Whitfield v. Dempsey

531 F. Supp. 767, 1982 U.S. Dist. LEXIS 10804
CourtDistrict Court, W.D. Michigan
DecidedFebruary 9, 1982
DocketNo. K82-03 CA9
StatusPublished
Cited by1 cases

This text of 531 F. Supp. 767 (Whitfield v. Dempsey) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whitfield v. Dempsey, 531 F. Supp. 767, 1982 U.S. Dist. LEXIS 10804 (W.D. Mich. 1982).

Opinion

OPINION

BENJAMIN F. GIBSON, District Judge.

This case involves equal protection and due process challenges to Michigan’s most recent amendment to the eligibility requirements for receipt of General Assistance (“GA”). Plaintiffs seek to enjoin termination of GA benefits as to those persons affected by the new policy. For the reasons which follow, this Court is of the opinion that the relief requested should be denied.

The criteria for issuance of a preliminary injunction are well-established in this circuit. Plaintiffs are required to show: (1) irreparable injury should an injunction not issue, (2) that they have a substantial likelihood or strong probability of success on the merits, (3) that others would not be subjected to substantial harm, and (4) that the public interest will be served by issuance of a preliminary injunction. Mason County Medical Ass’n. v. Knebel, 563 F.2d 256 (6th Cir. 1977); Roth v. Bank of Commonwealth, 583 F.2d 527 (6th Cir. 1978), cert. dismissed, 442 U.S. 925, 99 S.Ct. 2852, 61 L.Ed.2d 292 (1979). The first two elements are the areas of primary dispute under the facts and circumstances of this case. It is plaintiffs’ inability to demonstrate the probability of success on the merits upon which this Court rests its opinion.

The State of Michigan is presently facing severe economic difficulties. As of December, 1981 there were 115,000 GA recipients and the number is increasing daily due to rising unemployment. During the later part of 1981 Governor Milliken exercised his power pursuant to Article V, § 20 of the Michigan Constitution to reduce expenditures authorized by prior appropriations. On October 22, 1981 he issued Executive Order 1981-9 which targeted the Department of Social Services’ budget for a total reduction of $152,000,000.00. A portion of this amount was to be trimmed from the GA program by reducing benefits an additional 6%, to a total of 11%. In addition, § 14 of 1981 Public Act No. 35 was to be modified.1 It is this modification which plaintiffs challenge.

The amendment to § 14 represents the third time that Michigan has targeted welfare reductions at those who are involved in “J Living Arrangements.”2 Effective January 1, 1982 it was to contain the following language:

IT IS ALSO REQUIRED THAT ALL PERSONS LIVING IN A COMMON DWELLING UNIT WHO ARE RELATED BY BLOOD, MARRIAGE OR ADOPTION SHALL BE CONSIDERED A SINGLE HOUSEHOLD FOR PURPOSES OF ELIGIBILITY FOR GENERAL ASSISTANCE. The Department shall develop an exception policy based on disability.

Beginning in November, 1981 all GA recipients within the class were twice notified that all benefits would be terminated as of January 1, 1982. Termination could be stayed (a) if the entire household applied for assistance, (b) pending determination of disability or (c) if a hearing was requested to resolve a factual issue.

[769]*769Plaintiff Whitfield lives with her niece and four children. She pays her niece a monthly rental of $60.00, covered by the GA shelter allowance. It is not disputed that the entire household does not presently qualify for assistance because the niece is receiving sick pay benefits from her employer. Nor is it disputed that if either Whitfield or the niece are later determined to be disabled, the new GA policy will not apply to them. Whitfield’s benefits will be terminated under the new policy unless she is granted an exemption.3

The Department of Social Services (“DSS”) has recently been faced with a dilemma in attempting to reconcile the demands of the needy with decreasing state revenues. As the problem worsens, it has attempted to grant GA benefits to those who are the most needy. A survey conducted by DSS showed from 60-65 percent of GA recipients involved in “J Living Arrangements” were renting rooms from relatives. Of this total, 70% are children, 2% are parents, 16% are siblings, 5% are nieces or nephews, 2% are grandchildren, 3% are cousins, 1% are spouses and 1% are aunts or uncles. The new DSS policy terminates the benefits of these recipients unless 1) the recipient or landlord was disabled, 2) the recipient could show that he was, in fact, not related to the landlord or 3) the entire household qualified for GA.

Plaintiffs contend that the new policy violates the equal protection and due process clauses of the fourteenth amendment. More specifically, they contend that DSS has established an irrebuttable presumption that those who live with relatives will be supported by them. The Supreme Court has recognized that social welfare schemes, by their very nature, involve categorizing people and drawing lines to determine eligibility for benefits. Califano v. Aznavorian, 439 U.S. 170, 99 S.Ct. 471, 58 L.Ed.2d 435 (1978). It has adopted a policy of giving deference to state officials who are charged with the responsibility of allocating welfare benefits. Dandridge v. Williams, 397 U.S. 471, 90 S.Ct. 1153, 25 L.Ed.2d 491 (1970). Consistent with that policy, programs adopted by state officials are to be judged by whether they are rationally related to underlying objectives. This is true whether the programs are challenged on either due process or equal protection grounds. Flemming v. Nestor, 363 U.S. 603, 80 S.Ct. 1367, 4 L.Ed.2d 1435 (1960); Dandridge v. Williams, 397 U.S. 471, 90 S.Ct. 1153, 25 L.Ed.2d 491 (1970); Richardson v. Belcher, 404 U.S. 78, 92 S.Ct. 254, 30 L.Ed.2d 231 (1971); Mathews v. Lucas, 427 U.S. 495, 96 S.Ct. 2755, 49 L.Ed.2d 651 (1976). Since there is no fundamental constitutional right to receive GA benefits an irrebuttable presumption analysis is not appropriate. DSS must only refrain from invidious discrimination, a contention not argued in this case. Weinberger v. Salfi, 422 U.S. 749, 95 S.Ct. 2457, 45 L.Ed.2d 522 (1975); Jackson v. O’Bannon, 633 F.2d 329 (3rd Cir. 1980).

The evidence showed that several alternatives were considered for meeting the necessary reductions: 1) to increase the ratable reduction4 from 5 to 23 percent and 2) to reduce personal and terminate shelter allowances for employable persons. The first alternative was rejected as impacting too greatly on those most in need. The alternative was determined to be unrealistic considering Michigan’s adverse employment conditions. In fact, it is the growing unemployment which is increasing the welfare rolls and concurrently decreasing state revenues.

After much deliberation, it was determined that the policy adopted by the Executive Order was the most appropriate to reduce welfare expenditures and, at the same time, minimize the effect upon those persons most unable to assist themselves.

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531 F. Supp. 767, 1982 U.S. Dist. LEXIS 10804, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitfield-v-dempsey-miwd-1982.