CHAPTER 272
SB 198-FN – FINAL VERSION
12Oct2011… 2605h
2011 SESSION
09/10
SENATE BILL 198-FN
AN ACT relative to the calculation of aid to the permanently and totally disabled and temporary assistance to needy families (TANF) and relative to marital master contracts.
SPONSORS: Sen. Morse, Dist. 22
This bill removes a limitation on the amount of earned income that is disregarded for purposes of calculating aid to the permanently and totally disabled. The bill also includes persons receiving federal assistance in the TANF household for purposes of calculating income eligibility.
This bill also clarifies that no marital master contracts shall be entered into or renewed, extended, reinstated, transferred, or modified by the state on or after the effective date of this bill.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
12Oct2011… 2605h
11-1115
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to the calculation of aid to the permanently and totally disabled and temporary assistance to needy families (TANF) and relative to marital master contracts.
Be it Enacted by the Senate and House of Representatives in General Court convened:
272:1 Aid to the Permanently and Totally Disabled; Earned Income Disregard. Amend RSA 167:3-c, IX to read as follows:
IX. The amount of earned income to be disregarded for purposes of calculating eligibility for aid to the permanently and totally disabled[, which shall be consistent with the regulations of the federal Supplemental Security Income Program or its successor program].
272:2 Temporary Assistance to Needy Families; Employment Program Eligibility; Assistance Group. Amend RSA 167:79, II to read as follows:
II. The following persons shall be included in the assistance group, unless such person receives [state supplemental assistance or supplemental security benefits under Title XVI of the Social Security Act,] foster care or adoption assistance, if living in the same household or temporarily absent from the household: any dependent child and all minor blood-related, step, or adoptive brothers and sisters, and all natural, step, or adoptive parents of such children, including cohabitating adults who share a minor child. In the case of a minor parent, the assistance unit may also include all natural, step, or adoptive parents of the minor parent and all minor blood-related, step or adoptive brothers and sisters. If the parents are not residing together a child shall be considered residing with the parent who has physical custody of the child the majority of the time.
272:3 Marital Master Contracts. No new marital master contracts shall be entered into by the state and no existing marital master contracts shall be renewed, extended, reinstated, transferred, or modified by the state on or after the effective date of this section.
272:4 Effective Date. This act shall take effect upon its passage.
Approved: January 13, 2012
Effective Date: January 13, 2012
LBAO
11-1115
Amended 12/29/11
SB 198-FN -FISCAL NOTE
AN ACT relative to the calculation of aid to the permanently and totally disabled and temporary assistance to needy families (TANF) and relative to marital master contracts.
FISCAL IMPACT:
The Judicial Branch, and the Department of Health and Human Services state this bill, as amended by the House (Amendment #2011-2605h), will decrease state expenditures by an indeterminable amount in FY 2012, by $8,830,206 in FY 2013, $8,558,674 in FY 2014, $8,325,834 in FY2015 and $8,304,253 in FY 2016. The New Hampshire Municipal Association states this bill may increase local expenditures by an indeterminable amount. There will be no fiscal impact on state, county, or local revenues, or county expenditures.
METHODOLOGY:
The Judicial Branch states this bill prohibits new marital master contracts or changes in any existing contracts after the effective date of the bill. The Branch assumes the existing workload would require conversion of all marital master positions to full-time circuit court judgeships subject to sufficient appropriations in the Judicial Branch budget, and approval of the joint legislative fiscal committee. The Branch calculated the fiscal impact by comparing the annual salary and benefit costs for a full-time circuit court judge with the salary and benefit costs of a marital master currently employed. The costs were prorated based on the end of the term for the marital master or anticipated retirement date if sooner than the end of the term.
Additional Costs |
FY 2012 |
FY 2013 |
FY 2014 |
FY 2015 |
FY 2016 |
Salary |
$25,978 |
$149,873 |
$263,777 |
$363,692 |
$372,351 |
Benefits |
$44,656 |
$214,009 |
$371,637 |
$504,562 |
$517,484 |
Total |
$70,634 |
$363,882 |
$635,414 |
$868,254 |
$889,835 |
The Branch indicates there are 16 Marital Master positions. One position was approved for conversion in December and three positions are currently vacant. The salary and benefit amounts for the vacant positions are not included in the Branch’s net operating budget for the current biennium, and the Branch assumes these positions will remain vacant to be converted in FY 2014.
The Department of Health and Human Services indicates individuals who receive State Supplemental Payments (SSP) or Supplemental Security Income (SSI) are currently excluded from Temporary Assistance for Needy Families (TANF) cases when determining eligibility for TANF. The Department states this bill would include the income, needs, and resources of SSI and SSP recipients in the TANF eligibility determination. In addition, the bill changes the earned income deduction in determining eligibility for the Aid to the Permanently and Totally Disabled Program (APTD). This bill would reduce the amount of earned income that is disregarded when determining eligibility for APTD cash assistance. The Department states these changes will impact eligibility for cash assistance only and eligibility for Medicaid will not be affected. Based on October 2010 data from the New HEIGHTS eligibility system, the Department estimates the annual impact to the TANF program as follows:
Cases to Close: |
# of Cases |
Average Monthly Grant |
Monthly Amount |
Annual Amount |
New Hampshire Employment Program (NHEP) and Family Assistance Program (FAP) |
1,015 |
$529 |
$(536,935) |
$(6,443,220) |
Families with Older Children (FWOC), Interim Disabled Parent (IDP), and Unemployed Parent (UP) |
121 |
$529 |
$(64,009) |
$768,108) |
Cases with a Reduced Grant: |
||||
New Hampshire Employment Program (NHEP) and Family Assistance Program (FAP) |
375 |
$373 |
$(139,875) |
$(1,678,500) |
Families with Older Children (FWOC), Interim Disabled Parent (IDP), and Unemployed Parent (UP) |
45 |
$373 |
$(16,785) |
$(201,420) |
Totals: |
$(757,604) |
$(9,091,248) |
The Department indicates the child support collections retained by the state will not be reduced, but offset the cost of other assistance provided. The Department estimated the fiscal impact of the changes to APTD earned income by comparing the current methodology to the proposed methodology:
Current: Proposed:
Income $XXX Income $XXX
less: first $65 ($65) less: first $20 ($20)
less: Any impairment less: one-half of the remaining
related work expenses ($XX) balance up to $30 maximum ($30)
less: one-half of the less: $18 or actual employment
remaining balance ($XX) expenses
The Department indicates most cases will not exceed the $18 of employment expense. The Department states that as of September 2010, there are 491 employed APTD cash recipients. The Department estimates 103 will lose eligibility for case assistance, 266 will see a reduction in their monthly assistance and 131 will not experience any change in their eligibility and estimated the fiscal impact as follows:
Loss of Eligibility for APTD cash assistance
103 recipients X average monthly grant of $115 x 12 months = $142,140
Reduction in Monthly APTD cash assistance=
260 recipients X average reduction of $80 x 12 months= $249,600
Total Reduction to the APTD program: $391,740
Total annual reductions to TANF and APTD Programs: $9,482,988
The Department states, since TANF funds are received as a block grant, and the total grant is obligated in the operating budget, the annual savings to the general fund will be approximately $9,194,088 ($9,482,988 above less $288,900 for the UP cases eliminated in the FY2012-13 operating budget). The department is not able to determine the fiscal impact for FY 2012 as it not known when the bill would become law.
The New Hampshire Municipal Association states the changes in the eligibility requirements for APTD and TANF are likely to affect local welfare expenditures. The Association indicates a reduction in the number of individuals receiving assistance through the APTD and TANF programs could result in an increase in the number of families eligible for local welfare assistance. The Association does not have sufficient information to determine the fiscal impact to municipalities.