Is there a fiscal advantage in early implementation of TANF?
States must implement their programs under the Temporary Assistance for Needy Families (TANF) block grant by July 1, 1997, but may implement more rapidly by submitting a State Plan. HHS must determine that the State Plan contains the information required by law. Most States have already filed State plans. The principal reason to consider earlier implementation is that TANF amounts are based on a historic federal spending level (the higher of FY 94 spending, FY 95 spending, or FY 92-94 average) and many States have had significant caseload declines since that time. As a result, many States will receive more funding under the block grant than they would receive based on their current AFDC caseloads. To determine if there is a fiscal advantage from early implementation, it is important to know whether the State=s block grant amount for FY 97 would be higher or lower than projected costs under AFDC Program. If there is no significant fiscal advantage in early implementation, the advantage
