Advocates rally against Gov. Maura Healey’s budget cut to cash benefit program
April Jennison of Dartmouth said she has long relied on cash assistance from the state both as a child and in adulthood as a single mother.
Her childhood, she said, was characterized “by not enough.”
“Not enough money to pay the electricity, so it wasn’t unusual to have it be shut off. Not enough money to have enough oil to turn up the heat so on winter mornings we huddled around an open oven in the kitchen before school. Not enough food to have lunch during school vacations,” the 40-year-old said outside the State House Thursday morning.
Jennison was part of a crowd of rally goers who called on Gov. Maura Healey to reverse $375 million in budget cuts she made earlier this week as Massachusetts faces an expected $1 billion shortfall this fiscal year as a result of lower-than-expected tax revenues.
The slash to the fiscal year 2024 state budget lowered by $13.1 million the state funding heading to Transitional Aid to Families with Dependent Children, a cash benefit program for pregnant residents, families, and caregivers “explore opportunities, improve their finances, and reach their goals,” according to the state.
Healey said she was reducing the program’s funds “to the amount projected to be necessary to maintain current benefit levels that have increased by an average of 30% since (fiscal year 2021).”
At a briefing earlier this week, Administration and Finance Secretary Matthew Gorzkowicz said officials expect to be in a “belt tightening” position for 12 to 18 months.
“But overall, we don’t see this as being in a recessionary environment, and we believe the economy will continue to grow in (fiscal year 2025),” he told reporters.
But advocates like Jennison said less money this fiscal year wipes out a 10% planned increase to cash benefits for some of the lowest income residents in Massachusetts.
National Association of Social Workers Massachusetts Executive Director Rebekah Gewirtz said nearly 27,000 families with children and 20,000 older adults and people with disabilities depend on cash assistance to survive.
Cash assistance for a family of three in Massachusetts is $783 a month, which Gewirtz said is “far below” half the federal poverty level known as “deep poverty.”
Gewirtz pointed to the state’s record $8 billion rainy day fund and $700 million in surplus dollars leftover from the pandemic that could be used to offset less revenue this fiscal year.
“We have heard these cuts being referred to as unfortunate as quote, ‘belt tightening’ and as ‘necessary.’ For so many of us this is impossible to understand, especially in light of the large tax cut package that was passed a mere few months ago,” Gewirtz said outside the State House.
Healey signed into law last year a $1 billion-a-year tax reform bill that lowers the tax on short-term capital gains from 12% to 8.5% and excludes estates valued up to $2 million from the estate tax by allowing for a uniform credit of $99,600.
It also boosted the rental deduction cap and the statewide cap for a housing production program, which lawmakers at the time said were critical to combating high housing costs in Massachusetts.
Healey defended the tax package Tuesday amid criticism from progressive groups who bashed the governor for giving a break to the wealthy.
“These were all efforts to make life more affordable for folks in the state,” Healey said. “We accomplished that with the tax package, 70% of that tax package going to lower- and middle-income families across Massachusetts. That’s real savings. That’s really important, and it’s a delivery on a promise that we made.”
Still, advocates called on Healey to rescind the budget cuts, which she has the ability to do if she finds that the state’s revenue picture improves, according to the Executive Office of Administration and Finance.
A.J. Lucky, director of advocacy with Economic Mobility Pathways, said the decision to eliminate planned increases in cash assistance “threatens the future of our children and youth.”
“It’s crucial to understand that this decision isn’t merely about numbers or budgets. It’s about whether a child will have more than one pair of shoes during the school year or if a mom can afford to do their family’s laundry on a regular basis,” Lucky said from the steps of the State House.