OK Plan for TANF Restrictions
Scope of the Problem
In order to craft solutions appropriate to the problem it is important to understand the scope of the issue. In the State of California, one of the first states to restrict benefit access at prohibited locations, reports showed less than one-tenth of one percent of ATM benefit withdrawals were occurring at adult entertainment businesses.
The State of Colorado, which has had an access restriction program in place for some time, reports that approximately three-tenths of one percent of ATM benefit access transactions are initiated in casinos.
Because Oklahoma is in the process of establishing these restrictions, DHS uses other state’s experiences to estimate the scope of the issue.
For example: Oklahoma’s TANF cash payments from December 1, 2013 through November 30, 2014 total $19,411,729.32. Three tenths of one percent is $58,235.19. The estimated cost for electronic and manual monitoring and programming will be approximately $120,000.00 per year, paid by DHS.
So the number of transactions that will be affected by the state and federal restrictions is relatively small, given the scope of the benefit programs. The cost of compliance solutions should also be taken into account when examining this issue.