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So-So Budget for Social Services

So-So Budget for Social Services

Filling the food pantries—and other social safety nets—more important during tough economic times

Unlike his savvy health-care budget choices , Governor Paterson’s proposed social service budget is a mixed bag. We’re delighted that the Guv put in for an increase to the basic public assistance grant for the first time since 1990. But he also proposed completely shattering HIV welfare-to-work funding, leaving unanswered questions as to why a program ranked high on the Office of Temporary and Disability Assistance (OTDA) list of successful programs would be eliminated.

The increase to the basic welfare grant—the first since 1990—would begin to address one of the most appalling injustices of New York State welfare policies. The Governor’s request would provide essential cushion for those on the lowest rung of the State’s economic ladder.

The basic monthly welfare grant has remained at $291 for a family of three ($3,492 per year) since 1990 despite 65 percent inflation in the intervening years. Approximately 200,000 households will benefit from this increase. “I can think of no better way to begin shoring up the State’s safety net for its poor than increasing the public assistance grant,” said Housing Works President and CEO Charles King.

Though Paterson’s public assistance increase needs to get through the State Assembly and Senate, the Assembly has ok’d it in the past, and if Dems take control of Senate it’s sure to go through. Even if Republicans take control, the measure has a chance. “Having it in the budget already makes it 1,000 times easier to negotiate,” said Hunger Action Campaign Executive Director Mark Dunlea.

But there’s still a problem. Despite being touted as part of this year’s budget, the welfare grant increase isn’t scheduled to begin until January 2010. The budget should begin in March or April 2009 to coincide with the new budget year. Currently, the increase in the public assistance grant is scheduled to take place over the course of three years, starting in January 2010, with a 10 percent increase, from $291 to 320, to a final 10 percent increase to $387 in January 2012.

“Poor people have waited almost 20 years for this meager increase. There’s no reason they should have to wait any longer,” said Housing Works President and CEO Charles King.

Removing job training funding raises disturbing questions

$1.4 million in funding to provide job training for people with HIV has been completely eliminated in the exec budget. Housing Works fought —and won—the battle to restore this funding stream during the last budget skirmish. This welfare-to-work program is unique among job-training programs because it guarantees graduates a full-time job with full benefits. Seven programs in the state are funded.

Eliminating this successful welfare-to-work program was ranked high on OTDA’s rankings of “mission driven” programs, the DOB’s slash raises the following questions:

  • How can there be so much money left in the funding stream that it can continue for another year without added funding?
  • If this program received a high OTDA ranking, why is it being eliminated?
  • How can OTDA say they want to encourage people to move off of welfare and onto self-sufficiency, while eliminating this job-producing program?

Other not-so-good news

Paterson proposed reducing the New York State share of funding to SSI recipients. If the federal government increases their portion through a cost of living boost, then SSI recipients will receive more funding, despite the fact that the state is cutting $84 million. But this entire plan is based around the dicey premise that the federal government will come through with the increase. The State legislature will need to figure out a way to make sure that SSI recipients don’t suffer from their cost-saving plans.

Another cut that hurts everyone is a reduction of $6.5 million to the Homeless Housing Assistance Program. This funding is capital dollars for building. The state should use this funding to buy up foreclosed properties and either sell them at a reduced price to the banking industry or sell them to not-for-profits, which could own them and house disabled people.

+photo credit: http://www.flickr.com/photos/maureen_sill/2353690896/_

Posted on December 19, 2008 at 1:58 am

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