Report: RI Doles Out Most Generous Benefits in Country
Tuesday, December 25, 2012
Rhode Island “spreads the wealth” to its residents more than any other state in the country, according to a study recently released by the website 24/7 Wall St.
The study broke down six key entitlement categories (average pension benefits, total per pupil spending, Medicaid payments per enrollee, percentage of weekly wages covered by unemployment benefits, number of months of TANF received, average TANF cash assistance per month) and found that the Ocean State ranked in the top ten among all states in all but one category (average TANF cash assistance per month).
That state ranked second in average pension benefits ($34,577) and percentage of weekly wages covered by unemployment benefits (43.4 percent) and fourth in Medicaid payments per enrollee ($8,566).
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“Rhode Island does more to spread wealth among its residents than any other state,” the study states. “In the third quarter of 2012, unemployment insurance in Rhode Island covered 43.4% of the recipients’ previous weekly wages, more than any state except for Hawaii. The state also provided the average eligible family with 44.5 months of TANF benefits — more than all but five states. In 2010, the average pension benefits under the Employee Retirement System was $34,577 — higher than all but one comparable state pension. But such benefits may soon be a thing of the past. In 2011, Rhode Island reformed its pension system by suspending cost of living adjustments and turning employees’ retirement plans into 401(k)-pension hybrid plans.”
Rhode Island was joined in the top ten by Pennsylvania, Hawaii, New York, Alaska, Massachusetts, Maine, Connecticut, New Jersey and Minnesota.
The state’s offering the least generous benefits included Oklahoma, Arkansas, Tennessee, Arizona, Alabama, South Carolina, Florida, Idaho, Texas and Mississippi.
“In 2010, Oklahoma spent under $8,000 a year on its students, the fourth-lowest amount in the U.S.,” the study said. “That same year, the average eligible family received less than $200 a month in TANF benefits, the third-lowest amount in the U.S. and barely half the U.S. average of $392. Earlier this year, the state passed a law requiring some adult TANF applicants to pass a drug test in order to receive benefits. Oklahoma provided residents receiving unemployment insurance with an average of just $270, equal to less than 35% of their previous weekly wages. Though slightly above the U.S. average, this was less than half of all states.”
Of the New England states, only New Hampshire and Vermont weren’t included in the top ten. 24/7 Wall St. noted that Massachusetts (ranked No. 6) dishes out among the most generous cash assistance benefits in the nation.
“Few states do more to help disadvantaged residents than Massachusetts,” the study found. “Families eligible for cash assistance from TANF received, on average, $470 for 44.3 months in 2010 — both among the highest figures in the nation. Much of this spending has been questioned recently. In July, in an attempt to combat welfare program fraud, Governor Deval Patrick signed a law banning the use of Electronic Benefit Transfer (EBT) cards in casinos, strip clubs and jewelry stores. The state was also a leading Medicaid provider in 2009, when per enrollee spending was $7,579, one of the nation’s highest. Massachusetts also spent $14,350 per pupil, more than all but six other states.”
