The Michigan Department of Human Services (DHS) is required by federal regulation to submit the Temporary Assistance for Needy Families (TANF) Caseload Reduction Report (form ACF-202) in order to secure a caseload reduction credit.

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), reauthorized in 2006, established mandatory work requirements and minimum annual work participation rate standards for States' TANF programs. The minimum overall work participation rate is 50% in Fiscal Year 2012. This means that 50% of all families receiving public assistance in Michigan must meet work requirements.

PRWORA provides for a reduction in the minimum work participation rate standards if the state's average monthly assistance caseload decreased the previous year compared to the average monthly caseload in Fiscal Year 2005 which is considered the new base year. The overall participation rate is reduced by the number of percentage points the overall caseload declined.

The Fiscal Year 2012 report will list relevant policy changes, excess MOE and the Reduction Credit calculation.