Additional Information about the Scope and Limits of Sanction Data
Provided in Recent GAO Report on Temporary Assistance for Needy Families
(Correspondence, 06/14/2000, GAO/HEHS-00-133R).

Pursuant to a congressional request, GAO followed up on its previous
report on the scope and limits of the Temporary Assistance for Needy
Families (TANF) program's 1998 sanction data, focusing on: (1) whether
the number of full-family sanctions in an average month in 1998 can be
annualized and used to determine the impact full-family sanctions had
that year on caseload size; and (2) what constitutes the combined number
of full-family and partial sanctions in an average month during 1998.

GAO noted that: (1) under TANF, full-family sanctions can be imposed,
and thus cases can be closed and reopened, multiple times in a year; (2)
thus, annualizing the number of full-family sanctions in an average
month, while providing an indication of the total number of times
full-family sanctions were imposed in a year, would probably overstate
the number of families who received full-family sanctions during that
year and, thus, the impact of full-family sanctions on caseload size;
(3) an unduplicated count of families receiving full-family sanctions
could not be derived from the data the states furnished to GAO; (4)
developing an unduplicated count of all families whose cases were closed
due to full-family sanctions in a given year would require substantial
resources; (5) GAO calculated the total number of sanctions in an
average month in 1998 by combining the number of full-family sanctions
in an average month and the number of partial sanctions in an average
month that year; (6) however, in state automated data systems, case
closures associated with full-family sanctions are recorded only in the
month the action is taken to close the case; (7) in contrast, benefit
reductions associated with partial sanctions are recorded by states not
only in the month action initiating a benefit reduction is taken, but
also in each subsequent month that the benefit reduction remains in
effect; and (8) as a result, a family that received a partial sanction
in 1998 that remained in effect for 3 months, for example, appeared 3
times in a state's monthly numbers of partially sanctioned cases that
year, while a family that received a full-family sanction was counted
only in the month the case was closed due to full-family sanction.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-00-133R
     TITLE:  Additional Information about the Scope and Limits of
	     Sanction Data Provided in Recent GAO Report on Temporary
	     Assistance for Needy Families
      DATE:  06/14/2000
   SUBJECT:  Public assistance programs
	     Families
	     State-administered programs
	     Noncompliance
	     Sanctions
	     Statistical data
	     Welfare benefits
	     Data collection
IDENTIFIER:  HHS Temporary Assistance for Needy Families Program

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GAO/HEHS-00-133R

B-285654

June 14, 2000

MACROBUTTON The Honorable Daniel Patrick Moynihan

Ranking Minority Member

Committee on Finance

United States Senate

Subject: Additional Information about the Scope and Limits of Sanction Data
Provided in Recent GAO Report on Temporary Assistance for Needy Families
(TANF)

Dear Senator Moynihan:

This letter is in response to your request for additional information about
the scope and limits of data on sanctions provided in GAO's report, Welfare
Reform: State Sanction Policies and Number of Families Affected
(GAO/HEHS-00-44), issued March 31, 2000. In the TANF program, states must
impose sanctions when adults do not comply with work or child support
responsibilities. States may choose to impose partial or full-family
sanctions. Partial sanctions reduce cash benefits by less than 100 percent;
for full-family sanctions, the entire cash benefit is terminated and cases
are usually closed.

Based on monthly data we received from the states, we determined that, in an
average month during 1998, just over 23,000 TANF families nationwide had
their benefits terminated as a result of full-family sanctions. To provide
an indication of the extent of sanction activity, in general, the report
also combines the number of families receiving a full-family sanction and
the number of families under partial sanction in an average month in 1998.
This letter responds to the following questions you raised concerning the
number of full-family sanctions in an average month, and the figure we
report combining full-family and partial sanctions.

  1. Can the number of full-family sanctions in an average month in 1998 be
     annualized and used to determine the impact full-family sanctions had
     that year on caseload size?

Under TANF, full-family sanctions can be imposed, and thus cases can be
closed and reopened, multiple times in a year. Thus, annualizing the number
of full-family sanctions in an average month, while providing an indication
of the total number of times full-family sanctions were imposed in a year,
would probably overstate the number of families who received full-family
sanctions during that year and, thus, the impact of full-family sanctions on
caseload size. An unduplicated count of families receiving full-family
sanctions could not be derived from the data the states furnished to us.
Developing an unduplicated count of all families whose cases were closed due
to full-family sanctions in a given year would require substantial
resources.

  2. What constitutes the combined number of full-family and partial
     sanctions in an average month during 1998?

We calculated the total number of sanctions in an average month in 1998 by
combining the number of full-family sanctions in an average month and the
number of partial sanctions in an average month that year. However, in state
automated data systems, case closures associated with full-family sanctions
are recorded only in the month the action is taken to close the case. In
contrast, benefit reductions associated with partial sanctions are recorded
by states not only in the month action initiating a benefit reduction is
taken, but also in each subsequent month that the benefit reduction remains
in effect. As a result, a family that received a partial sanction in 1998
that remained in effect for 3 months, for example, appeared 3 times in a
state's monthly numbers of partially sanctioned cases that year, while a
family that received a full-family sanction was counted only in the month
the case was closed due to full family sanction.

If you have any questions, please contact me on (202) 512-7215.

Sincerely yours,

Cynthia M. Fagnoni

Director, Education, Workforce, and

Income Security Issues

(116044)
  
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