USA > Massachusetts > Middlesex County > Somerville > Report of the city of Somerville 1956 > Part 6
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We can scarcely suppress our deep satisfaction in this measure of success because it was achieved during a period when inflationary living costs were crescendoing to new altitudes.
The remarkable character of the decline in costs may be best appreciated if we bear in mind that it took place despite. the inescapable impact of the following factors:
1. All Old Age Assistance recipients, except those in Nursing Homes and Chronic Hospitals, received an increment of $2.50 monthly, effective as of January 1, 1956;
2. All recipients of Old Age Assistance, Aid to Depend- ent Children and Disability Assistance received an overall up- ward budgetary adjustment of 5.8%, effective as of July 1, 1956;
3. All employees of the Department, in service at least six months, received a salary increase equivalent to $200.00 per annum, as of July 1, 1956. They actually received an addendum of $100.00 during the last half of the year by virtue of the "bonus" and the wage adjustment, effective October 7, 1956;
4. Aliens became eligible for Old Age Assistance as of November 7, 1956;
5. Several minor liberalizations of law and policy became effective during the year;
6. The incidence of rental increments greatly increased as a result of the cessation of controls as of January 1, 1956.
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ANNUAL REPORTS
Rentals throughout the City average 35% higher than in mid 1954, according to Attorney Amleto DiGiusto, former local Director of Rents;
7. An increase in per diem hospital rates and V.N.A. fees;
8. Increased number and costs of Nursing Home cases;
9. Increased fuel allowances in General Relief;
10. The unprecedently great liquidation of indebtedness
to other Cities and Towns, to the sum of $135,607.14. This was $51,996.60 or almost 61% more than was spent for this purpose during the year preceding.
In addition, we should point out, for the sake of proper per- spective, that our savings are unique and "counter-clockwise". since: A) Federal expenses for public assistance increased; B) State expenditures for public welfare increased; C) The ex- penses of all other municipal departments, increased; and D) The municipal expenditures and costs in the aggregate in- creased.
From the facts at hand, it is clear that net welfare costs have but a relatively. slight influence on the local real estate tax rate, notwithstanding the melodramatic publicity tradition- ally accorded the supposed impact of the Department's fiscal operations. Assuming that each dollar of our present $69.90 (per $1,000 valuation) tax rate covers approximately $133,000 of costs, it is obvious that our net costs in 1956 represented less than $5.00 of the total rate.
It is likewise worthy of note that, of the gross disburse- ments of $3,006,616.51, only $226,683.84 went for adminis- trative charges. As we have indicated in previous Reports, this figure compares very favorably, indeed, with private industry as well as with other governmental agencies, and with private, (incorporated, charitable,) social-service organizations. Fur- thermore, economy of management is well illustrated in the fact that personnel salaries equal 6.9% of the aggregate ex- penditures, or 92.1% of the administrative costs. In other words, all other overhead (outside of salaries), equals but 7.9% of our modest administrative costs. It should be remembered, of course, that we are quartered in a public building wherein rental and water charges are not required. But it is equally pertinent that we claim and receive 50% Federal reimburse- ment for heating, lighting, janitor services, repairs and altera-
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WELFARE DEPARTMENT
tions, as well as for all other administrative costs in the three Federally aided programs.
Federal administrative grants and State reimbursements for administration of the Disability Assistance program, in combi- nation, totalled $102,315.43 or about 40.5% of our total ad- ministrative expenditures of $226,683.84.
Tables A through E, published hereafter, delineate graph- ically the total income of the Department in 1956. It reached the sum of $2,347,345.08 which was but $805.06 less than in 1955.
Since Federal grants and State reimbursements are gov- erned by spending, they decreased in 1956. They are regulated by complicated fiscal formulae which vary in application, ac- cording to the amounts of individual monthly grants and the composition of the caseloads (adults, children).
The Federal Grants for Assistance decreased $38,597.12, and the Federal Administrative Grants increased $10,114.37, in 1956, as compared with 1955. Thus, there was a net loss of revenue from this source of $28,482.75. The Assistance income fell from $1,035,123.66 to $996,526.54, and the Administrative Support rose from $84,741.96 to $94,856.33.
Since the Federal monies feed back into the Department's Account, (unlike State reimbursements which flow into the City's general revenue account and, at the end of the year, go into the Excess and Deficiency Account,) and since there was a decrease in this income, the fact that the Department's net costs actually tumbled a trifle, in 1956, becomes all the more remarkable.
Speaking of State reimbursements, the fiscal sheets show that revenue from this source tapered off a minute fraction, in 1956. The 1955 figure was $1,077,970.59, and the total for 1956 was $2,796.85 less, or $1,075,173.74.
FISCAL FORMULAS
It may be of interest to set down here the fiscal formulas which presently govern Federal financial participation and State reimbursement in our Public Assistance program. In Old
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ANNUAL REPORTS
Age Assistance, the Federal Government pays one-half, up to $60.00 of each monthly assistance payment, plus $9.00; that is $39.00 of the first $60.00 of each monthly payment. The Commonwealth reimburses us for two-thirds of the residue amount, and the local Government subsidizes the remaining share. The Federal Government does not share in any amount above the ceiling figure of $60.00. The Federal Treasury also pays one-half of the Old Age Assistance administrative costs, including the salaries of personnel.
In Disability Assistance, the Federal formula for assistance payments is identical with that prevailing in Old Age Assist- ance, but the Federal and State Governments, combined, pay a total of 75% of Disability Assistance disbursements to recipi- ents. In this category, alone, the State participates along with the Federal Government in administrative costs. "Uncle Sam" and the Commonwealth, combined, pay three-fourths of such costs.
In Aid to Dependent Children, the formulae are somewhat more complicated. In the case of the parent or grantee-rela- tive, the Federal Government pays one-half up to $32.00 of the monthly assistance payment, plus $5.50, or $21.50 of the first $32.00. The same yard stick is used in respect to the first dependent child. In the instance of the other dependent children, the Federal Government pays one-half up to $23.00 of the monthly assistance payment, plus $5.50, or $17.00 of the first $23.00. The State pays one-third of the entire monthly assistance grant and the local community is responsible for the residuary amount. The Federal Government, likewise, under- writes one-half of the administrative costs for the Aid to De- pendent Children program.
General Relief or Temporary Aid is financed entirely by local communities, except in cases not having a "Legal Settle- ment". In non-settled General Relief cases, the Commonwealth bears the financial burden. In both Old Age Assistance and General Relief, the city or town of settlement is ultimately responsible for proportionate (O.A.A.), or entire (G.R.) costs.
REFUNDS
The term, "REFUNDS", in common administrative usage, customarily refers simply to the return of uncashed checks. Ordinarily, therefore, it merits no special mention.
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WELFARE DEPARTMENT
But this year, we are specifically adverting to our experi- ence, in this respect, for three important reasons. For the first time, our efforts, to obtain periodic reports of uncancelled checks from the Treasurer's Office, were successful and, in several instances, we were able to retrace checks and even series of checks to determine the reasons that they were not cashed, and to have them refunded.
Secondly, early in the year, we repossessed some sizable amounts of money, which, usually, (in the other categorical accounts), would be considered "recoveries", but which we were able to funnel back into our Miscellaneous Welfare Ac- count as "Refunds".
The third factor deserving special mention is the record refunds in Aid to Dependent Children Program. This past year, they totalled about $2,500 monthly, or $30,154.90, which was well over a fifth higher than the prior year when they amounted to $24,585.73, or $5,569.17 less than in 1956. In a concrete way, this record illustrates most vividly the practical effective- ness of our policy in respect to the pursuit of errant husbands.
Hence, our annual record for refunds is especially impres- sive. In 1955, such returns totalled $40,852.84, whereas, in 1956, these forfeitures amounted to $58,530.68. The in- crease, percentagewise, is 43.2.
RECOVERIES OF MONEY
In our Annual Report for the year 1955, we were pleased to record an increase of 60.4% in "Recoveries" of money ex- pended for Assistance over our corresponding recaptures for the preceding year, 1954. We are now gratified by the com- parative results for 1956, for they represent an increase of 13.5% over the previous record year.
In 1954, our Recoveries totalled $26,151.43, in 1955, they soared to $43,496.83 and, in 1956, they pyramided to $49,389.55. Thus, the 1956 retrieved payments were 88.8% higher than those of 1954.
Our affirmative policy of pursuing and exploring every pos- sible source of repayment has again proven notably productive. The ledger figures, likewise, demonstrate that publicity re- leases, on the effects of the Lien Law, have expedited liquida- tion of realty encumbrances.
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ANNUAL REPORTS
COLLECTIONS FORM CITIES AND TOWNS
Last year, we reported a rise in collections from other municipalities of 78.6% over 1954. We now report a further advance, in 1956, of 9.4% over 1955.
In 1956, we received an aggregate of $72,868.24, in com- parison to the $66,607.40 of 1955, and in marked contrast to the $37,284.03 of 1954. The 1956 influx is tantamount to a 95.4% climb over the 1954 sum.
The facts speak for themselves and need no elaborate com- mentary. They illustrate the principle of mutuality, which is dominant in this field. Adherence to the just policy of paying our own bills has contributed, in a practical way, towards the recognition of our claims. Continuing contact with the Execu- tive Directors of the Welfare Departments has served to but- tress this business-like approach. At the end of the year, except for the inevitable number of disputed "settlements", most of the money owed to us had been paid.
The extent of our recent progress may, perhaps, be most facilely shown by pointing out that our collection of $139,475.64, in the two year period 1955-56, is almost double the receipts for the corresponding two years of 1953-54, when the total was but $77,593.68. As may be readily seen, our collections in 1956 almost equalled those for the two year period, 1953-54.
OLD AGE ASSISTANCE
The downward trend in the local Old Age Assistance case- load appears to have been reversed, late in the summer of 1956, and the number of recipients has been mounting some- what unsteadily since that time.
The alteration of current, however, has not been dramatic and is not alarming. The chief reason for the change of direc- tion came late in the year and was attributable to the statutory liberalization, whereby aliens became eligible for this type of aid, as of November 7, 1956.
The eligibility of non-naturalized resident foreigners, who have lived in the United States (not necessarily in Massachu- setts), for twenty years, (which need not be the latest twenty), brought about a significant shift of cases from the Disability Assistance category to the Old Age Assistance program, ef-
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WELFARE DEPARTMENT
fective as of December 1st. Some 38 Disability Assistance cases were transferred to Old Age Assistance, as of that date, as were also some half dozen General Relief recipients.
The categorical caseload fluctuated within a broad ambit, during the twelve months. As of December 31, 1955, there were 2,032 persons on the rolls for aid to the aged. On De- cember 31, 1956, despite the inflow of aliens, there were but 1,996. In August, however, the figure had dropped to 1884. The composition of the caseload varies widely, and during the year, some 2,276 different persons received this form of public assistance.
The statistics for case processing, in this Division, reveal that 311 new applications or reapplications were approved, and 62 withdrawn or rejected. Increases in aid were granted in 521 instances and these were counter-balanced by 490 reductions. Some 333 cases were closed, 180 by death, 62 by removal to other communities, and 91 for various other reasons.
During the year, the Bureau expended a gross amount of $1,942,570.26 or $14,963.44 more than was disbursed in 1955 when the total outlay was $1,927,606.82.
An analysis, on an itemized basis, disclosed that the Bu- reau's overall expenses would have been less in 1956 than in 1955, were it not for the fact that we decided to pay off our indebtedness to other municipalities. In 1955, we spent but $32,205.50 for this purpose, while in 1956, we expended $60,571.19, or $28,365.69 more.
The decline in ordinary costs becomes more imposing when we recall that the $2.50 per month increment for transporta- tion was added to the budgetary grants as of January 1, 1956, and a further general budgetary increase of 5.8% became ef- fective as of July 1, 1956.
There can be no doubt that some savings in this Division have been effected by emphasis on the exploration of potential resources. Early in the year, we outlined a procedure to be followed strictly, in determining the legal liability of children, and a report from the Supervisors indicates that, in addition to the closure of several cases, aid in 74 cases was reduced be- cause of the agreement of children to comply with the Law requiring contribution to parental support. The experience also
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ANNUAL REPORTS
indicates that more widespread availability of more generous Old Age and Survivors' Benefits are having a favorable effect.
AID TO DEPENDENT CHILDREN
The caseload pendulum, in this Division, swung to and fro in a rather sweeping semi-circle, during the calendar period under review. On December 31, 1955, there were 307 active A.D.C. cases, but their number ebbed to a remarkable low of 251, in July. This nadir in activity represented a spectacular counterpoint to the 335 apex of July, 1955. The needle spurted upward again, however, and on the last day of 1956, we had 284 cases receiving assistance.
The appreciable turnover of cases, typical of this assistance program, is disclosed by the fact that during the year, 404 different cases, involving 978 children, received assistance at some time.
The relatively low caseload carried, during the summer months, eased the financial burden and the gross expenditures of this category dropped substantially. In 1955, this Division's expenses totalled $526,962.80, whereas, in 1956 they grossed but $497,694.58, or $29,268.22 less. Indeed, the 1956 outlay was likewise less than that of 1954, when it amounted to $501,500.21.
An insight into the volume of family case work, handled by this Office, may be obtained from a glance at the following statistics: Applications and approved reapplications equalled 125. Increases in aid were granted in 357 instances, and de- creases, in 221. Aid was discontinued in 147 cases and 42 applications were cancelled or resulted in denial of assistance. Of the 147 closed cases, 14 were transferred to other com- munities.
The decline in the A.D.C. caseload and related costs may be ascribed, we are convinced, principally to three factors. The coverage of an increasing number of paternally orphaned chil- dren, by Social Security Survivors' Benefits is unquestionably of consequence. The ceaseless pressure of our Domestic Re- lations Division on deserters has a bearing. Finally, our public education program, supplemented by specific notices to cli- ents, we feel, has been especially effective in this area, as have also our intensified investigation procedures.
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WELFARE DEPARTMENT
The immediate causes of dependency in A.D.C. were re- cently studied, with the following findings:
Cause of Dependency
No. of Cases
Percentage
Divorces
58
21.4%
Legally Separated
48
17.7%
Incapacitated Parents
37
13.6%
Illegitimate Children
30
11.1 %
Widows
26
9.6%
Desertion
24
8.9%
Children by Former Marriages
24
8.9%
Incarcerated
11
4.0%
Mutually Separated
9
3.3 %
Parents Deceased
4
1.5%
TOTAL
271
100.0%
DISABILITY ASSISTANCE
The caseload in this category continued to expand grad- ually, but steadily, until the last month of the year when the aliens, who became eligible for Old Age Assistance, were transferred. On December 31, 1955, the roster included 251 individuals, and a year later, the barometer had fallen to 206. During the year, 345 different persons received this newest type of public relief.
The detailed breakdown of the case-processing activity of this Division reveals that 117 applications or reapplications were approved, monthly payments were adjusted upward in 66 cases, and downward in 52, and aid was terminated in 148 instances. Death was the cause of closure in 28 cases, 68 cases were transferred to other communities or to other programs of assistance, and aid was ended for a variety of reasons in the other 52 cases.
The financial onus of this category was lightened by the transfer of 38 aliens, as of December 1st. As a consequence, the Division's aggregate expenses were only slightly higher than in 1955. In 1955, this program cost $307,906.10, while in 1956, the expenditures equalled $310,762.42, or just $2,856.32 more.
GENERAL RELIEF
The caseload experience of the "Temporary Aid" Division was as diversified as usual, during the past year. On December 31, 1955, there were 185 family and individual cases on the rolls and on December 31, 1956, there were 167. The month of February marked the high point with 172 cases aided and,
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ANNUAL REPORTS
oddly enough, November saw the least number - 152. During the calendar year, 602 different cases were aided for some length of time, and 110 applicants were refused aid.
As in Old Age Assistance, the ordinary expenses of this Division declined and, were it not for the unusually high dis- tribution to other Cities and Towns, the total costs for the year would be impressively lower. As matters stand, this category spent $7,635.30 more than in the preceding year. In 1955, disbursements totalled $247,953.95, as against $255,589.25 for this year. Relevantly, however, we must remember that in 1955, we paid other Cities and Towns but $51,400.05, where- as, this year we cancelled debts, totalling $75,035.95, or $23,635.91 more.
JOB PLACEMENT
Our Supervisor of Social Work in the General Relief Divi- sion, Mr. Joseph A. MacDonald, has continued with con- siderable success, his perennial assignment as "Employment Manager". The following report, submitted by Mr. MacDonald, summarizes his activities along this line:
"During the year, 1956, this Office accepted 157 applications for employment. From this number, 93 were put to work.
"During the year :- 3 persons were placed for Disability Assistance; 6 for Veterans' Services; 11 for private charities; and the remainder were persons seeking General Relief.
"For the kind cooperation of such employers as United Carr Fastener Corporation, of Camb- ridge, Boston Woven Hose, Necco Confection- ery, Welch Candy Company, also of Cambridge, H. P. Hood & Sons, Davidson Rubber Company of Charlestown, M. W. Carr, Bostonian Lug- gage Company, Comfort Pillow Company, of Somerville, Esso and Gulf Oil Companies, and all others directly or indirectly concerned, we are most grateful."
SETTLEMENT DIVISION
Two years ago, when we assumed management of the Welfare Department, the only accurate description for this Division would be "chaotic". The backlog of accumulated in-
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WELFARE DEPARTMENT
debtedness appeared overwhelming, and the volume of claims and pending notices to other communities was nothing short of staggering. For several years, the City had been losing thou- sands of dollars because of lack of notices, belated notifica- tions, and outright default in the presentation of General Relief claims. Accordingly, we gave high priority on the agenda to the reorganization of this Division. Additional staff and cen- tralized quarters were features of this reorganization. The success of this new approach has been amply demonstrated. during the past year.
At the end of the year, virtually the entire backlog of ac- cumulated indebtedness had been liquidated, the mass of pre- viously unprocessed notices from other Cities and Towns had been cleared, and our notifications to other communities were on a current basis. In addition, a general review of settlements in the Old Age Assistance Bureau was underway. New card- index systems have been installed and there has been a general streamlining of procedures, with consequent enhancement of efficiency and facilitation of the complicated work entailed. No one, unfamiliar with the complex character of "Legal Set- tlement", can conceivably appreciate the magnitude of the job which has now been finished.
Some idea of the enormity of the work accomplished may be gained from the fact that, during the year 1956, we made payments to other Cities and Towns to a total of $135,607.14. This sum represents the greatest outlay ever made for this purpose, during any one year, in the history of the City. The amount paid represented an increase of 62.2% over the $83,605.54 paid during the preceding twelve months. The actual increase in money payments equals $52,001.60.
In detail, the figures show that, in 1955, we paid other communities $32,205.50 for Old Age Assistance cases and, in 1956, we paid $60,571.19, or an additional $28,365.69. The percentage increase in Old Age Assistance payments, alone, therefore, represented 88.1%. For General Relief cases, in 1955, we expended $51,400.04 and, in 1956, $75,035.95, which shows a percentage spiral of 45.9%.
It is worth remarking, moreover, that the $83,605.54, spent in 1955, was a relatively high amount when compared with the disbursements over the past twenty years.
The performance of this Division is further illustrated by the fact that the projects in question were consummated in the
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ANNUAL REPORTS
composition of 18 billrolls, of which eight were for Old Age Assistance and ten were for General Relief. The fiscal and clerical divisions of the Department collaborated in the labor concerned with the latter.
Our collections from other Cities and Towns will be con- sidered under a separate heading. However, the fact that they have substantially increased, during the past two years, is like- wise creditable in great part to the improved efficiency of our Settlement Division, which concerns itself, primarily, with the actual determination of the legal settlement of persons who apply for or receive public assistance in the categories of Old Age Assistance and General Relief.
The payment of our debts has, of course, greatly advanced our status in the eyes of other communities and has, in numer- ous instances, precluded the probability of costly litigation.
To persons, not engrossed in Public Social Service, the term, "Legal Settlement", may be somewhat misleading. Most people are inclined to think of "Legal Settlement" as the negotiated agreement obtained by a plaintiff who brings suit against some defendant for personal injury or property loss. In the language of Public Welfare, however, it has an entirely different signification. It revolves about such manifold factors as residence, marital status, age, (insofar as the latter affects personal responsibility), mental competence, parental relation- ship, natural or adoptive filiation, and a host of similar ele- ments. In the simplest way, it may be considered as the legal status which determines financial responsibility for public as- sistance; more precisely, albeit more elaborately, it may be defined as a complex plethora of labyrinthine statutory intri- cacies compounded by milliard judicial interpretations, which condition and determine the financial responsibility for public assistance granted to indigent persons in certain classified categories, by the respective civic communities of the Com- monwealth.
As we have stated on several occasions, "Legal Settlement" is an archaic hang-over from the agricultural economy and provincial mentality of colonial days. It should long since have been abolished in Massachusetts, as it has been in most of the progressive States, wherein it owed its original establishment to emulation of our atavistic, colonial system.
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