welfare-cap

Homeless
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Bridge Magazine's Ron French reports on legislation that could be "a nail in the coffin" for efforts to halt welfare rule changes in Michigan."

The effort to remove 15,000 families from cash assistance in Michigan was billed as a cost-cutting measure. A necessary step for a state "that can no longer afford" to pay the benefits.

Michigan Watch is working with the online magazine Bridge in a year-long collaboration, following families who were cut from welfare cash assistance by a Department of Human Services decision late last year. 

Some Michigan welfare recipients get reprieve

By Ron French/Bridge Magazine

People looking for help with rent, utilities and other monthly bills crowded a resource fair Union Grace Baptist Church in Detroit over the weekend.

Many of them faced their first month without cash assistance from the state. A four-year welfare benefit cap kicks in this month.

One such person is Tamika Thomas. She says she’s been getting assistance on-and-off for four years, using it to pay the bills while she goes to school.

New rules for the 48-month limit on welfare cash assistance goes in effect on October 1. Twelve-thousand families will lose cash assistance, that includes upwards of 25,000 children. Gilda Jacobs, President and CEO of the Michigan League for Human Services spoke with Michigan Radio's Jennifer White about what impacts the limit will in our state.

Governor Rick Snyder is expected to sign a new 48-month cap on cash assistance welfare benefits into law this week. The new limits are expected to immediately reduce the cash assistance caseloads by 15 percent. The measure got final approval from the state legislature last month.

About 12,600 people have been on cash assistance for 48 months or more, and payments to those families will end when the state’s new fiscal year begins October 1st.

“It was always meant to be a bridge and it’s become a lot longer than that in Michigan  -- in some cases, many individuals or families have been on it for five, six, seven, eight, 10 plus years,” says Sara Wurfel, Governor Snyder’s press secretary.

The new limits are expected to save the state $65 million dollars in the new budget year.

Michigan’s four-year cap on cash assistance will make the state’s welfare limits among the strictest in the Midwest. Advocates for the poor say private agencies may not be able make up the difference for people who still need help. They say many of the people who take payments for extended periods are the chronically unemployed who are struggling through the poor economy.

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Michigan lawmakers are expected to resume votes to impose a stricter, four-year limit on receiving welfare benefits.

The votes could come Wednesday with the Michigan Legislature scheduled to meet for full sessions.

The welfare limit already has been approved as part of the state budget that kicks in Oct. 1. Lawmakers plan to put the cap in a separate state statute to help implement the budget plan.

Michigan already has a four-year cap on welfare benefits but the new version of the limit would grant fewer exceptions.

Critics say the tougher limits would boot roughly 12,000 families off public assistance.

Lawmakers might also continue votes aimed at requiring many public employees to pay more for their health insurance coverage.