LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7105 NOTE PREPARED: Jan 9, 2022
BILL NUMBER: HB 1410 BILL AMENDED:
SUBJECT: Mandatory Job Search for TANF Eligibility.
FIRST AUTHOR: Rep. Morris BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
XFEDERAL
Summary of Legislation: The bill requires the Secretary of Family and Social Services (FSSA) to adopt
rules concerning evidence of job search activities for applicants and recipients under the federal Temporary
Assistance for Needy Families (TANF) program.
The bill also requires the FSSA to amend two provisions in the Indiana Administrative Code to conform with
those rules. It specifies certain exceptions.
Effective Date: Upon passage.
Explanation of State Expenditures: The FSSA will need to adopt or amend rules to meet the requirements
of the bill. The requirements of the bill are within the FSSA’s routine administrative functions and should
be able to be implemented with no additional appropriations, assuming near customary agency staffing and
resource levels.
If the requirements of the bill change the work participation rate, the amount that Indiana is required to pay
toward maintenance-of-effort (MOE) in order to receive the federal block grant will change. When the state
meets its TANF work rate requirement, the state’s MOE contribution to TANF is $113 M. If the rate is not
met, the MOE requirement is $121 M. State MOE programs must meet the same general criteria for TANF
funding; however, medical costs are allowable for MOE. Ultimately the administrative decisions of the FSSA
in adopting or amending rules to conform to the bill’s requirements will determine the caseload and level of
state expenditures.
Additional Information - TANF caseload may increase with the current requirements counting job search
HB 1410 1 hours per day to the bill’s provision of a specific number of contacts and applications. The comparison of
20 days during a 60 day period prior to eligibility determination will contrast with 3 weeks of job search prior
to application in the bill. As well, the bill may amend the current sanction scheme which is 30 or 60 days for
a first or second violation, and lifetime ineligibility for a third sanction. In FFY 2021, there were an average
of 4,206 adults a month in the TANF caseload.
Eligibility criteria other than income eligibility, such as applicant job search requirements and lifetime limits
on benefits, impact the total number of families participating in TANF cash benefits. In Indiana, the number
of households receiving TANF decreased from 2014 to 2019, and the number of applications that were
approved also declined. However, beginning in 2020, the TANF caseload grew during the COVID-19
pandemic. The extent to which these increases will remain and could impact total caseloads is unknown. Due
to lifetime limits (that do not result from sanctions), increases in caseloads now may not translate to
continued increases over the long run. In FFY 2021, the total number of families declined from 8,143 to
7,088.
The federal block grant may be carried forward for use in another year. Spending that exceeds the available
federal block grant would from state funds.
Table 1 - Estimated amount of federal TANF funding available to Indiana: 2020
TANF Federal Block Grant to Indiana $206.1 M
State Maintenance of Effort 121.7 M
Carryover 37.5 M
Total 365.3 M
Less: Funds Used and Obligated 346.7 M
Federal Funds Available $18.6 M
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Family and Social Services Administration.
Local Agencies Affected:
Information Sources: https://fas.org/sgp/crs/misc/RL32748.pdf; https://fas.org/sgp/crs/misc/RL32760.pdf;
https://www.acf.hhs.gov/ofa/resource/tanf-financial-data-fy-2020;
https://www.acf.hhs.gov/ofa/data/tanf-caseload-data-2021;
https://www.acf.hhs.gov/ofa/data/work-participation-rates-fiscal-year-2020; Hamilton Smith, FSSA; Paul
Bowling, FSSA.
Fiscal Analyst: Karen Rossen, 317-234-2106.
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