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Maine May Miss Chance to Eliminate Federal Penalties

By Marina Villeneuve, The Associated Press
AUGUSTA, Maine - Maine has missed a chance to completely avoid up to $12 million in federal penalties for failing to meet welfare-to-work standards in the past.

Such penalties would mean lost federal dollars next year for Maine's Temporary Assistance for Needy Families program, which has $155.5 million in unspent federal funds. Maine must make up the gap with state funds, but could use creative accounting to avoid dipping into the general fund.

The federal government hasn't yet notified Maine that it failed to avoid the penalty, which could still be reduced. The Department of Health and Human Services said it'll keep working to address the penalty.

About 3,500 recipients of the state and federally-funded welfare program must meet federal work participation standards. A legal aid group said Maine's now meeting such requirements.