 in each fiscal year. Grants provided under this paragraph may not be used by the grant recipient to replace funding for programs that are being funded, when the grant proceeds are received, with moneys other than those from the appropriations specified in sub. (1) (intro.). The total amount of the grants includes funds for the BE GREAT: Graduate program in the amount of matching funds that the program provides, up to $1,532,000 in each fiscal year, to be used only for activities for which federal Temporary Assistance for Needy Families block grant moneys may be used.
Section 18. 49.175 (1) (zh) of the statutes is amended to read:
49.175 (1) (zh) Earned income tax credit supplement. For the transfer of moneys from the appropriation account under s. 20.437 (2) (md) to the appropriation account under s. 20.835 (2) (kf) for the earned income tax credit, $63,600,000 $109,020,000 in fiscal year 2021-22 2023-24 and $66,600,000 $111,260,000 in fiscal year 2022-23 2024-25.
Section 19 . 49.226 of the statutes is created to read:
49.226 Child support debt reduction. (1) The department shall establish a program to provide a noncustodial child support debt reduction. A noncustodial parent qualifies to receive $1,500 in debt reduction under this section if all of the following apply:
(a) The noncustodial parent completes an eligible employment program, as defined by the department in rules promulgated under sub. (3).
(b) The custodial parent agrees to reducing child support debt owed up to the amount of the benefit paid.
(2) A noncustodial parent may not receive debt reduction under sub. (1) more than once in any 12-month period.
(3) The department shall promulgate rules to implement this section, including rules to determine how debt reduction provided under sub. (1) is apportioned among multiple child support orders.
Section 20 . 49.37 of the statutes, as affected by 2023 Wisconsin Act .... (this act), is repealed.
Section 21. 49.37 (2) of the statutes is amended to read:
49.37 (2) Upon completion of the demonstration project under sub. (1) and by June 30, 2023 2024, the department of children and families shall conduct an evaluation of the demonstration project.
Section 9106. Nonstatutory provisions; Children and Families.
(1) Child support debt reduction; emergency rulemaking. The department of children and families may promulgate emergency rules under s. 227.24 to implement s. 49.226. Notwithstanding s. 227.24 (1) (a), (2) (b), and (3), the department is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.
Section 9406. Effective dates; Children and Families.
(1) Child support debt reduction. The treatment of s. 49.226 takes effect on the first day of the 7th month beginning after publication.
(2) Offender reentry demonstration project. The repeal of s. 49.37 takes effect on July 1, 2024.
(End)