SIGN ON: Letter to exempt $250 stimulus payment from state benefits

As you know, the federal stimulus package includes a $250 payment to everyone receiving Social Security benefits (SSI, SSDI, retirement), and veterans' disability benefits/pensions. The stimulus package specifically says that this $250 can't be counted when calculating eligibility for any benefits that use federal funds. However, this does not apply to benefit funded entirely by state or local goverments.

Attached is a letter (SEE BELOW) asking the New York State leaders to enactlegislation that will exempt the $250 Social Security/SSI/VA stimuluspayment from state-only funded benefits and state income taxes. Thefederal law exempts it from all federally-funded benefits, but there arestate benefits, some of which are listed in the letter, that someindividuals might lose based on this payment. This will cost the statenothing. It won't expand eligibility for any benefit, it will justallow people who were already eligible for a benefit to continuereceiving it. Otherwise, people whose income is right at the upperlimit of the particular program, like SCRIE, DRIE, or EPIC, could loseit. This would ensure that no New Yorkers will forfeit any benefit orpart of this $250.

The payments will be sent out in May, so there's just time to getlegislation going and get word out so people won't panic, and government offices that process these benefits can be advised of the exemption.Also, the letter asks that the payment be exempt from state incometaxes, as it is from federal taxes.

PLEASE E-MAIL SUSAN DOOHA at sdooha@cidny.org if your organization will sign on, giving the full name of the organization.
Thank you.
Linda Ostreicher, Director of Public Policy Center for Independence of the Disabled of New York
841 Broadway, Room 301,
New York, NY 10003646-442-4153
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Governor David A. Paterson
State CapitolAlbany, NY 12224

Senate Majority Leader Malcolm A. Smith
909 Legislative Office BuildingAlbany, NY 12247

Assembly Speaker Sheldon Silver
932 Legislative Office BuildingAlbany, NY 12248

Dear Governor Paterson, Senator Majority Leader Smith, and Assembly Speaker Silver:

New York State has an important opportunity to improve the lives of people with severe disabilities and the frail elderly. In May 2009, a $250 federal stimulus payment will be sent to most Social Security and SSI recipients.

We urgently request legislative action to ensure that these modest payments do not disrupt participation in programs that are critical to community integration for individual beneficiaries. The proposal would not require any commitment of state funds—it would be budget neutral.

Federal law provides a good guide to policy makers. It states that the one-time payment will not count as income for any state or federal program during the month it is received and any other federal or state program with federal financing. In addition, it will not count as a resource in the month it is received or the following nine months. Additionally, it is not subject to federal income tax, and should not be subject to state income tax.

Unless lawmakers enact a parallel provision in state law exempting the payment from consideration as income or as a resource, low income people whose income is near the limit for a state-funded benefit could lose the benefit for a whole year -- if this payment puts their income over the limit for 2009. State-only funded benefits that could be affected would include, but not be limited to:

1. Senior Citizens & Disability Rent Increase Exemptions (SCRIE and DRIE) -- N. Y. Real Property Tax Law § 467-b(1)(c);
2. Real Property Tax Circuit Breaker Credit -- NYS Tax Law § 606(e)(1)(C);
3. EPIC (prescription drugs for people 65+) -- N. Y. Elder Law § 241(3)
4. Any program provided under the authority of the Social Services Law. SSL § 1, 131-n. Apart from programs exempt under federal law described above, this includes, for example:
a. Safety net assistance (formerly known as “Home Relief”) and Safety Net Medicaid
b. Homeless housing and assistance
c. Family Health Plus

The action that we are recommending is not without precedent. For example, the State enacted similar legislation extending the federal protection of German restitution to Nazi victims to all the state benefits listed above.

Please act swiftly to see that the lives of people with severe disabilities and the frail elderly are not disrupted needlessly. We would welcome the opportunity to speak with you about this urgent request.

Sincerely,


Center for Independence of the Disabled in New York
Selfhelp Community Services, Inc.

Persons NOT eligible to receive the stimulus payments are: SSI beneficiaries who receive benefits at a reduced rate of $55 (rate in NYS) because they live in a nursing home or hospital; anyone living outside the United States or territories; persons who are not legal residents of the United States (but does not necessarily have to be a PERMANENT resident); persons whose benefits have been suspended for making false or misleading statements; Social Security beneficiaries who are minor children (under 18), though children receiving SSI are eligible. Also Disabled Adult Children receiving Social Security are eligible.

For example, the one time payment will not count towards income limits for SSI, Medicaid, Medicare Savings Programs, the Medicare Part D low income or "Extra Help" subsidy, HEAP, Food Stamps or any other federally funded program (including State programs with federal financing).

For example, if the one-time payment is received in May 2009, an individual does not spend it during that month, and it brings the beneficiary’s bank account over the SSI limit ($2000 for a single person), or over the resource limit for Medicaid or another federal program, it will not count as a resource from May 2009 through February 2010. If an individual still has this money in March 2010, it will count as a resource starting that month and may affect eligibility for SSI, Medicaid, or the other federally funded programs.