Summary
The Department of Workforce Services (Department) is authorized by statute (Section 35A-3-301 et seq.) to administer the Family Employment Program (FEP), a cash assistance program for needy families that is funded via the federal Temporary Assistance for Needy Families (TANF) Block Grant, see 42 U.S.C. 601 et seq. The purposes of the TANF Block Grant include to "provide assistance to needy families" and to "end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage", see 42 U.S.C. 601. The Utah Legislature has likewise authorized FEP to "assist a parent recipient to obtain employment that is sufficient to sustain a family", "ensure the dignity of those receiving assistance", and "strengthen families", see Section 35A-3-301. The Department is specifically authorized to make rules governing eligibility for FEP assistance under Section 35A-3-302. Eligibility for FEP assistance is determined by, among other factors, the amount of earned income a household receives; if the household's earned income exceeds a certain amount, the household loses its eligibility for FEP assistance. Currently, income earned by dependent children is always counted as earned income for the household. The Department has found that, in some cases, this facet of FEP has created a perverse incentive for dependent children who are able to work and earn income to refrain from doing so lest they cause their family income to exceed the eligibility threshold. Because it is contrary to the purposes of the TANF Block Grant and FEP to disincentivize work by persons who are able to work, the Department has determined it is necessary to modify the standards for how income earned by dependent children is counted. The proposed rule creates an exception for the counting of a dependent child's earned income against the household if the child is participating in the employment or training activities required by the Department as a condition of receiving FEP funds. "Training activities" is a broad term that includes full-time schooling as well as other educational and training activities. This proposed rule change is expected to encourage dependent children who wish to work while attending school to do so without fear of affecting their families' assistance case. In addition, numerous studies have shown the value of holding a job for teenagers in terms of teaching important life skills like workplace norms and expectations, effective time management, motivation to pursue long-term employment goals, and persistence. The Department believes this proposed rule change will contribute to helping dependent children learn these skills and ultimately progress toward the Department's and state's goal of ending the cycle of intergenerational poverty.