MINNESOTA COMMUNITY SERVICES BLOCK GRANT FFY2012/2013 STATE PLAN Office of Economic Opportunity MINNESOTA DEPARTMENT OF HUMAN SERVICES Minnesota Community Services Block Grant FFY2012/2013 State Plan TABLE OF CONTENTS I. Federal Fiscal Years .................................................................................1 II. Letter of Transmittal .................................................................................1 III. Executive Summary .................................................................................1 Overview of Poverty in Minnesota....................................................................1 A. Statutory Authority of the State..................................................................8 B. Designation of State Agency .....................................................................9 C. Public Hearing Requirements ....................................................................9 IV. Statement of Federal and CSBG Assurances ......................................10 A. CSBG Programmatic Assurances ............................................................10 B. CSBG Administrative Assurances ............................................................13 C. Other Administrative Certifications ............................................................18 V. The Narrative State Plan ..........................................................................19 A. Administrative Structure ...........................................................................19 1. State Administrative Agency .................................................................19 2. Eligible Entities .....................................................................................23 3. Distribution and Allocation of Funds (675C) .........................................24 B. Description of Criteria and Distribution Formula ........................................24 C. Description of Distribution and Use of Restricted Funds ...........................25 D. Description of Distribution and Use of Discretionary Funds ......................26 E. Description of Use of Administrative Funds ...............................................26 F. State Community Services Program Implementation ...............................26 1. Program Overview ................................................................................26 2. Community Needs Assessments ..........................................................30 3. Tripartite Boards (676B) .......................................................................31 4. State Charity Tax Program ...................................................................31 G. Programmatic Assurances ........................................................................32 H. Fiscal Control and Monitoring (675C) .......................................................48 1. State Program Monitoring (678B) .........................................................48 2. Corrective Action, Termination and Reduction of Funds ......................52 3. Fiscal Controls, Audits and Withholdings .............................................53 4. Assurances ...........................................................................................53 I. Accountability and Reporting Requirements.............................................54 1. Results Oriented Management and Accountability ............................54 2. State Performance Measurement Data Collection .............................59 3. Annual Report ...................................................................................59 VII. Administrative Certifications (CSBG/CFN) ...........................................60 VIII. Appendices I. Federal Fiscal Years Covered by this State Plan and Application The Minnesota plan and application covers FFY2012/2013. II. Letter of Transmittal See cover letter attached to the Plan. III. Executive Summary This document has been prepared by the Minnesota Department of Human Services (DHS)/Office of Economic Opportunity (OEO) for submission to the U. S. Department of Health and Human Services (DHHS) to express Minnesota's desire to receive an allotment for FFY2012/2013 under the Community Services Block Grant (CSBG) Act (P.L. 97-35, Subtitle B as amended by P.L. 105-285). These funds are to be used for CSBG programs throughout Minnesota. Poverty and Economic Insecurity in Minnesota While the Great Recession has officially ended, its effects continue to be observed across the state of Minnesota. Rural and urban communities struggle with increased poverty, persistent unemployment, stagnant wages, housing market instability and sluggish economic growth. These economic conditions impair the ability of poor and low-income Minnesotans to achieve economic security. Community Action Agencies report continuing demand for emergency, employment, education, housing and other support services. In a time when local and state governments face unprecedented budget shortfalls, Community Action is being asked to expand its role in helping poor and low-income Minnesotans. This section focuses on Minnesota‘s poverty trends and describes key issues affecting Community Action priorities and strategies. Poverty Trends More people live in poverty. Since 2001, Minnesota‘s poverty rate has steadily climbed with the most significant increases occurring during the Great Recession of the late 2000s. Between 2001 and 2009, the overall percentage of Minnesotans living in poverty increased from 8% to 11%.1 Seven cities had poverty rates exceeding 20%. In the Twin Cities metropolitan area, 10% of people lived in poverty. These figures represent significant increases from pre-recession levels. Some Minnesotans experienced large increases in poverty between 2007 and 2009, including Latinos (4%), children (2%) and white Non- 1 U.S. Census Bureau. 2000 Census and 2009 American Community Survey. Minnesota Community Services Block Grant FFY 2012/2013 State Plan 61 Hispanics (1%). In Minnesota, 14% of children under age 18 compared to 10% of people 18 years and over and 9% of people 65 years old lived below the poverty level in 2009. Median household income has decreased. Minnesota 2009 Median The recession impacted most families in Minnesota. Household Between 2008 and 2009, median household income Income decreased by 2%, about $1,000, to $55,604 (after All Groups $55,604 adjusting for inflation).2 Although Minnesota‘s median household income remained higher than the national Asian $59,893 figure ($50,221), significant income disparities exist Non-Hispanic $57,979 between specific racial and ethnic groups. In 2009, White the median income for non-Hispanic white households Latino $38,751 was $57,979 in comparison to $26,930 for black American $33,930 households, $33,930 for American Indian households Indian and $38,751 for Latino households. While non- Black $26,930 Hispanic white households had incomes above the Source: U.S. Census national median in 2009, black households in Bureau, 2009 American Minnesota had incomes well below the national Community Survey median. Racial disparities in poverty are dramatic. Minnesota‘s communities of color face dramatic Minnesota 2009 concentrations of poverty and persistent income Poverty inequality. In 2009, all racial groups, including non- Rate Hispanic Whites, experienced a significant increase in All Groups 11% poverty and significant decrease in median household American 35% income. While the poverty rate among non-Hispanic Indian White Minnesotans is one of the lowest in the nation, Black 35% Black, American Indian and Latino communities have Latino 26% significantly higher rates of poverty. In 2009, 35% of Asian 17% Blacks and American Indians lived below the poverty Non-Hispanic 8% line. Latinos (26%) and Asians (17%) also had White significantly higher poverty rates than non-Hispanic Whites (8%). Source: U.S. Census Bureau, 2009 American Community Survey Minnesota Community Services Block Grant FFY 2012/2013 State Plan 61 Female-headed households with children are disproportionately poor. Minnesota 2009 Poverty Rate Statewide, 7% of all families lived in poverty in Families With Related Children 2009. Female-headed households with related under Age 18 children under 18 years of age (33%) and All Families 12% related children under 5 years of age (44%) are Married 5% most likely to live in poverty. In contrast, only Couple 5% of married couple families with related Families children under 18 years of age and 3% with Single 33% related children under 5 years lived in poverty. Parent, Female- Poverty is increasingly suburbanized. Headed Households Since 2000, poverty has geographically shifted in Minnesota‘s largest metropolitan area, Families With Related Children Minneapolis – Saint Paul. In 2008, Hennepin under Age 5 and Ramsey Counties, the location of All Families 13% Minneapolis and Saint Paul, had poverty rates Married 3% higher than the statewide rate and highest Couple among the nine counties of the metro area. Families However, the overall share of the metro area‘s Single 44% poor was larger in the suburbs than the central Parent, cities. By 2008, 54% of poor individuals lived in Female- the suburbs compared to 46% in the central Headed 3 Twin Cities. The suburbs are home to the Households largest and fastest-growing poor population. Source: U.S. Census Bureau, 2009 American These geographical trends are expected to Community Survey continue in the future. More Minnesotans face economic insecurity than those “officially” considered poor. Today