State welfare seeks $15.9 million more

Tuesday, Nov. 27, 2001 | 9:05 a.m.

CARSON CITY -- The state Welfare Division is estimating it will need an additional $15.9 million from a reserve fund over the next 20 months to pay a growing number of public assistance recipients.

Roger Mowbray, deputy welfare administrator, told the Legislative Interim Finance Committee Monday the division initially had estimated a shortfall of about $10 million because of the slowdown in the economy.

But the Sept. 11 terrorist attacks changed that. Gov. Kenny Guinn, in a program to help those who lost their jobs since then, has allowed those drawing unemployment checks to still qualify for welfare. Mowbray estimated that will cost $5.7 million for the displaced workers.

The legislative committee Monday released the first $4.5 million from the reserve fund that is all federal money. And the Welfare Division will return later to get additional money as it gets firmer figures on what the needs are.

Mike Willden, director of the state Department of Human Resources, said there is $31 million in the reserve fund and it will probably be drawn down to $16 million at the end of this biennium. In addition, there may be increased costs on Medicaid and Check-Up, the program for insurance for children of low-income families.

Willden said there is $26 million in another fund that could be used to pay for the higher costs in Medicaid and Check-Up.

He told the committee that the governor has waived requirements for qualifying for welfare until "the crisis is over."

I do not see that as any time soon."

Willden said typically a person who drew $800 to $850 a month on unemployment would not be eligible for welfare. But Guinn has waived this requirement.