When state Human Services Secretary Brent Earnest goes before lawmakers to speak about his budget for the Medicaid insurance program, many want to run for cover. One year, he needed as much as $100 million from the general fund to fully pay for all the new enrollees under the federal Affordable Care Act and provide the same level of service. Last fall, he said he needed another $80 million for the fiscal year that begins July 1. On Thursday, he told the House Appropriations and Finance Committee that request had dropped to $42 million. “This is a significantly better picture than you saw in the fall,” Earnest said.
The state wants to extend a waiver that allows the state to waive work requirements for federal food benefits. The Santa Fe New Mexican reported the news of the proposed waiver coming from the embattled state Human Services Department. The department previously sought to reimplement the work rules for the Supplemental Nutrition Assistance Program, or SNAP, but a federal judge blocked the request. Earlier this year, a federal judge slammed HSD for doing the work of creating new rules and procedures for the work requirements while not working toward compliance with a decades-old consent order. Last week, a federal judge named a Texas administrator as a “special master” to oversee the department’s food benefits functions.
NM Political Report senior reporter Joey Peters and reporter Andy Lyman sat down to talk about what we covered this week and what to expect next week. The two reporters talked a little about what a Trump presidency might mean for New Mexico, especially in terms of a new BLM rule and marijuana. They also recapped Peters’ coverage of the state’s Human Services Department leading up to the new special master announced Thursday and the fact that Gov. Susana Martinez is no longer chair of the Republican Governors Association.
A federal judge appointed a Texas government official to serve as the “special master” to help a New Mexico state agency come into compliance with federal law. Lawrence M. Parker, who has worked for the Texas Health and Human Services Department, will be responsible for essentially fixing the New Mexico Human Service Department’s food aid and Medicaid case processing. The appointment comes as part of a decades-old lawsuit that alleged HSD wasn’t properly processing federal aid to New Mexicans. While that lawsuit, known as Hatten-Gonzales, resulted in a consent decree in 1990, an Albuquerque-based nonprofit argued in court this year that the state wasn’t properly following guidelines laid out under the consent decree. The New Mexico Center on Law and Poverty also argued for the federal court to appoint an independent monitor to oversee the state department’s Income Support Division, which processes Medicaid and Supplemental Nutrition Assistance Program (SNAP) benefits.
The state and federal government have “ramped up their investigations” of the New Mexico’s alleged widespread falsification of food aid applications, according to the union that represents the state’s case processors in the Human Services Department. And the American Federation of State, County and Municipal Employees, or AFSCME, Council 18 question whether investigators are targeting “frontline workers” more than the administrators at HSD for responsibility in the scandal. An online post from AFSCME also claims that the investigation is criminal and advises all union members to “contact your union representative before participating in any interview.”
“We understand the importance of getting to the bottom of this swamp,” the AFSCME post reads. “It will be unacceptable should frontline workers be scapegoated of held responsible for wrong-doing [sic] that federal court proceedings revealed was directed from top levels of state government.”
Reached by phone, representatives from AFSCME declined to comment on the matter further. A spokesman from HSD also didn’t return requests to comment Tuesday afternoon.
A federal judge ordered New Mexico Human Services Department Secretary Brent Earnest held in contempt of court for failing to comply with orders in a long-running food aid case. The order from U.S. District Court Judge Kenneth Gonzales came down on Tuesday afternoon. The contempt order came in civil court. “It’s extremely rare for department officials to be held in contempt by federal court,” Sovereign Hager of the Center on Law and Poverty explained. “It’s a very bad and serious thing, especially for low income people who need these programs to live.
A month after five state of New Mexico employees testified in federal court that they were instructed to falsify emergency food aid applications, another lawsuit filed in Las Cruces district court made strikingly similar allegations. But instead of directing her allegations toward state government, Lorraine McCullough directed her allegations toward SL Start and Associates, a private, Washington state-based company that bills itself as a health provider for adults and children with developmental disabilities. That’s because this company is contracted with the state Human Services Department to manage the federal Temporary Assistance for Needy Families Program (TANF). TANF is the program most commonly called welfare. Locally, the program is called New Mexico Works.
A federal judge has ordered an independent “special master” to oversee the division within a state department that deals with food and medical assistance for the poor. On Tuesday, federal judge Kenneth Gonzales formally accepted a July proposal from federal magistrate judge Carmen Garza to appoint a special master. The special master will oversee the processing of Medicaid and Supplemental Nutrition Assistance Program benefits at the embattled state Human Services Department. Gonzales also gave the special master the power to hire consultants who “will have the same access the staff, records, persons, facilities or sites of services that … the special master determines is necessary.”
This special master will be tasked with bringing HSD’s benefits processing practices into compliance with federal law. Only the federal court will have decisionmaking power over the special master, who is yet to be determined.
After receiving federal food aid benefits for nearly a year to help feed themselves and their now four-month-old infant, Amphai Kelley and Somkid Krotha benefits from the federal Supplemental Nutrition Assistance Program, formerly known as food stamps, recently expired. That’s not necessarily their problem. New Mexico’s Human Services Department also wants the couple to pay back more than $2,000 in food aid awarded to the couple since last fall. The state now says they shouldn’t have received the food aid in the first place. Kelley and Krotha question whether they can afford a repayment.
Not all people who apply for food aid in New Mexico qualify, but that hasn’t always stopped the state Human Services Department from sometimes giving them benefits. The state then sometimes attempted to get the recipients to repay the benefits from the federal Supplemental Nutrition Assistance Program, formerly known as food stamps. Oftentimes, collections came weeks or even months after the state disbursed the food aid. But last month, the U.S. Department of Agriculture, which manages SNAP, told the state not so fast on those collection plans. Now, after a back-and-forth with the federal government, the state will stop trying to collect these types of SNAP overpayments.