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Fix TANF application-month income and assistance-unit modeling in CPS baseline #7988

@MaxGhenis

Description

@MaxGhenis

Problem

After fixing TANF resource inputs and re-profiling full-takeup caseloads against FY2024 ACF targets, the remaining worst states are structural TANF eligibility misses rather than takeup-prior issues:

  • Oregon modeled average monthly TANF recipients: 0 vs admin target 18,196
  • Kansas modeled average monthly TANF recipients: 0 vs admin target 2,933
  • Maryland modeled average monthly TANF recipients: 4,852 vs admin target 12,919
  • New York modeled average monthly TANF recipients: 97,049 vs admin target 128,335

DC was separately fixed by removing work-requirement compliance as an upfront TANF eligibility gate; that brought DC from 0 to 4,852 vs admin 5,056.

Findings

1. TANF is being screened on SPM-unit structure rather than narrower TANF need-group / assistance-unit concepts

Oregon is the clearest example. In the CPS baseline:

  • Oregon weighted demographic-eligible TANF units: 354,227
  • Oregon weighted income-eligible TANF units: 126,163
  • Oregon weighted top-level eligible TANF units: 0

The demographic-eligible and income-eligible sets are disjoint. Income-eligible units are only size 1-2, while nearly all child-family TANF cases are size 3+.

This suggests current formulas are applying TANF income limits to whole SPM units, not a narrower need group / assistance unit.

2. TANF monthly income tests are using CPS annual-income constructs rather than a defensible application-month proxy

For Oregon demographic-eligible units, the weighted median current TANF countable income is on the order of $8k-$10k per month against TANF payment standards under $1k, which is implausibly high for a caseload program.

This is driven by feeding monthly TANF rules with annual CPS income constructs. A quick counterfactual using current-hours/current-wage proxies materially restores plausible Oregon eligibility counts, but a naive shared replacement was not stable enough to land yet.

3. Kansas gross-income screen remains binding after other screens

Kansas still has zero modeled recipients even though there are weighted units that pass demographic, resource, and net-income screens before the gross-income gate.

Next steps

  • Add a TANF-specific current-month earned-income proxy for CPS baseline construction or in-model TANF screening.
  • Audit TANF formulas that should use assistance-unit / need-group structure rather than raw SPM-unit size and income.
  • Re-profile implied state takeup rates after the above before introducing state-specific TANF takeup priors.

Context

This came out of the TANF calibration / asset hookup audit and ACF FY2024 caseload comparison.

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