GOVERNOR PATERSON ANNOUNCES FIRST PUBLIC ASSISTANCE GRANT INCREASE IN 19 YEARS TO TAKE EFFECT JULY 1

Action Helps Strengthen Safety Net During Difficult Economic Times

Governor David A. Paterson today announced that the first increase to the public assistance grant in nearly two decades will take effect July 1, 2009, providing more aid to individuals and families struggling in poverty during this unprecedented economic downturn. The public assistance grant will be raised again in each of the next two years, resulting in a cumulative 33 percent increase by July 2011.

“While all New Yorkers are feeling the pinch of the difficult economy, our most vulnerable neighbors face the greatest challenges and need a reliable source of security,” said Governor Paterson. “With more than 800,000 of our own residents unemployed, and many others facing reduced hours or forced to take lower-paying jobs, the pressure on our least-skilled workers is great. That is why we cannot turn our backs on our neediest and most vulnerable residents, especially our children.”

As of July 1, the public assistance grant for a family of three will be $321 a month, up from $291 a month. Approximately 200,000 households, including nearly 290,000 children, will benefit from this increase, the first since 1990. As part of the 2009-10 budget, the Governor and the Legislature agreed to increase the grant in each of the next three years, totaling $353 a month in July 2010 and rising to $388 from July 2011 forward. The State will support the counties’ share of the costs of the grant increase for a period of three years.

While increasing the grant helps those on public assistance better provide for their families’ needs in the short term, the State is also committed to assist these individuals and their families in improving their long-term economic prospects. The State has substantially boosted its investment in job training and education programs to help low-income families not only leave public assistance, but to also help them build a foundation of skills and work experience that will enable them to achieve and sustain economic self-sufficiency.

New York has been working to increase access to the supports that help hard-working New Yorkers leverage vital benefits such as Food Stamps, home energy assistance and an array of tax credits including the federal and state Earned Income Tax Credits that have contributed greatly to the success of public assistance reform not only in New York State, but across the country.

Assembly Speaker Sheldon Silver said: “This national economic downturn has made it absolutely necessary to increase the assistance grant, for the first time in nearly two decades, in order to provide a stronger safety net during this time of insecurity. I thank Governor Paterson and Assemblyman Keith Wright for advocating for this much needed boost, which will greatly help so many New Yorkers and their children.”

Senator Velmanette Montgomery, Chair of the Senate Committee on Children and Families said: "This is a long over-due step in helping people become self-sufficient and better care for themselves and their families. I support the grant increase and note that this action, combined with other long-term initiatives, is needed to transition low-income New Yorkers into living wage jobs."

Senator Daniel L. Squadron, Vice Chair of the Senate Committee on Social Services said: “Every dollar counts when you're trying hard to support a family in a difficult economic climate. For those on public assistance, this is a small piece of relief after 19 years."

Assemblyman Keith L.T. Wright, Chair of the State Assembly Committee on Social Services, said: “With the public assistance grant being raised for the first time in nearly two decades, New York State is finally beginning to truly address the issue of poverty within our communities. Coupled with an increase in food stamp benefits and the funding of programs such as Career Pathways Out of Poverty, the 30 percent increase to the public assistance grant is a good first step towards enabling our residents to weather this fiscal storm and ultimately become economically self sufficient.”