Deal moves funding for TANF forward
The last time I wrote about Tennessee’s massive Temporary Assistance for Needy Families surplus, I was bullish on proposed legislation that would finally get that $740 million reserve spent for citizens who need a hand up.
That was this past Valentine’s Day, Feb. 14, and the Tennessee Opportunity Act (House Bill 137/Senate Bill 144) seemed like an excellent path forward for the state. Rep. David Hawk, R-greeneville, and Sen. Bo Watson, R-hixon, outlined a thoughtful approach that includes pilot projects, financial assistance for all 95 counties and high accountability. All this developed out of working group they served on, which was formed in November 2019.
On Feb. 25, Gov. Bill Lee released his list of priorities, which included TANF; however, he chose to support a bill by Senate and House Majority Leaders Jack Johnson and William Lamberth (SB0751/ HB0142) that seemed to me to come out of left field.
So, I asked Lee about the bills during his March 1 address and Q&A at the Tennessee Press Association’s virtual conference. “Reserves are a good thing,” Lee said. “When you determine it’s too much, there has to be an adjustment.”
When I followed up by asking him whether he objected to anything in the Hawk-watson bill, he said there wasn’t and that he would work with them on refining the final outcome.
Lee kept his word. It is encouraging that the governor and the lawmakers have reached an agreement on TANF fund distribution that merges the legislation, according to a March 15 story by Tennessean statehouse reporter Natalie Allison.
“We can move forward with one vehicle,” Hawk said. “And we are going to have some substantially good legislation to, in two words, strengthen families.”
Tennessee’s TANF surplus is the largest in the United States
In October 2019, Allison reported that the Beacon Center of Tennessee discovered this mass surplus.
At the time, the amount was $732 million. A year later, it swelled to $741 million. Meanwhile, many Tennesseans’ struggles grew because of the economic downturn caused by COVID-19; more than 1 million people filed for unemployment benefits.
Tennessee receives $190 million a year in TANF funds from the federal government. That means the surplus is nearly 300 times the size of the annual allocation. In fact, Tennessee’s TANF surplus is the largest in the nation, according to the U.S. Department of Health and Human Services.
Compare that to the second highest surplus from New York State of $649 million. That is 12% of it annual $5.3 billion allocation.
When Congress passed welfare reform in the 1990s, the TANF program replaced a decades-old welfare system with a program that provided supplemental and temporary assistance, money for child care and funds for workforce training.
This money is not a reserve accruing interest for a rainy day. This money is not a handout. This money is meant to be used to help Tennesseans when they need it most, and so they can get on a path of selfsufficiency.
This TANF deal between Lee and the lawmakers is good news for all Tennesseans because needy families will receive assistance while ensuring to all citizens that the money will be responsibly spent.
David Plazas is the director of opinion and engagement for the USA TODAY Network Tennessee. He is an editorial board member of The Tennessean. He hosts the Tennessee Voices videocast. Call him at (615) 259-8063, email him at dplazas@ tennessean.com or tweet to him at @davidplazas.