Dorothy McInnis v. Caspar W. Weinberger

530 F.2d 55, 1976 U.S. App. LEXIS 12974
CourtCourt of Appeals for the First Circuit
DecidedFebruary 5, 1976
Docket75--1119
StatusPublished
Cited by5 cases

This text of 530 F.2d 55 (Dorothy McInnis v. Caspar W. Weinberger) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dorothy McInnis v. Caspar W. Weinberger, 530 F.2d 55, 1976 U.S. App. LEXIS 12974 (1st Cir. 1976).

Opinion

COFFIN, Chief Judge.

Plaintiffs, Massachusetts recipients of Supplemental Security Income (SSI), 1 attack the statutory interpretation underlying a determination by the Secretary of Health, Education, and Welfare that they are no longer eligible for food stamps. Primarily, they charge that the Secretary has misread the statute; secondarily, they raise due process and equal protection claims under the Fifth Amendment. The district court upheld the Secretary’s interpretation of the statute and found no constitutional defect. 388 F.Supp. 381 (D.Mass.1975). We affirm.

Resolution of the statutory issue involves threading our way through a sequence of statutes enacted to accomplish significant changes in the administration of welfare assistance to the aged, blind and disabled. 2 In January, 1974, the system of federal matching grant programs for these recipients 3 was replaced by SSI — the fundamental provision of which is a federal guarantee of a uniform minimum monthly income. 4 Encouragement to the states to supplement this federal payment, 5 with federal administration of the supplement, 6 was contained in 42 U.S.C. § 1382e(d), providing for the federal government to assume all administrative costs, and in P.L. 92-603, § 401, codified at 42 U.S.C. § 1382e note, allowing federal reimbursement of certain state assistance expenditures. Specifically, § 401 provides that the states will be “held harmless” for any increase in annual state expenditures over 1972 assistance expenditures, to the extent that the current payment level does not exceed the “adjusted payment level” (APL) —defined (by § 401(b)(1)) as the relief an otherwise indigent recipient would have received under the categorical programs in effect in the state during January, 1972. Congress thus sought to alleviate state fears by absorbing costs which might arise due to the change to an income maintenance approach, federal ad *58 ministration, and uniform federal eligibility standards, while at the same time not funding increased benefit levels which the states might choose to provide. See H.Rep.No.92-231, 1972 U.S.Code Cong. & Admin.News at 5187; Irizarry, supra at 1149-50; California Legislative Council, supra at 219-20.

The original legislation also declared that SSI recipients would be ineligible for food stamps, P.L. 92-603, § 411(a), and correspondingly encouraged states to counteract that loss by offering to raise the ceiling on federal reimbursement (“hold harmless”) to include annual cost excesses over 1972 to the further point where the current benefit level did not exceed the “maximum APL” — the APL augmented by “an amount which does not exceed the sum of (A) and (B) the bonus value of food stamps in such State for January 1972.” P.L. 92-603, § 401(b)(1). 7

However, few states planned to take advantage of this provision, 8 with the threatened result that SSI recipients generally would receive neither food stamps nor a cash equivalent. 9 Con *59 gress’ ultímate solution to this problem, 10 on the eve of the program’s implementation, 11 was to restore food stamp eligibility except in those states in which the level of payments had been found by the Secretary of Health, Education and Welfare “to have been specifically increased so as to include the bonus value of food stamps.” P.L. 93-233, § 8(a)(1). It also withdrew from states which had not yet made such a “specific increase” the option of receiving augmented reimbursement for doing so. § 8(d-e). And in § 8(c) Congress declared that the level of a state’s payments “shall be found by the Secretary to have been specifically increased so as to include the bonus value of food stamps (1) only if, prior to October 1, 1973, the State has entered into an agreement with the Secretary or taken other positive steps which demonstrate its intention to provide supplementary payments . . . at a level which is at least equal to the maximum level which can be determined under section 401(b)(1) of the Social Security Amendments of 1972 and which is such that the limitation on State fiscal liability under section 401 does result in a reduction in the amount which would otherwise be payable to the Secretary- by the State . . .”

Massachusetts’ actions under these statutes are not seriously in question. On August 16, 1973, in planning for the commencement of SSI, the state submitted figures to HEW reflecting its January, 1972, adjusted payment level augmented by $10 — which is an amount equal to the bonus value of its food stamps — thereby manifesting an intention to invoke the maximum reimbursement possible under § 401. 12 And in January, 1974, pursuant to a state law passed December 12, 1973, 13 the benefit levels actually implemented matched these augmented figures. Furthermore, at these levels Massachusetts’ costs exceeded its 1972 share of categorical assistance payments, qualifying the state for reimbursement for the excess. Thus, it is uncontested that Massachusetts satisfied the “only if” requirements of § 8(c). The HEW Secretary so found in January, 1974, and he accordingly ruled that Massachusetts qualified for augmented reimbursement under § 401 and that the state’s SSI recipients were no longer eligible for food stamps after February, 1974. 14

*60 It is also true, however, that during the summer and fall of 1973, Massachusetts implemented two statutorily mandated cost-of-living increases, by virtue of which the benefit level as of December, 1973, had grown to more than $7 above the January, 1972, level. 15 Thus, the cash increase from the end of the old programs to the start of the new ranged from zero to $2.90; and with the end of the food stamp eligibility, the net effect was a substantial reduction in purchasing power for the plaintiff class. Citing Rosado v. Wyman, 397 U.S. 397, 90 S.Ct. 1207, 25 L.Ed.2d 442 (1970), the plaintiffs argue that Massachusetts duplicitously told its citizens that it was giving them cost-of-living increases and then turned around and illegitimately used those increases to cut off the food stamp program.

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Bluebook (online)
530 F.2d 55, 1976 U.S. App. LEXIS 12974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dorothy-mcinnis-v-caspar-w-weinberger-ca1-1976.