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STATE OF HAWAII DEPARTMENT OF HUMAN SERVICES Benefit, Employment, and Support Services Division and Med-QUEST Division

Report to the Hawaii State Legislature on the adequacy of assistance allowance pursuant to section 346-54, Hawaii Revised Statutes

December 2016

Section 346-54, Hawaii Revised Statutes (HRS), requires the Director of Human Services to submit a report to the Legislature on or before January 1 of odd-numbered years, concerning the adequacy of the assistance allowance established by chapter 346, HRS. In addition, section 346-54, HRS requires:

should general fund expenditures for financial assistance and medical payments increase at a rate greater than the rate of increase in general fund tax revenues in any fiscal year, the director shall report such increases to the legislature and make cost control recommendations that will control increases in general fund public assistance expenditures. Cost control recommendations shall include, but not be limited to, the following:

(1) Changes in eligibility standards; (2) Adjustments to the assistance allowance; (3) Alternatives to financial assistance for meeting the needs essential to maintaining an adequate standard of living; and (4) Adjustments to medical payment fees and levels of service.

1. FINANCIAL ASSISTANCE

a. Adequacy of the assistance allowance established in chapter 346, HRS

Effective July 1, 2007, the assistance allowance was raised to 50% of the 2006 Federal Poverty Level (FPL) as allowed by statute for all financial assistance programs, Temporary Assistance for Needy Families (TANF), Temporary Assistance for Other Needy Families (TAONF), General Assistance (GA) and Aid to the Aged, Blind, and Disabled (AABD). For a household of one, the assistance allowance was $469 per month.

Due to budget constraints, effective July 1, 2009, the assistance allowance was decreased to 48% of the 2006 Federal Poverty Level for all financial assistance programs. For a household of one, the assistance allowance was decreased to $450 per month for TANF and TAONF households.