1. It is hereby acknowledged that as of June 30, 2001, there existed with the federal government an unexpended balance of $76,372,531 in federal TANF block grant funds which are available to the Commonwealth of Virginia to reimburse expenditures incurred in accordance with the adopted State plan for the TANF program. Based on projected FY 2002 spending levels, appropriations in this act, and the provisions of subsection paragraphs 2 a and 3, below, the Commonwealth’s accumulated balance for authorized federal TANF block grant funds is estimated at $46,955,250 was $46,705,250 on June 30, 2002; $29,047,359 and is estimated at $26,344,971 on June 30, 2003; and $8,360,279 $0 on June 30, 2004.

2. The department shall allocate federal funds from the Federal TANF Grant to eligible state and community based services in an amount up to $6,000,000 each year the first year and $4,929,845 the second year. The department shall develop procedures for receiving and approving requests for funding in accordance with the provisions of the federal TANF grant. The Commissioner may give preference to activities previously funded through the department. The department shall notify applicants of grant award amounts no later than July 30 of each year. All funding provided from the TANF grant for eligible state and community-based services funded under this measure shall include performance measures consistent with the purposes of TANF funding as prescribed by the federal government, and the department's goals and objectives. All entities shall be required to report to the department at least quarterly.

3. The Department shall allocate federal funds from the federal TANF grant to the following services in the specified amounts: employment and training and other services for hard-to-serve recipients to promote self-sufficiency ($3,000,000 each year); pregnancy prevention programs administered through the Virginia Department of Health, such as teen pregnancy prevention programs, Right Choices for Youth, Partners in Prevention, Resource Mothers and others ($2,500,000 each year $2,500,000 the first year and $2,900,000 the second year); a continuum of housing services administered through the Department of Housing and Community Development ($4,250,000 the first year and $5,000,000 the second year); and transportation grants ($2,500,000 each year).

4. DSS shall report annually to the Governor, the Secretary of Health and Human Resources, the Chairmen of the House Appropriations and Senate Finance Committees, and DPB regarding spending; program results; clients served; the location, size, implementation status, and nature of projects funded with TANF funds; results of all formal evaluations; and recommendations for continuation, expansion, and redesign of the projects. Such report shall be combined with the report required by § 63.1-133.54, Code of Virginia.