Families Feel Sharp Edge of State Budget Cuts

[groovedaddy]

LANSING, Mich. — Stretched beyond their limits and searching for new corners of their budgets to find spending cuts, states are now trimming benefits for residents who are in grim financial shape themselves.

Some states, including Florida and Missouri, have decided to shrink the duration of state unemployment benefits paid to laid-off workers, while others, including Arizona and California, are creating new restrictions on cash aid for low-income residents.

Here in Michigan, more than 11,000 families received letters last week notifying them that in October they will lose the cash assistance they have been provided for years. Next year, people who lose their jobs here will receive fewer weeks of state unemployment benefits, and those making little enough to qualify for the state’s earned income tax credit will see a far smaller benefit from it.

Some political leaders see these sorts of cuts as unfortunate necessities to help bridge their state’s financial gaps. Others see them as overdue limits on out-of-control government handouts — some lawmakers here fumed, for example, that 30,000 college students, newly dropped from the state’s food stamp rolls, should never have been allowed to collect such benefits in the first place.

http://www.nytimes.com/2011/09/07/us/07states.html?nl=todaysheadlines&emc=tha23