Rule-making#: / 08-7-1-2
Program: Colorado Works Division / Rule Author: Katie McDougal, John Roybal / Phone: 303-866-2882
STATEMENT OF BASIS AND PURPOSE
Senate Bill 08-177 was passed in part to increase the Basic Cash Assistance grant. Mandating an increase to the Basic Cash Assistance (BCA) grant by thirty percent is vital to the public health, safety and welfare of Colorado Works/Temporary Assistance to Needy Families (TANF), recipients; therefore, the Colorado Works Program rules must be amended and changed to comply with legislation. The State Board has authority to set the BCA grant and the legislation provides direction to the State Board to increase the grant amount by at least twenty percent greater than the current grant amount, while encouraging the Board to set it higher at thirty percent. The current grant is based on the current need standard, which is then ratably reduced. The grant amount has not been increased in over twenty years. This increase would put the new minimum grant amount at approximately thirty percent of the Federal Poverty Level (FPL).
An emergency rule-making (which waives the initial APA noticing requirements) is necessary:
x / to comply with state/federal law and/orx / to preserve of the public health, safety and welfare
Explain: S.B. 08-177 mandates implementation of these provisions by January 1, 2009. Promulgation of these rules on an emergency basis is necessary to meet the timeframe that is essential to implement the increase in the Colorado Benefit Management System (CBMS). Additionally, change to CBMS must be completed timely in order to ensure payments to recipients of Colorado Works basic cash assistance are calculated appropriately and delivered without interruption. These changes require extensive system testing and will require up to three months to secure the changes in CBMS. In addition, promulgation of these rules on an emergency basis is essential to avoid Colorado Works recipients not being able to meet their needs and to ensure the public safety, health, and welfare of these recipients. Therefore, these rules must be adopted on an emergency basis, effective September 5, 2008, in order to meet that timeframe and to avoid Colorado Works recipients not being able to meet their needs.
Authority for Rule:
State Board Authority: 26-1-107, C.R.S. (2007) - State Board to promulgate rules; 26-1-109, C.R.S. (2007) - State Board rules to coordinate with federal programs; 26-1-111, C.R.S. (2007)- State Board to promulgate rules for public assistance and welfare activities
Program Authority: (give federal and/or state cite and a summary of the language authorizing the rule-making)
26-2-701 and 26-2-709, C.R.S. (2007), as amended by S.B. 08-177-State Board to promulgate rules regarding financial assistance grant
Initial Review / 08/01/2008 / Final Adoption / 09/05/2008Proposed Effective Date / 09/05/2008 / EMERGENCY Adoption / 09/05/2008
DOCUMENT 8
STATEMENT OF BASIS AND PURPOSE (continued)
Yes / X / NoYes / X / No
Does the rule incorporate material by reference?
Does this rule repeat language found in statute?
If yes, please explain.
State Board Administration will send this rule-making package to CCI, OSPB and the JBC. The program has sent this rule-packet to which stakeholders?
AFDC Coalition; Legal Aid of Metropolitan Denver; Colorado Center on Law and Policy;
Colorado Department of Health Care Policy and Financing; PAC-Subcommittee members; and,
Colorado Department of Human Services Food Assistance Division and Adult Financial Support Services
Attachments:
Regulatory Analysis
Overview of Proposed Rule
Stakeholder Comment Summary
Rule-making Form SBA-3a (9/05)
REGULATORY ANALYSIS
(complete each question; answers may take more than the space provided)
1. List of groups impacted by this rule:
Which groups of persons will benefit, bear the burdens or be adversely impacted by this rule?
Colorado county departments of social/human services and their respective contractors serving TANF families;
all eligible applicants for Colorado Works Program/Temporary Assistance for Needy Families (TANF) program;
and all eligible recipients of Colorado Works/TANF- basic cash assistance grant.
2. Describe the qualitative and quantitative impact:
How will this rule-making impact those groups listed above? How many people will be impacted? What are the short-term and long-term consequences of this rule?
Currently all 64 county departments of social/human services with a TANF caseload will be impacted. In addition, there are approximately 8,984 households that are considered eligible to receive Colorado Works/TANF that will be affected throughout Colorado. The effects to the Colorado Works/TANF participants involve an increase in the Basic Cash Assistance dollar amount per household by thirty percent of the current allotment. County departments will see an increase in the Basic Cash Assistance dollar amount per household by 30% of the current initial payment calculation allotment. Clarification to county departments will provide consistency of the requirements of the program.
Long term and short term consequences include assisting communities by providing a more livable wage on their path to self-sufficiency. This also includes an impact to county dollars, as the increase will spend out more dollars through out the program year.
3. Fiscal Impact:
For each of the categories listed below explain the distribution of dollars; please identify the costs, revenues, matches or any changes in the distribution of funds even if such change has a total zero effect for any entity that falls within the category. If this rule-making requires one of the categories listed below to devote resources without receiving additional funding, please explain why the rule-making is required and what consultation has occurred with those who will need to devote resources.
State Fiscal Impact (Identify all state agencies with a fiscal impact, including any CBMS change request costs required to implement this rule change)
S.B. 08-177 makes a number of changes to definitions and other statutory provisions related to the program that requires changes to the Colorado Benefits Management System. The cost to modify CBMS is approximated at $168,400. The Colorado Benefits Management System will need to produce a build to incur this 30% increase of Basic Cash Assistance and produce TANF reports that will be subject to review each month as required through the state CW internal control process. These funds were appropriated in S.B. 08-177.
County Fiscal Impact
The county fiscal impact will include a 30% increase to the Basic Cash Assistance portion of County TANF Allocation. This increase will be absorbed within the existing TANF allocations of each county.
Rule-making Form SBA-3b (6/02)
REGULATORY ANALYSIS (continued)
Federal Fiscal Impact
None
Other Fiscal Impact (such as providers, local governments, etc.)
None
4. Data Description:
List and explain any data, such as studies, federal announcements, or questionnaires, you relied upon when developing this rule?
All information relies upon the fiscal note in S.B. 08-177.
5. Alternatives to this Rule-making:
Describe any alternatives that were seriously considered. Are there any less costly or less intrusive ways to accomplish the purpose(s) of this rule? Explain why the program chose this rule-making rather than taking no action or using one of the listed alternatives.
There is no alternative to this rule. Due to changes in legislation, it is mandatory that the Basic Cash Assistance Grant be increased. However, the bill provides the State Board with the authority and the direction to increase the grant amount by at least twenty percent greater than the current amount and the State Board in encouraged to set the grant to meet or exceed thirty percent greater then the current amount. The amount of thirty percent would be more sufficient in the effort to enhance the public health, safety and welfare of the Colorado Works recipients.
Rule-making Form SBA-3b (6/02)
9 CCR 2503-1
COLORADO WORKS 3.614.31 3.614.513.614.2 3.614.24
3.614.3 EARNED INCOME DISREGARDS (continued)
3. The $30 disregard for eight (8) calendar months following four (4) consecutive months in which the $30 + 1/3 disregard was applied.
4. The $30 + 1/3 disregard shall not apply to any person who has received the $30 + 1/3 disregard for the maximum number of months until that person has not received basic cash assistance for twelve (12) consecutive months.
3.614.32 Any county that operates a manual or electronic system for increasing earned income
Rev. eff. disregards that was in place and known to the State Department as of December 31,
1/1/05 2000, may continue with that calculation or follow the requirements of the two-thirds disregard as specified in Section 3.614.31.
3.614.4 RATABLE REDUCTION AMOUNT
3.614.41 The reduction percentage is 84.75% (.8475) and shall be used to determine the
Add 1/1/05 authorized grant for basic cash assistance.
3.614.5 INITIAL PAYMENT AND CALCULATIONS OF PARTIAL MONTH’S PAYMENT
Add eff. The initial payment to eligible applicants shall include assistance beginning with the date
1/1/05 of application. Should the assistance unit be ineligible on the date of application, but become eligible prior to the time that a determination of eligibility is made, the initial payment shall include assistance beginning with the date on which the assistance unit became eligible.
3.614.51 To calculate the partial month payments:
Add eff. A. Determine the need standard based on the size and composition of the
1/1/05 assistance unit;
B. Deduct the total net countable income;
C. Multiply that result by ratable reduction percentage (.8475) to obtain the authorized grant amount for the entire month;
D. Determine the number of days for which payment is to be made and based on the table at 3.614.52; find the decimal figure corresponding to the number of days of eligibility;
E. Multiply the authorized grant for the entire month by such decimal figure to determine the authorized grant amount for the partial month;
F. Subtract from authorized grant amount any appropriate deductions, unless the authorized grant is less than $10, in which case no payment is made, or if the deductions from the partial month payment results in an amount less than $10, such lesser amount shall be paid except when the amount is less than $1.00.3.614.2 COLORADO WORKS STANDARDS OF ASSISTANCE
3.614.21 Basic cash assistance grant amounts shall be determined BASED UPON ZERO
Rev. eff INCOME using the following need standard:
1/1/05
1/1/09
CARETAKERRELATIVE(S)
OF CHILDREN / NUMBER OF DEPENDANT CHILDREN
0 / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / Ea. Addl.
NONE / NEED STD. / ------/ 117 / 245 / 368 / 490 / 587 / 678 / 756 / 830 / 904 / 977 / 67
GRANT AMT. / ------/ 128 / 269 / 404 / 539 / 646 / 746 / 832 / 913 / 995 / 1076 / 72
ONE / NEED STD. / 253 / 331 / 421 / 510 / 605 / 697 / 770 / 844 / 920 / 991 / 1065 / 67
GRANT AMT. / 278 / 364 / 462 / 561 / 665 / 767 / 847 / 929 / 1012 / 1092 / 1172 / 72
TWO / NEED STD. / 357 / 439 / 533 / 628 / 716 / 787 / 861 / 937 / 1009 / 1082 / 1155 / 67
GRANT AMT. / 392 / 517 / 586 / 691 / 787 / 865 / 947 / 1032 / 1111 / 1190 / 1271 / 72
CARETAKER RELATIVE(S) OF CHILDREN / NUMBER OF DEPENDENT CHILDREN
0 / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / Ea. Add.
NONE / 117 / 245 / 368 / 490 / 587 / 678 / 755 / 830 / 904 / 977 / 67
ONE / 253 / 331 / 421 / 510 / 605 / 697 / 770 / 844 / 920 / 992 / 1065 / 67
TWO / 357 / 439 / 533 / 628 / 716 / 787 / 861 / 937 / 1009 / 1082 / 1155 / 67
3.614.22 All cases with employed persons will have their payment determined using the
Rev. eff. Income disregards.
1/1/05
3.614.23 Income and resources of parents of unmarried minor parents who apply for or receive Colorado Works
Rev. eff. living in the same household shall be attributed to the assistance unit.
1/1/05
3.614.24 Pregnant parents are eligible for payment, including the $5.00 pregnancy food
Rev. eff. allowance, beginning with the sixth (6th) month of pregnancy is allowed for an
1/1/05 expectant mother. When the pregnancy terminates by other than a live birth,
eligibility for assistance payment continues through the month of release from the hospitalization for the delivery or termination of pregnancy.
9 CCR 2503-1
COLORADO WORKS 3.614.31 3.614.513.614.2 3.614.31
F. Subtract from authorized grant amount any appropriate deductions, unless the authorized grant is less than $10, in which case no payment is made, or if the deductions from the partial month payment results in an amount less than $10, such lesser amount shall be paid except when the amount is less than $1.00.3.614.2 COLORADO WORKS STANDARDS OF ASSISTANCE (continued)
3.614.25 Income received from short-term employment (three months or less), as
Rev. eff. specified in the IRC, shall not be considered any month after the termination of
1/1/05 such employment. The two-thirds disregard and the $30 + 1/3 disregard are not
used to determine initial eligibility
3.614.3 EARNED INCOME DISREGARDS
3.614.31 For the purpose of payment, the following employment disregards shall be