APPENDIX E: EFFECTS OF THE PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996 (PRA)

I. Federal Social Services Block Grant Although the PRA does not alter the standards for child protection programs, it cuts federal funding contribution substantially. Funds for the Federal Social Services Grant, which is used in part for child protection services, are reduced 15% in fiscal year 1997, and maintained at that reduced level through 2002. Inflation and projected increases in California's child population during this period could result in per child real spending cuts of as much as 25-30% compared to present spending. In addition, new demands are placed on the Block Grant by other provisions of the welfare bill, including the need for vouchers for children whose families lose Temporary Aid to Needy Families (TANF) aid due to failure to find employment within proscribed time limits.

II. Emergency Assistance Program In the past these funds were to be used for family support and other child protection activities. Under the PRA, the Emergency Assistance Program is merged into the TANF Block Grant. States have the option of continuing to spend TANF funds for miscellaneous family support and other child protection activities but are not required to do so. If they do, any assistance provided to a family under the TANF Block Grant, including family support and other crisis services, will count against the family's five-year time limit on assistance under the block grant even if the family is not also receiving cash assistance.

III. PRA removes the federal restriction on payments to for-profit child care institutions.

IV. Supplemental Security Income (SSI) for Children with Disabilities. Some children in state care will lose SSI, requiring states to use their own funds for care. SSI for some adopted children will also be jeopardized. In the future fewer children will be eligible for SSI and therefore fewer will be able to qualify for Title IV-E adoption assistance.

V. Supplemental Security Income (SSI) for Children with Special Needs. A significant number of foster and adopted children with special needs currently receive SSI and some of them will have to be re-reviewed under the new rules because they qualified on the basis of the Individual Functional Assessment (IFA) or other provisions which have been eliminated. The PRA also modifies the medical listing to eliminate "maladaptive behavior" when evaluating personal/behavioral functioning of children with mental impairments, although it may still be counted in evaluating social functioning.

VI. Immigrant Children. Most immigrant children, both legal and undocumented, will continue to be eligible for Title IV-E foster care and adoption assistance payments. Children placed with foster parents who are themselves unqualified immigrants may have to wait up to 5 years to receive federal benefits. Children not eligible for Title IV-E assistance will still qualify for state and county funds.

VII. Possible Increase in Reports of Neglect. As families receiving Temporary Assistance to Needy Families (TANF) funds have their grants reduced or eliminated, reports of neglect, may increase, particularly for children over five years of age and in school, where their physical condition will be more visible.⁽¹⁷³⁾

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