Massachusetts Developmental Disabilities Council

Department of Transitional Assistance

Line Item	Description	FY01	FY02	FY03	FY04	FY05	H1 for FY06
4401-1000	Employment Services	24,825,327	$37,849,259	$28,000,000	$11,017,679*	18,998,978	27,047,902
4403-2000	TAFDC	243,144,221	289,650,459	332,031,646	321,374,779	317,762,806	309,234,813
4405-2000	SSI State Supplement	198,866,409	201,462,979	203,037,225	200,697,005	203,272,025	183,617,771
4408-1000	EAEDC	42,439,856	53,224,971	71,983,260	63,891,268	70,079,481	58,156,361

^    Includes Caseworker Payroll (otherwise in 4400-1100).

*   Plus $6 million in one-time federal funds for job search through Career Centers (7003-0806), for a total of $17,017,679.

**  Used for Employment Services (4401-1100), bringing that program's FY05 allocation to $21,998,978.

The Department of Transitional Assistance (DTA) is the state agency that provides poor individuals and families with cash benefits and other forms of public assistance, including: Transitional Aid to Families with Dependent Children (TAFDC), or "welfare;" Emergency Aid to the Elderly, Disabled and Children (EAEDC); Emergency Assistance (EA) for shelter and housing search assistance services; State Supplemental Security Income (SSI), a cash assistance program that augments federal benefits for the elderly and disabled; and Food Stamp benefits. DTA is located within the Executive Office of Health and Human Services (EOHHS).

FY05 OVERVIEW

A Mixed Picture for DTA Programs

The FY05 budget contained some positive new developments and preserved some important existing program provisions. The changes listed here are those with the most immediate impact on persons with disabilities. There are now stronger "good cause" protections on the procedural rights of TAFDC recipients who cannot comply with work requirements. Also, the more generous state eligibility guidelines for immigrants and persons with disabilities who need TAFDC and EAEDC benefits were threatened but maintained.

However, there were also key losses. The numbers of required hours per week that recipients must be engaged in work activities was increased. Additionally, budget language that would have required DTA to give the legislature 60 days advance notice of a projected deficiency in a program account-in order to allow time for supplemental allocations-was vetoed, leaving program recipients vulnerable to mid-year benefits reductions or terminations.

Change on the Horizon

DTA is now facing great uncertainty about the kinds of federal requirements that the state TAFDC program-jointly funded by state and federal dollars-will have to comply with in the near future. In the mid-1990s, welfare reform legislation was enacted at both state and federal levels. Now those laws are reaching their expiration and reauthorization dates.

First, under the authority of a federal government waiver, Massachusetts launched its own experiment with welfare reform in 1995. The program name was changed from Aid to Families with Dependent Children (AFDC) to Transitional Aid to Families with Dependent Children (TAFDC). Key among the sweeping changes to the program were: a 2-year time limit on benefits receipt within any 5-year period; a "family cap" denying benefits for new children born to program recipient families; weekly work requirements for parents whose youngest child was of school age; "LearnFare" rules penalizing families whose children had poor school attendance; and living arrangement and school attendance requirements for teen parents.

Ten years after reform, the number of TAFDC participants has greatly dwindled. Those who remain on the rolls tend to have the greatest barriers to work, often related to mental health problems. The state's federal waiver-which has allowed some aspects of the TAFDC program to be determined independently of federal TANF rules-will expire in September, 2005.

Second, Congress passed the Personal Responsibility and Work Opportunity Act (PRWORA) of 1996, which ended entitlements to federal Aid to Families with Dependent Children benefits by block-granting the funding to states and renaming the program Transitional Aid to Needy Families (TANF). TANF underwent programmatic changes similar to those already implemented in the Massachusetts TAFDC program.

PRWORA was up for reauthorization in 2001, but is still being funded through a series of extensions pending Congressional agreement. It is expected that TANF may be reauthorized this year, but just what will change and how Massachusetts will be impacted is difficult to predict. One thing that seems almost certain is that program participants again will face steeper work requirements.

The consequence of the expiring waiver and federal reauthorization is that DTA must be poised to abide by potentially significant yet currently unknown new compliance rules. Some of the ways the state is positioning itself in advance of these changes would particularly affect persons with disabilities (discussed below).

Welfare Reform Advisory Committee Issues Report

A special state Welfare Reform Advisory Committee (WRAC)-comprised of representatives from state agencies, advocacy groups, and provider organizations, along with educators and experts in workforce development and other fields-was assembled to make policy recommendations in anticipation of Congressional renewal of PRWORA and expiration of the state waiver. WRAC issued its advisory report[1] in November 2004. The document calls for further expanding the definition of countable work activities, so that participants enrolled in education and training programs may count more of those hours toward their weekly work obligation, and restoring TAFDC benefits for legal immigrants.

However, of great concern to advocates is a recommendation for what is called "full engagement" in work activities for persons with disabilities and other groups. According to the Massachusetts Law Reform Institute (MLRI), among those who would be required to comply with new work rules-some of whom could be required to work for 34 hours per week, more than any current maximum-are: 5,600 persons with severe disabilities; 2,400 recipients who now care for a disabled family member at home; 2,000 pregnant women in their last trimester; and 2,700 parents of a child between ages 1-2.

Advocates are concerned that there are no plans in place to provide adequate rehabilitation and supports for these persons. The Massachusetts Rehabilitation Commission (MRC) now maintains a 4-month wait list of 1,500-2,000 people with disabilities in need of vocational rehabilitation, and is only able to serve those with the most serious impairments. [Editor's Note: See the MRC chapter to learn more about that agency's services and the needs for more funding.]

In addition, according to WRAC member Deborah Harris, of MLRI, who filed a dissenting addendum to the work recommendations, the move could be fiscally damaging to the state. Because it is unrealistic to expect that a significant portion of the targeted groups will meet stricter work requirements, the result may be severe financial penalties when Massachusetts fails to meet its federally-mandated work participation rate.

H1 for FY06 OVERVIEW

Welfare Reform Redux

H1 for FY06 is a disappointment to welfare and disability advocates. According to MLRI, the budget would repeal aspects of the state's welfare reform law and replace it with a new statute that provides far fewer protections for families.[2] With some exceptions, H1 proposes to eliminate exemptions from the work requirement. If passed, about 14,000 program participants-including 5,600 disabled parents-would become subject to work requirements and time limits.

H1 for FY06 would also repeal the guarantee of child care, set no maximum on the number of weekly work hours DTA could require, repeal last year's good cause protections, and subject all families to a 5-year lifetime benefits limit. Although the expressed rationale for much of the proposals is the impending changes at the federal level, advocates will be working to remind legislators that the state does have other options besides removing protections from very vulnerable families. One possibility under discussion is to target state funds toward activities that may differ from the newly reauthorized federal legislation. The strategy would serve at least 2 objectives. First, within current allocation levels, it would allow the state to preserve its own rules, including protections for families for whom work requirements are less appropriate. Second, those state-funded persons exempt from work requirements would not bring down the state's work-participation rate by their failure to work.. Hence the strategy would preserve needed federal matching funds.

Line Item Analysis

Account:      Employment Services Program (ESP)

Line Items:  4401-1000, 4401-1100, and 7003-0806

The Employment Services Program (ESP) account funds education, training, and other services intended to help TAFDC recipients get and keep jobs. ESP is crucial for the eventual well-being of TAFDC recipient families receiving time-limited cash benefits and facing program work requirements. It will be particularly crucial for recipients who have disabilities or care for persons with disabilities if they face new work requirements in the coming year.

Line Item	Description	FY01	FY02	FY03	FY04	FY05	H1 for FY06
4401-1000	Employment Services	24,825,327	$37,849,259	$28,000,000	$11,017,679*	18,998,978	27,047,902
4401-1100	USDA Rmb. E&TFd.Stmp.	0	0	0	0	3,000,000**	3,000,000**
7003-0806	Career Centers	0	0	0	6,000,000*	0	0
Totals:		24,825,327	$37,849,259	$28,000,000	17,017,679*	21,998,978	30,047,902

*   The $6 million allocated here through the Career Centers account (line item 7003-0806) within the Department of Workforce Development comes from one-time federal funds.

** These funds come from federal reimbursement for state dollars spent on education and training for food stamp recipients.

FY01-FY05 Impact

In FY02, ESP was funded at $35.7 million. Severe cuts left the allocation at $17 million by FY04. As a consequence, there were extreme reductions in these critical employment and training services.

In FY05, ESP was allocated nearly $19 million-plus an additional $3 million that could be available in retained revenues-for a total increase of a nearly $5 million (29%) above FY04. The strong efforts of the Family Economic Initiative, the Massachusetts Alliance on Teen Pregnancy, the Working Family Agenda and a coalition of Employment Services Program (ESP) providers were key to that restoration. Still the account remained 11.4% below its FY01 level.

FY06 Needs

DTA has indicated that new procurement activities related to operating ESP will require an additional $8 million in FY06.

H1 for FY06 Recommendations

H1 proposes to increase ESP by just over $8 (37%) million in FY06. Line item language does not specify whether the dollars are intended for increased costs of procurement activities. Up to $1 million of the funds may be used for participants in the EAEDC program (see line item 4408-1000, below).

The higher allocation recommended for ESP accompanies the governor's desire to impose new work requirements on 14,000 additional program participants, including 5,600 persons with severe disabilities and 2,400 recipients who now care for a disabled family member at home. However, this budget does not designate funding for assessments nor services for recipients with disabilities. According to the Mass. Law Reform Institute (MLRI), the new money would fund services for fewer than 2,000 new persons, leaving no additional resources for the remaining 12,000 persons who may need them.

Account:      Transitional Aid to Families with Dependent Children (TAFDC)

Line Item:   4403-2000

The Transitional Aid to Families with Dependent Children (TAFDC) program provides time-limited cash benefits to low-income families with children, pregnant women in the last 120 days of pregnancy, and some parents with disabilities. U.S. citizens who have (or have applied for) a Social Security number and a small number of legal immigrants are eligible when they meet asset and income guidelines. This benefit is not available to families without children.

TAFDC benefits include: a monthly cash grant based on the number of adults and children receiving TAFDC in a household; a $40 per month rent allowance for families not residing in public or other subsidized housing; child care services for a child under age 13 or an older child with a disability when the parent is engaged in approved work activities; automatic enrollment in MassHealth; a monthly food stamp allotment; Employment Services Program (ESP) education, training, or job search assistance (see line 4401-1000 above); transportation assistance of $71 per month if the parent meets certain criteria; and certain annual and one time payments for specified family needs.

Families may receive benefits for 2 years in any 5-year period. When families leave the program, they may continue to be eligible for some benefits-including child care, MassHealth, and food stamps-for up to one year.

Line Item	Description	FY01	FY02	FY03	FY04	FY05	H1 for FY06
4403-2000	TAFDC	243,144,221	289,650,459	332,031,646	321,374,779	317,762,806	309,234,813
4403-2002	Supp. TAFDC: Immigrants	5,740,772	0	0	0	0	0
4403-2013	ChildSupp: TAFDC	22,824,844	0	0	0	0	0
Totals:		271,709,837	289,650,459	332,031,646	321,374,779	317,762,806	309,234,813

FY01-FY05 Impact

In July 2002, the legislature eliminated coverage of federally-ineligible non-citizens. About 600 lawful immigrant families lost some or all of their cash assistance benefits along with eligibility for the Employment Services Program and child care subsidies.

In FY05, there were proposals to align the state disability standards with the more restrictive federal definition, but these were not adopted.

FY05 also carried good and bad news for the work requirements that non-exempt (exemptions include caring for a person with a disability) program participants must satisfy. Through FY04, all non-exempt parents were required to work 20 hours per week. In FY05, this standard remains for parents of preschoolers, but Outside Section language increased required work to 24 hours per week for parents of children ages 6-9 and 30 hours per week for parents of older children. The good news was expanded "countable" work activities. Parents are now able to count education and training activities (for up to 12 months), and housing search activities (that are already mandatory for parents living in a family shelter), toward their required weekly work hours.

Thanks to advocacy from the Mass. Law Reform Institute, the Family Economic Initiative, and others, there were also new "good cause" rules in the FY05 budget. DTA can no longer reduce or stop a family's benefits without first finding our whether that family had "good cause" for not complying with program requirements. "Good cause" is a regulated set of exemptions that includes obstacles such as not being able to find a job or child care.

FY06 Needs

DTA has stated a need for an additional $3,211,730 to cover the cost of anticipated caseload increases in FY06.

Advocates are concerned in particular about maintaining state commitment for benefits to immigrants and persons with disabilities. They also will be seeking line item language to require DTA to give the legislature at least 60 days notice of an anticipated deficit in any account, to give time for the process of a supplemental budget appropriation before the agency makes any changes to eligibility or benefit levels. (See the introduction to this chapter for pending program changes in response to federal statute reauthorization and state waiver expiration.)

H1 for FY06 Recommendations

H1 proposes an $8.6 million (3%) reduction from the FY05 funding level-an amount $2.1 million (1%) below DTA-projected needs, according to the Mass. Coalition for the Homeless. The reduction is consistent with the governor's proposed reforms, which will leave fewer families eligible for benefits. If the reforms pass, about 14,000 program participants-including 5,600 disabled parents-would become subject to work requirements and a 5-year lifetime benefits limit. The budget would also repeal the guarantee of child care, set no maximum on the number of weekly work hours DTA could require, and repeal last year's good cause protections.

Account:      Supplemental Security Income (SSI) State Supplement

Line Item:   4405-2000

The Supplemental Security Income (SSI) State Supplement account is for state supplements to the monthly cash benefit payments for participants in the federal SSI program. Persons eligible for SSI are age 65 or older or any age between 0-64 and have a disability. They must have assets of less than $2,000 if single and $3,000 if married (excluding the value of a car), be a U.S. citizen or a member of one of many specified groups of immigrants, and be low-income. The level of cash benefits for an individual is calculated by comparing a Federal Benefit Rate table to the applicant's income.

Line Item	Description	FY01	FY02	FY03	FY04	FY05	H1 for FY06
4405-2000	SSI State Supplement	198,866,409	201,462,979	203,037,225	200,697,005	203,272,025	183,617,771

H1 for FY06 Recommendations

H1 proposes to reduce the allocation in this account by $19.7 million (10%).

Account:      Emergency Aid to the Elderly and Disabled (EAEDC)

Line Item:   4408-1000

The Emergency Aid to the Elderly, Disabled, and Children (EAEDC) account funds a minimum cash assistance program for U.S. citizens and legal immigrants who are or elderly or have disabilities but cannot quality for federal Supplemental Security Income (SSI) benefits. In 1996, when numerous federal benefits were terminated for some legal immigrants, Massachusetts decided to cover this vulnerable population at state cost. Approximately 75% of EAEDC participants qualify for the program based on disability status.

To be eligible for EAEDC, a person must be disabled with a condition that limits their ability to work, caring for a disabled person, age 65 or over, a recipient of Mass. Rehabilitation Commission services, or a child ineligible for TAFDC who meets other specified criteria. The disability determination the program uses is not as strict as that used by SSI. Eligible persons have incomes below the grant amount for their family size and countable assets of less than $250 for an individual or $500 for a married couple. Immigrants who are legally present in the U.S. are eligible when they provide proper documentation.

EAEDC grant amounts, which have remained the same since 1987, range from $303.70 per month for 1 person to $669.80 per month for a family of 5. Program participants also receive MassHealth benefits.

According to advocates, many program participants are refugees and asylees who cannot naturalize to U.S. citizenship or access other benefits, and others are too disabled or elderly to have the work history required by federal SSI guidelines. EAEDC eligibility criteria is more broad than that for SSI. Often, an EAEDC benefit is their only source of income.

Line Item	Description	FY01	FY02	FY03	FY04	FY05	H1 for FY06
4408-1000	EAEDC	42,439,856	53,224,971	71,983,260	63,891,268	70,079,481	58,156,361

FY01-FY05 Impact

In June, 2003, the state eliminated EAEDC benefits for full-time high school students under age 21. A rent allowance of $35 per month was also terminated at that time.

In the FY05 budget debate, 1,900 elderly and disabled persons on EAEDC who did not meet the non-citizen requirements for the federal SSI program faced potential expulsion. That initiative was unsuccessful-state eligibility guidelines for immigrants were preserved and the funding ($70.1 million) is close to the estimated need.

FY06 Needs

During the FY06 budget debate Mass. Law Reform Institute (MLRI), the Family Economic Initiative, the Massachusetts Immigrant and Refugee Advocacy (MIRA) Coalition, and others will be working hard to preserve the gains made last year and to oppose the implementation of what are called "work first" reforms on this vulnerable population. MIRA and others are also gearing up to work against any proposals to terminate benefits to immigrants.

The Massachusetts Coalition for the Homeless is seeking to fully fund the program at $76.9 million and to provide a 10% cost-of-living increase in the monthly cash benefits.

DTA has expressed need for EAEDC funding increases in FY06. A small amount of new money-$204,758-is sought to cover rest home rate increases. An additional $2,691,888 is needed to support anticipated caseload increases.

H1 for FY06 Recommendations

H1 proposes line item language that is very worrisome for advocates of persons with disabilities. It would give DTA permission to institute a work requirement for non-elderly adult recipients whose disability is projected to last 6 months or longer. DTA seems poised to implement the regulation, and estimates that 2,030 disabled immigrants would lose EAEDC benefits entirely due to failure to comply and that an additional 1,220 would have reductions in their monthly grants. In other words, these are persons whom the agency does not think will be able to meet work requirements, even under the threat of lost benefits.

There is also concern that disabled individuals who do comply with work requirements will negatively impact their pending applications for federal Supplemental Security Income (SSI). Many EAEDC participants are enrolled in the program simply because they have no other resources during the lengthy process of being certified eligible for SSI.

The H1 allocation would reduce EAEDC funding by a significant $11.9 million (17%) and rename the program "Emergency Transitional Assistance." The funding reduction accompanies an anticipated drop in enrollment consistent with proposed reforms that would terminate many recipients from this meager and vital program.