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CalWORKs budget held steady; department presents "reimagine" policy options to reduce burdens
Summary
CDSS presented an overview of CalWORKs funding, caseload projections, and a 12‑option report (per AB 161) with proposals to center family engagement, reduce administrative burden and support implementation; LAO and county representatives raised questions about single allocation methodology and county administrative funding sufficiency.
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The Department of Social Services presented an overview of CalWORKs (California's TANF program), projected caseloads and a report required by statute with policy options meant to center family engagement and reduce administrative burden.
"CalWORKs is known federally as the TANF program," Jennifer Troia said. The governor's January budget proposed roughly $6.4 billion in total funds for CalWORKs in 2025–26, the department said, with caseload projections of about 360,000 families for 2024–25 and a small projected increase thereafter.
Troia summarized a report submitted pursuant to Assembly Bill 161 that included 12 policy options grouped into: centering family engagement, reducing administrative burdens, and supporting local implementation. Examples include eliminating sanctions during the first 90 days of engagement (a change the department estimated would cost approximately $1.9 million in the first year and $1.7 million ongoing to restore grants otherwise lost to sanctions) and other low‑ or no‑cost changes intended to simplify welfare‑to‑work activities and reporting.
Legislative Analyst Office staff noted the governor's budget contains no major new CalWORKs proposals but raised concerns about the adequacy and methodology of the single allocation that provides counties a block grant for eligibility administration, employment services and intensive case management. The LAO said a reassessment of eligibility administration suggests about $200,000,000 in additional funding may be needed to update the allocation methodology.
County representatives urged adoption of a one‑time $245,000,000 adjustment and ongoing methodology updates to ensure counties can meet statutory eligibility workloads and employment services. CDSS and LAO said they will continue work with counties and provide further analysis ahead of the May revision.
The Subcommittee did not take formal votes on the policy options during the hearing.
