Update on California budget crisis and SSI payments.

In my  previous blog post, California budget crisis may reduce state SSI supplement, I mentioned that the state of California may lower its supplemental portion for SSI recipients.  As of the date this post is written, California is still without a budget.  It remains unclear what the State will do in the future about the state supplement.   I guess the state controller’s  has been receiving many  questions on this issue (and other budget related issues).  The, State Controller, John Chiang, has now publshed on his web site a set of Frequently asked Questions about what will happen in February if no budget has been passed.

One of those questions relates to SSI and what will happen in February 2009 with no budget.  Mr. Chiang replies that the State will not be able to pay the supplement.  In the past, the Social Security Administration (“SSA”) has floated the State when the State could not provide the funding due to a budget.  Because the SSA requires a 30 day notice before ceasing payment, the SSA will provide both federal and state benefits of SSI, at least through March and possibly April.

This is not a great solution but it is of some assurance that people will continue receiving benfits through March.  Hopefully the State will have a budget by then.