Gov. LePage’s Budget Proposal is Bad for Maine Families and Workers

Earlier this month Governor LePage unveiled a devastating 2 year state budget proposal that puts thousands of Maine families, workers, elderly and disabled residents at risk. Destabilizing families and communities in the midst of an economic crisis is bad for all Mainers, and works counter to broad economic recovery in Maine.

As we learned today from Maine Equal Justice Partners, here are just a few examples of harmful aspects of the Governor’s budget proposal:

• Imposes strict lifetime 5-year time limits on Temporary Assistance for Needy Families (TANF). Only a small percentage of families receive TANF for 5 or more years: those who face serious barriers to work. In fact, recent research has found that nearly 90% of families that receive TANF for more than five years include a family member with a disability.
• Punishes children if a parent does not fully comply with TANF program rules. Currently only the parent is sanctioned, resulting in a reduction of the benefits to the household. This proposal terminates assistance for the whole family, placing very poor families with children at greater risk of homelessness and hunger.
• Limits access to General Assistance (GA) to once in a calendar year. General Assistance is based on need, and benefits must be provided as long as the applicant is without sufficient income to meet basic needs. Families and individuals often apply for GA when they are in crises like the loss of a job, something that would cause them to fall behind in paying their rent or paying for heat. These crises often last for more than one month. This proposal will increase homelessness for many Maine families and individuals.
• Reduces the reimbursement level to municipalities providing the most General Assistance. This proposal will just shift costs to local property tax payers, placing greater stress on already financially strapped municipalities.
  
• Eliminates eligibility for MaineCare for 14,000 parents with incomes between 133% and 200% of the federal poverty level. For parents at these income levels who are currently receiving MaineCare the program is frozen, meaning that if they experience a temporary increase in hours and lose benefits they cannot come back on the program. In addition, this will punish parents for trying to move their way up the income ladder as the economy improves.
• Doubles the time people with disabilities need to wait to be determined eligible for benefits they are entitled to. Individuals applying for MaineCare based on disability have serious medical conditions and live below the federal poverty level. Under this proposed change, this already vulnerable population would have to go without critical medically necessary care, such as prescription drugs, for up to 3 months while they wait to either be determined eligible or receive a temporary MaineCare card. One of the results of this proposal would be to place even greater pressure on municipal General Assistance programs.
• Eliminates premium and cost sharing assistance with Medicare Parts B & D for certain seniors and people with disabilities. Under this proposal approximately 25,000 seniors and people with disabilities will lose all or some of the help they currently get with the costs of Medicare premiums, co-payments and deductibles, including help with paying for prescription drugs.
• Eliminates eligibility for MaineCare, TANF, Food Supplement and Supplemental Security Income benefits for legal immigrants during their first five years of residency in Maine. Under this proposal, approximately 2,500 legal immigrants who live in Maine, qualify for and receive assistance through one of these programs will abruptly lose their assistance. Their children, their housing, their ability to work, and the communities where they live will all pay the price.
• Reduces funding for the Dirigo Health Program leaving insufficient funds to cover subsidies which help people with low to moderate income purchase critical health coverage through DirigoChoice. The budget eliminates all of the funds provided to Dirigo Health through the Fund for Healthy Maine. In addition, the budget proposes to cut the program’s access payment (an assessment on insurance companies and others used to fund the Dirigo Program) which will lead to less funding for DirigoChoice subsidies, MaineCare parents covered through Dirigo and the Maine Quality Forum.

To read more about the changes to Maine’s safety net programs the Governor is proposing, click here!

In the coming weeks the Legislature will begin hearing public testimony on the Governor’s proposed changes. It’s important that the Governor and Legislature hear from people like you, who care about protecting services for Maine families and workers. We’ll keep you posted on important dates and different opportunities to get involved and ensure your voice is heard!

The budget cuts above tell only part of the story. Maine Can Do Better will be sharing more details with you as we and our partners sift through the details.