All this week, the District’s Dime blog is featuring entries that highlight program areas experiencing significant cuts in Mayor Gray’s proposed budget. Stay tuned next week for a rundown of key revenue initiatives.
Those who question whether there is any real pain in the Mayor’s FY 2012 proposed budget need look no further than the proposal to eliminate the Interim Disability Assistance program. IDA offers a modest amount of cash assistance to DC residents with a disability who are awaiting approval for federal Supplemental Security Income benefits. The federal SSI process can take months or years, and IDA offers $270 per month to help these individuals get by — take the bus to doctor’s appointments, buy some toothpaste, or offer a friend a little money for staying on the couch. The feds pay the District back when a resident ultimately gets on SSI.
But this could all end in October.
Under the Mayor’s proposal, IDA would be completely eliminated, which not only means that no new individuals would be helped, but also that all individuals receiving benefits at the end of FY 2011would be cut off. Some 1,500 residents have received IDA assistance in recent years, and even with efforts to phase it down this year, 600 residents are expected to be cut off in October. Without the stabilizing effect of IDA, many of these residents — who cannot work and have no other income — would be forced to rely on more costly emergency services, such as emergency rooms and shelters.
By ending the program in this manner, the District also would forfeit the opportunity to recoup IDA payments made in the past — local expenditures that are reimbursed by the federal government when an individual is approved for SSI. Historically, the District has recovered more than 40 percent of IDA payments through the federal reimbursement process. Mayor Gray argues that the recovery rate should be higher, even though it is in line with original expectations when IDA was created and matches the performance in other states. By eliminating IDA, the District loses this mechanism to get federal funds to help residents while they wait for SSI approval..
The Mayor has said repeatedly that this is a difficult budget, and that sacrifices need to be made. The District is not alone in the world of pain. Most states are still trimming budgets due to the recession. . And yet, 37 states — including Maryland and Virginia — have recognized their IDA-type programs as essential, and found a way preserve them. We hope the District finds a way, too.
But homeless services, affordable housing, and IDA are not the only areas of concern for low-income District residents. Stay tuned tomorrow for a look at cuts in the Mayor’s budget to TANF . .
