Department of Human Services Budget Leaves Vulnerable Marylanders with Unmet Needs

Many of the critical services that the Maryland Department of Human Services administers are threatened by federal funding cuts. Maryland’s budget for these services is now more critical than ever as a result, but the budget advancing through the General Assembly includes few new investments.

However, legislation under consideration outside of the budget process is poised to provide additional supports to low-income Marylanders, such as expanding the Earned Income Tax Credit to include 18 to 24-year-olds, increasing temporary disability assistance, and increasing child care assistance so that parents have greater access to high-quality child care providers.

Energy Assistance

One of the critical sources of funding for Maryland’s energy assistance programs, the Regional Greenhouse Gas Initiative has been underperforming, a trend that is likely to continue. The budget includes a proposal to withdraw Strategic Energy Investment Fund (SEIF) money from the fiscal year 2018 budget to make up for the deficiency, but SEIF is also facing long-term funding issues. Federal Low Income Home Energy Assistance Program funds, which also support Maryland’s energy assistance programs, were zeroed out in President Trump’s recently released budget, suggesting that Maryland may not be able to rely on those funds in the future, making long-term funding deficits for energy assistance that much more dire.

Because of the decision to withdraw $10 million in SEIF funds to support existing energy assistance programs, a new program, Supplemental Targeted Energy Program, will likely be delayed. This program, which was expected to begin implementation later this year, would offer households an additional benefit if they engaged in activities related to energy education, self-sufficiency, and coordination.

The programs have seen a drop in enrollment, leading to a forecast that enrollment rates will continue to drop in the next budget year, and less funding will be required. However, enrollment has been dropping in part due to long application processing times and high denial rates, meaning that many struggling families are being left unable to afford their energy bills when they need it most.

Temporary Disability Assistance Program

The budget includes a much-needed $10 per month increase to TDAP payments for Marylanders who are unable to work due to a short term disability or have a permanent disability but have not yet been approved for federal disability assistance.  The increase would be the first for the program in more than 15 years and leaves payments woefully low. Currently, TDAP recipients are trying to live off of $185 per month with no other source of income. Proposed legislation would create a long-term fix to increase TDAP payments to a more sustainable level, in line with the Temporary Cash Assistance program.

In addition, enrollment in the program has been dropping. Through December 2017, the average monthly number of TDAP recipients was 14,419, but the governor’s proposed budget assumes another significant decrease in enrollment to 12,754, which would be an all-time low for the program. The Department of Human Services has been unable to explain why enrollment is dropping, suggesting that some of Maryland’s most vulnerable may be going without the assistance they need.

Social Services

The budget includes an increased reliance on Temporary Assistance for Needy Families (TANF) funds to pay for Local Child Welfare Services and Foster Care Maintenance Payments, which does not support the core program goals of TANF. TANF spending in the Social Services Administration budget increases by $8.2 million over fiscal 2017. The increased use of TANF allows for a lower level of general funds than would otherwise be required.

While it is critically important for child welfare and foster care programs to be fully funded, TANF funds should not be used as a substitute for general funds at the expense of the families that need the programs that those funds are actually intended for. In addition, changes or cuts to TANF on the federal level could leave funds stretched too thin to cover more than its core programs.

Based on current year-to-date trends in caseloads, it is likely that caseloads will be higher than what is allowed for in the fiscal 2019 budget. The Department of Legislative Services estimates that there will be a $3.2 million budget shortfall for Social Services, in addition to the a likely shortfall in the agency’s budget at the end of fiscal 2018.