. Social Services Block Grant (Title XX of the Social Security Act) Karen E. Lynch Analyst in Social Policy January 26, 2010 Congressional Research Service 7-5700 www.crs.gov 94-953 CRS Report for Congress Prepared for Members and Committees of Congress c11173008 . Social Services Block Grant (Title XX of the Social Security Act) Summary The Social Services Block Grant (SSBG) is a flexible source of funds that states use to support a wide variety of social services activities. States have broad discretion over the use of these funds. In FY2007, the most recent year for which expenditure data are available, the largest expenditures for services under the SSBG were for foster care services, child care, and special services for the disabled. The FY2010 Consolidated Appropriations Act (P.L. 111-117) maintained SSBG funding at $1.7 billion and maintained states’ authority to transfer up to 10% of their Temporary Assistance for Needy Families (TANF) block grants to the SSBG. The SSBG has received an annual appropriation of $1.7 billion since FY2002. In addition to annual funding levels, the SSBG received supplemental appropriations in FY2006 and FY2008 for necessary expenses resulting from major natural disasters. This report provides funding and background information for the SSBG. Congressional Research Service . Social Services Block Grant (Title XX of the Social Security Act) Contents Introduction ................................................................................................................................1 Use of Funds...............................................................................................................................1 Goals ....................................................................................................................................1 Services ................................................................................................................................1 Prohibited Uses .....................................................................................................................2 Eligibility....................................................................................................................................2 Allocation of Funds.....................................................................................................................2 Transfer of TANF Funds to SSBG...............................................................................................4 Funding ......................................................................................................................................5 FY2010 Appropriations.........................................................................................................5 FY2010 Budget Request by the Obama Administration .........................................................5 FY2009 Appropriations.........................................................................................................5 FY2009 Budget Request by the Bush Administration ............................................................6 Recent Supplemental Appropriations.....................................................................................6 FY2008 Supplemental Appropriation ..............................................................................6 FY2006 Supplemental Appropriation ..............................................................................9 Additional Funding History...................................................................................................9 Legislation ................................................................................................................................ 11 State Reporting Requirements ................................................................................................... 11 Recent Expenditures ................................................................................................................. 12 Figures Figure 1. HHS Allocation Methodology for the FY2008-FY2009 SSBG Supplemental................7 Tables Table 1. Estimated FY2010 SSBG Allotments to States and Territories........................................3 Table 2. State Allocations for SSBG Funds from the FY2008-FY2009 Supplemental...................8 Table 3. SSBG Funding, FY1985-FY2010 ................................................................................ 10 Table 4. Total SSBG Expenditures by Service Category, FY2007 .............................................. 12 Table A-1. TANF Transfers to the SSBG in FY2008 .................................................................. 14 Table B-1. Status of State Spending from the FY2006 SSBG Supplemental............................... 16 Appendixes Appendix A. TANF Transfers to SSBG in FY2008 .................................................................... 14 Appendix B. FY2006 Supplemental SSBG Funding .................................................................. 16 Congressional Research Service . Social Services Block Grant (Title XX of the Social Security Act) Contacts Author Contact Information ...................................................................................................... 18 Congressional Research Service . Social Services Block Grant (Title XX of the Social Security Act) Introduction Title XX of the Social Security Act permanently authorizes the Social Services Block Grant (SSBG) as a “capped” entitlement to states. This means that states are entitled to their share of funds, as determined by formula, out of an amount of money that is capped in statute at a specific level (also known as a funding ceiling). Although social services for certain welfare recipients have been authorized under various titles of the Social Security Act since 1956, the SSBG in its current form was created in 1981 (P.L. 97-35). Block grant funds are given to states to help them achieve a wide range of social policy goals, which include promoting self-sufficiency, preventing child abuse, and supporting community-based care for the elderly and disabled. The FY2010 Consolidated Appropriations Act (P.L. 111-117) included $1.7 billion for the SSBG, the same level of annual funding the block grant has received since FY2002. In addition to annual funding levels, the SSBG has occasionally received supplemental appropriations, most recently in FY2008. A special SSBG program for enterprise communities and empowerment zones was authorized in 1993 (P.L. 103-66), but is not currently funded. At the federal level, the SSBG is administered by the Department of Health and Human Services (HHS). Legislation amending Title XX is typically reported by the House Ways and Means Committee and the Senate Finance Committee. Use of Funds Goals Federal law establishes the five broad goals for the SSBG. Social services funded by states must be linked to one or more of these goals. The five goals are: • achieving or maintaining economic self-support to prevent, reduce, or eliminate dependency; • achieving or maintaining self-sufficiency, including reduction or prevention of dependency; • preventing or remedying neglect, abuse, or exploitation of children and adults unable to protect their own interests, or preserving, rehabilitating or reuniting families; • preventing or reducing inappropriate institutional care by providing for community-based care, home-based care, or other forms of less intensive care; and • securing referral or admission for institutional care when other forms of care are not appropriate, or providing services to individuals in institutions. Services States have broad discretion in spending SSBG funds to support these broad goals. The following are examples of social services, as specified in law, that relate to the SSBG’s broad goals: Congressional Research Service 1 . Social Services Block Grant (Title XX of the Social Security Act) child care, protective services for children and adults, services for children and adults in foster care, services related to the management and maintenance of the home, adult day care, transportation, family planning, training and related services, employment services, referral and counseling services, meal preparation delivery, health support services, and services to meet the special needs of children, the aged, the mentally retarded, the blind, the emotionally disturbed, the physically handicapped, and alcoholics and drug addicts. In 1993, HHS issued a regulation establishing uniform definitions for 28 SSBG service categories. State spending is not limited to these services; instead, these service categories are used as guidelines for reporting purposes. (Spending on an activity that falls outside the scope of services defined in regulation is characterized under “other services” on annual reports.) In addition to supporting social services, SSBG funds may be used for administration, planning, evaluation, and training. (See Table 4 for a full list of the service categories reported on by states.) States may also transfer up to 10% of their SSBG allotments to block grants for health activities and low-income home energy assistance. Prohibited Uses Although the SSBG can be used for a broad array of activities, some restrictions are placed on the use of title XX funds. Funds cannot be used for the following: (1) purchase of land, construction, or major capital improvements; (2) cash payments as a service or for costs of subsistence or room and board (other than costs of subsistence during rehabilitation, temporary emergency shelter provided as a protective service, or in the case of vouchers for certain families as allowed under welfare reform); (3) payment of wages as a social service (except wages of welfare recipients employed in child day care); (4) most medical care (except family planning rehabilitation services, initial detoxification of certain individuals, or medical care provided as an “integral but subordinate component of a social service”); (5) social services for residents of institutions (including hospitals, nursing homes, and prisons); (6) educational services generally provided by public schools; (7) child care that does not meet applicable state or local standards; (8) services provided by anyone excluded from participation in Medicare or certain other Social Security Act programs; or (9) items or services related to assisted suicide (this provision was added in 1997, under P.L. 105-12). Under extraordinary circumstances, the law does allow HHS to waive the two of these prohibitions (use of the SSBG for the purchase of land or capital improvements, or for the provision of medical care). Eligibility There are no federal eligibility criteria for SSBG participants. Thus, states have total discretion to set their own eligibility criteria. One exception is that welfare reform established an income limit of 200% of poverty for recipients of services funded by TANF allotments that are transferred to the SSBG. Allocation of Funds SSBG funds are allocated to states according to the relative size of each state’s population. Grants to Puerto Rico, Guam, the Virgin Islands, and Northern Marianas are based on their share of Title XX funds in FY1981. No match is required for federal SSBG funds, and federal law does not Congressional Research Service 2 . Social Services Block Grant (Title XX of the Social Security Act) specify a sub-state allocation formula. In other words, states have complete discretion for the distribution of SSBG funds within their borders. Table 1 displays estimated FY2010 allotments. Table 1. Estimated FY2010 SSBG Allotments to States and Territories State / Territory Allotment ($) Alabama 25,937,984 State / Territory Nevada New Hampshire Allotment ($) 14,378,345 Alaska 3,830,729 Arizona 35,527,187 New Jersey 48,682,478 Arkansas 15,888,351 New Mexico 11,040,897 California 204,871,919 Colorado 27,247,614 North Carolina 50,784,890 Connecticut 19,629,594 North Dakota 3,585,448 New York 7,374,897 108,159,098 Delaware 4,846,793 Ohio 64,269,293 District of Columbia 3,297,234 Oklahoma 20,274,180 Oregon 21,003,578 Florida 102,293,798 Georgia 53,496,013 Pennsylvania 69,682,789 Hawaii 7,193,079 Rhode Island 5,928,892 Idaho 8,403,785 South Carolina 24,704,142 Illinois 72,035,420 South Dakota 4,462,587 Indiana 35,563,808 Tennessee Iowa 16,747,274 Texas 133,978,262 Kansas 15,558,791 Utah 14,826,434 Kentucky 23,772,435 Vermont Louisiana 24,062,369 Virginia 43,224,403 Washington 36,253,950 Maine 7,382,626 34,506,919 3,481,978 Maryland 31,489,458 West Virginia 10,156,017 Massachusetts 36,149,315 Wisconsin 31,395,836 Michigan 56,450,124 Wyoming 2,930,336 Minnesota 29,131,407 American Samoa Mississippi 16,359,083 Guam Missouri 32,947,093 Northern Mariana Islands Montana 5,368,579 Puerto Rico Nebraska 9,946,041 Virgin Islands 48,518 293,103 58,621 8,793,103 293,103 Source: Table prepared by the Congressional Research Service (CRS) based on data from HHS, available online at http://www.acf.hhs.gov/programs/ocs/ssbg/docs/esalloc10.html. Notes: Figures are based on the annual SSBG appropriation of $1.7 billion, as proposed in the Obama Administration’s FY2010 Budget and provided in the FY2010 Consolidated Appropriations Act (P.L. 111-117). Congressional Research Service 3 . Social Services Block Grant (Title XX of the Social Security Act) Transfer of TANF Funds to SSBG The 1996 welfare reform law replaced Aid to Families with Dependent Children (AFDC) with a block grant to states, called Temporary Assistance for Needy Families (TANF), under Title IV-A of the Social Security Act. The law allowed states to transfer up to 10% of their annual TANF allotments into the SSBG. Under provisions of the Transportation Equity Act of 1998 (P.L. 105178), the amount that states could transfer into SSBG was reduced to 4.25% of their annual TANF allotments, beginning in FY2001. However, this provision was superseded in FY2001 by the FY2001 Consolidated Appropriations Act, which maintained the 10% transfer authority level. Likewise, the FY2002 appropriations bill presented to the President maintained the 10% transfer authority for FY2002. Earlier, the House had passed its version of a Labor/HHS/Ed appropriations bill (H.R. 3061) proposing to maintain the 10% transfer authority, while the Senate’s amended version proposed a 5.7% transfer level. (The Senate Appropriations Committee had recommended a 5.9% transfer authority level in S. 1536; however, the full Senate, in passing an amended H.R. 3061, would have reduced it to 5.7% as a partial offset to funding proposed in S.Amdt. 2084, which provides increased funding for Hispanic education programs.) Ultimately, appropriations acts maintained the transfer authority at 10% in FY2003-FY2009 as well. There has been some confusion about whether or not the Deficit Reduction Act (DRA, P.L. 109171) permanently reinstated the 10% transfer authority. This law reauthorized TANF, through the end of FY2010, in the manner authorized for FY2004.1 In that fiscal year, the Social Security Act capped states’ authority to transfer TANF funds to the SSBG at 4.25%, but this law was superseded by the FY2004 Consolidated Appropriations Act (P.L. 108-199), which maintained the practice of allowing 10% transfers from TANF to the SSBG. In the wake of the DRA, Congress has continued to ensure that the transfer ceiling stays at 10% by including language to that effect in appropriations legislation. Over the course of FY1997-FY2008, states annually transferred more than $9 billion of their TANF funds to the SSBG. In FY2008 alone, 45 states transferred $1.18 billion to the SSBG, with 28 of those states taking advantage of the higher transfer ceiling by moving more than 4.25% of their TANF funds to the SSBG (see Table A-1 in Appendix A for FY2008 state-by-state data).2 Funds transferred from TANF to the SSBG can be used only for children and families whose income is less than 200% of the federal poverty guidelines. Under welfare reform law, states also may use SSBG funds for vouchers for families that are not eligible for cash assistance because of time limits under the welfare reform program, or for children who are denied cash assistance because they were born into families already receiving benefits for another child. 1 The conference report for the DRA notes that the House version of the bill increased the maximum transfer to SSBG to 10%, while the Senate bill had no provision. The conference report recedes to the Senate with regard to the transfer authority. 2 See FY2008 TANF Financial Data available online at http://www.acf.hhs.gov/programs/ofs/data/index.html. Here, “state” includes Puerto Rico and the District of Columbia. Congressional Research Service 4 . Social Services Block Grant (Title XX of the Social Security Act) Funding FY2010 Appropriations On December 16, 2009, President Obama signed the Consolidated Appropriations Act, 2010, into law as P.L. 111-117. The measure provided $1.7 billion for the SSBG, reflecting the conference report (H.Rept. 111-366) filed on the bill, H.R. 3288, on December 8, 2009. The House and Senate agreed to the conference report on December 10 and December 13, respectively. P.L. 111117 also maintained the states’ authority to transfer up to 10% of their TANF funds to the SSBG. Prior to the passage of H.R. 3288, both the House and Senate had initiated the L-HHS-ED appropriations process for FY2010. Although the full Senate did not pass a bill to provide LHHS-ED appropriations for FY2010, the Senate Appropriations Committee did report such a bill (S.Rept. 111-66, H.R. 3293) on August 4, 2009, which sought to maintain funding for the SSBG at the annual level of $1.7 billion. Meanwhile, on July 24, 2009, the House passed its FY2010 LHHS-ED appropriations bill, H.R. 3293, which also sought to maintain funding for the SSBG at $1.7 billion. Prior to consideration by the full House, this bill was reported by the House Committee on Appropriations on July 22, 2009 (H.Rept. 111-220). FY2010 Budget Request by the Obama Administration In May 2009, the Obama Administration released their detailed FY2010 Budget, which requested that funding for the SSBG be maintained at $1.7 billion in FY2010. This was a contrast to recent President’s Budgets submitted by the Bush Administration, which had proposed funding reductions and, ultimately, full elimination of the SSBG. FY2009 Appropriations President Obama signed The FY2009 Omnibus Appropriations Act (P.L. 111-8) into law on March 11, 2009. The FY2009 Omnibus funded the SSBG at an annual level of $1.7 billion in FY2009, rejecting the proposed cuts in the FY2009 budget request submitted by President Bush. The Omnibus also maintained states’ authority to transfer up to 10% of their TANF block grants to the SSBG. Prior to the passage of the FY2009 Omnibus Appropriations Act, Congress had passed two continuing resolutions (CRs) for FY2009 (P.L. 110-329 and P.L. 111-6). Both CRs also rejected cuts proposed by the Bush Administration, maintaining SSBG funding at $1.7 billion. The first of the two CRs (P.L. 110-329) was signed into law by President Bush on September 30, 2008, and remained in effect until March 6, 2009. The second CR (P.L. 111-6) was signed into law by President Obama on March 6, 2009, and lasted until it was superseded by the FY2009 Omnibus on March 11, 2009. In addition to annual appropriations contained in the FY2009 Omnibus, many programs also received FY2009 funding from the American Recovery and Reinvestment Act (ARRA), signed into law by President Obama on February 17, 2009 (P.L. 111-5). The original Senate-passed version of this bill (H.R. 1) would have appropriated $400 million in SSBG funds, to be obligated to states within 60 calendar days from the date at which they become available for obligation. The Congressional Research Service 5 . Social Services Block Grant (Title XX of the Social Security Act) original House-passed version of H.R. 1, meanwhile, included no funds for SSBG. Ultimately, the enacted version of this legislation adopted the House position on this and, as a result, the SSBG received no supplemental funds from the ARRA.3 FY2009 Budget Request by the Bush Administration President Bush’s FY2009 budget, released on February 4, 2008, originally called for $1.2 billion in funding for the SSBG in FY2009, a $500 million decrease from the authorized funding level. However the Bush Administration subsequently submitted to Congress two amendments to the initial budget request, which combined to reduce the proposed FY2009 SSBG funding level to $0.4 In addition to the proposed cut for FY2009, the Bush Administration budget also proposed a plan to permanently eliminate the SSBG beginning in FY2010. The Administration contended that the grant’s flexibility and lack of state reporting requirements make it difficult to measure its performance, and that the broad array of services funded through the SSBG often overlap with other federal programs. Recent Supplemental Appropriations FY2008 Supplemental Appropriation The first FY2009 CR (P.L. 110-329) included, as Division B, the Disaster Relief and Recovery Supplemental Appropriations Act of 2008. This law provided $600 million in supplemental funds for the SSBG in FY2008. These funds were appropriated on the last day of FY2008 and were not allotted to states by HHS until FY2009. The supplemental funds were appropriated for necessary expenses resulting from “major disasters” (as declared by the President and defined in title IV of the Stafford Act) occurring during 2008, including hurricanes, floods, and other natural disasters. The appropriation also made these funds available for necessary expenses resulting from Hurricanes Katrina and Rita. The appropriations language specified that in addition to other uses permitted by Title XX of the Social Security Act, states could use their supplemental SSBG funds to provide social and health services (including mental health services) for individuals, as well as to support the repair, renovation, or construction of health care facilities, mental health facilities, child care centers, and other social services facilities affected by related disasters. The appropriations language explicitly required HHS to distribute funding to eligible states based on “demonstrated need in accordance with objective criteria that are made available to the public.” HHS outlined their criteria in Information Memorandum Transmittal No. 02-2009, FY2008 SSBG Supplemental Appropriation of Disaster Assistance Funds Awarded in FY2009, 3 For more information about human services programs in the American Recovery and Reinvestment Act, see CRS Report R40211, Human Services Provisions of the American Recovery and Reinvestment Act, by Gene Falk et al. 4 These two amendments to the FY2009 President’s Budget can be found on the Government Printing Office (GPO) website at http://www.gpoaccess.gov/USbudget/fy09/amndsup.html (see H.Doc. 110-123 and H.Doc. 110-141). Congressional Research Service 6 . Social Services Block Grant (Title XX of the Social Security Act) which was issued by the Department on January 6, 2009.5 Figure 1 illustrates how the criteria selected by HHS were used to allocate funds to states. Figure 1. HHS Allocation Methodology for the FY2008-FY2009 SSBG Supplemental Source: Figure prepared by the Congressional Research Service based on data from HHS. As specified in the Information Memorandum, HHS identified criteria to determine which disasters qualified for supplemental SSBG funds. First, HHS specified that qualifying major disasters were those that occurred between January 1, 2008, and the date of enactment of the supplemental appropriation (September 30, 2008); in addition, Hurricanes Katrina and Rita were considered to qualify automatically based on appropriations language. Second, HHS restricted qualifying disasters to those which triggered authorizations for Federal Emergency Management Agency (FEMA) Individual Assistance. The FEMA Individual Assistance program provides money or direct assistance to individuals, families, and businesses in an affected area whose property has been damaged or destroyed and whose losses are not covered by insurance. HHS chose Individual Assistance data to serve as a proxy for “demonstrated need,” noting that these data represent individual households that have declared a loss associated with the disaster and who have registered for assistance. Nineteen states and the Commonwealth of Puerto Rico were directly affected by qualifying disasters in 2008, as determined by the HHS criteria. Based on these same criteria, four states 5 See the Information Memorandum online at http://www.acf.hhs.gov/programs/ocs/ssbg/procedures/IM_0109.html. Congressional Research Service 7 . Social Services Block Grant (Title XX of the Social Security Act) were deemed to be eligible for supplemental funds as a result of the lasting effects of Hurricanes Katrina and Rita (all but one of these states had also been affected by disasters in 2008). In total, 20 states and the Commonwealth of Puerto Rico were eligible to receive some share of the $600 million in supplemental funds under the HHS methodology. As shown in Figure 1, the HHS methodology called for three-fourths of the supplemental funds ($450 million) to be reserved for the states that were directly affected by major disasters occurring in 2008. One-fourth of the supplemental ($150 million) was then dedicated to the states facing ongoing needs as a result of Hurricanes Katrina and Rita. From there, funds in each category were allocated to states using two equally-weighted sets of data: (1) the proportional share of FEMA registrants for Individual Assistance (that is, individuals from affected communities who validly registered with FEMA after the natural disaster), and (2) the relative size of state populations according to 2007 data from the Census Bureau’s American Community Survey. Table 2 displays the amounts allocated, arranged in order of allocation size. Table 2. State Allocations for SSBG Funds from the FY2008-FY2009 Supplemental Arranged by size of allocation in descending order State Allocation Percent of Total Texas $218,852,848 36.48% Louisiana $129,737,880 21.62% Florida $35,384,592 5.90% Illinois $30,502,439 5.08% Mississippi $28,136,577 4.69% Indiana $18,139,459 3.02% Georgia $18,111,127 3.02% Wisconsin $15,964,973 2.66% Alabama $13,092,588 2.18% Puerto Rico $12,427,602 2.07% Missouri $12,188,291 2.03% Tennessee $11,689,137 1.95% Iowa $11,157,944 1.86% Colorado $8,931,072 1.49% Kentucky $7,732,381 1.29% Arkansas $7,386,653 1.23% Oklahoma $6,540,619 1.09% Nevada $4,640,930 0.77% Nebraska $3,570,592 0.60% West Virginia $3,386,574 0.56% Maine $2,425,722 0.40% Total $600,000,000 100.00% Source: Table prepared by the Congressional Research Service (CRS) based on data from HHS. Congressional Research Service 8 . Social Services Block Grant (Title XX of the Social Security Act) FY2006 Supplemental Appropriation The FY2006 Defense Appropriations Act (P.L. 109-148) included supplemental SSBG funding in the amount of $550 million. These funds were for expenses related to the consequences of the Gulf Coast hurricanes of 2005. The Defense Appropriations Act expanded the potential services for which the additional $550 million could be used to include “health services (including mental health services) and for repair, renovation and construction of health facilities.” Factors used to allocate these supplemental funds included the number of FEMA registrants from hurricanes Katrina, Rita, and Wilma, as well as the percent of individuals in poverty in each state. HHS distributed funds to all states that took in evacuees, not just the states that were directly affected, noting in a February 8, 2006 press release that the Bush Administration had promised no state would be unfairly disadvantaged for providing services to those affected by the storms.6 Although all states received a portion, Louisiana ($221 million), Mississippi ($128 million), Texas ($88 million), Florida ($54 million), and Alabama ($28 million) received the bulk of funding from the supplemental (94%). On May 25, 2007, an FY2007 supplemental appropriations act was signed into law (P.L. 110-28), extending the availability of the supplemental SSBG funds for expenditure through the end of FY2009. In practical terms, this provision gave states until September 30, 2009, to spend all of their supplemental funds. According to HHS, a balance of almost $39 million out of the $550 million in supplemental funds remained unspent as of October 1, 2009 (see Table B-1 in Appendix B for state-by-state data), suggesting about 93% of total funds were spent prior to the close of the fiscal year. Notably, the Terms and Conditions of SSBG grant agreements give states 90 days after the end of the grant period to finalize spending for funds they had obligated as of September 30, 2009. As a result, this estimate—though collected at the end of FY2009—may not reflect final expenditures from the FY2006 supplemental. After accounts have been finalized, unspent funds will revert to the U.S. Treasury. Additional Funding History Table 3 shows SSBG funding levels from 1985 on, including the high of $2.8 billion, which was provided annually from FY1991-FY1995. Although $2.8 billion was the originally authorized entitlement ceiling for FY1996, Congress reduced funding to $2.38 billion in that year. Welfare reform legislation (P.L. 104-193) subsequently set the annual SSBG entitlement ceiling at $2.38 billion in each of fiscal years 1997 through 2002. Under the welfare reform law, the ceiling was scheduled to return to a permanent level of $2.8 billion in FY2003. After welfare reform was enacted, Congress passed an appropriations measure for FY1997 (P.L. 104-208) that contained $2.5 billion for the SSBG, exceeding the ceiling established in the welfare reform law. For FY1998, President Clinton requested that the amount authorized by welfare reform ($2.38 billion) be appropriated. However, Congress approved an FY1998 appropriations bill (P.L. 105-78) containing $2.299 billion for the SSBG. The Senate Appropriations Committee explained the reduction by stating that funding is provided for social services through other federal programs (S.Rept. 105-58). The House Appropriations Committee 6 See http://www.hhs.gov/news/press/2006pres/20060208a.html. Congressional Research Service 9 . Social Services Block Grant (Title XX of the Social Security Act) expressed concern that HHS lacks information on the effectiveness of SSBG-funded activities (H.Rept. 105-205). In 1998, the Transportation Equity Act (TEA, P.L. 105-178) permanently reduced the SSBG entitlement ceiling to $1.7 billion, beginning in FY2001. However, the entitlement ceiling has not always reflected the actual appropriation. For example, the $1.725 billion appropriation level for FY2001 (H.R. 4577) exceeded the $1.7 billion ceiling by $25 million. In addition, a TEA provision limited the authority for states to transfer TANF funds to the SSBG beginning in FY2001 (reducing the transfer cap from 10%, as established in welfare reform, to 4.25%). However, each annual appropriation from FY2001 onward has included override to reinstate the higher cap, effectively enabling states to transfer up to 10% of their TANF funds to the SSBG. Table 3 shows SSBG entitlement ceilings and appropriations from FY1985-FY2010. Also shown for FY1997-FY2008 are the amounts transferred from TANF to SSBG. Table 3. SSBG Funding, FY1985-FY2010 ($ in billions) Fiscal Year Ceiling 1985 2.7 1986 Appropriation Appropriation Transfer from TANF Fiscal Year Ceiling 2.725a 1997 2.380 2.5 0.36 2.7 2.584b 1998 2.380 2.299 1.12 1987 2.7 2.7 1999 2.380 1.909 1.32 1988 2.750c 2.7 2000 2.380 1.775 1.10 1989 2.7 2.7 2001 1.700 1.725 0.93 1990 2.8 2.762d 2002 1.700 1.700 1.03 1991 2.8 2.8 2003 1.700 1.700 0.93 1992 2.8 2.8 2004 1.700 1.700 0.77 1993 2.8 2.8 2005 1.700 1.700 0.92 1994 2.8 2.8 2006 1.700 1.700+0.550e 0.97 1995 2.8 2.8 2007 1.700 1.700 1.17 1996 2.381 2.381 2008 1.700 1.700+0.600f 1.18 2009 1.700 1.700 data not available 2010 1.700 1.700 data not available Source: Table prepared by the Congressional Research Service (CRS) based on budget documents and HHS data. a. Amount includes $25 million earmarked for training of daycare providers, licensing officials, and parents, including training in the prevention of child abuse in child care settings (P.L. 98-473). b. The entitlement ceiling for FY1986 was $2.7 billion. However, the Gramm-Rudman-Hollings legislation sequestration of funds for that period reduced the funding by $116 million. c. The 1987 Budget Reconciliation Act (P.L. 100-203) included a $50 million increase in the Title XX entitlement ceiling for FY1988; however, these additional funds were not appropriated. d. The FY1990 appropriation included a supplemental appropriation of $100 million (P.L. 101-198). The GrammRudman-Hollings legislation sequestration of funds for FY1990 reduced funding by $37.8 million to $2.762 billion. Congressional Research Service 10 . Social Services Block Grant (Title XX of the Social Security Act) e. The FY2006 Labor-HHS-Education Appropriations Act maintained regular SSBG funding at $1.7 billion. The FY2006 Defense Appropriations Act (P.L. 109-148) provided an additional $550 million in SSBG funding, for necessary expenses related to the consequences of hurricanes in 2005. f. The Consolidated Appropriations Act of 2008 (P.L. 110-161) maintained regular SSBG funding at $1.7 billion. However, the first FY2009 CR (P.L. 110-329) included, as Division B, the Disaster Relief and Recovery Supplemental Appropriations Act of 2008, which provided $600 million in supplemental funds for the SSBG. These funds were appropriated on the last day of FY2008, but were not allotted to states until FY2009. Legislation Other than appropriations legislation, no bills in the 109th Congress or 110th Congress that proposed changes to the SSBG were enacted into law. As part of welfare reauthorization bills in the 109th Congress, proposals were introduced to increase funding for the SSBG, but these were not passed. (S. 667 would have increased funding for the SSBG by $1 billion over five years, and both H.R. 751 and S. 6 would have provided $1.975 billion for the SSBG in FY2006 and $2.8 billion in FY2007.) Instead, a scaled-back version of welfare reauthorization, which included none of the SSBG provisions, was encompassed in reconciliation legislation and signed into law (P.L. 109-171) on February 8, 2006. However, it is possible that the next round of welfare reauthorization (due in FY2010) may include similar proposals with respect to the SSBG. In addition, the 111th Congress has shown some interest in amending Title XX of the Social Security Act to establish an elder justice program (S. 795, H.R. 2006). State Reporting Requirements Each year, states are required to submit an intended use plan, often called a “pre-expenditure report,” as a prerequisite to receive SSBG funds. The pre-expenditure report must be submitted 30 days prior to the start of the fiscal year.7 States must also submit a revised report if their planned uses for SSBG funds change during the course of the year. In pre-expenditure reports, states outline their plans for SSBG funds, including the types of services to be supported, and the categories and characteristics of individuals to be served (e.g., children, adults 59 and younger, adults 60 and older, and the disabled). States are also required to report annually on their actual SSBG expenditures in each of the 29 service categories. For this report, submitted within six months after the end of the reporting period, states use a standard post-expenditure reporting form. 8 HHS published regulations (November 15, 1993) to implement this requirement and to provide states with a uniform set of service category definitions. HHS does not require that states submit pre-expenditure reports using a standard format like the one required for post-expenditure reporting (most states simply submit a narrative or chart of their proposed activities and the individuals to be served). However, HHS issued a new Information Memorandum on December 31, 2008 (Transmittal No. 01-2009), asking states to voluntarily include additional documentation as part of their pre-expenditure reports.9 Specifically, HHS 7 This refers to September 1, provided the state operates on a federal fiscal year; alternately, this means June 1 if the state operates on a July-June fiscal year. 8 See OMB Form No. 0970-0234. 9 Information Memorandum Transmittal No. 01-2009, Linking the Social Services Block Grant (SSBG) Pre- and Post(continued...) Congressional Research Service 11 . Social Services Block Grant (Title XX of the Social Security Act) requested that states submit a copy of the form used for post-expenditure reports, completed with estimated (rather than actual) expenditures and recipient data. For states that submit this form as part of their pre-expenditure report, the additional documentation will allow for a more accurate analysis of the extent to which SSBG funds are spent “in a manner consistent” with the state’s intended use plan. Recent Expenditures Table 4 shows national SSBG expenditures from FY2007, the most recent year for which data are available. Expenditures are separated into those made from the annual SSBG allocation and those made from funds transferred from the TANF block grant, and are displayed by service category. In FY2007, the largest expenditures for services under the SSBG were for foster care services (14.9%), child care (13.7%), and special services for the disabled (13.0%). Table 4.Total SSBG Expenditures by Service Category, FY2007 SSBG Expenditures Made From: Service Category SSBG Allocation ($) Funds Transferred from TANF ($) Total SSBG Expenditures ($) Percent of Total Adoption Services 24,947,660 14,319,141 39,266,801 1.40% Case Management 125,879,577 63,213,488 189,093,065 6.70% Congregate Meals 6,050,505 7,945 6,058,450 0.20% Counseling Services 22,759,992 4,146,655 26,906,647 0.90% Day Care—Adults 16,239,128 1,020,089 17,259,217 0.60% 104,975,323 284,403,390 389,378,713 13.70% Education and Training Services 10,199,189 1,425,953 11,625,142 0.40% Employment Services 14,041,772 126,579 14,168,351 0.50% Family Planning Services 21,622,592 17,659,129 39,281,721 1.40% Foster Care Services— Adults 24,265,742 6,345,923 30,611,665 1.10% Foster Care Services— Children 139,583,337 281,341,721 420,925,058 14.90% Health-Related Services 16,006,943 1,509,049 17,515,992 0.60% 146,771,403 25,236,087 172,007,490 6.10% 28,242,874 66,407 28,309,281 1.00% Housing Services 7,284,082 6,557,513 13,841,595 0.50% Independent/Transitional Living 8,193,096 2,496,071 10,689,167 0.40% Day Care—Children Home-Based Services Home-Delivered Meals (...continued) Expenditure Reports, HHS, Dec. 31, 2008. http://www.acf.hhs.gov/programs/ocs/ssbg/procedures/IM_01_2009.html. Congressional Research Service 12 . Social Services Block Grant (Title XX of the Social Security Act) SSBG Expenditures Made From: Service Category SSBG Allocation ($) Funds Transferred from TANF ($) Total SSBG Expenditures ($) Percent of Total Information and Referral 10,670,473 5,662,258 16,332,731 0.60% Legal Services 10,255,681 5,311,674 15,567,355 0.50% 4,285,888 2,461,822 6,747,710 0.20% 37,116,766 93,323,764 130,440,530 4.60% Protective Services— Adults 156,612,136 5,092,684 161,704,820 5.70% Protective Services— Children 108,580,914 161,127,910 269,708,824 9.50% 893,401 307,642 1,201,043 0.00% 60,756,207 54,140,450 114,896,657 4.10% 298,771,491 68,065,226 366,836,717 13.00% 18,308,126 8,269,281 26,577,407 0.90% 4,604,774 1,297,493 5,902,267 0.20% Transportation 16,489,622 1,337,298 17,826,920 0.60% Other Services 96,538,358 40,720,216 137,258,574 4.80% 115,569,892 18,922,684 134,492,576 4.70% 1,656,516,944 1,175,915,542 2,832,432,486 100.00% Pregnancy and Parenting Prevention and Intervention Recreation Services Residential Treatment Special Services— Disabled Special Services—Youth at Risk Substance Abuse Services Administrative Costs Total SSBG Expenditures Source: Table prepared by the Congressional Research Service (CRS) based on data included in the Social Services Block Grant Program Annual Report 2007. Full report available at http://www.acf.hhs.gov/programs/ocs/ ssbg/reports/2007/index.html. Congressional Research Service 13 . Social Services Block Grant (Title XX of the Social Security Act) Appendix A. TANF Transfers to SSBG in FY2008 Table A-1.TANF Transfers to the SSBG in FY2008 State Alabama Total Federal TANF Fundsa ($) TANF Funds Transferred to SSBGb ($) Percent of TANF Funds Transferred to SSBG SSBG Allocation ($) Total SSBG Funds With TANF Transfer ($) 147,700,943 10,440,846 7.07% 25,967,809 36,408,655 Alaska 93,334,627 5,100,000 5.46% 3,783,365 8,883,365 Arizona 244,430,813 22,530,846 9.22% 34,817,291 57,348,137 Arkansas 160,236,821 2,000,000 1.25% 15,871,213 17,871,213 California 4,041,837,875 365,558,000 9.04% 205,852,681 571,410,681 Colorado 266,637,015 14,962,638 5.61% 26,839,308 41,801,946 Connecticut 266,788,107 26,678,810 10.00% 19,789,436 46,468,246 37,894,350 3,082,353 8.13% 4,819,038 7,901,391 District of Columbia 135,115,494 3,935,917 2.91% 3,283,531 7,219,448 Florida 695,963,305 62,274,578 8.95% 102,142,136 164,416,714 Georgia 521,296,600 7,000,000 1.34% 52,872,242 59,872,242 Hawaii 240,945,411 9,890,001 4.10% 7,258,393 17,148,394 Idaho 39,838,529 1,441,201 3.62% 8,280,199 9,721,400 Illinois 585,056,960 41,574,111 7.11% 72,454,005 114,028,116 Indiana 280,729,268 2,000,000 0.71% 35,648,447 37,648,447 Iowa 156,937,453 12,962,008 8.26% 16,837,945 29,799,953 Kansas 113,904,183 7,191,254 6.31% 15,606,980 22,798,234 Kentucky 238,298,672 0 0.00% 23,749,035 23,749,035 Louisiana 197,118,593 16,397,199 8.32% 24,210,309 40,607,508 85,718,142 3,961,250 4.62% 7,462,091 11,423,341 Maryland 343,747,454 22,909,803 6.66% 31,708,453 54,618,256 Massachusetts 465,561,116 45,937,113 9.87% 36,346,751 82,283,864 Michigan 775,687,696 71,149,002 9.17% 57,003,700 128,152,702 Minnesota 344,373,625 9,440,000 2.74% 29,175,346 38,615,346 Mississippi 137,949,056 9,321,860 6.76% 16,433,975 25,755,835 Missouri 220,961,137 21,705,174 9.82% 32,990,099 54,695,273 Montana 78,235,657 1,998,226 2.55% 5,333,738 7,331,964 Nebraska 81,149,276 0 0.00% 9,984,645 9,984,645 Nevada 76,791,792 2,604,454 3.39% 14,090,671 16,695,125 New Hampshire 70,214,738 2,644,753 3.77% 7,424,379 10,069,132 523,372,393 15,682,000 3.00% 49,262,063 64,944,063 Delaware Maine New Jersey Congressional Research Service 14 . Social Services Block Grant (Title XX of the Social Security Act) Total Federal TANF Fundsa ($) State New Mexico TANF Funds Transferred to SSBGb ($) Percent of TANF Funds Transferred to SSBG SSBG Allocation ($) Total SSBG Funds With TANF Transfer ($) 169,528,234 0 0.00% 11,036,382 11,036,382 2,657,316,093 125,639,424 4.73% 109,009,784 234,649,208 North Carolina 571,880,137 16,944,657 2.96% 50,007,073 66,951,730 North Dakota 45,447,041 0 0.00% 3,590,338 3,590,338 1,317,125,650 57,167,392 4.34% 64,809,028 121,976,420 Oklahoma 257,483,468 14,585,963 5.66% 20,209,543 34,795,506 Oregon 217,737,307 0 0.00% 20,895,836 20,895,836 Pennsylvania 819,815,516 35,760,250 4.36% 70,244,305 106,004,555 Puerto Rico 22,873,941 0 0.00% 8,793,103 8,793,103 Rhode Island 97,138,519 6,926,593 7.13% 6,028,117 12,954,710 South Carolina 152,664,867 5,000,000 3.28% 24,399,355 29,399,355 South Dakota 39,735,576 2,127,965 5.36% 4,415,001 6,542,966 Tennessee 349,989,058 0 0.00% 34,097,295 34,097,295 Texas 775,021,769 30,735,235 3.97% 132,733,557 163,468,792 Utah 154,216,340 7,407,000 4.80% 14,398,590 21,805,590 47,353,181 4,735,318 10.00% 3,522,813 8,258,131 Virginia 176,210,059 15,828,500 8.98% 43,154,524 58,983,024 Washington 457,186,464 9,692,081 2.12% 36,113,019 45,805,100 West Virginia 168,473,121 11,017,631 6.54% 10,267,748 21,285,379 Wisconsin 315,709,686 13,420,500 4.25% 31,374,069 44,794,569 Wyoming 67,351,075 1,850,053 2.75% 2,907,901 4,757,954 1,699,306,655 2,880,518,614 New York Ohio Vermont Total 20,548,084,203 1,181,211,959 - Source: Table prepared by the Congressional Research Service (CRS) based on FY2008 data reported by HHS. a. The amount in this column is the total amount of federal funding awarded in this year and funds remaining from previous years. b. The amount in this column is the total amount of federal TANF funding transferred to SSBG in FY2008, including any adjustments made for previous years. This information comes from TANF financial data reports for FY2008, which is available online at http://www.acf.hhs.gov/programs/ofs/data/index.html. Congressional Research Service 15 . Social Services Block Grant (Title XX of the Social Security Act) Appendix B. FY2006 Supplemental SSBG Funding Table B-1. Status of State Spending from the FY2006 SSBG Supplemental (as of October 1, 2009) State Alabama Allocation ($) Balance ($) (Amount Unspent) Percent Spent 27,852,254 113,667 99.59% Alaska 37,554 37,554 0.00% Arizona 487,931 182,722 62.55% Arkansas 3,603,505 2,780,335 22.84% California 3,051,021 1,945,928 36.22% Colorado 545,168 112,876 79.30% Connecticut 113,858 0 100.00% 39,178 0 100.00% 328,256 0 100.00% Florida 53,808,916 20,055,322 62.73% Georgia 6,325,537 1,245,651 80.31% Hawaii 34,153 34,153 0.00% Idaho 35,224 12,794 63.68% Illinois 1,351,677 2,942 99.78% Indiana 381,125 231,653 39.22% Iowa 126,200 43,966 65.16% Kansas 191,975 0 100.00% Kentucky 525,110 0 100.00% Louisiana 220,901,534 2,484,750 98.88% 67,995 2,476 96.36% Maryland 380,188 1,899 99.50% Massachusetts 331,948 284,422 14.32% Michigan 734,927 134,038 81.76% Minnesota 153,936 99,296 35.50% Mississippi 128,398,427 1,275,270 99.01% Missouri 797,091 0 100.00% Montana 41,786 41,786 0.00% Nebraska 114,925 0 100.00% Nevada 273,291 217,884 20.27% 23,717 23,717 0.00% New Jersey 259,599 0 100.00% New Mexico 265,277 265,277 0.00% Delaware District of Columbia Maine New Hampshire Congressional Research Service 16 . Social Services Block Grant (Title XX of the Social Security Act) Allocation ($) Balance ($) (Amount Unspent) New York 1,182,346 1,182,346 0.00% North Carolina 1,310,272 751,447 42.65% 13,009 0 100.00% Ohio 556,283 496,967 10.66% Oklahoma 932,353 932,353 0.00% Oregon 177,170 0 100.00% Pennsylvania 402,568 41,436 89.71% Rhode Island 69,382 0 100.00% South Carolina 696,901 234,866 66.30% South Dakota 21,624 0 100.00% 3,470,718 0 100.00% 87,951,690 2,846,440 96.76% Utah 92,669 19 99.98% Vermont 23,272 23,272 0.00% Virginia 808,855 808,855 0.00% Washington 326,206 0 100.00% West Virginia 132,912 31,233 76.50% Wisconsin 227,555 9,094 96.00% Wyoming 20,932 20,932 0.00% 550,000,000 39,009,638 92.91% State North Dakota Tennessee Texas Total Percent Spent Source: Table prepared by the Congressional Research Service (CRS) based on data from HHS. Notes: States had until the end of FY2009 (September 30, 2009) to spend down these funds. However, under the Terms and Conditions of their grant agreements, states are given 90 days after the end of the grant period to finalize spending for funds that were obligated as of September 30, 2009. As a result, these numbers—though collected at the end of FY2009—may not reflect final expenditures from the FY2006 supplemental. Congressional Research Service 17 . Social Services Block Grant (Title XX of the Social Security Act) Author Contact Information Karen E. Lynch Analyst in Social Policy klynch@crs.loc.gov, 7-6899 Congressional Research Service 18