We’ve heard the rumors about government “pulling the plug on grandma” swirling around the health care debate. More alarming and real is Governor Bill Ritter’s announcement to pull the plug on needy and disabled citizens of Colorado, potentially pushing thousands more onto the streets of our communities.
In his budget proposal delivered on August 18th, the Governor announced the elimination of the Aid to the Needy Disabled program, also known as AND, slashing $7.1 million in financial assistance to 10,310 of our citizens who have been judged by the Department of Human Services to be both needy (without any income or assets) and disabled (unable to work).
Payments to needy and disabled individuals through the AND program were recently reduced to only $200 per month. This is barely enough money for basic survival. However, when combined with food stamps and housing assistance, it is literally a life saver, allowing these individuals to obtain subsidized housing, and pay for utilities, food, medical co-payments and other basic necessities.
The State Budget Office has claimed that AND beneficiaries receiving subsidized housing will not lose their housing, because their “zero income” will qualify them for zero rent. This overlooks the fact that most subsidized housing providers have a minimum rent of $25 to $50 per month. Even if this rent is reduced, the tenant would still be responsible for utility costs, which would trigger cut-offs and eviction if not paid.
The AND program was established by the Colorado General Assembly in 1953 as an “interim assistance” for people waiting for their federal Social Security benefits to begin. The majority of people receiving AND support ultimately receive Social Security or SSI benefits. Ironically, the state receives reimbursement for all of its AND payments made on behalf of those obtaining SSI, retroactively to the date of application. Thus, eliminating AND will also eliminate the Social Security reimbursements to the state, resulting in only phantom, short-term savings. (The Budget Office projects that they will lose $3 million of reimbursement from Social Security once the AND payments are cut).
It is unconscionable to pull this safety net from thousands of our most vulnerable neighbors. A better approach would be to expedite the applications of those eligible for Social Security to limit the amount of time AND is needed, resulting in true cost savings for taxpayers.
The Governor also announced cuts of more than $50 million to programs that provide medical and mental health care services for the indigent, including homeless families and individuals. These are in addition to the Legislature’s previous reductions last session.
Health Care for the Homeless programs cannot afford these further cuts to this inadequately funded system without pushing many more vulnerable adults and children onto the streets. Is this what we want in our state?
Balancing the budget by stripping away lifelines from our most vulnerable citizens is not the answer to the state’s fiscal crisis. These steps will certainly push thousands more into homelessness, shifting the cost to more expensive emergency service programs. Cuts in indigent health care will increase emergency room visits at significant cost to the state and taxpayers.
The state cannot rely on non-profits and the private sector to fill the gap caused by these cuts. Strains on local government funds have already reduced the ability of local communities to step in. Furthermore, as the need for shelter and housing increases due to the economy, corporations and foundations are giving less, due to losses in their investments. Individual giving is in jeopardy as donors worry about their own financial health. It appears the safety net in our state is broken. At the Coalition, we only have a fraction of the resources needed to meet the growing housing and service needs of people who come to us for help. If all the Governor’s budget cuts are made, our existing medical and mental health care programs will be at risk. Meanwhile, thousands of newly homeless families and individuals will turn to us for help, exceeding our capacity and resources. We understand that Colorado’s budget is severely strained as tax revenues fall. But, the Governor has said his budget “is a moral document”. We think it’s a matter of choice. Creating crises and despair for so many people is not the Colorado Promise we had longed for.
Submitted by:
John Parvensky President Colorado Coalition for the Homeless Sept. 3, 2009