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The Coloradoan, June 1, 2008: Welfare program numbers slip as poverty rates rise

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BY KEVIN DUGGAN
KevinDuggan@ coloradoan.com

Participation in a major public-assistance program continues to decline in Larimer County even as poverty rates rise.

The average monthly number of households enrolled in the federally funded Temporary Assistance to Needy Families, or TANF, program has dropped 69 percent since 2003, according to county records.

At the same time, participation in other assistance programs has increased along with the number of residents living in poverty. Since 2003, the average monthly number of households receiving food stamps is up 21 percent.

The trends are not surprising, said Ginny Riley, director of the Larimer County Department of Human Services. Participation in the TANF program has been dropping statewide.

A product of 1997 welfare-reform legislation, TANF is intended to give families short-term cash assistance as they get back on their feet financially through work and education programs.

“TANF is not an anti-poverty program,” she said. “That’s not what it’s designed to be.”

Its regulations include a 60-month lifetime limit on enrollment. While enrolled, the head of a household must participate in qualified work or educational activities and file monthly status reports.

For all the effort participants receive relatively little money, Riley said. A parent with two children is eligible for $356 per month, county officials said.

Income from full- or part-time work is figured into the formula that determines the household’s monthly stipend. If the parent is working full time at a minimum-wage job, the benefit would be about $10.

Analysis of U.S. Census Bureau data by the Coloradoan showed the number of residents living in poverty in Fort Collins increased 62 percent between 2000 and 2006.

Research also showed the city’s median household income had dropped 14.8 percent during the same time frame, and that the number of single-mother households had gone up 40 percent. Countywide statistics reflected the same trends.

The amount of time and energy that goes into staying enrolled in the program combined with the size of the benefit makes the program overly burdensome for many low-income residents, said Ella Gifford-Hawkins, manager of the Larimer County Works program.

The Works program is based in the Larimer County Workforce Center. Staff members help participants navigate the complexities of TANF and its requirements. They also refer clients to social service agencies, such as the food bank.

TANF has clear benefits for many clients, Gifford-Hawkins said, including assistance with child-care expenses. But its requirements are too limiting for some residents.

“At some point, people have to decide whether the effort they are putting into it is worth what they are getting in return,” she said.

The county TANF program receives federal funding based on a formula determined by the state. The state and county contribute matching dollars, with the county’s share being about $1.3 million a year, Riley said.

TANF funds can be spent in a number of different ways, including child-care assistance and programs aimed at keeping residents out of the program.

Because other funds covered child-care costs for a couple of years, the county was able to build up a $12 million reserve of TANF funds. Beginning next year, some of that money will revert back to the state for redistribution.

Last week, county officials approved sending $1 million in TANF reserves to Weld County to assist residents affected by tornadoes that struck May 22.

“I have no doubt that money will be put to good use,” Riley said.

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