TANF surplus exposes Tennessee’s failure to help needy citizens
Despite the clamoring from nonprofits, anti-poverty advocates and lawmakers, it appears nothing was done to distribute money competently to needy Tennesseans. Meanwhile, the TANF surplus kept growing.
Tennessee’s distinction of amassing the greatest Temporary Assistance for Needy Families surplus in America does no good for citizens who could use the help.
TANF emerged from the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which sought to “end welfare as we know it.” The program provides families with short-term aid to help them make ends meet while they work, to cover child care costs, to keep families together and to end lifelong welfare.
It replaced a welfare program in place since 1935 under the Franklin Roosevelt Administration.
Gov. Bill Lee and state government have been on notice ever since the Beacon Center of Tennessee think tank reported the state’s TANF surplus reached $732 million in 2019.
For perspective, the average surplus in the 50 states and the District of Columbia was $87.7 million in 2019, according to the U.S. Department of Human Services. Ten states, including Florida and California, reported zero surplus or unobligated funds.
Yet, a year later, Tennessee’s surplus grew to $741 million.
... the Lee administration made the process of applying for child food assistance debit cards so onerous that many families may go without. The debit cards funded with money are expected to be destroyed if families do not pick them up from their schools by the end of December.
How Tennessee uses its TANF money
Despite the clamoring from nonprofits, anti-poverty advocates and lawmakers, it appears nothing was done to distribute money competently to citizens who need help.
This failure indicates that either Tennessee is unable to effectively manage a program for its citizens or our leaders are unwilling to help those in need.
States receive block grants from the federal government, to which they must also
contribute a minimum amount. The federal government has allotted $16.5 billion since the 1990s to all states. Tennessee’s TANF allotment totaled $188.2 million in Fiscal Year 2019.
The block grants give states flexibility to use the funds. Here is how Tennessee spent its money in FY 2019:
● 43.6% Pre-kindergarten/head Start
● 30.6% Basic Assistance
● 14.2% Program Management
● 10.3% Work, Education and Training Activities
● 0.7% Work Supports and Supportive Services
● 0.6% Other
Nearly a quarter-century after TANF was enacted, however, the system is failing too many families in America, according to the Center on Budget and Policy Priorities.
In 1996, 68 of every 100 families in poverty nationwide were receiving help. That figure was 67 in Tennessee.
By 2018, due to stagnation in federal funding, only 23 of every 100 needy U.S. families were being helped compared with 18 in Tennessee.
The CBPP reported that 56,000 more families in Tennessee could have been helped had spending kept up with inflation.
Tennessee policies and proposals have punished poverty
Tennessee ranks 41st in poverty in the United States, according to the Nashville-based Thinktennessee research organization, and poverty is still stigmatized.
People who need help are made to feel less worthy than those with means, as evidenced by legislative proposals over the years including one that would make it harder for people to collect food assistance.
Moreover, the Lee administration made the process of applying for child food assistance debit cards so onerous that many families may go without.
The debit cards funded with money are expected to be destroyed if families do not pick them up from their schools by the end of December.
Recently, the state agreed to make a four-year $56 million investment with TANF funds in evidence-based home visiting. That is significant, but it only scratches the surface of how the state could serve its citizens better.
In November, Danielle Barnes, the Department of Human Services Commissioner since 2017, left her post for the private sector. DHS manages the state’s TANF program.
Now is the time for Gov. Bill Lee and his administration in consultation with lawmakers to be proactive about using the TANF money to address families’ short-term needs and chip away at generational poverty.
Put the money to use the way it was intended and help more families gain greater economic security in Tennessee.