Ka Wai Ola - Office of Hawaiian Affairs, Volume 29, Number 4, 1 ʻApelila 2012 — Bill calls for study on asset limits for welfare programs [ARTICLE+ILLUSTRATION]

Bill calls for study on asset limits for welfare programs

By Mary Aliee Milham Hawai'i families may have a better bridge to self-sufficiency through an effort by the Office of Hawaiian Affairs to increase or eliminate asset limits for federal puhlieassistance programs. Senate Bill 2178 would require the state Department of Human Services to conduct a study on the effect that increasing or eliminating the limits would have on its beneficiaries as well as DHS, whieh administers the programs. Under the bill, the department would report its findings and recommendations 20 days prior to the 2013 Legislature. The legislation is advancing at a time when OHA is developing an initiative aimed at improving the eeonomie well-being of Native Hawaiians. "We see our efforts to increase asset limits as an important first step towards Native Hawaiians achieving greater eeonomie self-sufficiency," said 'Auli'i George, OHA Puhlie Policy Advocate. Asset limits have been targeted for reform nation-

wide. Instead of providing a way out of poverty, the limits have tended to keep families in it - causing them to divest themselves of savings in order to qualify for benefits, rather than building the assets they need to permanently move into self-sufficiency, according to the bill. Hawai'i's asset limit of $5,000 for some puhlieassistance programs has not changed since it was established, leaving no room for inflation or the impacts of the nationwide recession of the past five years. For Native Hawaiians, the impact of the asset limit is far-reaching. According to a DHS 2010 legislative report, Native Hawaiians make up 41 percent of recipients of the federal benefits program known as TANF, or Temporary Assistance for Needy Families. As a part of OHA's legislative package, SB 2178 originally called for increasing TANF limits from XI 0HA BILL ON PAGE 11

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$5,000 to $15,000. Based on the recommendations of the Department of Human Services, the Senate Human Services Committee amended the bill to eall for a study examining asset limits for all public-assistance programs. While OHA officials would have preferred to increase or eliminate asset limits altogether, they view the study as a positive first step and tool to improve the status quo. The study would take a closer look at how increasing or eliminating the asset limit would affect the department and its beneficiaries. There is a possibility that recipients may be disqualified from eligibility for other public-assis-tance programs, like Medicaid, if the increased limits for TANF and TAONF (Temporary Assistance for Other Needy Families) lead them to acquire more assets. Currently one out of five of Hawai'i's 1.3 million residents, or almost 300,000, qualify for Medicaid, the state-federal heahh insurance program for lowerineome individuals and others. The department wouldlike to make sure that any changes to limits do not create any hardships on Hawai'i's most vulnerable families. "It's a time where review of puhlie assistance is important," said DHS spokesperson Kayla Rosenfeld. "Increasing asset limits will affect those clients as well as the department, so we just want to make sure that we are moving in the right direction." Meanwhile, the Corporation for

Enterprise Development, a national nonprofit that works to increase eeonomie opportunity for lowineome families and communities, recommends that states, among other things, eliminate asset limits for their TANF programs or raise the asset limit for those programs to $15,000. Some states are already benefiting from taking action. Five states have eliminated asset limits. Virginia, whieh eliminated asset limits in 2003, found that it was able to help more needy families and at the same time save money. According to an article published by the Center for American Progress, Virginia spent approximately $127,200 more on benefits for 40 families after the changes, but saved $323,050 in administrative staff time. Ohio, the first state to eliminate asset tests, in 1997, showed no increase in case loads while saving money on administrative costs; South Carolina and Georgia also saved on administrative costs after removing asset limits for public-assistance programs. Colorado passed legislation in 2006 increasing its TANF asset limit to $15,000. Rosenfeld said the DHS study would allow the department to look at the issue in detail, see what other states have done, identify best practices and trends, and determine the fiscal and programmatic impacts on the department. "We're already really tight on our budget. If the asset limits had been implemented this year, I don't know how we would have handled it," she said. "Essentially it comes down to how mueh is it going to cost the

state to do this." State Sen. Suzanne Chun Oakland, Chairwoman of the Senate Human Services Committee, sees SB 2178 as important tool for lifting Hawai'i residents out of poverty. As of this writing, SB 2178 was to be sent to the House Finance Committee. If it passes, it will go on to conference committee in midApril. ■ Mary Aliee Kaiulani Miīham, a Portland, Oregon-based freelance journalist, is a former newspaper reporter and columnist from California's Central Coast.

RAISING THE INC0ME BAR Here are additional 0HA legislative package measures addressing eeonomie selfsufficiency, and their statuses as of press time. SB 21 79 would requirethe state Taxation Department to coordinate an outreach initiative to raise awareness of the federal earned ineome taxcredit among eligible taxpayers. The FEITC allows families of a certain ineome to keep more of theirearnings. About 105,000 low-ineome Hawai'i families elaim the credit but an estimated 19,000 more families could elaim the credit if properly informed. The bill awaits consideration by the House Finance Committee. Its eompanion bill, HB 1988, has stalled in the House. HCR7/SCR3 would askthe Department of Education to require public schools to include a one-semester literacycourse in 10th, llth or 12th grade. Both concurrent resolutions stalled in their originating chambers. A related bill sponsored by Sen. Suzanne Chun 0akland has also stalled.