DAP in the Budget

February 1, 2007

Author: Anne Erickson

One of the best investments the state has made over the years is in the Disability Advocacy Program (DAP).  Recognizing the importance of this program, Governor Spitzer’s first budget includes both the base funding of $5.74 million in general fund support as well as a continuation of $1 million in targeted TANF funds.  While base funding for DAP has been included at various levels in every state budget since the program’s inception, this is the first year in the three years of using TANF funds to support DAP that those funds are included within the Executive Budget.

Created by the state in 1983, DAP provides legal assistance to those who have been inappropriately denied or terminated from federal supplemental security income (SSI) or social security disability benefits (SSD).  DAP is an extremely successful program, which has each year generated more funds in federal retroactive benefits and interim assistance reimbursements to the state, than the state invests in the program.  Thus, not only are individuals assisted in securing more stable, more appropriate benefits, but state and local governments reap significant financial benefits as well.

In providing assistance to those who have been denied or terminated from federal disability or supplemental security income benefits, DAP’s clients are among the most vulnerable individuals and families in the state.  Many turn to state-funded public assistance to help make ends meet while they fight to secure more appropriate federal benefits.  If their claims are successful, the state is then entitled to reimbursement from the federal government for the public assistance paid while the federal claim was being determined.  In addition to these interim assistance payments to the state, the individual clients are also entitled to retroactive benefits covering the period from when their application was made and a final determination was reached.

Although not one of its original intents, by helping disabled individuals who would be more appropriately served by federal benefits, DAP providers also help the state meet its federal work participation rates under new rules enacted with the Temporary Assistance to Needy Families (TANF) program.  For example, in calendar year 2005, DAP was responsible for moving 2,424 individuals from state and locally-funded cash assistance and into more appropriate federal disability benefits.  That in turn reduced the number of public assistance recipients that the state and its localities would be required to “count” in attempting to meet the work participation rate – they were moved to federal benefits and taken out of the state’s work rate equation, relieving some pressure for both the state and its localities.

 
An economic engine of sorts, DAP secured almost $11 million in federal reimbursement for prior public assistance expenditures in 2005 and generated over $34 million in retroactive benefits for clients -- all this for an investment of $5.74 million in funds into the program, and $1 million in TANF funds.   For an investment of less than $7 million, DAP generated cash returns of $44 million.
 
Unfortunately, DAP base funding has remained stagnant for approximately 10 years.  The additional TANF funds, which are restricted to TANF eligible families, are the only funding increase this incredibly lucrative program has seen in recent years.  For DAP providers to be able to continue to achieve the same level of results for disabled New Yorkers and for the state and local governments, additional general funds support of at least $3 million should be made available.