Californians are more needy

As the California economy continues to deteriorate, low- and middle-income Californians are finding it increasingly difficult to make ends meet, according to a report released Monday by the nonpartisan California Budget Project.

They are turning to public programs in growing numbers — at a time when state policymakers have proposed deep cuts to health and human services programs to close the state budget gap.

The number of food stamp applications jumped 33 percent between September 2007 and 2008, but rising food prices mean the assistance doesn’t go far enough. The number of families on welfare cash assistance grew by almost 27,000 over the same period.

Not only do these programs help families make ends meet, they quickly return money to the local economy, budget project director Jean Ross said in a press call about the report Monday.

“Cash assistance moves rapidly through the economy. Every dollar goes into the pocketbook and immediately back out to clothing stores and grocery stores or to landlords for rent,” Ross said. “To cut back at a time like this is exactly the opposite of what we need to do.”

A Democratic budget proposal would suspend a cost-of-living increase for cash assistance for welfare recipients to save $100 million. A Republican counter proposal would cut the COLA, limit eligibility for assistance and cut cash grants by 10 percent, for a savings of $1 billion.

“We are at a time of extraordinary stress not only on our (state) budget, but on California families,” Ross said.

Not only are more individuals and families applying for assistance, a “very different type of family” historically a couple of steps up the income ladder is asking for help because of rising food costs and rising unemployment, she said.

The current budget proposals will put more families at risk, Ross said. “Every dollar that doesn’t go to a family doesn’t go out into the local economy.”