TITLE: CONCERNING IMPLEMENTATION OF FINANCING OPTIONS AVAILABLE PURSUANT TO THE FEDERAL “PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996”, AND MAKING AN APPROPRIATION THEREFOR.

STATE FISCAL IMPACT SUMMARY	FY 1997/1998	FY 1998-99
State Revenues General Fund Other Fund
State Expenditures Colorado Works Program, County Block Grants County Funds — Cash Funds Exempt Long-term Works Reserve Fund — Federal Funds Legislative Branch — Federal Funds from the Temporary Aid to Needy Families Block Grant	($ 3,640,433) (1,500,000) 1,500,000	0 (1,500,000) 1,500,000
FTE Position Change	None	None
Local Government Impact — The bill reduces the counties’ maintenance of effort by $3,640,433 in FY 1997-98.

The reengrossed bill, as amended, includes the following financing provisions for funding Colorado’s welfare program pursuant to both federal and state law: PL 104-193, “Personal Responsibility and Work Opportunity Reconciliation Act of 1996”; and SB 98-120, Concerning Welfare Reform:

• for state FY 1997-98 and each state fiscal year thereafter, provides that a county's targeted spending level (the amount that each county shall appropriate to defray its maintenance of effort (MOE) requirement for the Colorado Works Program), shall be 100 percent of county spending on AFDC, JOBS, and the administrative costs relating to those programs for state fiscal year 1995-96;

• for state FY 1997-98, requires all counties collectively to meet an actual level of spending on the Colorado Works Program that constitutes 80 percent of what all counties collectively spent on AFDC, JOBS, and the administrative costs relating to those programs for state FY 1993-94, and that an individual county's actual spending level for FY 1997-98 shall be determined by the Department of Human Services (DHS) based upon the county's proportionate share of expenditures on such programs in state FY 1995-96;

• creates the Works Allocation Committee consisting of seven members, five county commissioners appointed by a statewide association of counties, and two members appointed by DHS;

• for FY 1998-99 and each state fiscal year thereafter, allows DHS, with input from the Works Allocation Committee, to adjust the county block grants;

• allows the Joint Budget Committee to identify each individual county’s block grant, should the Works Allocation Committee and DHS fail to agree on adjustments to the county block grants for any state fiscal year by June 15 of such year;

• for FY 1998-99 and each state fiscal year thereafter, requires the Works Allocation Committee to identify each individual county’s level of spending for the Colorado Works Program no later than June 15 of such fiscal year;

• allows the Joint Budget Committee to identify each individual county’s spending level for the Colorado Works Program, should the Works Allocation Committee fail to agree on each individual county’s spending level for any state fiscal year by June 15 of such year;

• requires the Works Allocation Committee to identify the amount of mitigation to be allocated for a small county;

• requires that a county maintain in its social service fund any county funds appropriated to meet the county's targeted spending level but not actually expended, and restricts the use of funds in the account to implementation of the Colorado Works Program;

• allows small counties to seek further reductions in their spending level based upon the agreement of representatives of such small counties and subject to the identification of an annual amount for such further reductions set forth in the annual Long Bill;

• requires the State Auditor’s Office to oversee an evaluation of the Colorado Works Program through July 1, 2004, and no later than December 31 of each fiscal year, it shall prepare a progress report on the evaluation; and

• includes appropriations which amend both the FY 1997-98 Long Bill and the FY 1998-99 Long Bill.

The bill requires that for state FY 1997-98, counties shall spend an amount based upon a collective county MOE of 80 percent of what all counties spent on AFDC, JOBS, and the administrative costs relating to those programs for state FY 1993-94. The method for identifying a county MOE of 80 percent is identified in the table below:

Gross County Expenditures for AFDC, JOBS, Administration for FY 1993-94

Federal Minimum MOE Level

Current FY 1997-98 County MOE Level

FY 1997-98 County MOE Level Under SB 98-185

Reduction in County Spending Level

$ 40,036,774

80%

35,669,852

32,029,419

(3,640,433)

The appropriations clauses in the bill reduces the county MOE for the Colorado Works Program to 80 percent and make the following changes in funding accordingly:

DHS Appropriations

FY 1997-98

FY 1998-99

Long-term Works Reserve Fund — Federal Funds

Legislative Branch, State Auditor — Federal Funds from the Temporary Aid to Needy Families Block Grant

Colorado Works Program, County Block Grants — Cash Funds Exempt County Funds

TOTAL — Net Reductions

($ 1,500,000)

1,500,000

(3,640,433)

$ (3,640,433)

($ 1,500,000)

1,500,000

$ 0

Legislative Department. The bill includes funding for $1.5 million in both FY 1997-98 and FY 1998-99 for the State Auditor’s Office to implement and oversee a contract evaluation through July 1, 2004. The fiscal note assumes that the State Auditor’s Office will be appropriated $1.5 million annually through the duration of the evaluation. The evaluation is to include an objective analysis of outcomes realized as a result of the implementation of the Colorado Works Program.

FY 1997-98 — reduce county funding for the Colorado Works Program, County Block Grants by $3,640,433 cash funds exempt county funds, reduces the Long-term Works Reserve Fund by $1,500,000 federal funds; appropriates $1,500,000 federal funds from the Temporary Aid to Needy Families Block Grant to the Legislative Branch, State Auditor.

FY 1998-99 — reduces the Long-term Works Reserve Fund by $1,500,000 federal funds; appropriates $1,500,000 federal funds from the Temporary Aid to Needy Families Block Grant to the Legislative Branch, State Auditor.