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Economy
AZ May Be First State To End Many Welfare Programs, Lose $500M Federal Funding
2009-04-10
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

#5  Unfunded mandate = Racism
in 5..4..3...
Posted by: DepotGuy   2009-04-10 13:53  

#4  The State legislature is known for very quickly and decisively addressing problems. What they are doing will be seen in other States, and soon.

Plus someone forgot to tell B-O that by putting Napolitano in as Homeland Security Secy, Arizona gained a genuine REPUBLICAN governor*, Jan Brewer, and she may me more helpful to the AZ state legislature in doing what they want to do.

*Not like here in California
Posted by: BigEd   2009-04-10 11:36  

#3  Bonus: this sends the welfare mooches back to where they came from: Mexico and CA.
Posted by: regular joe   2009-04-10 11:07  

#2  Just as the administration is refusing payback from the banks in order to maintain control over them, you can expect the feds (the Donks) to find a way to order the states to do what they want anyway. All they need to do is pack the court, which itself is very good at assuming more and more power 'for the common good'.
Posted by: Procopius2k   2009-04-10 10:10  

#1  Importantly, this has a cascading effect, because for years, the federals always made money to States conditional on unrelated things and unfunded mandates.

But when this starts to unwind, the less federal money you take means the less of your money you have to spend, *and* the less federal control over you.

The big two federal control monies are free school lunches and transportation. Once they are gone, the federal power over States is slashed, because so many onerous demands are piggybacked on them.
Posted by: Anonymoose   2009-04-10 09:27  

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