Yesterday, Governor Rick Snyder signed legislation that places tighter limits on cash assistance benefits to the poor.
It puts a four-year lifetime cap on cash assistance payments from the state. The four years don't have to be consecutive, they can be tallied up over time, and the clock on the four-year cap started on October 1, 2007.
It's estimated that 12,600 cases will be taken off the cash assistance as of October 1, 2011.
Peter Luke of MLive points out that in 2006, then-governor Jennifer Granholm also signed legislation limiting cash benefits to four years, "but DHS caseworkers had leeway to authorize exemptions."
This measure is more strict, and Governor Snyder said his administration is "returning cash assistance to its original intent as a transitional program to help families while they work toward self-sufficiency."
DHS Director Maura Corrigan said the agency is partnering with non-profit groups to provide recipients with a “soft landing” during the transition... The measure is estimated save the 2012 state budget about $65 million.
The new law also allows families on the rolls to earn more money on the job while still receiving benefits. In the past, families that earned more than $814 a month could no longer qualify for cash assistance. The new limit on earned income is $1,164.
"Michigan continues to face financial challenges, and the fiscal reality is that we cannot afford to provide lifetime cash assistance to recipients who are able to work," Corrigan said.
In a statement, the head of the Michigan League for Human Services, Gilda Jacobs, says these cash benefits support children in need:
The Department of Human Services has estimated that 29,700 children will be cut from cash assistance in October. Though the department says it will assist the families for a few months, it’s questionable whether new jobs will be available for adults in these families by the end of the year.
It will be a hard, hard winter for many of these families.