The Human Services budget committee of the MN House of Representatives released its budget proposals mid-day today:

• There are no cuts proposed to General Assistance – in contrast to the Governor’s proposal to eliminate the program;
• But there are more than $9.5 million in cuts to the Minnesota Family Investment Program.

The cuts to MFIP cut the already deep poverty-level assistance the state offers families in crisis and cuts funding away from the job creation initiative that has paid for skill building jobs with private employers, non-profits and local government.

Specifically:

• Families on MFIP who live in subsidized housing would have their MFIP assistance cut by about $100 a month. (According to last year’s numbers, when Governor Pawlenty put forward this proposal, about 5,000 families would be hit with this cut.)
• When parents get jobs to take them off assistance would lose that assistance earlier: instead of helping families’ earnings reach 15% above poverty before eliminating the MFIP assistance, the House proposal would support families to only 10% above the poverty line.
• The value of a car that families could own and still be eligible for MFIP would be reduced to $7,500. This impacts any family trying to maintain a reliable car – but will be felt in particular by families who have exhausted their unemployment insurance in this recession and who have to next turn to MFIP.
• The job creation initiative that more than doubled the number of people put into paid jobs from the beginning to the end of 2009 will lose $4 million under the House proposal – at a time when every single job creation strategy is needed. Minnesota has been using welfare to work funds to subsidize short-term, skill building jobs.

These cuts are unnecessary: The federal government included emergency welfare-to-work funds in the stimulus bill in order to avoid cutting away at the safety net for very low income children and their parents. Minnesota still has some of that money available, but the House budget proposal –like Governor Pawlenty’s – moves $28 million of that money into the tax budget, so that the tax budget can provide $28 million in state general funds for budget cuts.

But you are making a difference!
The calls you made. The e-mails you sent. Those of you who showed up today – all of that has made a difference. Together with our friends and allies in the Stand Together Minnesota campaign you helped prevent cuts to General Assistance. And we will ultimately work to prevent the cuts to MFIP as well. None of these proposals are final. There are most steps in the House of Representatives and Tuesday morning, the Senate human services budget committee will release its budget proposals.

The House cuts are not as deep as the Governor’s cuts. But our goal is NO CUTS.