The Hunger Action Network of New York State said today that the Governor’s proposed cuts in welfare and homeless programs would not only increase hunger and poverty in New York State but would drive up costs for taxpayers.

The Governor is proposing more than one hundred million in cuts in programs to assist the homeless, while reducing funding for jobs programs for welfare participants from $70 million to $18 million. He also wants to cut in half (from 10% to 5%) the 2nd year phase-in of the basic welfare grant that was passed last year after 18 years of inaction, allegedly saving the state $18 million. (A family of three would receive an extra 50 cents a day rather than the scheduled $1 a day hike. The basic grant is $320 a month for a family of three.)

These cuts are taking place even though the state expects to draw down an extra $638 million in federal welfare dollars under the economic stimulus package. This is in addition to the annual $2.4 billion federal welfare block grant, which provides the state with more than a billion dollar annual surplus that also could be used for jobs programs.

“Cutting programs that help families meet their basic needs just ends up creating more hunger and homelessness while depriving the local economy of much needed spending,” noted Mark Dunlea, Executive Director of the Hunger Action Network. “It is a lot more expensive for taxpayers to help people out once they end up in an shelter or an emergency room than it is to provide adequate assistance up front for their housing and food needs, money which goes straight to local businesses and landlords,” added Dunlea.

The number of people using shelters in New York City now exceeds more than 39,000 individuals each night, most of them families with children. According to the recently released "Mayor's Management Report," in FY 2009 the annual cost of sheltering a homeless family was $38,405, which was a 5 percent increase from the previous fiscal year.

Hunger Action was also dismayed by the cuts in state funding for jobs programs for welfare participants, even though the state is able to draw down $4 for every dollar of state expenditures through September 30, 2010.

“The federal government consistently ranks New York among the worst in the country in helping welfare participants into the jobs. Far more just end up moving from the federal welfare (TANF) program to the state safety net program, which is paid for entirely by state and county tax dollars. The Governor claims to be using this budget to get the state on a sounder fiscal footing. He is, in fact, digging the hole deeper,” noted Andreas Kriefall, Upstate Director of Hunger Action Network.

“I can’t understand why the Governor isn’t doing more to create a win-win situation by using federal funds to help move welfare participants into jobs, saving tax dollars and creating jobs when we most need them,” Kriefall added.