Governor's Budget Cuts Family Assistance Grants to Households Containing SSI Recipients

February 1, 2004

Author: Susan C. Antos

In an effort to close New York State's $5.1 billion dollar budget gap by $9 million dollars, Governor Pataki has proposed to take money from poor families containing disabled household members. To implement this change, the Office of Temporary and Disability Assistance has issued proposed regulations amending 18 NYCRR 352.2 , 352.3, 352.30 and 352.31 which would gut the long standing rule that recipients of Supplemental Security Income (SSI) are "invisible" when determining the eligibility of other household members for public assistance benefits.

The proposed regulatory change is contained in the New York State Register of January 21, 2004 (available on line at: http://www.dos.state.ny.us/info/register/2004.htm), and would require that SSI recipients be included in the household size when determining eligibility for public assistance benefits. The non-SSI recipients would then receive a pro-rata grant based on the number of non-SSI recipients compared to the household size. According to the regulatory impact statement, this will result in an average grant reduction of $90 per household. For small families, the impact will be even greater.

For example, currently a disabled single mother with one child, receives a grant fo her child which equals a grant for a public assistance household of one. In New York City, that amount is $414 per month, and in Albany, that amount is $351 per month. The proposed cuts will reduce that amount to $250 per month in New York City and $218 per month in Albany.

A disabled person who lives alone receives SSI, receives a monthly grant from the federal government of $651. This includes a state funded supplement of $87. A disabled person living with his or her children receives a smaller state supplement - $23, for a total SSI check of $587.

Depending on a person's county of residence and household size, the invisibility rule assures that families with disabled household members have an income near the poverty level. The 2003 poverty level for a household of two is $1010 per month; for a household of three it is $1271 per month.1 (Endnotes are on page 8) The proposed cuts will reduce the combined SSI/TANF income of families of two with one disabled member from the current combined grant of $1001 per month to $837 per month (83 % of poverty) in New York City and from $938 to $805 (80% percent of poverty) in Albany County. Families of three with one disabled household member will see their income reduced from $1088 per month to $1047 (82% of poverty) in New York City and from $1024 to $987 (78% of poverty) in Albany County.

This proposed change ignores the higher costs of living faced by families containing a disabled household member. These higher costs may be food (such as the fresh fruits and vegetables needed by diabetics and lead poisoned children), transportation (vehicle modifications, more frequent trips to doctors and physical therapy), specially designed clothing, housing or furniture modifications, utilities (respirator costs, air conditioners for asthmatics), and diapers for incontinent adults and children. 2 

The History of the SSI Invisibility Rule

SSI invisibility began as a budgeting rule of the federal Aid to Families with Dependent Children Program (AFDC). The AFDC rule was contained in federal law at 42 U.S.C. 602(a)(24), but was repealed along with every other AFDC budgeting rule when the Personal Responsibility and Work Opportunity Reconciliation Act abolished the AFDC program and replaced it with the Temporary Assistance to Needy Families (TANF) Block grant in 1996. Significantly, despite the repeal of the federal rule, New York, along with nearly every other state in the country, retained the invisibility rule in state law after the abolition of AFDC, in its TANF funded cash assistance program. Since the New York State legislature has not repealed Social Services Law 131-c, which retains the invisibility provision in state law, the proposed regulatory change may not withstand judicial scrutiny.

SSI Invisibility in Other States

According to the Center on Budget and Policy Priorities, only four states in the nation -Alabama, Idaho, Wisconsin, and Minnesota, have abolished or modified the invisibility rule for their TANF funded assistance programs. 3 West Virginia abolished the invisibility rule briefly, but then re-adopted it.4 Minnesota cuts the TANF funded grant to household containing SSI members by $125 per month, but excludes relative caregivers. 5 One state, Illinois, has actually increased the assistance available to households containing disabled household members by allowing a disregard of Social Security Disability, Railroad Retirement, Veteran's and Black Lung benefits up to the SSI benefit level 6.

The Greater Upstate Law Project will be writing comments opposing this regulatory change and will post these comments on our web site as soon as they are available.

1.  The 2004 poverty levels had not yet been released by the federal government at the time that this article went to print.

2.  S. Parrott, SSI Benefits Should Not Be Considered When Determining Family Members' Eligibility for Cash Assistance, Center on Budget and Policy Priorities (3/5/99)  (Copy on file at the Empire Justice Center).

3.  Id. Telephone call with Mark Greenberg, Center on Law and Social Policy, 1/23/04

4.  Id.

5.  Advocates in Minnesota are working to restore SSI invisibility with a high performance bonus that the state received last year. E-mail from Reggie Wagner, Legal Services Advocacy Project, St. Paul Minnesota, to author, 1/26/04.

6.  S. Parrott, SSI Benefits Should Not Be Considered When Determining Family Members' Eligibility for Cash Assistance, Center on Budget and Policy Priorities (3/5/99)  (Copy on file at the Empire Justice Center).