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AZ May Be First State To End Many Welfare Programs, Lose $500M Federal Funding
Arizona this week became eligible for more than $100 million in additional aid to needy families, but those families likely won't see any of it.In fact, the state could lose more than $400 million in federal funds it already receives if a plan by the Legislature's Republican majority to fix the state's budget deficit is enacted. The plan is circulating among lawmakers and agency directors. Losing the federal funds is "very likely," a Department of Economic Security spokeswoman said, assuming the state agency's budget is cut by at least 10 percent. As a result, when the new fiscal year starts July 1, Arizona may have walked away from more than half a billion dollars in annual federal aid to the working poor. The cuts would make Arizona the first state in the nation to lose its federal welfare program and the assistance it provides to tens of thousands of people. The Temporary Assistance to Needy Families program, known as TANF, provided $264.5 million this year to assist low-income families with rent payments, utilities, job training and other services. The money is distributed directly by the DES and through local agencies, which use it to provide shelter to the homeless and aid domestic-violence victims. Congress created TANF in 1996 as part of welfare reform, replacing Aid to Families with Dependent Children. In order to accept the $100 million, Arizona would have to spend $125 million more on social services. Given the state's nearly $3 billion deficit for fiscal year 2010, additional spending is unlikely. Instead, DES officials are wondering whether they'll be able to hold on to all the funding they now receive - $717 million from the state's general fund for 2009. "What we've turned into is folks continuing to think that everyone has the right to live off the backs of those who work for a living," said Pearce, R-Mesa, the chairman of the Senate Appropriations Committee. "Most taxpayers have had enough." The State legislature is known for very quickly and decisively addressing problems. What they are doing will be seen in other States, and soon Posted by: Anonymoose 2009-04-10 |
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