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1999 Session

Budget Amendments - HB1450 (Conference Report)

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Technical Change-GF for EITC

Item 404 #3c

Item 404 #3c

First Year - FY1999 Second Year - FY2000
Health And Human Resources
Social Services, Department of FY1999 $0 FY2000 $14,479,614 GF
FY1999 $0 FY2000 ($14,479,614) NGF

Language
Page 311, line 9, after "paid.", insert "No later than July 1, 1999,".
Page 311, line 12, before "payment", insert "prompt".
Page 311, after line 45, insert:
"4.  Upon request by the Department of Social Services, the Department of Planning and Budget may transfer general fund appropriations between the Virginia Work Incentive Payment Program in this item and the Temporary Assistance for Needy Families (TANF) Program in Item 399, in order to maintain general fund expenditures at a level sufficient to meet the federal TANF Maintenance of Effort (MOE) requirement."


Explanation
(This amendment provides general fund appropriations for work incentive payments and reduces appropriations of federal TANF funds by an equal amount. A companion amendment in Item 399 for welfare payments provides offsetting increases in TANF funds and reductions in general fund appropriations, so there is no net additional cost to the TANF block grant or general fund. Virginia would have additional flexibility in administering work incentive payments when supported by the general fund rather than by TANF funds. The introduced budget proposed the work incentive payment program as a federally acceptable substitute for an earned income/child tax credit adopted by the 1998 General Assembly. The federal Department of Health and Human Services has not approved the tax credit as an allowable state match for the federal block grant, but payments would qualify as state match. Language requires DSS to send applications to potentially eligible families no later than July 1, 1999, promptly pay eligible families, and request transfers of funds between programs, if necessary, to ensure that Virginia meets the federal maintenance of effort requirement.)