9,100 Children with Disabled Parents Slated to Lose Income Supports Due to Budget Cuts

BOSTON – Thousands of children whose parents are so severely disabled that they qualify for federal Supplemental Security Income (SSI) benefits are slated to lose their state cash assistance benefits due to the budget cuts announced by the Governor on October 29.

“Just at the time the Administration has vowed to end homelessness, hundreds of additional families will become homeless,” said Ruth Bourquin of the Massachusetts Law Reform Institute. “The state’s shelter system is already overwhelmed by demand. The last thing we need is to jeopardize the tenancies of disabled parents and their children, families who often have extra expenses due to disabilities and need to be residing close to their medical providers.”

The Governor’s mid-year budget cuts announced on November 5^th include a $15.8 million reduction to the account that funds Transitional Aid to Families with Dependent Children (TAFDC), the cash assistance program for extremely low income families (item 4403-2000). This cut is on top of a preexisting projected shortfall of $8 million. To close the gap between projected need and available funding, the Department of Transitional Assistance (DTA) intends to start counting as income to the children the SSI benefits that their disabled parents receive. The loss of benefits is intended to take effect in January.

According to the Administration’s own estimate, 8,400 families will lose all of their TAFDC benefits, which average $416 per month, while another 700 families will lose an average of $448 in monthly benefits or close to $5,400 per year in income. Although some of these families may experience an increase in their food stamp benefits – projected at roughly $1 increased food stamps for every $3 of lost income – even if they get an increase, food stamps cannot be used to pay rent or for other non-food needs.

“This cut is a prime example of the truly vicious cycle that we are in. Pulling basic supports from children whose parents are so severely disabled will surely increase the number of children who end up in the care and custody of the Commonwealth. What minimal cost savings are achieved in DTA will eventually be needed at Department of Children and Families and elsewhere to support these kids. The results, especially for the children, cannot help but be tragic,” said Marylou Sudders, President and CEO, Massachusetts Society for the Prevention of Cruelty to Children.

Close to 40 percent of these families have no housing subsidy and are likely to be unable to pay their private market rents. The other 60 percent may be eligible for downward rent adjustments but they will have less income to pay the remaining rent and for other basic necessities, such as clothing, transportation, and medical supplies. Hundreds if not thousands of these families will become homeless and add to the state’s emergency shelter costs. Sheltering a family costs an average of $3,000 per month, more than seven times the amount that is being “saved” in monthly cash assistance benefits.

"This is a cruel, harmful policy targeted at disabled parents and their children. Many of these are families have been living independently on their own." said Sana Fadel, Director of Public Policy at Rosie's Place. "There is no question many families who lose benefits will become homeless and need substantial help from a shrinking pool of state and community based services." 

According to MLRI, the damage to these vulnerable families can be avoided. If the state continues benefits, the federal government will reimburse the state for more than $18 million of the $22.8 million the state claims it will “save” this fiscal year and increased shelter and subsidized housing costs will be avoided.  

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About MLRI

Massachusetts Law Reform Institute (MLRI) is a non-profit legal services organization committed to promoting social and economic justice across Massachusetts through advocacy, education and legal action. Its mission is to ensure the fundamental needs of traditionally underserved, low-income populations are met, and to advocate for systemic reforms to policies and practices that harm people living in poverty. MLRI’s staff work in a variety of fields, including housing, health care, public benefits, immigration law, court reform, employment law, racial equity, elder law, education and family law.

MLRI also provides support to client-based legal services organizations so they may best serve their constituencies. A 2008 assessment of MLRI conducted by three experienced, national peer reviewers affirmed that MLRI “is one of the premier state support centers in the country” and “remains the backbone of the Massachusetts civil legal aid delivery system.”

Date Posted: 11/13/2009 9:18 am