LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

SENATE, No. 400

STATE OF NEW JERSEY

DATED: JUNE 12, 1996

      Senate Bill No. 400 (1R) of 1996 provides that if an applicant for, or recipient of, benefits under the program of aid to families with dependent children (AFDC), is less than 18 years of age, has never married, and is pregnant or is caring for a dependent child, the applicant or recipient shall be required, as a condition of eligibility for AFDC benefits for the applicant or recipient and the applicant's or recipient's dependent child to:

∙    reside in a home maintained by, and have the AFDC benefits paid to, the applicant's or recipient's parent, legal guardian, or other adult relative; and

∙    regularly attend a high school or equivalency program of study.

      The Commissioner of Human Services (DHS) may exempt an AFDC applicant or recipient and the dependent child from the first requirement under certain limited circumstances in which case the county welfare agency or the Family Development Initiative representative who serves as their case manager pursuant to the "Family Development Act," shall make a determination as to the most appropriate living arrangement that would be in the best interest of the applicant or recipient and the dependent child.

      The commissioner shall exempt from the requirement to attend school an AFDC applicant or recipient who the commissioner determines, based upon an assessment of the person's ability and aptitude, lacks a reasonable prospect of being able to successfully complete the academic requirements of a high school or equivalency program of study. The commissioner may also exempt an AFDC applicant or recipient from either or both of the requirements, if the commissioner otherwise determines that the exemption would be in the best interest of that person and the person's dependent child.

      Department Comments

      DHS 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 fiscal impact of the legislation.

S400 [1R]

2

      There are about 6,600 AFDC cases, with nearly 15,000 persons, headed by a female under the age of 20. How many households:

∙    would have to reside in a home maintained by the applicant's or recipient's parent, legal guardian, or other adult relative,

∙    would have to regularly attend a high school or equivalency program of study, or

∙    would be exempt from the above requirements,

is not known. It is, thus, not possible to determine how much might be saved by reducing the affected household's AFDC grant.

      It is also not known how may households would have to be placed in a more "appropriate living arrangement" and the cost of such appropriate living arrangements.

      County welfare agencies and the Division of Family Development in DHS are likely to devote more time processing and monitoring cases that involve AFDC applicants who are under the age of 18. However, it is not possible to determine the additional administrative costs associated with the processing and monitoring of these types of cases as the amount of additional time involved cannot be known until this activity is undertaken.

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