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Hawaii: Welfare Reform Proposal

Center for Substance Abuse Treatment (CSAT)
Division of State and Community Assistance

State Team-Building Workshop
on
Welfare Reform

Hilton of Santa Fe
Santa Fe, New Mexico
October 29-30, 1997

Pursuit of New Opportunities (PONO)

PROPOSED CHANGES:

  1. Time Limited Assisstance (five years)
  2. Grant Reductons Over Time
  3. Increased Earnings Disregards
  4. Increased Asset Disregard ($5,000)
  5. Disregard One Motor Vehicle
  6. Eliminate $50.00 Child Support Pass-through
  7. Exclude the Earned Income of Minor, Dependent Students
  8. Disregard All Student Loans, Grants and Scholarships

PROPOSED FAMILY GRANT TABLE
(Based on Standards of Assistance, 11/94 Revision)

 
Household Size 1 2 3 4 5 6
100% of SOA $418 $565 $712 $859 $1006 $1153
Year   Reduction
Factor		  
1   20% $335 $452 $570 $687 $805 $922
2   20% $335 $452 $570 $687 $805 $922
3   30% $293 $395 $498 $601 $704 $807
4   40% $251 $339 $247 $515 $603 $691
5   50% $209 $282 $356 $429 $503 $576
Household Size 7 8 9 10 11 12
100% of SOA $1300 $1446 $1593 $1740 $1887 $2034
Year   Reduction
Factor
1 20% $l,040 $1,157 $1,275 $1,392 $1,510 $ 1,627
2   20% $1,040 $1,157 $1,275 $1,392 $1,510 $ 1,627
3   30% $910 $l,012 $l,115 $1,218 $l,321 $ 1,424
4   40% $780 $868 $956 $1,044 $1,132 $ 1,220
5   50% $650 $723 $796 $870 $943 $ l,017

GRANT REDUCTION:

  1. 20% first two years
  2. 30% third year -
      Examples of Possible
      Future Reductions.
  3. 40% fourth year -
      Must receive Legislative
      Approval to Implement.
  4. 50% fifth year
  5. ineligible after five years

INCREASED EARNINGS DISREGARDS:

  • 20% (Standard Deduction)
  • $200
  • 36% of remaining balance
      ( with legislative approval:
      44% in year 3
      52% in year 4
      60% in year 5.)

HOUSEHOLDS IN WHICH All ADULTS MEET ONE OF THE FOLLOWING CRITERIA WILL NOT BE SUBJECT TO TIME LIMITATION OR GRANT REDUCTION:

  • Disabled
  • Caring for a Child Under Six Months
  • Caring for an Ill or Incapacitated Family Member
  • No Needy Caretaker
  • Vista Volunteer
  • Heads of Households Who are Minor(teen) Parents (Protected from grant reduction only)

EXAMPLE OF A WAIVER BUDGET:

GROSS EARNED INCOME $727.00
STANDARD DEDUCTION (20%) $145.00
$200 DISREGARD $200.00
DISREGARD OF 36 % OF BALANCE $137.00
COUNTABLE INCOME $245.00
SOA FOR 3 MEMBER HOUSEHOLD $570.00
MINUS COUNTABLE EARNED INCOME $245.00
PAYMENT TO HOUSEHOLD $325.00

COMPARISON OF ACTUAL INCOME FOR EMPLOYED HOUSEHOLDS

CURRENT
ASSISTANCE GRANT $ 75.00
NET EARNED INCOME (gross minus 20% for taxes) $582.00
TOTAL $657.00

WAIVER
ASSISTANCE GRANT $325.00
NET EARNED INCOME (gross minus 20% for taxes) $582.00
TOTAL $907.00

Hawaii Reform Activity
Agenda
Resource Notebook

 

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