LEGISLATIVE FISCAL ESTIMATE TO


[First Reprint]

SENATE, No. 38


STATE OF NEW JERSEY


DATED: DECEMBER 3, 1996


 

      Bill Summary:

      Senate Bill No. 38 (1R) of 1996 is part of a package of bills that establishes the "Work First New Jersey" (WFNJ) program as the consolidated public assistance program replacing the current programs of Aid to Families With Dependent Children (AFDC), AFDC Emergency Assistance (EA), General Assistance (GA), GA Emergency Assistance, the GA employability program and the Family Development Initiative (FDI). Specific provisions of the legislation include the following:

    Establishes the basic eligibility requirements for the program and authorizes the Commissioner of Human Services to determine the income and eligibility levels for the various types of assistance units. Assistance would be provided to persons convicted of certain drug offenses if the person is enrolled in, or has completed, a drug treatment program approved by the commissioner.

    Limits monthly cash benefits for a recipient who has lived in the State for less than 12 months.

    Limits the provision of EA to WFNJ recipients and to persons receiving federal Supplemental Security Income (SSI) benefits in emergent situations for to 12 cumulative months. However, recipients with dependent children may receive EA extensions for an additional six months; further extensions may be granted if the commissioner determines that "extreme hardship" or "incapacity" would result if EA were terminated. EA recipients are required to contribute toward the payment of emergency shelter arrangements.

    The commissioner would be able to establish EA hotel or motel per diem rates based on "enhanced services" provided at a participating hotel or motel.

    Permits the commissioner to waive compliance with WFNJ requirements for up to three years in the case of an experimental, pilot or demonstration project that is likely to assist in promoting the objectives of the State's child support enforcement program or the WFNJ program.

 

      Agency Comments:

      The Department of Human Services and the Office of Management and Budget have not provided any fiscal information on the legislation.

 

 

 

      Office of Legislative Services Comments:

      The Office of Legislative Services is not able to determine the overall cost of the legislation as the impact of many of the provisions will not be known until the program is implemented, however, below is a discussion of certain provision of the legislation.

      Income and resource standards. As no standards of income or resources are specified in the bill, it is not possible to determine the number of people that may be found eligible for WFNJ. It is assumed that most current recipients of AFDC (approximately 116,000 cases/299,000 recipients) and GA (approximately 31,500 recipients) will remain eligible for WFNJ. However, additional persons may become eligible for benefits depending on the income and resource levels that are established by the commissioner.

      Limits on assistance to persons who have not resided in the State for 12 months. Currently the State does not limit assistance to persons who have not resided in the State for at least 12 months. Under this bill, cash assistance to recipients who have not resided in the State for 12 consecutive months would be limited to the amount the recipient would have received from the recipient's prior state of residence, if the amount is less than they would receive in New Jersey.

      No data are available as to the number of recipients affected by this provision.

      Persons not eligible for benefits. Various groups of recipients are not eligible for WFNJ such as: (a) aliens who are not eligible aliens (as defined in the bill); (b) persons who are incarcerated or under custody of correctional authorities; (c) certain fugitives or persons in violation of a condition of probation or parole; (d) persons convicted of crimes or felonies involving the sale or distribution of drugs; and (e) persons who obtain or seek to obtain various benefits fraudulently. The commissioner may provide benefits to persons convicted of certain crime felonies involving drugs if the person is enrolled in, or has completed, a drug treatment program approved by the commissioner.

      No data are available as to the number of recipients affected by this provision.

       Emergency Assistance provisions. In the last month for which data are available, over 13,100 AFDC recipients, nearly 400 SSI recipients and over 7,000 GA recipients received various EA benefits. No information is readily available as to the number of current recipients of EA that would be affected by the 12 cumulative month limitation or any extensions that may be granted, but the limitations in the bill could contain EA costs.

      As current EA recipients do not have to contribute towards the costs of EA, how much recipients might be required to contribute is not known, but such contributions could reduce total EA costs. Additional EA costs or savings associated with the classification of hotel or motel per diem rates based on the level of enhanced services provided at the hotel or motel cannot be determined in the absence of any definition of enhanced services and the associated per diem rates.

      This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.