SENATE BUDGET AND APPROPRIATIONS COMMITTEE

 

STATEMENT TO

 

[First Reprint]

SENATE, No. 37

 

STATE OF NEW JERSEY

 

DATED: NOVEMBER 18, 1996

 

 

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 37 (1R) of 1996.

      Senate Bill No. 37 (1R) is part of a legislative package, along with Senate Bills 35 (1R), 36 (1R) and 38 (1R), that establishes the "Work First New Jersey" program in the Department of Human Services as the State's consolidated public assistance program, replacing the current programs of aid to families with dependent children, (AFDC), AFDC emergency assistance, general assistance (GA), GA emergency assistance, the GA employability program, and the Family Development Initiative. For a more comprehensive discussion of the contents of this bill, the Senate Human Services Committee statement of November 18, 1996 for this bill should be consulted.

      This bill deals with: the eligibility for program benefits of care givers to dependent children and the eligibility of children in households with stepparents; program requirements to provide supportive services to program recipients; the eligibility of single adults and couples without dependent children for medical assistance for inpatient or outpatient hospital care or long-term care under the program; reports by the Commissioner of Human Services to the Legislature and Governor on the program; establishment of a standard of need with an annual update; and amendments to the "motor voter" law to update references to reflect the “Work First New Jersey” program.

 

FISCAL IMPACT

 

      The overall costs of the legislative package cannot be determined at this time because the impact of many of the provisions will not be known until the program is implemented.

      In a statement presented on November 14, 1996 to this committee and the Senate Human Services Committee by the Commissioner of Human Services during a public hearing on Senate Bills 35, 36, 37, and 38, the commissioner stated that the overall gross cost of the


programs under "Work First New Jersey Program” is now approximately $1.3 billion and it is the intention of the department to maintain at that level for several fixed years. Submission of a State plan to the federal government (which has been done) followed by enactment of the “Work First New Jersey” program to comply with the new federal mandates qualifies the State for the federal Temporary Assistance to Needy Families Block Grant in the amount of $404 million annually, approximately $50 to $60 million more than the State recently received under existing programs.

      The commissioner stated that he would present to the committee in conjunction with the legislative package, a revised summary budget for Fiscal Year 1997 for the programs being consolidated, reflecting the changes in revenues, costs and requirements necessitated by the new federal law and the proposed bills. He also indicated he would present a proposed budget for Fiscal Year 1998 for the committee’s review. As of the date of this statement, the committee had not yet received this information.