Income Maintenance Programs
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Income maintenance programs are administered in all Wisconsin counties to assist eligible individuals to apply for programs that help meet basic needs, such as BadgerCare, FoodShare, and the Supplemental Security Income (SSI) Caretaker Supplement Program. The programs became even more essential with the creation the Health Insurance Marketplace under the Affordable Care Act (ACA) and recent changes in BadgerCare eligibility, to ensure the enrollment of individuals into appropriate health insurance programs.
The 2013-2015 budget included a $38 million funding increase for Income Maintenance programs to cover the expected administrative costs related to changes in enrollment in BadgerCare and the Health Insurance Marketplace as a result of BadgerCare eligibility changes and implementation of the ACA. This was a one-time funding increase, which means no future additional funding was provided to cover an anticipated increase in caseloads associated with implementation of the ACA. The previous budget also failed to address concerns about how the funding formula inadequately funds programs in rural areas.
Under the proposed budget, Income Maintenance programs would maintain base level funding from the state ($27.9 million per year) through the calendar year 2017. However, the Governor’s proposal reflects the administration's assumption that the state will claim and receive enhanced federal matching funds for Income Maintenance programs to implement the ACA. In addition, the Department of Health Services (DHS) will reduce supplemental funding that the Department has provided to Income Maintenance consortia for ACA implementation. This supplemental funding would be reduced every calendar year through 2017. The reduction in ACA supplemental funding would be partially offset by additional funding to support workload relating to work requirements for FoodShare recipients who are able-bodied adults without dependent children. As a result, total funding for Income Maintenance consortia will drop from $46,460,000 in 2014, to $42,428,700 in 2015, to $37,521,300 in 2016, and $35,067,600 in 2017.
To address the current uncertainty of ongoing costs, the administration proposed to place the savings from the phase-down of the ACA supplemental funding in unallotted reserve. This would provide DHS the option to increase Income Maintenance allocations if workloads remain high enough that the phase-down of ACA supplemental funding proves unwarranted.
To address the current uncertainty of ongoing costs, the administration proposed to place the savings from the phase-down of the ACA supplemental funding in unallotted reserve. This would provide DHS the option to increase Income Maintenance allocations if workloads remain high enough that the phase-down of ACA supplemental funding proves unwarranted.
Joint Finance Committee Proposed Changes to the 2015-2017 Budget
The JFC reduced funding budgeted to Income Maintenance consortia for ACA implementation by approximately $1.7 million in 2015-16 and approximately $3.1 million in 2016-17. They also modified the type of GPR funds allocated to FoodShare programs, changing the source of funds for 2016-17 from a recurring budget measure into one-time funding source.
Final 2015-2017 Income Maintenance Program Budget
The Legislature approved the Governor's proposed Income Maintenance Program budget as amended by the Joint Committee on Finance.
Impact on Wisconsin Women and Girls
The budget appears to rely on Income Maintenance caseload assumptions that conflict with the most recent monthly caseload data, which indicates that monthly caseloads have been increasing from 2013 to 2015. In addition to implementation of the ACA, these increases are also due to changes in BadgerCare Plus eligibility and work requirements for some FoodShare recipients. However, because the budget will hold the savings from Income Maintenance budget reductions in reserve, this would allow DHS to increase payments to Income Maintenance programs to help offset workload increases. Adequately funding Income Maintenance programs is essential to help ensure that people who are eligible for and need these crucial programs can successfully navigate the enrollment process.