ASSEMBLY, No. 581

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblyman LUSTBADER

 

 

An Act to reimburse counties for costs associated with the administration of various welfare programs and supplementing Title 44 of the Revised Statutes.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. The Legislature finds and declares that: the administrative cost of welfare is a significant component of county expenditures despite the assumption of the major portion of such costs by the federal government; the administrative costs of welfare to the county governments are reflected in the real property taxes paid by county residents; the State does not provide any significant funds to offset the administrative costs of welfare to the county governments; and that consistent with the recommendations of the State and Local Expenditure and Revenue Policy Commission, it is necessary to establish a program to reimburse counties for a portion of the administrative cost of welfare.

 

    2. Funds shall be distributed under this act according to the following formula:

E = (CW x 20%) x (CAFDC + CNFS)

                                                            (SAFDC + SNFS)

where

    E is the entitlement for a county;

    CW is the administrative cost of welfare to the county government in the State fiscal year ending in the calendar year prior to the calendar year in which funds are to be distributed as reported to the Division of Family Development in the Department of Human Services, less all federal and State funds received by the county to offset such costs;

    CAFDC is the average number of recipients in the aid to families with dependent children program in a county in the State fiscal year ending in the calendar year prior to the calendar year in which funds are to be distributed as reported to the Division of Family Development in the Department of Human Services; and

    CNFS is the average number of recipients in the non-categorical component of the Food Stamp program in a county in the State fiscal year ending in the calendar year prior to the calendar year in which funds are to be distributed as reported to the Division of Family Development in the Department of Human Services.

    SAFDC is the average number of recipients in the State in the aid to families with dependent children program in the State fiscal year ending in the calendar year prior to the calendar year in which funds are to be distributed as reported to the Division of Family Development in the Department of Human Services;

    SNFS is the average number of recipients in the State in the non-categorical component of the Food Stamp program in the State fiscal year ending in the calendar year prior to the calendar year in which funds are to be distributed as reported to the Division of Family Development in the Department of Human Services;

 

    3. On or before January 5 of each year the Commissioner of Human Services shall determine and certify to the Director of the Division of Local Government Services in the Department of Community Affairs the amount to which counties may be entitled under the provisions of this act. On or before January 10 of each year the director shall certify to the chief financial officer of each county the amount of the entitlement.

    For the initial year of implementation, however, the commissioner shall determine and certify the amount to which a county is entitled within two weeks of the effective date of this act and the director shall, within one week of receiving the certification from the commissioner, certify to the chief financial officer of each affected county the amount of the entitlement.

    The State Treasurer, upon certification of the director and upon warrant of the State Comptroller shall pay and distribute to each county the amount determined and certified in two equal installments, the first to be payable annually on August 1 of each year and second payable annually on the succeeding December 1. However, for the initial year of implementation, the State Treasurer shall pay and distribute to each county the amount determined and certified within two weeks of the date of certification.

 

    4. A county entitled to receive funds under this act shall anticipate the amount certified by the director in its budget and may amend its budget during the first year in which funds are received.

 

    5. This act shall take effect immediately and shall apply to administrative costs incurred by counties during State fiscal year 1992.


STATEMENT

 

    This bill establishes a program wherein 20% of the total reported county costs of administering the various welfare programs are reimbursed by the State. Each county will be reimbursed in relation to their percentage of the total number of recipients in the three Aid to Families with Dependent Children (AFDC) programs and the total number of recipients in the non-categorical component of the Food Stamp program (in order to avoid double counting AFDC recipients). Thus, counties with a higher percentage of AFDC and non-categorical Food Stamp recipients will receive more reimbursement for their administrative costs than counties with a smaller percentage of AFDC and non-categorical Food Stamp recipients. All counties, however, will receive some reimbursement.

    Based on FY 1992 data, county administrative costs were approximately $153.5 million and the State would provide approximately $30.7 million in total reimbursement to counties. Counties would receive between $78,000 and $7.5 million in reimbursement, based on their percentage of the number of AFDC and non-categorical Food Stamp recipients.

 

 

 

Reimburses counties for costs associated with the administration of the various welfare programs.