While national debate focused on eliminating assistance after two years, we in Michigan developed our own form of time limitation in 1994. The Social Contract expected participation after 90 days. After one year, if clients had not voluntarily participated, they were required to participate. As long as a client contributed to society and worked toward self-sufficiency, the family could receive AFDC in Michigan.

Individuals not voluntarily participating in the Social Contract were encouraged by local offices to become productive or were referred to the Michigan Opportunity and Skills Training Program (MOST) and Work First where failure to cooperate with an assignment resulted in a financial penalty to the family.

Under our block grant proposals, the personal responsibility of our clients is acknowledged and further rewarded. We will dedicate Family Independence Specialists to work hand-in-hand providing financial and supportive services to families to move them toward self-sufficiency. Child care payments will go directly to families to give them flexibility in arranging for child care and they will receive a flat monthly child care allowance that will simplify the day care process.

For those clients who comply with their individualized Family Independence Contract, we will continue to provide financial assistance. For those who do not comply with their Family Independence Contract, stiffer and quicker penalties will occur.

Family Independence Specialist (FIS)

Key to success in our welfare reform programs will be the Family Independence Specialists. Clients currently see one Assistance Payments (AP) Worker when they apply for benefits and another once their case is open. In addition, they have separate workers for the MOST program, day care, and still another workers for each service they receive.

The new Family Independence Specialist will combine many of those functions into one new position that will work with a family from the first day in the office until they no longer need assistance. This worker will determine eligibility and process day care payments as well as the supportive services for employment such as transportation and cash assistance. They will have smaller caseloads than current AP workers and will case manage all the clients' needs except for Child Welfare and Adult services such as Adult Protective Services. There will be enough ongoing interaction between the Family Independence Specialist and the client to identify goals, resolve barriers, and monitor compliance to preclude the need for routine annual case redeterminations. The Family Independence Specialist will have all of the necessary recourses available to help clients quickly remove barriers and support employment-related needs.

Penalties

Our experience with Welfare Reform for the past three years has shown that few recipients require penalties to motivate them to cooperate and participate. For those who have resisted our request for mutual responsibility, penalties have varied in their effectiveness.

Currently, clients who do not comply with MOST receive a 25 percent sanction for each month they refuse to cooperate. If the refusal is related to MOST/Work First non-compliance, and the client fails to cooperate after staff intervention and conciliation attempts, the case is closed after one year. In addition, the penalty for failing to cooperate with child support enforcement is currently ineligibility for the noncooperating adult. This policy has been criticized by clients and workers as being too lengthy and lacking consistency between programs.

Our proposal is:

• applicants must participate in a joint Work First orientation to have their case opened;
• clients must develop a Family Independence Contract with their FIS worker and make progress within 60 days or the case will automatically close;
• clients who fail to comply sometime after the initial 60 day period will be assessed to determine the reason for noncompliance, and that determination will result in:
• • the provision of appropriate services by the Family Independence Specialist
  • a determination of good cause for not complying
  • a financial penalty for a minimum of one month
  • clients who receive the penalty will remain under penalty until they demonstrate a willingness to comply
  • If the client remains in noncompliance for four months, the case will close. Our experience has been that many sanctions are the result of poor communication. In order to avoid unnecessary hardship, a home call will be made before closure.

Child Care Payments to Families

Currently, child care benefits are paid directly to providers for out-of-home care or as a dual-party payment for in-home providers. While this is an assurance to providers of payment, it creates tremendous problems for employed recipients and services workers alike. It does not promptly acknowledge the changes in need of new employees entering the work force or when hours of employment increase, and assumes that clients will not pay care providers of their own volition.

To assist clients in managing their child care needs, we will make payments directly to clients. This will lessen the need for completing paperwork which complicates and lengthens payment processing for the client and the services worker. It will also reinforce the client's personal responsibility and control in making day care decisions and payments.

Child Care Payment Simplification

Only 20 percent of current clients indicate a need for child care. Current policy requires computing and authorizing day care payments directly to providers, calculated on the basis of hours of care needed daily. A fluctuation of one hour or more requires budget adjustments, revised notices to clients and providers, and recoupment/adjustments.

To ease the client's task, and that of the Family Independence Specialist, we will make a flat monthly child care payment to a family based on:

• family income
• need for the allowance as stated by the family
• hours worked or in training
• age of the child in care
• part-time or full-time need for care.

In addition, families with income above a certain amount would receive a reduced payment toward their child care costs.

These changes will allow families to negotiate and change child care needs and plans as do individuals not receiving public assistance. They are more responsive to the changing needs of newly or partially employed clients and greatly decrease the complexity of the current system. The changes reinforce the family responsibility of welfare reform and simplify interaction with FIA staff.

Family Independence Contract

Working with the Family Independence Specialist, the client will develop a Family Independence Contract of specific actions the client must take to become self-sufficient. A Family Independence Contract may include establishment of paternity, increased hours of employment, parenting classes, etc.

The Family Independence Specialist will work with the client to make sure supportive services are in place to assist the client in achieving the Family Independence Contract and to follow the client's progress. Work First and child support goals must be met in order for assistance to continue. Expectations for both the client and the case worker will be clearly identified and understood as a result of the contract.

Unearned Income Disregard