Senate leader questions cash welfare
HARRISBURG — Call it the first budget skirmish of 2019 – and it’s still only 2018.
Gov. Tom Wolf’s administration has begun issuing cash benefits, as of Nov. 19, through the state’s revived General Assistance program.
“The court’s decision mandated that the program restart,” said Wolf spokesman J.J. Abbott. “The administration has no authority to defy a court order, and began processing to avoid even further legal action.”
The general assistance program had been discontinued in 2012 as part of the state budget process that year. However, the welfare code changes that had been incorporated in Act 80 of 2012 were overturned by the state Supreme Court in July. The court unanimously determined the manner in which Act 80 was approved by the General Assembly — and not Act 80’s policy contents — violated state constitutional provisions regarding the General Assembly’s consideration of legislation.
Nothing in the court’s ruling addresses a required reinstatement of the state-funded program, which provided monthly cash payments between $174 and $215 to eligible recipients. Many states have no cash assistance state program.
At the time of its termination, the GA program provided benefits to 61,000 people and cost the state roughly $150 million. Then-Gov. Tom Corbett’s administration argued the savings were needed to ensure the state could continue to afford the state-paid Medical Assistance coverage GA recipients were also receiving through the GA program.
“In looking at our budget, our goal was to preserve the safety net, our core programs of food stamps, Medical Assistance and cash assistance through our (Temporary Aid to Needy Families) program,” said then-state Welfare Secretary Gary Alexander. “In looking at everything we had to spend, this is one of the areas where we recognized that the majority of the people on this program were men and that we could try and move some of them off (GA cash) and into … an employment situation … and still provide them with Medical Assistance.”
Given the Wolf administration’s decision, some legislative leaders are expressing concern about the potential $150 million program that was not included in the Fiscal Year 2018-19 state budget.
“I don’t know where the governor gets his authority to spend the money,” said Senate Majority Leader Jake Corman, R-Centre, during a Wednesday afternoon interview in his state Capitol offices. “The program was discontinued, and if the governor wants to have a discussion about reviving it, we can have that discussion.”
“I don’t think there’s anything in the court ruling that says he had to revive the GA program immediately,” Corman said, noting, “the General Assembly appropriates dollars.”
“If he wants to have that discussion, to either get a supplemental appropriation to pay for it or to put it in the budget discussions for next year, that’s a legitimate discussion to have,” he said. “But to, on his own, move forward with this is outside his bounds of responsibility and authority.”
Corman said a letter would soon be sent to Wolf by the Senate GOP leaders “asking him where he’s getting that authority.”
When asked from where the state Department of Human Services is getting the money to make benefit payments, Abbott responded, “Prior to elimination, these payments were made out of the cash grants appropriation. This resumes now that the court restarted the program.”
“Supplemental requests are included as part of the governor’s executive budget for prior year appropriations that either require additional or less funds based on actual expenditures,” Abbott said. “It is far too early to know the full cost of the program and what may be needed as a supplemental.”
Corman acknowledged that state DHS spending has often gone over budgetary projections, for which supplemental appropriations, done as part of the budget process, are made to cover the additional spending.
“If he wants a supplemental, he needs to come to us and ask for it,” Corman said. “To just start handing out cash to people with zero requirements regarding how the money is to be spent — it doesn’t have to be spent on rent, it doesn’t have to be spent on heat, it doesn’t have to be spent on food; it can be spent on anything — is something I think a lot of people will have a hard time with.”
“I understand the court ruling threw out Act 80, but that ruling wasn’t based on the elimination of General Assistance, and for the governor to unilaterally revive it … I think that’s wrong.”