HomeMy WebLinkAbout970654.tiffMAR -11-1997 14:25 ACCOUNTING
3038665808 P.01/02
COLORADO DEPARTMENT OF HUMAN SERVICES
1575 Shannon Sired
Denver Colorado 50703-1715
Phone (303) 56&5700
TDD (303) 5566703
FAX (703) 866-4214
March 10, 1997
Barbara J. Kirkmeyer
Weld County Board of Commissioners
PO Box 758
Greeley, CO 80632
Dear Commissioner Kirkmeyer:
I have received your letter of February 27th, requesting clarification of the "set aside" dollars identified in
Representative Berry's legislation and in the memorandum sent from Kenneth Conahan to Laura Beard. I
have consulted with Don Bishop of the CDHS, Division of Self Sufficiency to try to provide as much
information as possible related to your questions. I need to emphasize, however, that the CDHS does not
yet have answers to many of the questions that you raised and final decisions are tied to the outcome of
the legislation, discussions on allocation methodologies, and the appropriation process. I have noted
below the number of the question, along with our response.
1.a. The Department provided the estimates contained in the IBC analysis including one-time
and ongoing costs for state functions as follows:
1 Changes to automated systems (one-time)
2. Changes to cost allocation and training for
counties and their contractors
3. Contract management (onetime)
4. Automated Systems Development
5. Program Administration
(millions $)
$0.53
$0.75 ($.5 in second year)
$0.02
$4.3
$2.5
1.b. The above costs are related to TANF only.
2.a. Page 3 of Kenneth Conahan's memorandum describes the estimated $11.0 million emergency
fund as 5% of the total TANF program appropriation, which is the maximum allowed in the
bill. BB 1166 as passed by the House does not contain the 5% limit. The amount would be set
in the appropriation.
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2.b. HB 1166 as passed by the House, defines the use of emergency finds for county emergencies
related to economic or natural cause and prohibits use for emergencies related to inadequate
planning or increase in costs of services. Counties would be required to seek emergency funds, if
they are unable to meet requests for assistance.
3.a. The proposed legislation does not specify the amounts that would be appropriated for the reserve
or high performance funds. The $20 million figures are based on an assumed 50% division of
remaining federal funds after allocating county block grants, state functions and emergency
assistance. The actual amount in each fund would be subject to appropriation by the General
Assembly. Kenneth Conanhan has stated on page 3 of his memorandum that high performance
funds would not be appropriated until FY 99.
The legislation requires the state board , with input from boards of county commissioners, to develop
state-wide performance goals for reducing out of wedlock births and for work rates. The formula is to be
based on the federal formula required in the federal act. These criteria would be established, if the
legislation passes. Grants would be awarded in FY 98 or FY 99, subject to available appropriations.
Additional questions:
a. & b.
Under HB 1166, the counties administrative allocations for TANF would be included in the county block
grant based on county spending for the AFDC and JOBS programs in FY 94. Administrative allocations
for other programs are not included in HB 1166, or in the JBC analysis. The format of the long bill as it
relates to TANF and other programs has not yet been defined.
c. & d.
The federal government will issue regulations to define "administration" costs which are limited to 15%
of state-wide TANF expenditures. Colorado, and other states, have recommended that staff costs for
direct client services including eligibility determination, should not be defined as administrative costs.
However, the federal policies have not been issued.
I realize that the are many unanswered questions at this time, however, I expect that further clarification
will be forth coming as the legislative session draws to a close. Please feel free to contact me 866-2423
or Don Bishop at 866-3103, if you have other questions.
Sincerely, /
ad e
Patrick C. Horton, Manager
CDHS - Office of Operations
cc: Laura Beard, CCI
Kenneth Conahan, JBC
Don Bishop, CDHS
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