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: Mar 7, 2022
BILL NUMBER: HB 1410 BILL AMENDED: Feb 21, 2022
SUBJECT: Mandatory Job Search for TANF Eligibility.
FIRST AUTHOR: Rep. Morris BILL STATUS: Enrolled
FIRST SPONSOR: Sen. Zay
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 certain applicants and certain recipients under the
federal Temporary Assistance for Needy Families (TANF) program.
It allows the FSSA to suspend the rules for individuals residing in specified areas, and it requires the FSSA
to amend two provisions in the Indiana Administrative Code to conform with those rules. It specifies certain
exceptions.
Effective Date: July 1, 2023.
Explanation of State Expenditures: The FSSA will adopt or amend rules to meet the requirements of the
bill concerning IMPACT mandatory TANF recipients, which is within the agency'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.
HB 1410 1 Additional Information - Several differences between the requirements of the bill and the administrative rules
on exemptions from participation in IMPACT and the job search requirements will have indeterminate
impact on the work participation percentage and the TANF caseload. As well, the bill allows for the
amendment of the current sanction scheme which is 30 or 60 days for a first or second violation, and lifetime
ineligibility for a third sanction. As of January 31, 2022, there were 1,156 adults 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.
HB 1410 2