1998 Session

Budget Amendments - SB30 (Committee Approved)

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TANF-Individual Development Accounts

Item 404 #4s

Item 404 #4s

First Year - FY1999 Second Year - FY2000
Health And Human Resources
Social Services, Department of FY1999 $500,000 FY2000 $0 NGF

Page 245, line 12, strike "$63,421,473" and insert "$63,921,473".
Page 246, after line 18 insert:
"F.  Out of this appropriation shall be provided $500,000 in nongeneral funds from the Temporary Assistance to Needy Families block grant the first year for a demonstration of Virginia Individual Development Accounts (VIDAs), tax-exempt accounts for participants in the Virginia Initiative for Employment not Welfare program, when withdrawals are used to complete vocational school or college, purchase a home, or start a business.  Sites will be established in five localities.  The VIDA demonstration will be conducted with the cooperation of the Virginia Department of Housing and Community Development, Virginia Department of Social Services, local departments of social services, Virginia Commonwealth University, and relevant non-profit organizations.  Any unexpended balance shall be carried forward and reappropriated in the second year for the purpose of the demonstration.  An interim report will be prepared by December 1999, and status reports will be prepared annually."

(This amendment provides federal welfare reform (TANF) funds for a demonstration project of federally authorized Individual Development Accounts (IDAs). IDAs provide federal matching funds as an incentive for encouraging working welfare recipients to save a portion of their earnings for self-improvement.)