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Department of Transitional Assistance

Line Item	Description	FY01	FY05	H1 for FY06	House Budget for FY06
1599-4408	Reserve for Emp. Srvcs.	--	--	--	$6,000,000**
4401-1000	Employment Services	24,825,327	18,998,978	27,047,902	$21,047,902
4401-1100	USDA Rmb. E&T Fd.Stmp.	0	3,000,000*	3,000,000*	3,000,000*
4403-2000	TAFDC	243,144,221	317,762,806	309,234,813	312,450,771
4405-2000	SSI State Supplement	198,866,409	203,272,025	183,617,771	205,568,300
4408-1000	EAEDC	42,439,856	70,079,481	58,156,361	70,079,481
* These federal funds generated through the food stamp program are used for Employment Services (4401-1100). ** The total allocation in line 1599-4408 is $12 million—$6 million each for employment and child care services.

This chapter focuses on the House of Representatives’ FY06 budget recommendations for programs serving persons with disabilities within the Department of Transitional Assistance (DTA). For additional information on the impacts of FY01–FY05 budget cuts and more details about program services, go to the People First website at www.mass.gov/mddc/peoplefirst/index.html and click on the DTA chapter in the Volume I table of contents.

HOUSE BUDGET OVERVIEW

A More Promising Course for Welfare Policy

The House budget for DTA is more beneficial for persons with disabilities compared to H1 for FY06. H1 for FY06 would have imposed new work requirements and time limits on about 14,000 program participants—including 5,600 disabled parents—in the Transitional Aid to Families with Dependent Children (TAFDC, line item 4403-2000). It also would have introduced work requirements on participants in the Emergency Aid to the Elderly, Disabled, and Children (EAEDC, line item 4408-1000) program, causing an estimated 2,030 disabled immigrants to lose benefits entirely due to failure to comply and an additional 1,220 to see monthly grant reductions.

Both budgets take steps to anticipate pending changes to welfare policy at the federal level. During 2005, the state’s federal welfare waiver will expire and the federal statute that governs the federally-and state-funded TAFDC program will be reauthorized with changes that are still unknown. H1 for FY06 cuts guaranteed benefits and limits legal procedural protections, along with imposing work requirements, a lifetime benefits limit, and commensurate funding reductions (anticipating that those who could not comply with the new rules would lose benefits).

The House budget largely maintains current policy. The House will wait to make policy changes through regular legislative action. A House budget reserve account (line item 1599-4408) holds $12 million in flexible employment and child care services funds, intended to aid in compliance with federal changes. DTA may only use the money within policy guidelines established by the legislature. Ultimately, advocates are seeking the creation of a separate, state-funded program to serve persons with disabilities and others with obstacles to work. It would preserve benefits for these families, maintain federal compliance (and hence federal funds), and require no new state spending.

Line Item Analysis

Account: Employment Services Program (ESP)
Line Items: 4401-1000, 4401-1100, and 1599-4408

The Employment Services Program (ESP) account funds education, training, and other services intended to help recipients of Transitional Aid to Families with Dependent Children (TAFDC, seeline item 4403-2000, below) to 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 critical 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	FY05	H1 for FY06	House Budget for FY06
1599-4408	Reserve for Emp. Srvcs.	--	--	--	$6,000,000**
4401-1000	Employment Services	24,825,327	18,998,978	27,047,902	$21,047,902
4401-1100	USDA Rmb. E&T Fd.Stmp.	0	3,000,000*	3,000,000*	3,000,000*
Totals:		24,825,3327	21,998,978	30,047,902	30,047,902
* These federal funds generated through the food stamp program are used for Employment Services (4401-1100). ** The total allocation in line 1599-4408 is $12 million—$6 million each for employment and child care services.

FY06 Needs

During 2005, Massachusetts is anticipating expiration of the state’s federal welfare waiver and reauthorization of the federal statute governing the federally- and state-funded TAFDC program. Advocates call for creation of a separate, state-funded program to serve persons with disabilities and others who encounter obstacles to work. It would preserve benefits for these families, maintain federal compliance (and hence federal funds), and require no new state spending.

House Budget Recommendations

Both the House budget and H1 for FY06 propose to increase ESP funding by just over $8 million (37%) in FY06. The House budget rejected the H1 for FY06 effort to impose tougher work requirements on 14,000 additional TAFDC program participants, including 5,600 persons with severe disabilities and 2,400 recipients who now care for a disabled family member at home. Instead, $6 million is allocated for ESP in a reserve account (line item 1599-4408) intended to provide flexibility in anticipation of federal-level policy changes. Initial budget language would have left use of the money to the discretion of DTA administrators. Amended language, that requires legislative approval before any changes in program rules or benefits may be made, was secured for the final House budget.

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 to some parents with disabilities.

Line Item	Description	FY01	FY05	H1 for FY06	House Budget for FY06
4403-2000	TAFDC	243,144,221	317,762,806	309,234,813	312,450,771

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 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.

House Budget Recommendations

The House budget proposes a cut of $5.3 million (nearly 2%), an amount $3.2 million greater than that in H1 for FY06. Advocates estimate that the funding may be sufficient. The House budget rejected the H1 for FY06 effort to repeal the guarantee of child care, to set no maximum on the number of weekly work hours DTA could require, and to repeal last year’s good cause protections. Language requires DTA to give the legislature 30 days advance notice of a projected account deficiency (an outcome that fell short of the 60 days that advocates had sought, yet still represented a success).

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 that participants in the federal SSI program receive.

Line Item	Description	FY01	FY05	H1 for FY06	House Budget for FY06
4405-2000	SSI State Supplement	198,866,409	203,272,025	183,617,771	205,568,300

House Budget Recommendations

The House budget for FY06 would increase account funding by nearly $2.3 million (1%). In contrast, H1 for FY06 would reduce the allocation 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 elderly or have disabilities but cannot quality for federal Supplemental Security Income (SSI) benefits. Approximately 75% of EAEDC participants qualify for the program based on disability status.

Line Item	Description	FY01	FY05	H1 for FY06	House Budget for FY06
4408-1000	EAEDC	42,439,856	70,079,481	58,156,361	70,079,481

FY06 Needs

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. In FY06, advocates again will be seeking to avoid eligibility restrictions, to oppose the imposition of work requirements on this vulnerable population, and to require DTA to give the legislature advance notice of any projected deficit in the account. Advocates also call for full funding at $76.9 million, with a 10% cost-of-living increase in the monthly cash benefit.

House Budget Recommendations

The House budget for FY06 level funds EAEDC at $70.1 million. This proposal rejects the H1 for FY06 17% funding cut and his initiative to institute work requirements for non-elderly adult recipients whose disability is projected to last 6 months or longer. It was estimated that 2,030 disabled immigrants would lose EAEDC benefits entirely due to failure to comply and an additional 1,220 would see monthly grant reductions. House budget language also requires DTA to give the legislature 30 days notice of any projected account deficiency.