Welfare Oversight Committee (08/28/2002)

Final
STAFF SUMMARY OF MEETING

WELFARE OVERSIGHT COMMITTEE

Date:	08/28/2002	ATTENDANCE

Time:	09:07 AM to 12:25 PM	House Health, Environment, Welfare, & Institutions
		Senate Health, Environment, Children, & Families
Place:	HCR 0112	Hernandez
		Clapp
This Meeting was called to order by
	Representative Clapp

This Report was prepared by
	Whitney Gustin
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Chairman's Announcements Alcohol and Drug Abuse Dependence County Perspective on Colorado Works Department of Human Services Child Care Policy Discussion of Member Bill Ideas		- - - - - -

Roll Call

Boyd	X	Rhodes	X
Cloer	X	Romanoff	X
Crane	X	Sanchez	A
Dyer	A	Schultheis	E
Epps	A	Stafford	X
Evans	A	Tochtrop	X
Hagedorn	X	Witwer	E
Hanna	X	Hernandez, Vice Chair	X
Linkhart	X	Clapp, Chair	X

09:07 AM

Representative Clapp, chairman, made announcements regarding upcoming meetings and bill draft requests. The meeting agenda was distributed to committee members (Attachment A).

09:09 AM -- Alcohol and Drug Use, Abuse and Dependence Among Families Receiving Public Assistance

Bruce Mendelson, Alcohol and Drug Abuse Division, Department of Human Services, distributed a copy of his PowerPoint presentation and three documents to committee members (Attachments B through E). He discussed Colorado adult arrestees' substance abuse and dependence. Arrestees have a significantly higher abuse rate than the general population. He discussed the Colorado State Treatment Needs Assessment Project, a survey of Medicaid recipients from 1993 to 2002. The study focused on interviews of women who qualified for TANF or Baby Care/Kids Care (BK/KC) or were presumptively eligible (P/E). The final sample size was 2,311. Approximately half of those surveyed were white, 36 percent were Hispanic, and 10 were black. Most self-identified substance abusers used alcohol only. A smaller number of interviewees used drugs and alcohol, and even fewer used just drugs. Mr. Mendelson answered questions about potential underreporting of alcohol and drug abuse.

09:31 AM

Mr. Mendelson continued his discussion of the Treatment Needs Assessment Project. Committee members discussed issues related to underreporting of alcohol and drug abuse. Mr. Mendelson answered questions about adolescent alcohol and drug abuse. A comparison between women enrolled on Medicaid and those not enrolled indicated just a slightly higher usage among the Medicaid population for specific drugs. An examination of total alcohol and drug abuse over a lifetime, however, showed women enrolled on Medicaid had almost double the abuse rate compared to non-Medicaid women. Data regarding treatment for abuse indicated most abusers received "combination" treatment. About one-third had informal treatment only, and less than two percent received detoxification treatment only. Data regarding pregnant women on Medicaid shows about one-quarter received any type of treatment in the past 12 months. Unduplicated data of the Medicaid TANF, BC/KC, P/E population shows approximately 26 percent received any type of treatment in the past 12 months. Approximately 5.4 percent have a current dependence.

10:05 AM -- County Perspective on Colorado Works Implementation

Dr. Donald Cassata, Director, Adams County Social Services, distributed a copy of his overhead presentation to committee members (Attachment F). He reviewed the four goals of TANF. They include preventing and reducing out-of-wedlock pregnancies and encouraging the maintenance of two-parent families. Colorado counties' work first philosophy focused on helping recipients to 1) get a job, 2) get a better job, and 3) develop a career. Dr. Cassata answered questions about counties' successes at helping recipients achieve the second and third steps. Colorado ranks among the top six states in helping families and individuals move from welfare to work. Dr. Cassata answered questions about the impact of the slower economy on TANF enrollment. He attributed TANF successes to making it a non-entitlement program and requiring recipients to work towards attaining employment. He stated being employed has raised enrollees' self-esteem and provided positive roll models for their children. He also stated TANF has benefited the disabled population through increased work opportunities and increased benefits. Dr. Cassata discussed efforts to reduce out-of-wedlock births and additional births among recipients. These efforts include an abstinence only program. He described benefits to counties of moving from AFDC to TANF. In particular, TANF gives counties significant freedom to implement programs. Dr. Cassata answered questions about clothing assistance.

10:32 AM

Dr. Cassata discussed housing assistance for TANF recipients. Housing may be recipients' greatest expense. Offering assistance with housing is meant to support recipients' efforts toward self-sufficiency. It is often a struggle, however, finding low-cost housing. Dr. Cassata discussed drug and alcohol abuse treatment for TANF recipients. He stated adequate resources have been dedicated to treatment for pregnant women on TANF. He described difficulties tracking child-only (AKA kinship) TANF cases. He discussed recent funding cuts to TANF. Child welfare and child care are particularly underfunded. In Colorado, there is a $32 million child care deficit. In response, some counties have dropped their child care income eligibility levels and frozen intake of new enrollees. A $34 million deficit exists in child welfare. Dr. Cassata discussed TANF funding sources and trends in the levels of reserves. These reserves went from a high of $68 million to a current low of $14 million. Dr. Cassata answered questions about reasons for the drop in reserves.

11:03 AM

Dr. Cassata discussed the next five years of TANF. Programmatic support will be continued for the working poor and post-TANF clients. Job advancement, training, and education will also be supported. Career advancement counseling will be available to interested clients, and families will be linked to alternative education funding sources.

11:09 AM -- Presentation by Department of Human Services

Kevin Richards, Director, Colorado Works, Department of Human Services, distributed two documents to committee members (Attachments G and H). He discussed the Berkeley Policy Associates Evaluation of Colorado Works. Danelle Young, Manager, Office of Self-Sufficiency, Department of Human Services answered questions about diversion programs. Diversion assistance can include help with transportation or rent. Mr. Richards discussed counties' success at reaching work participation rates. Up to twelve different activities can be considered to be work participation. These activities include domestic violence counseling, SSI application, vocation rehabilitation, and resolving court or legal matters. Colorado has reached its work participation rate virtually every year and, therefore, has avoided federal financial penalties. In 2002, most TANF recipients meeting work participation requirements are in unsubsidized employment or county defined activities, or searching for a job.

11:25 AM

Ms. Young discussed the upcoming fifth and final Berkeley Policy Associates Evaluation of Colorado Works. She answered questions about the fourth year evaluation. She discussed the Office of Self-Sufficiency's plans to reduce spending by four percent. Mr. Richards discussed county block grants. Twenty-five counties spent more than their allocation last year, and county reserves throughout the state have dropped. Increased caseloads due to a slow economy has been a significant contributor to these situations. Seventeen counties, including some larger counties, currently have no TANF reserves. Mr. Richards discussed reductions in the state's short-term reserve fund. The long-term reserve, however, has grown. The state is currently waiting to hear if it qualifies for the federal bonus for reducing out-of-wedlock births. The award could be $20 million to $25 million.

11:39 AM

Ms. Young discussed the future of Colorado Works. Despite increased need, counties are currently eliminating some services due to reduce funding. Counties are having to choose which Works programs to fund and which not to fund. Ms. Young stated reauthorization of TANF looks bleak, too. Many competing issues such as homeland security and states' weather-related problems may take precedence and draw federal funding away from TANF. She distributed an agenda for the upcoming conference on strengthening families (Attachment I).

11:48 AM -- Presentation of Child Care Policy and Funding Issues

Dana Andrews, Acting Director, Division of Child Care, Department of Human Services, distributed a document to committee members (Attachment J). She discussed funding sources for child care assistance. Colorado has a one to one federal funding match requirement. Ann Keire, Program Specialist, Division of Child Care, Department of Human Services, discussed differences between Colorado Works Child Care Assistance Program and the Low-income Child Care Assistance Program. Ms. Andrews discussed recent problems Colorado has had meeting its federal funding matching requirement. In the last year, the state has been actively looking for matching resources. Federal requirements, however, restrict private funding sources to just one source. Ms. Andrews answered questions about the single private source requirement. She listed other funding sources the state is exploring. Ms. Keire discussed county reimbursement rates for child care. Many counties vary their rates based upon families' needs for evening child care and sick child care. Ms. Keire discussed recent changes to the application for the Low-income Child Care Assistance Program.

12:07 PM

Ms. Andrews and Ms. Keire discussed county changes to child care income eligibility levels. Committee members discussed testimony from America's Families at the August 1 meeting. Ms. Andrews discussed trends in TANF child care spending. Ms. Keire discussed counties that have suspended new enrollment in their Low-income Child Care Assistance Programs. Waiting lists have resulted from these new suspensions. Ms. Keire distributed a document to committee members (Attachment K). She answered questions about notification to families and providers of discontinuation of child care assistance.

12:20 PM

Representative Clapp asked members about their ideas for bill proposals. Representative Romanoff and Senator Hanna discussed Medicaid coverage for substance abuse. Representative Stafford talked about a resolution encouraging partnerships to help TANF recipients.