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Legislative Fiscal Division 2 of 3 October, 2016

The 2013 Legislature established that beginning July 1, 2013 a family’s countable income (total income less allowable deductions) must be at or below about 30% or the 2011 federal poverty level (FPL) to be eligible for cash assistance benefits. As shown in the eligibility table to the right, a family of three would be eligible with a monthly income of $463.

States also set the monthly benefit amounts that TANF families receive. The 2013 Legislature increased benefit levels to 33% of the 2011 FPL; at this level a household of three receives $510.

In addition to cash benefits, federal and state TANF funds may be used for other services benefitting eligible Montana families such as child care and child welfare.

Monthly cash assistance payments have varied as the department and legislature worked to maintain the integrity of the TANF Block Grant. Monthly payments increased in FY 2007 to $472 via legislative approval to use at least 33% of the 2007 FPL. As noted earlier, the 2009 Legislature used ARRA funding to increase benefit eligibility standard to 30% of the 2009 FPL and the payment standard to 33% of the 2009 FPL ($504 for a household of three). The 2013 Legislature increased the eligibility standard to 30% and the payment standard to 33% of the 2011 FPL ($510 per month for a household of three). Families may qualify for other, non-cash, services based on income ranging from 185% to 250% of the current FPL.

CASH ASSISTANCE AND CASELOAD Cash assistance benefits vary from year to year as the department and the legislature work to maintain the integrity of the TANF Block Grant while best serving the TANF population. The 2013 Legislature authorized increases in the monthly payments from $504 for a household of three in using the 2009 FPL to $510 for a household of three using the 2011 FPL. The l i n e chart above shows Montana’s cash assistance caseload and related benefit expenditures for state fiscal years 2008 through 2016. Caseload and benefits increase between June 2008 (the historic low number of cases at 2961) and June 2010 primarily due to the nationwide recession. Benefits increase in the same timeframe due to 2009 legislative action that used American Recovery and Reinvestment Act (ARRA) funding to increase benefit levels in response to the recession. Caseloads declined by June of 2012 as the recession began to subside and both seasonal and general employment opportunities improved. 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 2000 2200 2400 2600 2800 3000 3200 3400 3600 3800 2008 2009 2010 2011 2012 2013 2014 2015 2016 Annual Spending, Millions (Dollars) Average Monthly Cases TANF: Annual Expenditures and Average Monthly Cases Ave. Monthly Cases Annual Spending