Arapahoe County human services proposes buying other counties' TANF reserves to avoid state clawbacks

A plan to buy other Colorado counties' temporarily excess Temporary Assistance for Needy Families (TANF) allocations was presented to the Arapahoe County Board of County Commissioners at a March 10 study session as a way to avoid state clawbacks and to smooth the county's projected overspending in multiple human‑services funding lines.

Dan Mikkelke, director of Arapahoe County Human Services, introduced the concept and credited a staff member, "Bob," with developing the spreadsheet that identifies counties likely to lose TANF reserves to state reclamation. Mikkelke said the county is "in a precarious situation" in several funding lines and that buying excess TANF from other counties would let those counties receive relief in the current state fiscal year rather than waiting until later payments.

Mikkelke described a spreadsheet analysis that identified about $1,700,000 in excess TANF statewide; using a 75% capture assumption, the county would target roughly $1,280,000 in purchases. Under that scenario, Mikkelke said the county’s cost to acquire the identified share would be approximately $189,440 and that the county would fund purchases from its TANF reserves. He also said the county currently has approximately $3,100,000 in TANF reserves. Mikkelke cautioned that the precise cost depends on the final purchase volume; in a higher‑volume scenario he presented, the acquisition cost could be about $252,463.58.

Commissioners discussed whether to give broader authority to staff to pursue as much of the available excess as possible. Commissioner Jessica Campbell urged staff to "get as much as you can," noting that spending a modest amount from reserves could secure a larger immediate allocation. Several commissioners indicated support by voice and by "thumbs up" during the study session; presenters said this request was for authority to spend existing TANF reserves rather than an additional appropriation.

Mikkelke said the county’s purchase approach mirrors prior intercounty transactions that occur when counties with excess send notices inviting buyers; historically Arapahoe County has often been a seller rather than a buyer. He said the county would pay the obligating maintenance‑of‑effort percentage required by the state and that purchased allocations would reduce the amount counties would otherwise lose to state clawback.

The board did not take a formal recorded vote during the study session to authorize the purchases. Later in the meeting the board moved into executive session; a motion was made to "go into executive session pursuant to Section 24‑6‑402(4)(b) of the Colorado Revised Statutes to receive legal advice regarding property damage claims along the High Line Canal and to a settlement demand in the Melissa Lamer case." The motion was seconded and approved by voice vote.

Director Mikkelke and staff said they would proceed to seek authority and pursue purchases within the parameters discussed and return to the board with final figures and any required approvals.