States can shift money to access federal funds for social services
Boyd et al, 03 - Nelson A. Rockefeller Institute of Government (Donald, “The Fiscal Effects of Welfare Reform: State Social Service Spending Before and After Welfare Reform
http://www.rockinst.org/pdf/workforce_welfare_and_social_services/2003-05-the_fiscal_effects_of_welfare_reform_state_social_service_spending_before_and_after_welfare_reform_final_report.pdf)
In this study we examine changes in social service spending in the context of the overall state budget. We define “social service” broadly, to include both means-tested programs and other programs more widely available. It is important to take this broader view, since states do not make decisions about TANF-funded programs in a vacuum – for example, decisions about spending on cash assistance or employment support programs can affect, and be affected by, decisions about Medicaid or for that matter the rest of the budget. Furthermore, under PRWORA, states are allowed to use federal TANF and state TANFMOE funds for services that extend beyond means-tested programs such as cash assistance payments and job training services. States have broad discretion to use TANF funds for purposes that meet the following four goals of the program: Provide assistance to needy families so that children may be cared for in their homes or in the homes of relatives; End the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; Prevent and reduce the incidence of out-of-wedlock pregnancies; and Encourage the formation and maintenance of two-parent families.
No risk of a spending DA- states can just transfer the money from TANF programs
Lambright & Allard 2004- *assistant professor of public administration at Binghamton and ** assistant professor of social services at the University of Chicago (Kristina T., and Scott W., "Making tradeoffs in federal block grant programs: understanding the interplay between SSBG and TANF." Publius 34.3 (Summer 2004): 131(24). Academic OneFile. Gale.) SSBG = Social Services Block Grant, TANF = Temporary Assistance for Needy Families
Why transfer funds from TANF to SSBG? Several strategic or innovative uses of TANF transfer funds exist. First, states can use TANF transfer funds as a creative way to offset recent SSBG cuts without being forced to use their own resources. States adopting this strategy can simply replace lost SSBG funds one-for-one with TANF transfer funds. In doing so, states can maintain existing SSBG spending levels for services provided to important at-risk groups: the elderly, individuals with disabilities, and abused and neglected children. If states behaved in this manner, we would expect to see little change in the overall distribution of SSBG funds since the advent of TANF transfers in states following this strategy.
Transferring funds from TANF to SSBG also offers states an opportunity to increase the resources available to working poor families. States may transfer funds from TANF to SSBG to avoid the strict income-eligibility requirements associated with TANF programs, thus expanding SSBG programs for employment, education and training, family planning, or other social services to a wider range of working poor families than would be eligible normally under TANE Here, we would expect to see SSBG spending on services for poor families increase relative to spending on other SSBG constituencies.
Finally, states may innovate by using TANF transfers to shift resources from welfare recipients to other constituencies served by SSBG, many of whom are unlikely to be eligible for TANF. In this scenario, states could shift SSBG program funds previously dedicated to programs for welfare recipients to other populations receiving SSBG funding as it simultaneously transferred funds from TANF to SSBG. If states were adopting this strategy, we would expect to see an increase in spending on SSBG constituencies such as the elderly or disabled compared to spending on services for welfare recipients or poor families.
States commonly transfer funds to fill budget holes
Lambright & Allard 2004- *assistant professor of public administration at Binghamton and ** assistant professor of social services at the University of Chicago (Kristina T., and Scott W., "Making tradeoffs in federal block grant programs: understanding the interplay between SSBG and TANF." Publius 34.3 (Summer 2004): 131(24). Academic OneFile. Gale.) SSBG = Social Services Block Grant, TANF = Temporary Assistance for Needy Families
Although most states did not immediately choose to transfer funds between programs, it is apparent that TANF transfers have become important revenue sources for state SSBG programs in recent years, as more than one-third of total SSBG spending in FY 2000 came from TANF transfers. Federal SSBG spending reports suggest that states have used transfers to offset federal cuts to the SSBG annual entitlement ceiling in recent years; states spent $2.8 billion on SSBG programs in FY 2000, equal to the $2.8 billion entitlement ceiling in FY 1996 (in nominal dollars).
1NC FUNDING MECHANISM– SPECIFIC FUNDING CUTS Eliminating contract spending, scrutinizing special interest tax breaks, ending no strings attached development subsidies and reforming health care solves budget crisis
AFSCME, 09 – American Federation of State, County, and Municipal Employees (“Sensible Solutions for State Budgets: AFSCME’s 2009 State Legislative Agenda,” http://www.afscme.org/docs/09LegAgenda.pdf)
State budget conditions look dire. At least half the states were forced to close moderate to severe budget shortfalls as they completed their 2008 legislative sessions. Early signs indicate that next year will be even worse. Now, with the economy and revenues slowing, states are scrambling to find ways to deal with their long-term structural deficits without compromising vital public services. AFSCME’s Legislative Agenda offers a sound way to deal with these challenges.
Truth In Spending In the battle to curb wasteful and inefficient spending, lawmakers too often focus on the wrong targets-usually just the “tip of the iceberg” services that are detailed each year in the budget. In fact, some big ticket items are never scrutinized because they are not in the budget. To correct this imbalance, states should: Big ticket items are never scrutinized for waste because they are not in the budget. To correct this imbalance, states should: Examine Contract Spending. States spend $300 billion per year on contracting-out and local governments spend another $200 billion, but lawmakers and the public usually have no idea what they are getting for our money. States should fully disclose information contracted services every budget cycle so that they are subject to the same scrutiny as all other state spending. Scrutinize Special Interest Tax Breaks. Tax expenditures cost state treasuries $300 billion per year. States need to ensure that tax exemptions are regularly reevaluated and that ineffective or overly expensive breaks are repealed. End “No Strings Attached” Development Subsidies. These subsidies cost state and local governments $50 billion per year. Lawmakers are under intense pressure to hand corporations lucrative development deals, but the corporations often fail to deliver the promised jobs. States must disclose the terms of these subsidies and require that corporations keep their promises or return the money back to taxpayers. Health care costs continue to soar at rates that threaten to drain state budgets. States must join the demand for comprehensive national health reform in 2009, but in the meantime, states can take action to: Help Contain Medicaid Costs. Attempts to cut Medicaid costs by slashing enrollment, services, or provider payments may only expose states to greater uncompensated care costs, and deny them access to the federal funding stream that is part of Medicaid. Instead, states should focus on smart cost containment strategies including claims audits, disease management and pooled prescription drug purchasing. Expand Access to Health Benefits and Reduce Costs. As employer-based insurance has eroded due to rising costs, states must bolster this crucial sector of health coverage, and not simply shift responsibility for coverage to individuals. Re-insurance for catastrophic claims and insurance pools for small business can help reduce costs. “Pay or play” initiatives, requiring employers who do not provide health insurance to pay into a pool for the uninsured, make sure that our system is equitably financed.
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