Reporter’s Notebook: Failure to communicate
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The issues raised about structural deficits in the Temporary Assistance for Needy Families program since May and the pivot to accusations of fraud in the School Clothing Allowance program could be taught as a masterclass in how not to communicate.
Let’s start with May when Gov. Patrick Morrisey first announced the TANF structural deficit. I’ve frequently written about this, but in short: an influx of federal COVID-era dollars flooded into state TANF programs, causing TANF-funded programs to expand and creating sizable TANF carryover funds to accumulate.
When the federal COVID dollars dried up, West Virginia’s TANF-funded programs did not scale back. That caused structural gaps between the available state and federal TANF dollars and TANF expenses, which were bridged thanks to the leftover TANF carryover funds.
Flash forward to now: the TANF carryover funds have dwindled from $141 million three years ago to $41 million for the current fiscal year, which could be complete spent by fiscal year 2028 on July 1, 2027. According to the governor’s office, the TANF structural deficit (before tapping TANF carryover funds) for the current fiscal year is $38 million.
Much of this was told to us in May, but no other information was presented to the public. When those of us in the media would ask for further clarification, we were directed to Morrisey’s comments in May. In June, word came that the family support centers had heard nothing about their TANF funding for the new fiscal year, then told they could only be guaranteed funding through the end of September, which is the end of the federal fiscal year.
Then the TANF-funded School Clothing Allowance program did not begin on July 1 as expected. A July 10 announcement said the application period would open on July 20 and close on Aug. 15 or earlier if funding for the $200 per eligible child program dried up (the program cost $11.4 million last year). Then the program halted seven days later well ahead of the Aug. 15 deadline.
Also, the Department of Human Services announced at the beginning of July that reviews of other TANF-funded programs was complete, and funding would go out. It’s unclear what the reviews were specifically for or looked at, but the word “fraud” was never once mentioned.
Again, throughout all of this, the press was provided no additional information or clarification beyond the governor’s office chiding some reporters for saying that DoHS had $177 million in funding (its spending authority requested by the governor’s office and approved by the Legislature). According to lawmakers I’ve talked to, only one meeting was held between the governor’s office and legislative leadership since May despite Morrisey saying he was collaborating with the Legislature.
Nature abhors a vacuum. Same with information. If you’re not providing detailed information, then the press is left with what facts it can find, or left with talking with sources who either also don't have the correct facts or who might provide information contrary to facts and data. The most detailed info we finally received from the governor’s office was last Monday.
Is there a structural deficit in TANF? Yes. Is that structural deficit $38 million or $12 million? Good question, but left’s play devil’s advocate and say the governor’s number is correct. Is it an emergency for the current fiscal year? No.
DoHS has flexibility to move money within its line items to deal with this until the 2027 legislation session when lawmakers can approve a supplemental appropriation. There is plenty of leftover surplus from the previous fiscal year and unappropriated monies that have carried over to the new fiscal year, not to mention the state is already up $11 million for the new fiscal year as of the end of July. Is this an issue the governor’s office and the Legislature need to address for the next fiscal year? Yes.
That’s what makes the pivot to Gov. Morrisey stating last Tuesday morning in Huntington that “I don't want a penny of the money that should go for school clothing to be spent for cigarettes, to be spent for beer...” Morrisey presented no evidence that this was being done and the remarks appeared to be off the cuff, but by Wednesday, the governor’s office shared a AI-created graphic showing that 50% of those receiving the School Clothing Allowance through EBT cards extract their cash through ATMs.
The School Clothing Allowance used to be a paper voucher, but the previous administration of former Gov. Jim Justice made it an EBT card instead, allowing greater flexibility for families to extract those funds for places that don't accept EBT cards to purchase clothes and back-to-school supplies. The previous paper voucher system also was a pain for retailers and also meant waiting long periods for reimbursement from DoHS.
It’s a policy decision if Morrisey and DoHS want to return to a paper voucher program. Federal regulations require states that offer TANF benefits through EBT cards allow for ATM functionality, though the cards cannot be used at ATMs at liquor stores, casinos and other prohibited places. But going back to a paper voucher is probably not going to be well received by retailers and limit families from stretching those $200 vouchers to get the maximum benefit.
I have no doubt there are some who abuse this benefit, like I’m sure some people probably sold their paper vouchers for money to use for other prohibited things. But that’s not a reason given for why the School Clothing Allowance didn't start on July 1, why the program didn’t start until July 20 or why the program was halted on July 27 after seven days. Raising this issue appears raised to deflect from the bad press Morrisey is getting for his handling of TANF overall.
Better communication could have stopped this from becoming a political albatross. And I’m not sure the damage can be undone.