Fenty Raids TANF Funds To Shore Up Summer Youth Jobs Budget

Once again, the District’s Summer Youth Employment Program faces a budget shortfall. And, once again, Mayor Fenty has decided that the program shouldn’t have to adhere to the funding level set by the DC Council.

Two years ago, the administration spent about $40.5 million more than was originally budgeted. Last year, another cost overrun. And here we go again, but with a new twist.

The approved budget for this summer’s program is $22.7 million. The Council limited enrollment to 21,000 youth and capped the length at six weeks. The Department of Employment Services, which administers the program, has reportedly kept enrollment below the cap.

But, as the Washington Post reports, the Chief Financial Officer determined that the approved funding wouldn’t cover six full weeks of wages — perhaps because $10 million had to be spent on contractors to place as many youth as the Council was willing to allow. Not only that, but as DOES Director Joe Walsh testified last month, the administration wanted to extend the program to somewhat more than seven weeks.

So it was clearly in a bind. DOES could, of course, have cut back enrollment to eliminate the projected shortfall. It could have reduced participants’ work hours. The mayor could have gone back to the Council with a request for the additional funds needed to run the program he wanted.

Instead, he decided to reprogram $8.4 million that Clarence Carter, head of the Department of Human Services, had assured the Council would be used to bring total funding for homeless services up to the Fiscal Year 2009 level. Either that or the mayor is taking funds that are urgently needed to serve the very low-income families in the District’s TANF program.

At this point, we don’t know, though we may find out at a hearing the Housing and Workforce Development Committee has scheduled for tomorrow morning. But the mayor may think he doesn’t need to account for the supplement to the SYEP appropriation because, technically, the additional funds aren’t in the District’s budget.

They come from the District’s share of the TANF Emergency Contingency Fund — a pot of money Congress appropriated as part of the economic recovery act to help states cope with recession-related spending increases for TANF and/or short-term benefits to help families who would otherwise enroll in TANF.

The District had claimed $46 million. These funds weren’t in the proposed Fiscal Year 2011 budget because the U.S. Department of Health and Human Services hadn’t approved payment. Carter told the Council he was quite sure it would. And he was obviously right.

But because the funds weren’t in the budget, the mayor apparently feels free to use them for any of the broad purposes the Emergency Contingency Fund can cover, prior commitments and pressing needs notwithstanding.

An internal document prepared in April shows that DHS planned to use $8.1 million of the Emergency Contingency funds to make up the Fiscal Year 2010 homeless services shortfall and $15 million for the projected shortfall in Fiscal Year 2011. The remainder was to go to the TANF program itself — $7.9 million for cash assistance and the rest for improved job training and other initiatives.

The mayor claims that what he’s doing is altogether appropriate. “The Obama administration,” he says, “has made it a priority to use federal stimulus funds to put young people to work this summer.”

Perhaps he’s referring to the $1.2 billion that were in the economic recovery act for youth employment and training programs. Perhaps to the additional $1 billion that’s still pending in Congress.

What’s sure as can be is that neither the President nor any of his people ever suggested leaving homeless families out on the streets so that some kids can have summer-long subsidized jobs that could have gone to poor jobless parents.

UPDATE: At yesterday’s hearing, DOES Director Joe Walsh clarified the mayor’s reference to the Obama administration’s priority on subsidized summer jobs for youth. Several months ago, he said, the U.S. Departments of Labor and Health and Human Services sent a letter to state agencies encouraging them to address the high rate of youth unemployment.

They were encouraged to explore all funds available and provided guidance on how TANF funds could be used. The departments asked as many as possible to take advantage of potentials for partnering their Work Investment Act and TANF programs.

According to this account, the departments said nothing to suggest that summer jobs for youth should have a higher priority than providing shelter and other essential services for very low-income families, including meaningful job training for the parents.

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4 Responses to Fenty Raids TANF Funds To Shore Up Summer Youth Jobs Budget

  1. Anita Amero says:

    “…What’s sure as can be is that neither the President nor any of his people ever suggested leaving homeless families out on the streets so that some kids can have summer-long subsidized jobs that could have gone to poor jobless parents.”

    Yes, why is it that DC teens can have a priority for set aside jobs when TANF and UI recipients (required to work) are struggling to find living-wage, permanent employment? It is beyond hypothetical to take money from the TANF fund to prop up the SYEP, when the money could and should go towards improving conditions for families who depend on TANF and UI. Does Fenty really believe that this ploy will improve his chances in September?…

  2. […] Heat On DC Summer Youth Employment Program Monday’s hearing on the District’s troublesome Summer Youth Employment Program lasted more than eight hours. Many witnesses — most of them SYEP participants who, I gather, […]

  3. […] Summer Youth Employment Program. I’ve none at all about programs like San Francisco’s Jobs Now!, which has placed more than 3,600 unemployed and underemployed low-income parents in temporary jobs […]

  4. […] $8.4 million of the funding DHS received from the TANF Emergency Contingency Fund was shifted to cover a cost overrun in last year’s Summer Youth Employment […]

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