NYS Proposes State Supplement Decrease

January 1, 2009

Author: Catherine M. Callery (Kate)| Louise M. Tarantino

Ann Biddle, Esq., Paul M. Ryther, Esq.

By now, we all know that New York State’s financial picture is horrifying, awful, dreadful, appalling, terrible, abysmal, and as many other synonyms that you can come up with.  We also think that the State’s budget proposal to make up some of its billions of dollars shortfall by reducing the small state supplement paid to SSI recipients is equally appalling, dreadful, and the rest of those same synonyms.  The following is from the Executive Budget:
 
The current (January 2009) State Supplement to the federal SSI benefit for recipients living in the community is proposed to be partially reduced in June 2009, and then partially restored in January 2010.  The June 1st effective date is necessary to allow the required 90 days for the federal government to implement the changes, assuming a March 1st budget enactment.  Effective January 1, 2009, recipients living in the community saw their benefits increase over 2008 levels by between $25 and $55.  The State supplements for these recipients would be decreased effective June 1, 2009 by between $16 and $28, leaving their overall benefit higher than the 2008 levels by between $9 and $34 as a result of the 5.8% cost of living increase to the federal benefit.
 
The average monthly caseload for SFY 2008-09 is approximately 652,000 and is projected to grow to 658,000 in SFY 2009-10.  Savings to the State as a result of this partial pass-through reversal is projected at approximately $9.2 million per month for June – December and then reduced to $6.6 million per month for January – March 2010 – a total of $84.1 million for 2009-10.  The State supplement for recipients living in the community will be slightly increased (between $5 and $8) effective January 1, 2010.

Last increased SSI State Supplement?  For people living in the community (living alone or living with others), the last SSI State supplement increase (of $1 for person in the living alone category) was effective January 1, 1999.  Before that, the living alone supplement was increased from $71.91 to $86 effective Jan 1, 1989.  At the same time, the supplement for recipients living with others increased from $17.24 to $23.
 
A separate chart with examples of how SSI State supplement reduction would affect SSI recipients  living with others and couples is available as DAP# 513.
 
Although the State appears to believe that saving $84 million by depriving poor, elderly and disabled persons already living below the federal poverty level of a few dollars more is a good way to balance its books, we think it is bad and ugly.  We will keep you posted of advocacy efforts to try to get the Legislature to turn around this fistful of madness.  With any luck, SSI recipients in New York will continue to receive the few dollars more that SSA gave them in its most recent record cost of living adjustment.