A Cold Shoulder for
Detroit's Working Poor
by Yvette Moore
The Detroit area ushered in 1999 at three degrees below zero, a major snowstorm under way and with hundreds of former welfare recipients without water, electricity and/or gas in an example of what is happening in the wake of welfare changes.
Ironically, it was meeting Michigan's Work-First mandate to get jobs that kicked off the former welfare recipients nightmares. Work First is Michigan's back-to-work program developed under 1996 federal welfare-law changes requiring each state to devise its own plan for public assistance.
The utility cutoffs began when former welfare recipients suddenly received bills for past utility use. While they were on welfare, Michigan Family Independence Agency (FIA) had deducted money from their cash benefits to pay a portion of their gas, water and electric bills. FIA's arrangement with the utility companies allowed the agency to pay less than the full balance without interruption of services to the welfare recipients. The recipients, however, were not aware of this arrangement and thought their utility bills had been paid in full.
Shortly after the Work-First participants secured jobs, although low-paying, their welfare cash benefits ceased and they received bills from local water, electric and/or gas companies demanding payment within 30 days for current and past charges.
"Since FIA only paid a portion of the bills, over a period of years, the excess amount accumulated," said Marian Kramer, co-president of the Detroit-based National Welfare Rights Union and a member of Central United Methodist Church in Detroit, Mich. "Of course, these new entrants to the work force don't have a couple of thousand dollars lying around to pay off this company or the other in 30 days. So their service was cut off."
Ms. Kramer cited 400 people in Highland Park, a suburb of Detroit, and more than 100 in Detroit who lost utility services for non-payment of steep bills. Work First participants could not get the utility companies to agree in writing to payment plans nor could they get FIA to intercede on their behalf. "FIA cited its policy that precludes assistance with bills over a certain critical amount," Ms. Kramer said. "After a few months, the clients are further behind than when on welfare. When a person doesn't have water, which is a prerequisite for survival, this is a violation of one s human rights. Neither agencies nor companies should be in complicity to punish the poor. "
Voices go unheard
The utility cutoffs have received little media coverage and generated little public outrage. Those impacted do not have power to get their voices heard.
The area's congressman, U.S. Rep. John Conyers (D-Mich.) learned of the crisis through a telephone call from the Women's Division's Washington, D.C.-based public-policy office. He then attended a public hearing convened by the National Welfare Rights Union and the Michigan Welfare Rights Organization.
"I've got people in my district with five children who don't have water," Mr. Conyers said after the hearing. "I keep asking myself, 'How can we be doing this, even if it isn't against the law?"
Part of the problem is that federal low-income energy-assistance programs do not consider water a utility, even though some heating systems require water for operation. At Response press time in January, Mr. Conyers and FIA were trying to work out agreements with the utility companies to get the services restored.
An FIA spokesperson denied the utility cutoffs are a by-product of the state's welfare-to-work program. FIA Communication Director Karen Smith said:
"Utility cutoffs are not a statewide issue. It's a Wayne County issue. Wayne County FIA officials pointed to seniors and disabled people who had not be on welfare but whose utilities have been cutoff as proof that the service interruptions were not a Work-First problem."
Welfare-rights advocates, including Maureen Taylor, president of Michigan Welfare Rights Organization, disagree. She said:
"This is a Work First problem. Yes, there are seniors, disabled people and other poor people with similar problems, but we found out about the cutoffs because all these Work-First people kept calling the office asking for help."
When asked for examples, Ms. Taylor read from a stack on her desk:
"Sandra S.: Work First. Three children, 15, 10 and 9. After working two months, received a MichCon [gas] bill with arrears. Went to FIA for help in July. Help refused. Went back in August. Help refused again. FIA said bill too big."
"Here's one for $130. Gas was cut off Dec. 1. Linda F.: Work First. FIA denied help because she didn t make a payment on the bill in two months. She didn t make a gas payment because she was paying down the water bill from $600 to $300. That's when the gas was turned off. She's still working temp as a secretary. She types 71 words a minute. Has two children. Doesn't matter."
A fresh start
FIA's welfare program lacks the infrastructure needed to prevent former welfare recipients from falling through the cracks, Ms. Taylor said. The program does not help people out of poverty, she added.
In response to these concerns, Candy Salazar, spokeswoman for FIA in Wayne County, said the agency will consider looking at utility and emergency housing as transitional services as it now defines medical and day-care services.
Advocates for Work First participants want an additional action. Ms. Kramer said former welfare recipients need a fresh start. "Those who go into the Work First program should have all utility bills that have accumulated forgiven by FIA and the utility company in question," Ms. Kramer said. "A $1,500 bill that accrued over the years as a result of the department paying a reduced amount should be shared by both FIA and that utility."
Yvette Moore is managing editor of Response.