DHHS should focus on using welfare dollars to help families hurt by the pandemic
FOR IMMEDIATE RELEASE: December 17, 2020
MEDIA CONTACT: Julie Rabinowitz, Executive Director, 207-292-2722 ext. 102, Julie@mainepbp.com
AUGUSTA—As the bill submission deadline for the first session of the 130th Legislature approaches, Maine People Before Politics (MPBP) calls upon Maine’s elected Senators and Representatives to submit a bill to repeal the $6 million Working Cars for Working Families program.
“Thousands of Maine families have lost their livelihoods during this pandemic and need the safety net that Maine’s welfare programs provide,” stated Julie Dumont Rabinowitz, executive director of Maine People Before Politics.
She continued, “As we stated in June, now is not the time to launch this massive, bureaucratic and poorly planned program. The Mills Administration should be focused on keeping hard-working families warm and fed this winter instead of spending $6 million in taxpayer dollars to give away new cars for pennies on the dollar.” MPBP first revealed the launch of the car welfare program in its June 17 Facebook post.
The Maine Department of Health and Human Services was prepared to fast-track this program without a public hearing this summer, but MPBP, in addition to submitting detailed concerns about the Mills Administration’s program, collected more than 480 signatures to require a hearing. MPBP submitted public comments in response to the initial rules and a second set after the request for proposals (RFP) was posted because the RFP provided new—and sometimes conflicting—information.
DHHS has not yet responded to MPBP’s serious concerns and has yet to issue the final rule despite calling for bids and ultimately awarding the contract for the full $6 million to Fedcap, Inc., on October 1. That contract requires Fedcap to comply with the final rule, which remains unknown more than six months after being posted for public comment.
As proposed, the rules not only fail to meet the statute’s requirements to provide “reliable and affordable” transportation but also for effective administrative guidelines.
Under the Mills Administration’s proposal, the cars provided to welfare participants must be new vehicles or 2015 or newer models of any brand or type of vehicle. All cars must be covered by at least a two-year maintenance warranty to ensure the car can pass state inspection, and the maintenance coverage may only exclude worn tires and wipers and damage from neglect or accidents.
Under the draft rules, the eligible welfare participant must pay a $300 down payment and then $100 monthly payments for 24 months, with no restriction on how long the participant must keep the car after “graduating” from the program. Once participants receive their vehicles, the RFP requires they receive the vehicle’s title within 90 days. If a participant sells the car without DHHS’s authorization, they can only be charged with welfare fraud violations, not car theft.
“Since the rules are still in limbo and the contract cannot be executed without a final rule, now is the time for our representatives to end it and send the message that the Mills Administration should use this $6 million of Temporary Assistance to Needy Families funds to help our most vulnerable in the difficult days ahead,” stated Rabinowitz.
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