Fiscal Impact: No change from January budget proposal, which included $465 million in savings that also serve to protect important federal funding

There is no change to the state's CalWORKS proposal since January.

California currently awards the second highest grants in the nation to needy families in need of temporary assistance, and will continue to do so with the Governor's budget.

In January, the state Health and Human Services Agency was forced to make some changes to its CalWORKS program in order to prevent the federal government from withholding funding. In addition to protecting the needed federal funding, the changes, largely to the program's "safety net" component, encourage families to get back on their feet more quickly. Only eight other states even offer a "safety net" program.

The Governor's budget increases overall General Fund spending for health and human services over the current budget year by $239 million.

California Gives The Nation's Second-Highest Temporary Assistance Payments For Needy Families. California's maximum monthly grant, in December 2006, for a family of three, was $723, second only to Alaska. (California State Department Of Finance, "50 State Comparisons Of Temporary Assistance For Needy Families Maximum Payments")

California's Assistance Payments Compare Favorably To Other Large States.

• California, $723
• New York, $691
• Florida, $303
• Texas, $236.

(California State Department Of Finance, "50 State Comparisons Of Temporary Assistance For Needy Families Maximum Payments")

California Assistance Payments Compare Favorably To Other West Coast States.

• California, $723
• Washington, $546
• Oregon, $514
• Nevada, $348
• Arizona, $347

(California State Department Of Finance, "50 State Comparisons Of Temporary Assistance For Needy Families Maximum Payments")

Health And Human Services Secretary Belshe: Governor's CalWORKs Proposal Avoids "Millions Of Dollars In Federal Penalties." "Gov. Schwarzenegger's CalWORKs proposal is a responsible approach promoting work, strengthening incentives for family self-sufficiency, increasing recipient accountability, and positioning the state to avoid millions of dollars in federal penalties. Only 25 percent of CalWORKs participants meet federal rules regarding work participation." (Kim Belshe, "Proposal Will Help Families In Long-Run," Guest Commentary, Contra Costa Times, 01/21/07)

• Secretary Belshe: Proposal "Does Nothing To Change" Benefits To Individuals Unable To Work. "The proposal does nothing to change existing safeguards that protect individuals who are unable to work -- such as individuals with disabilities. These individuals will continue to receive benefits." (Kim Belshe, "Proposal Will Help Families In Long-Run," Guest Commentary, Contra Costa Times, 01/21/07)

CalWORKS Dep. Director Metsker: "It's Unacceptable That Many Families Are Not . Moving Forward With Efforts To be Self-Sufficient." "Currently, fewer than a quarter of CalWORKs recipients meet those requirements. At the same time, new federal rules require states to increase work participation or face losing welfare funds. That's why the governor proposed tougher penalties as part of his January budget proposal for the fiscal year beginning July 1, said Charr Lee Metsker, deputy director of CalWORKs. 'From our perspective, it's unacceptable that that many families are not participating and not moving forward with efforts to be self-sufficient,' Metsker said." (Clea Benson, "Child Welfare Cutoff Rejected," The Sacramento Bee, 03/29/07)