WELFARE REFORM H.B. 6587 (H-2): FLOOR ANALYSIS




House Bill 6587 (Substitute H-2 as passed by the House)
Sponsor: Representative Chris Kolb
House Committee: Family and Children Services

CONTENT
The bill would amend the Social Welfare Act to do the following:

-- Require the Department of Human Services to develop a family self-sufficiency plan, rather than a social contract, for an individual who qualified for Family Independence Program assistance.
-- Specify that the plan would have to meet, at a minimum, the Federal guidelines for work participation.
-- Require an individual's plan to include an obligation to enroll in certain basic education programs if the individual's initial assessment under the program indicated that those issues presented a barrier to the recipient's meeting the plan's requirements.
The bill is tie-barred to House Bill 6580.


MCL 400.57e Legislative Analyst: Curtis Walker

FISCAL IMPACT
The bill would have an indeterminate fiscal impact on State government. The family self-sufficiency plan is required by the Federal Temporary Assistance for Needy Families block grant regulations reauthorized by the Deficit Reduction Act of 2005. Under the new Federal rules and regulations, the states must require cash assistance clients to participate in work or work, education or training activities that would prepare them for work. The FY 2006-07 appropriation for the Department of Human Services assumes pilot program implementation for districts representing 50% of the cash assistance caseload. There is insufficient information to determine at this time how much in additional costs the State would increase if more than 50% of the caseload were affected by the bill's provisions.


Date Completed: 12-7-06 Fiscal Analyst: Constance Cole

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb6587/0506