SENATE BILL REPORT

ESSB 5723

BYSenate Committee on Ways & Means (originally sponsored by Senators Sellar, Hansen, Moore, Saling, Patterson, Metcalf and Lee)

Limiting the amount of state supplementation for federally provided cost-of-living adjustments for SSI recipients.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 24, 1987; January 25, 1988

Senate Staff:Jan Sharar (786-7715)

AS OF JANUARY 25, 1988

BACKGROUND:

The federal Supplemental Security Income (SSI) program provides cash grants to needy blind, elderly, or permanently disabled persons.  The state supplements the federal grant with additional state dollars.  In 1986 the federal SSI benefit standard was $336 a month for individuals and $504 a month for couples.  The state supplement brought the benefit up to a maximum of $368 a month for individuals and to $532 a month for couples.

Federal SSI benefits are adjusted to keep up with the cost of living.  Prior to 1983, cost of living increases (COLAs) were paid in July.  In 1983 the COLA increase was delayed from July to January 1984 by amendments to the Social Security Act.  In lieu of the expected July 1983 COLA, the federal benefit rate (FBR) was increased in July 1983 by $20 a month for individuals and $30 a month for couples.

At that time, states were given the option of passing along the full benefit increase or only that portion of the FBR increase equal to how much the benefit level would have increased had there been a COLA effective July 1, 1983.  The March 1983 state supplementation levels were established as the minimum levels below which states could not go.

As a result, Washington had the one-time option of reducing the state supplemental benefit by a maximum of $10.30 a month for individuals and $15.40 a month for couples.  No decrease in state supplementation had previously been allowed.

The state chose not to exercise this option until the 1985-87 biennium.  In January 1986 the federal COLA adjustment was 3.1 percent, but the state supplement was reduced by a maximum of $10.30 per month for individuals and $15.40 per month for couples.  The reduction in the state supplemental benefit lowered the income assistance program 1985-87 appropriation by approximately $6 million in state funds.

A class action lawsuit by SSI recipients, Mahoney v. Shinpoch, successfully challenged the administrative procedures employed by the Department of Social and Health Services (DSHS) in reducing the SSI benefits between January and April 1986 .

The state, under court order, has repaid SSI recipients for four months of benefits at the higher previous level.  DSHS officials estimate the cost of the payback to be approximately $1.6 million in state funds.

Current Social Security law requires the state to maintain supplemental benefit levels at the March 1983 minimum level increased by all federal cost-of-living adjustments.  DSHS officials report that the state supplemental benefit is currently at the minimum level.

SUMMARY:

No amount of federally provided benefits or annual cost of living adjustments can be used to reduce the level of state supplementation to any SSI recipient.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 20, 1988

Effective Date:The bill contains an emergency clause and takes effect immediately.