As policy makers focus intently on balancing the State budget, a new Legal Services Advocay Project report illustrates the unintended consequences of sharp cuts made to emergency services for the poor during the 2003 budget shortfall.

The report "A Hole in Minnesota’s Safety Net" shows staggering increases in emergency demands statewide in the wake of the Legislature’s 2003 decision to eliminate the dedicated State funded emergency assistance program (EA) serving 25,000 families each year. The program helped low-income families solve short-term financial crises and avoid homelessness, but the forecasted funding was eliminated and the state gave counties a reduced amount of discretionary funds in its place. More than 4,700 families facing financial emergencies in 2006 did not receive the help they would have prior to the state’s elimination of EA.

“This year, the State’s families have endured floods, mortgage foreclosures, job loss, and health crises without insurance,” said Jessica Webster, policy advocate with Legal Aid. “Where our State once stepped in to help families solve short-term crises and avoid homelessness, our counties are now forced to turn their backs and shunt increasing numbers of families to homeless shelters, food shelves, churches and nonprofits that are unable to meet the surge in demand.”

The Legal Aid report shows how the State’s decision to award a reduced amount of capped discretionary funding to counties has resulted in a scarcity of funds and a patchwork of access to those resources depending on a person’s county of residency. Further, the report shows while poverty numbers have increased and charitable organizations have experienced swelling demand, counties are serving fewer families in crisis.

“State-funded housing emergency assistance was a strong, reliable statewide safety net available to low-income families in their most critical times of need,” said Senator Linda Berglin. “Now, a low-income family in crisis has no certainty of help. Helping a family solve a short-term financial crisis is not only good for families, it is critical to the economic vitality of our communities, particularly now during a recession.”