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Counties and tribes must use the funds to develop programs and services that improve MFIP and DWP outcomes.

The county or tribal human services agency has the authority to determine the uses of the Consolidated Fund allocated to them within the limits set by state and federal law. This information outlines the options available to county and tribal human services agencies.

The MFIP consolidated fund is an allocation from the state to counties and tribes to support them in meeting their duties in delivering MFIP and DWP services.

Who can be served

The following if they are below 200% of poverty:

· Families with a minor child.

· Pregnant women.

· Non-custodial parents of a child receiving MFIP assistance.

Who must be given priority:

· Families currently receiving MFIP, DWP, or Family Stabilization Services.

· Families at risk of receiving MFIP or DWP.

Counties or tribes cannot impose residency requirements – except for the requirement that someone must be in the state at least 30 days with the hardship exemptions for being without shelter or food. See Combined Manual 0011.06 (State Residence).

The Consolidated Fund includes federal TANF funds.

Federal TANF law recognizes two types of expenditures:
1. Assistance – These expenditures impose work requirements and count towards the 60-month lifetime limit.

2. Non-assistance – These expenditures do NOT come with work requirements and do not count towards the 60-month time limit.

The expenditures can be covered with the Consolidated Fund

Allowed expenditure	What does this include?	How would TANF treat this?
Short-term nonrecurring shelter and utility benefits.	· Emergency Assistance,	Non-assistance.
Transportation needed to: obtain/ retain employment, participate in other approved work activities or family stabilization activities.	· Gas cards. · Bus cards. · Van rides. · Car repairs.	Assistance: · If the participant is NOT working. Non -assistance: · If the participant is working. · If the participant is NOT working but the transportation assistance is provided as a short-term non-recurrent benefit designed to meet a specific need or crisis and will not last more than 4 months.
Direct and administrative costs of staff to deliver employment services for MFIP, DWP, and FSS.	· ES counselors. · Other staff in ES agencies. · Other programs under contract to deliver services to MFIP participants.	Non-assistance.
Direct and administrative costs of staff to administer financial assistance.	· County or tribal eligibility workers. · County or tribal eligibility case aides.	Non-assistance.
Direct and administrative costs of staff to provide specialized services to assist hard-to-employ participants to transition to work or transition from family stabilization services to MFIP.	· Employment services agency staff. · County social services or behavioral health staff. · Community based organizations with a county or tribal contract.	Non-assistance.
Costs of education and training including function al work literacy and English as a second language.	· ES agency training programs. · Other training programs offered by community-based agencies. · Formal education.	Non-assistance.
Costs of Work Supports including tools, clothing, boots, telephone service and other work related expense.	N/A.	· These items or the funds designated to purchase them do not count as income against the MFIP grant. · These would be non-assistance if provided: · To someone who is working. OR · To someone not working but it is provided as short-term, non-recurrent benefits designed to meet a specific need or crisis instead of an on-going need and is not provided for more than 4 months.
County administrative expenses as defined in CFR 45 section 260(B).	· County or tribal eligibility worker administrative costs.	Non-assistance.
Services to parenting and pregnant teens.	· Case management. · School based services. · Home visiting. · Other community based services. · Other.	Non-assistance – if it is services and not money or benefits.
Supported Work.	· Work in which support services are provided to give someone a chance to try a job they would not otherwise receive. · Could be paid or unpaid.	Non-assistance.
Wage subsidies.	· Payments to employers to cover the wages of participants placed into jobs.	Non-assistance.
Child care needed for MFIP, DWP, or FSS participants in social services.	This provision was written when CCAP did not cover time parents spent in social services.	No longer necessary.
Child care for families leaving MFIP or DWP whose TY CCAP ends before there is an opening in BSF child care.	This provision was written before the State created the Transition Year Extended program to solve the problem.	No longer necessary.
Services to help non-custodial parents to obtain/retain employment – for non-custodial parents who have minor children receiving MFIP or DWP assistance.	N/A.	· The non-custodial parent must live in MN. · A non-custodial parent receiving assistance counts in the Work Participation Rate.
Services to help families participating in FSS achieve the greatest degree of self-sufficiency.	· Employment services. · County, tribal or community social services. · Community-based services. · Medical – including behavioral health services – should NOT be paid for with TANF funds. They are funded through Medical Assistance.	Non-assistance: · For services Assistance: · For resources, money, etc.
Administrative costs that are not matched with county funds may not exceed 7.5% of a county’s or 15% of a tribe’s allocation under this section.	· The provision in this section is to cover overhead, management, etc. costs. · Random moment time studies are used to identify eligibility worker time spent on MFIP. The county or tribe is reimbursed for half the time caught in the random moment time study.	Administrative.

Counties and tribes may serve households not receiving assistance through MFIP or DWP but whose income is below 200% of poverty under the following conditions:

· For services or short-term non-recurrent benefits designed to deal with a specific crisis or episode of need, not intended to meet recurrent or on-going needs, and not extending beyond 4 months.

Counties and tribes who opt to serve families not on MFIP or DWP must still meet the standards for determining and verifying eligibility.

The site should submit a proposal for how eligibility will be verified. That would have to include information about:

a) The application process.

b) How the site will verify key elements of eligibility.

· Reported income.

· Presence of a minor child or a pregnant woman in the home or a non-custodial parent of a minor child receiving MFIP assistance.

· Immigration status.

· Residency in Minnesota for at least 30 days.

c) How often the site will require updated income reports.

d) How will the site confirm that there is not unreported income. This includes a federal requirement to run Income and Eligibility Verification Systems matches.

For current federal poverty guidelines, see the Poverty Guidelines page of the Office of the Assistant Secretary for Planning and Evaluation at the U.S. Department of Health and Human Services.

Use income eligibility known to the agency from other programs.

The most likely successful answer to b) and d) above would be to use income and other eligibility factors already on MAXIS through other programs. This could include:

· SNAP.

· CCAP. The income limit for CCAP exceeds 200% of poverty. You still need to use the information reported to CCAP to confirm that the family you want to serve is below 200% of poverty.

There is no asset test that must be imposed.

If counties or tribes intend to serve families not on MFIP or DWP, DHS has to approve the plan and expenditures.

The allocation formula for the MFIP Consolidated Fund

There is an initial allocation and an adjusted allocation based on the county or tribe’s performance.

· Counties and tribes must receive 100% of their initial allocations.

· The allocations are for a calendar year. Unused funds do not roll over into the next calendar year. It is calculated every year. The formula is updated for number of cases the county or tribe served in the previous 12 months. The allocation is usually determined in July and August.

The initial allocation is based on the following:

Formula Element	How Much of the Allocation Is Based On That Element	What That Element Includes
The county or tribe’s share of the 2002 historic spending base.	50%	County or tribal state fiscal year 2002 on: · MFIP employment and training services. · Bilingual employment and training services to refugees. · Work literacy language programs. · Supported work program. · Administrative aid. · Emergency assistance issued by the state to people living within the county or tribal boundaries.
The proportion of the county or tribe’s share of the MFIP and DWP caseload in the last 12 months.	50%	The adjusted caseload factor uses the most recent 12-month period for which data is available and looks at 4 points in time. There is also a difficulty factor. The caseload difficulty factor is based on the Self-Support Index. See 23.51 (Performance Measures). The caseload information is weighted as follows: · 47% based on the number of MFIP cases in the county or tribal area multiplied by the county’s or tribe’s caseload difficulty factor. · 55% on the count of adults receiving MFIP in each county or tribe multiplied by the county or tribe’s caseload difficulty factor.

Performance-based funding

The performance funding is based on performance in the Self-Support Index.

County or Tribal Performance Level	Adjustments to Initial Allocation Based on Performance
Within the range of expected performance.	No adjustment.
Above the range of expected performance.	A performance bonus equal to 2.5 percent of the initial allocation.
Below the range of expected performance for 2 consecutive years.	· Must negotiate a multiyear performance improvement plan (PIP). · If no improvement is shown at the end of the multiyear plan, the initial allocation must be reduced by 2.5%. · The decrease must remain in effect until the county or tribe performs within or above its range of expected performance.

If the available funds are not enough to cover all the bonuses counties and tribes have earned, the Department shall pro-rate the bonus funds.

If there are funds remaining after the initial allocations and the performance-based funding is awarded, the Department shall use the funds for innovation projects.