Lindsay Press Conference on Rejection of Welfare Request

Mayor John V. Lindsay hosts a press conference with two statements: Proclamation about Leningrad Trials "Day of concern," and an unprecedented rejection of the Welfare 2.4 billion budget request.

Question and answer period follows. Among them:

Should all city employees be required to live in NYC? At least new employees? Lindsay reports that the matter is being considered

Text of Rejection of the Welfare Budget:

Human Resources Administrator Jule Sugarman this week has submitted the 1971-72 expense budget request for the Human Resources Administration to the Bureau of the Budget. The request totals over $2.4 billion of which $2.1 billion is to meet the cost of the Department of Social Services, primarily public assistance and Medicaid costs mandated against the city's will by the state and Federal government.

This morning at the regular Tuesday Cabinet meeting I discussed this request with Administrator Sugarman and Budget Director Edward Hamilton and the Cabinet. At that time I directed the Budget Director to reject immediately the $2.1-billion welfare appropriation request.

This action was drastic and unprecedented but absolutely necessary. The request for increased welfare and Medicaid costs controlled by Federal and state regulation exceeds the request submitted last year at this time by $300-million. The 'city would have to pay for nearly one-third of this increase. At this time it is clear that the City of New York is no longer financially able to meet the rising costs of public assistance and increased Medicaid fees, both of which are mandated by the state and Federal governments.

I have directed Administrator Sugarman and Budget Director Hamilton to take the following steps before re-submission of the 1971-72 expense budget request for the Department of Social Services:

1. Initiate discussions immediately with appropriate state and Federal officials to review the continuing rise in the cost of public assistance and Medicaid in New York City, the city's overall fiscal condition, and alternative Federal and state funding sources for any future increased costs for the Department of Social Services.
It should be noted that in 25 states, local areas and cities are not forced to make any contribution to welfare costs. In addition, if New York State paid only the average of what all other states contribute for local welfare costs it would save the city a minimum of $300-million immediately.

2. To meet with the city's Corporation Counsel to determine the city's legal ability in light of Federal and state law, to refuse to pay for increased welfare costs or accept additional welfare cases because of its financial condition.

3. To begin an immediate review of all procedures and regulations affecting eligibility for public assistance, Medicaid fees and rising applications for both public assistance and Medicaid.

The City of New York and taxpayers of New York can no longer meet the rising cost of welfare in Our city. Nor should they. Since this program's beginning Federal and state regulation have forced the city to allocate increasingly large percentages of its budget for social service costs, without any authority to control the scope and cost of the program. For five years I have said that this program is a disaster, saving neither money nor lives.

Yesterday the one hope tor relief in this area—the Family Assistance Act—was rejected by the Congress of the United States. This was the final straw. It has put the city in the position where it either has to risk bankruptcy and elimination of basic essential services or adopt the type of drastic action I have announced today.

The city is now in the midst of difficult negotiations with the police, fire and sanitation unions. We have been forced by the severity of our fiscal situation to limit strictly the funds available for wage increases for these uniformed services. Our bargaining process is damaged when, at the same time, Federal and state law mandates large additional expenditures for public, assistance from funds that we do not have. This understandably troubles our police, fire and sanitation men. And it is further evidence of the gross inequity of our Federal and state mandated welfare structure.

Audio courtesy of the NYC Municipal Archives WNYC Collection

WNYC archives id: 151508
Municipal archives id: T7736