HomeMy WebLinkAbout981485.tiff AFDC Coalition
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2525 W. Alameda Ave P.O. Box 19020 ; Denver, CO 80219
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Connie Harbert
Weld County* TO -
P.O. Box 758
Greeley
July 30, 1998
Dear Commissioner Harbert:
As we move into the second year of implementation of the Colorado Works program, we can examine the
approaches that have worked in different counties. In addition, it is a good time to think more long term
about how to make welfare reform successful. The All Families Deserve A Chance (AFDC) Coalition
would like to offer assistance where possible in helping counties think creatively about solutions. Toward
this end we are developing a series of policy options for counties to consider in implementation. The
federal and state law present exciting opportunities and freedom to make the best choices.
This first policy piece we would like to offer is about County Diversion which is a unique part of our state
law.
Two Key Features of County Diversion
1. Broad Authority to Determine Eligibility
Counties Deride Who is Eligible:
Counties can set the eligibility level for County Diversion. This means that a county that serves
Colorado Works families up to the level set by the standard of need (31% of poverty) can choose to
provide selective services to families at any income level. Your county could, for example, provide
specific services or income supports to families with incomes up to 100%, 150% of poverty or any level
you choose. You can also decide what supports to provide, for how long, and any other program
requirements.
County Diversion can be used to serve at least two distinct populations.
A. Families Leaving Colorado Works:
The first population is those who become ineligible for cash assistance under the Colorado Works
program. An income of$5,052.00 per year is enough to make a family of three ineligible for basic
cash assistance. At that level, even parents with part-time jobs will be ineligible soon after finding
employment. But, a county can choose to provide transitional assistance to families by establishing
a county diversion program. Possible supports County diversion can be used for families who
become ineligible for cash assistance up to any income level the county chooses. The county could
provide services such as help getting a GED, rental assistance, repayment of debts - all designed
to prevent recidivism or a return to assistance.
In addition, if your county is focusing on a Work-First approach, you can provide the second tier of
assistance to families to help them advance into a job that will help them better meet their income
needs long term. Your county could provide funding for job training, or work with employers to
pay for part of training. Even more important, your county could do follow-up employment
support or post employment training to help participants keep their jobs. 981485
Phone: (303) 742-0828 FAX: (303) 742-1181
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B. Assist Working Families:
The other major opportunity is to prevent deeper poverty for working families by establishing
county diversion to serve families at incomes above the Colorado Works program who are at-risk
of becoming a Works family. Possible supports County diversion can be used to serve families
at any income level. This means that a county could help divert families from long-term use of
assistance by providing things like debt repayment, rental assistance, or assistance for people to get
further training.
2. Funded with County, State and Federal Funds
County diversion does NOT mean the program is funded with only county funds. Spending in this
area follows the same process as the rest of Colorado Works. The state is given its allocation of federal
funds each quarter, the state reimburses counties with a percentage of federal funds and a percentage of
state funds. Funds are spent simultaneously. County spending is only one source for the combined
spending in the program. For more information on the flow of federal funds and the reimbursement
process see the Cash Management Improvement Act at 31 U.S.C. 6501.
Advantages to Creating a County Diversion Program
1. Help families avoid a return to Colorado Works. (Saves money in the long run.)
2. Prevent families from becoming Works participants by providing supports before a crisis turns into
longer term needs.
3. Your county can increase your work participation percentage (the number of families engaged in
federally defined work activities) by counting all of those families who are working - that includes both
those transitioning off and those working families who need support. If your county designs its county
diversion program carefully to provide countable kinds of assistance (assistance for a period of longer
than 90 days) those working families can be included in the work participation percentage that each
county must meet. As families in the county's caseload work their way out of eligibility for the basic
cash grant, the county will face difficulty in meeting the federal requirements unless other creative
options such as county diversion are explored.
Other Considerations
While choosing to implement county diversion will meet both long and short term responsibilities for
counties, it will affect families by using up months of assistance that are available as part of the 60 month
time limit. If a family receives county diversion for four months that is four months less of the sixty
month time limit. Counties have broad authority, under state and federal law, to use county diversion
grants as they deem necessary. State rules regarding state diversion are more limiting in terms of county
design and do not impact on work percentages or time clocks. We plan to follow up this piece with a more
in-depth piece describing how some of these choices could be made.
We hope this information about county diversion has been useful. Please feel free to contact us if you have
any questions about this Piece or any other AFDC Coalition information.
Sincerely,
72'1(1/44/ (• c�� o`� �l Mary E. Boesen
Phone: (303) 742-0828 FAX: (303) 742-1181
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