Did the Recovery Act include a change in calculating a State’s caseload reduction credit for determining the work participation rate it must meet?
A1: Yes, the caseload reduction credit reduces a State’s required work participation rate for a fiscal year by the decline in its caseload between FY 2005 and the year prior to the current fiscal year, called the comparison year. The Recovery Act allows a State to substitute the lower of the FY 2007 or FY 2008 caseload for the normal comparison-year caseload in FYs 2009, 2010, and 2011. This means that if a State serves more TANF families in the normal comparison year than it did in FYs 2007 or 2008, this provision holds the State harmless in the caseload reduction credit calculation. This lowers the State’s target work participation rate for that year compared to what it would have been had we used the normal comparison year.
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