Study of Welfare Benefits of Families in the AFDC Program Act Exposed

Study of Welfare Benefits of Families in the AFDC Program Act does not included adoption or approval information, but it was included in the 1995 ALEC Sourcebook of American State Legislation. ALEC has attempted to distance itself from this piece of legislation after the launch of ALECexposed.org in 2011, but it has done nothing to get it repealed in the states where it previously pushed for it to be made into law.

ALEC Bill Text

Summary

This act authorizes a study to be conducted, using a random sampling of AFDC recipients, which would determine the actual levels of government assistance provided to families receiving AFDC. The study would determine the families’ degree of participation in other welfare programs, additional earnings other than welfare benefits, and cost of living among recipients. The study would determine the total cost to taxpayers of welfare benefits provided to the selected recipients.

Model Legislation

Section 1.

The legislature finds that there is no accurate information on the actual levels of government expenditures provided to families receiving assistance under the Aid to Families with Dependent Children (AFDC) program in the state; whereas the legislature finds that families receiving funds under the AFDC may receive benefits simultaneously from more than a dozen other welfare programs; whereas research indicates that the level of welfare benefits tends to rise the longer a family receives AFDC benefits; the legislature authorizes a scientific study of the welfare benefits received by AFDC families within the state from a combination of government sources.

Section 2.

Beginning in {insert year}, the {insert appropriate department), hereinafter referred to as the “Department,” will conduct a scientific study of the welfare benefits received by families within the state according to the specifications provided in Sections 2, 3,4, and 5 of this Act.

(A) {Scientific Sample.} The Department will study a randomly selected sample of families receiving AFDC. The sample shall be large enough to provide reliable information on each of the sub-populations described in Section 4 (A).

(B) {Period of Study.} The study shall determine the degree of participation of families in the AFDC program in other welfare programs over a prior twelve-month period.

(C) {Welfare Programs Include.} The welfare programs to be covered in the study shall include:

(1) Food Stamps;

(2) Women, Infants, and Children Food Program;

(3) the school lunch program;

(4) the school breakfast program;

(5) Medicaid;

(6) public housing;

(7) Section 8 housing subsidy program of the U. S. Department of Housing and Urban Development;

(8) other housing subsidies;

(9) low-income energy assistance;

(10) emergency assistance;

(11) Head Start;

(12) child support funds “passed through” to a welfare parent under the AFDC program;

(13) Summer Youth Employment under Title IV of the Job Training Partnership Act;

(14) assistance to adults and youth under Title IIA of the Job Training Partnership Act;

(15) Earned Income Tax Credit;

(16) Supplemental Security Income;

(17) General Assistance;

(18) Social Service Block Grant Funds;

(19) any other welfare assistance provided by federal, state, or local government.

(D) {Other Sources of Income.} The study shall determine the degree to which families in the AFDC program participate in the following programs or receive income from the following sources:

(1) earnings;

(2) interest income, dividends, and capital gains;

(3) Social Security;

(4) veteran’s benefits;

(5) Workmen’s Compensation;

(6) Unemployment Insurance;

(7) Medicare;

(8) other sources of income.

(E) {Using Current Data Sources.} For the purposes of gathering information, the Department may augment the survey currently conducted by the U. S. Department of Health and Human Services for the National Integrated Quality Control System. (F) {Data Collection.} The Department shall determine whether or not each family within the AFDC sample population participated in each of the programs listed in paragraph (C) and the number of months of participation during the time period of the study. The Department shall also determine, for each family, the level of income received through sources described in paragraph (D).

(1) Data concerning participation or non-participation in each welfare program and the given number of months of receipt of benefits shall be verified for each family in the AFDC sample by an examination of records of the government office within the state which operates each assistance program;

(2) Data concerning income sources specified in paragraph (D) above will be verified by an examination of state and federal tax records;

(3) No penalty or recovery of prior wrongful payment shall be invoked upon a family in the AFDC sample because of any inappropriate or unlawful provision of governmental aid that is discovered as a result of the study authorized by this Act.

(G) {Cost of Housing.} The study shall determine and verify the rental, heating, water, and electric utility payments made by each household in the sample.

(H) {Time on Welfare.} The study shall seek to determine the length of time which each family in the AFDC sample has received AFDC benefits including previous intermittent periods of AFDC receipt, prior to the current enrollment.

Section 3.

The study shall determine the cost to the taxpayer of welfare benefits provided to families with the AFDC sample population.

(A) {AFDC Benefits and Food Stamps.} For AFDC and Food Stamps benefits the actual dollar value provided to each family in the AFDC sample will be recorded.

(B) {Estimating Costs of Other Programs.} For programs other than AFDC and Food Stamps for which it is infeasible to determine an exact dollar value of benefits to each sample family, an average benefit cost per recipient or per household within the state may be estimated.

(1) {Calculating Average Medicaid Costs per Recipient.} To determine the cost of Medicaid services to AFDC families within the state, the department will estimate separate average costs of Medicaid services for non-elderly, non-disabled adults and for children. The cost of Medicaid services for each AFDC unit within the sample will be determined by the number of adult and child recipients in the unit. In each month, an AFDC recipient enrolled in Medicaid will be deemed to receive a benefit equal to the average monthly cost of Medicaid for individuals of that age group within the state, even though the individual may have received no medical services in that particular month.

(2) {Calculating Medicare Costs per recipient. To determine the cost of Medicare services to AFDC households, the Department will estimate average costs for Medicare services for elderly adults in the state. In each month an AFDC household member enrolled in Medicare shall be deemed to receive a Medicare benefit equal to the average monthly cost of Medicare for elderly individuals within the state.

(3) {Calculating Section 8 Subsidies.} The cost of direct government subsidies to Section 8 housing units shall equal the program contract rent minus tenant rent contributions paid by the AFDC sample family.

(4) {Calculating Public Housing Subsidies.} To determine a per unit public housing subsidy rate, operating subsidies, modernization costs, debt service obligations and any other public housing costs will be included. If it is difficult to determine the subsidy rate for specific public housing units, the statewide net average public housing subsidy rate per unit may be used.

(5){Cost of School Lunch and School Breakfast Programs.} The cost of school lunch and breakfast programs shall equal the cost of a free or reduced price meal, as appropriate, multiplied by average normal attendance during the school year.

(6) {Administrative Costs.} For the AFDC, Food Stamps, Medicaid, Low Income Energy Assistance Program, Section 8, and Public Housing programs, average administrative costs per recipient or per recipient household shall be determined separately.

Section 4.

After collecting and analyzing data on the AFDC sample population, the Department shall issue a report on the cost of combined welfare benefits to AFDC families within the state.

(A) The report shall include separate information on the following groups within the AFDC sample population:

(1) all AFDC households;

(2) Basic AFDC households that received AFDC benefits during the full 12-month study period and had non-welfare income.

(B) For each of the groups listed in paragraph (A), the report will distinguish:

(1) the percent that were Basic AFDC Households;

(2) the percent that were Mixed AFDC Households;

(3) average household size of Basic AFDC households;

(4) average household size of Mixed AFDC Households, including the average number of household members who do not belong to the primary AFDC unit.

(C) For purposes of the calculations listed in subsections (E) and (F) of this Section, the data for each family in the AFDC sample will be limited to those months of the survey period in which the family received AFDC benefits.

(D) For each of the subgroups listed in paragraph (A) above, the report will describe:

(1) percentage of the group that received benefits from each of the programs listed in Section 2 (C);

(2) for each program listed in Section 2 (C), the average monthly dollar value of benefits received by those AFDC families participating in that program;

(3) percentage of the group which received income from each of the sources listed in Section 2 (D);

(4) for each of the sources listed in Section 2 (D), the average income received by families in AFDC sample population.

(E) {Average Monthly Value.} For each subgroup listed in paragraph (A) of this Section, the Department will report:

(1) the average monthly value of the combined welfare benefits excluding administrative costs;

(2) the average monthly value of combined welfare benefits including administrative costs;

(3) the average monthly value of combined welfare benefits including administrative costs and all nonwelfare income.

(F) For AFDC Mixed Households the report will describe each of the figures, described in paragraphs (C) and (D) above separately for:

(1) members of the Primary AFDC unit, and

(2) other household members.

(G){Comparison of Average Benefits to Low Income Cost of Living.} For each subgroup listed in paragraph (A) of this Section, the Department will compare the average monthly value of combined welfare benefits amount families which have received AFDC benefits for less than two years with those who have received AFDC benefits for more than two years.

Section 5.

As used in this Act the following terms have the following meanings:

(A) “Average Public Housing Subsidy Rate Per Unit” shall equal the total state public housing operating expenditures, plus total state public housing modernization expenditures, plus total public housing debt service payments (including debt obligations forgiven by the U. S. Department of Housing and Urban Development) divided by the total number of occupied public housing units.

(B) “Basic AFDC Household” means a household in which all members belong to the primary AFDC unit.

(C) “Low income Food and Housing Cost” for AFDC households of given size shall equal the average cost of rent, heating, water, and electric utilities for households in the AFDC sample population in non-subsidized housing plus the cost of food for families of that size according to the Thrifty Food Plan of the U.S. Department of Agriculture.

(D) “Non-Welfare Income” shall mean income from sources listed in Section 2 (D).

(E) “Mixed AFDC Household” means a household that includes a primary AFDC unit and other household members who are not part of the AFDC unit.

(F) “Net Average Public Housing Subsidy Rate per Unit” shall equal the average public housing subsidy rate per unit minus:

(1) administrative costs as a percentage of the average public housing subsidy rate per unit, and

(2) tenant rent contribution paid by the AFDC household.

(G) “Primary AFDC Unit” means each AFDC assistance unidentified for study in the AFDC sample population. An AFDC assistance unit shall be defined as recipient children under age 17 receiving AFDC benefits plus any adult recipient, living with a dependent recipient child whose needs are taken into account in determining the amount of the AFDC payment. Other persons related to members of the AFDC assistance unit may live in the same household, but if their needs, income, and resources are not considered in determining the assistance payment, they are not members of the AFDC unit. (H) “Welfare Benefits” shall mean benefits received from programs listed in Section 2 (C).

Section 6. {Severability clause.}

Section 7. {Repealer clause.}

Section 8. {Effective date.}