The Sisters of Charity Foundation of South Carolina, along with other Southeastern Council of Foundations members, continue to raise awareness on the impact of Temporary Assistance for Needy Families (TANF) funding in our states and advocate for TANF reauthorization.
TANF funding is critical to all states in the Southeastern Council of Foundations (SECF), and the Sisters of Charity Foundation of South Carolina is advocating for Congress to reauthorize TANF, and once this occurs to change the funding distribution formula to one that is based on a state’s need. If the amount of funding is increased using the consumer-price index, states making up the SECF would receive a total over $1.5 billion, in addition to current funding, if a formula based on poverty is implemented. A formula that equalizes the payments to states based on the percentage of each state’s population living in poverty would benefit 33 of the 50 states.
Understanding TANF reauthorization may likely be pushed back a year, to 2011, the Foundation believes that there is a more immediate and pressing need, that of the TANF Contingency Fund.
When TANF replaced the old Aid to Families with Dependent Children (AFDC) program in 1996, Congress appropriated $2.5 billion to a TANF Contingency Fund. Congress created this fund to accommodate states’ increased caseload during a major economic downturn. In order to access this fund states had to have had an increase in needy families in the state as measured by families receiving food stamps (more than 10% increase for the same period in the prior year). The state was also required to invest additional state dollars on needy families. With the economic downturn in 2008, many states qualified for the fund and the fund was completely depleted in 2009.
Many states depend on this money to take people out of poverty and into work. According to information on the federal fiscal year that ended in September 2009, Arkansas will lose $36,260,975, Maryland will lose $38,183,005, North Carolina will lose $60,447,900, Tennessee will lose $38,304,759 and South Carolina will lose $40,000,000. (Some states may have drawn down dollars in 2010, but that information is not published yet.)
To get a better idea of how the TANF Contingency Fund affects South Carolina, read Sisters of Charity Foundation of South Carolina President Tom’s Keith guest column, The Real Welfare Crisis, that appeared in last Sunday’s (May 23, 2010) The State newspaper. You can also tune into the following SC ETV radio stations or online at Your Day Thursday, May 27 from noon-1 p.m. to hear an interview with Tom Keith and South Carolina Department of Social Services State Director Dr. Kathleen Hayes on this very issue.
Last year, the American Recovery and Reinvestment Act of 2009 (ARRA) created a new Emergency Fund under the Temporary Assistance for Needy Families (TANF) block grant. Congress provided $5 billion for the Emergency Fund in ARRA. However, this Emergency Fund is set to expire on September 30, 2010.
As you can see the, there is an immediate need for Congress to replenish the original TANF Contingency Fund or extend the TANF Emergency Fund. Since most southern states’ elected leaders do not support stimulus funding, the best approach is to ask Congress to replenish the original TANF Contingency Fund. This funding source was created for use in a down economy, and this is clearly a time when states need access to these funds. As advocates for the underserved in South Carolina, the Sisters of Charity Foundation is working with the South Carolina Department of Social Services, other organizations, foundations and elected officials to figure out how to get this much needed funding to South Carolina and all southern states.
The Sisters of Charity Foundation of South Carolina and other foundations comprising the Southeastern Council of Foundations are all familiar with the poverty that exists in the states they serve. It is a condition we all work hard to change every day. We know the enormous difference this funding can make in our states for families in poverty, and how detrimental it can if we don’t receive it. United, the Southeastern Council of Foundations can act to help our states get an equitable share of any new TANF funding. Working with the state TANF agency, the Governor’s office and our Congressional delegations we can make sure this issue gets the attention it deserves and results in equity for our states.
Brooke Bailey is the director of communications and public policy for the Sisters of Charity Foundation of South Carolina
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