OLR Bill Analysis

sSB 344 (File 594, as amended by Senate “A”)*

AN ACT CONCERNING FAMILY PROSPERITY AND THE RECOMMENDATIONS OF THE CHILD POVERTY AND PREVENTION COUNCIL.

SUMMARY:

This bill requires the Department of Social Services (DSS) to administer a food stamp employment and training (FSE&T) program authorized under the federal Food Stamp Act of 1977, which the department currently administers on a voluntary basis. It must provide for the receipt of federal matching funds under federal FSE&T rules and seek to maximize the use of the federal program's matching funds provision to the fullest extent legally permitted.

The bill specifies how federal matching funds must be used and distributed and authorizes DSS to select providers who qualify for federal reimbursement, including FSE&T community collaboratives, to participate in the program. By law, entities that qualify for federal matching funds include state agencies, local governments, nonprofit entities, institutions of higher education, and other FSE&T providers that offer qualifying employment and training activities.

The bill requires DSS to file annual reports for five years, beginning January 15, 2009, with the Human Services and Appropriations committees and the Child Poverty and Prevention Council on the amount of federal matching funds the program generated and amounts (1) used for DSS' operating and administrative expenses, (2) distributed to providers, and (3) distributed to community collaboratives. It must also include how recipients used the funds, including populations served, and describe programs' outcomes using a results-based accountability framework.

Finally it authorizes DSS, in conjunction with Child Poverty and Prevention Council agency members, to work with local governments, institutions of higher education, community action agencies, and other entities to continue and expand efforts, within available appropriations, to enroll eligible individuals in the food stamp program and to enroll eligible food stamp participants in education, employment, and training activities.

*Senate Amendment “A” replaces the original bill, which created a competitive grant program in priority school districts for child poverty reduction pilot programs. The programs were to be designed to maximize receipt of federal matching Food Stamp Employment and Training Program funds.

EFFECTIVE DATE: October 1, 2008

USE OF FEDERAL MATCHING FUNDS

For FY 09, the bill authorizes DSS to use a portion of the federal matching funds it receives, on an as-needed basis, for operating expenses and to employ one person to work exclusively on administering the program's matching funds provisions. After FY 09 the department may use the funds as necessary to operate and administer the program.

The balance of the funds must be used for poverty reduction strategies. Under the bill, these are a coordinated set of actions, including:

The strategies must be based on best practices and aimed at reducing poverty or the risk of poverty for people and families who (1) live in census tracts with high poverty rates; (2) have incomes at or below 200% of the federal poverty level ($ 35,200 for a three-person household in 2008); and (3) are either adolescent parents, older adolescents and young adults, or low-income working families.

ELIGIBLE PARTICIPANTS

The bill authorizes DSS to select providers whose employment and training activities qualify for federal reimbursement to participate in the federal matching fund provision of the state FSE&T Program. The commissioner sets the form and manner for selection and must give priority to providers that are members of a FSE&T community collaborative whose strategies are aligned with the recommendations of the Child Poverty and Prevention Council and its plan to reduce child poverty by 50% by 2014.

Community Collaboratives

Under the bill, FSE&T community collaboratives are consortia of public and private providers that implement poverty reduction strategies. To qualify as participants, they must demonstrate, in the form and manner DSS specifies, their capacity to implement poverty reduction strategies they must identify:

Each qualifying collaborative must establish a governance structure, determine membership, and identify or establish a fiscal agent. It must have at least five member entities representing institutions of higher education, regional workforce development boards, social services nonprofit agencies, business associations, philanthropic organizations, municipalities, community action agencies, or other community partners. A majority of its members must be FSE&T providers.

Collaboratives must use federal funds they receive to implement poverty reduction strategies in a municipality or region they serve.

DISTRIBUTION FORMULA

After expending funds necessary for operate and administer the funds, as described above, the bill specifies that DSS distribute the remainder as follows:

BACKGROUND

Federal Food Stamp Employment and Training Program

The federal FSE&T Program, created by the 1985 federal Food Security Act requires each state to implement an FSE&T program to help food stamp recipients gain skills, training, or experience to increase their ability to obtain regular employment. Funding for the program traditionally focused on able-bodied adults without dependents (ABAWDs), whose food stamp benefits became subject to time limits under the 1996 federal welfare reform legislation. These adults, with some exceptions, can receive food stamps only three months out of each three-year period except in months when they work at least 80 hours or participate in an FSE&T activity. A 2002 change in the food stamp law eliminated the requirement that states spend 80% of the FSE&T funds on ABAWDs, giving states greater flexibility in how they use the funds.

Child Poverty and Prevention Council

The 21-member council is composed of legislative and executive branch appointees. It is required by law to (1) establish prevention goals and recommendations and (2) measure prevention outcomes. It must also consult with experts and service providers and make budget priority recommendations.

Prevention Services and Programs

By law, prevention services are policies and programs that promote healthy, safe, and productive lives. Their purposes include reducing crime, violence, substance abuse, illness, academic failure, and other socially destructive behavior.

COMMITTEE ACTION

Select Committee on Children

Joint Favorable Substitute Change of Reference

Appropriations Committee

Joint Favorable Substitute

Human Services Committee

Joint Favorable

Higher Education and Employment Advancement Committee

Joint Favorable