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2 • Commingled Federal TANF and State MOE funds expended in the TANF program. • Separate MOE funds expended on state programs operated outside the TANF program. To the extent allowable under federal law, the State may transfer funding from the TANF Block Grant to the Social Services Block Grant and the Child Care Development Fund. Section II OHIO'S TANF PROGRAMS Ohio Works First Ohio Works First (OWF) is Ohio’s TANF cash assistance program for needy families. OWF is a temporary cash assistance program that encourages family self-sufficiency through employment. Participation in OWF requires each work-eligible individual, adult and minor head of household to sign and follow a self- sufficiency contract. The self-sufficiency contract requires each individual to engage in work activities. A ‘minor head-of-household’ is defined as a minor child who is either: (1) married, at least six months pregnant and a member of an assistance group that does not include an adult; or (2) married, and a parent of a child included in the same assistance group that does not include an adult. When determining eligibility for OWF, the State requires that the assistance group contain a minor child who resides with a custodial parent, legal guardian, legal custodian or specified relative caring for the child (under Ohio law, guardians and custodians stand in loco parentis); or a pregnant woman. There is no resource limit/asset test in the OWF program. For purposes of determining income eligibility, the following individuals (unless ineligible or otherwise excluded) must be included in the assistance group: A minor child who is determined eligible for OWF; all natural or adoptive parents of the minor child; and all minor siblings living with the minor child. Initial Income Test The first step in determining whether a family is financially eligible to participate in OWF is the state's initial income test. The initial income test is a modified program eligibility test, similar to the initial eligibility test formerly prescribed by the Aid to Families with Dependent Children (AFDC) regulation. The earned income disregard is not applied at this initial income test. Current state law requires that the initial eligibility standards are annually indexed to fifty per cent of the federal poverty level (FPL) effective July 1 of each year. Continued Eligibility If the family's gross monthly income does not exceed fifty per cent of the FPL for the appropriate household size, the family passes the initial income test. The family's eligibility for an OWF cash benefit is determined by disregarding $250 and half the remainder from the family's gross monthly earned income (the earned income disregard) and deducting any verified non- publicly funded dependent care costs. The family's unearned income is added to the remainder, and the total is compared to the OWF payment standard for the family size. The OWF payment is the difference derived from subtracting the family's countable income from the OWF payment standard for the family size.