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Great Wall Institute: The Process of the Great Wall of Los Angeles

Unemployment and Benefit Reductions

“In Los Angeles, high unemployment in the late 1970s and early 1980s increased the welfare rolls, and drastic measures to curtail them were introduced. As a result of State actions, 38,000 recipients were dropped entirely, another 48,000 suffered benefit reductions, almost 8,000 lost food stamps, and about 12,000 AFDC families lost Medi-Cal coverage. Health and mental health funding was cut, along with funding for substance abuse treatment. Lawsuits forced the county to raise its General Assistance monthly payments (locally known as General Relief, or GR) from $228 in 1986 to $341 in 1991. However, this benefit payment was later slashed to $293 and has continued to decrease since then.”

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2. 1985 Benefit Cuts Marchers parade in front of downtown Federal Building protesting the Gramm-Rudman cuts in programs for the poor and disabled. Gulker, Chris Circa 1985 -“The Balanced Budget and Emergency Deficit Control Act of 1985 is one of the primary budget laws enacted by Congress. It amended and augmented the Congressional Budget Act of 1974, and was itself two years later, after being found unconstitutional, by the “Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1974”. Source “What is not in question is the impact of Gramm-Rudman-Hollings on Capitol Hill. The protests from those who will lose benefits and services are deluging Congress, and Gramm got an earful during his recent trip to Texas. At a town meeting in Nacogdoches, an elderly man accused the Senator of a ''breach of faith'' because his legislation canceled pension increases for retired Federal workers. Others told of shuttered rural hospitals, hungry black families, shrinking city services. Even some conservatives say that Gramm has allowed his ideological crusade to blind him to the value of many Government programs. Representative Charles W. Stenholm, Democrat of Texas, argues that ''Phil sees the numbers in the budget, but doesn't always see the people.''” From PHIL GRAMM'S CRUSADE AGAINST THE DEFICIT by By Steven V. Roberts March 30, 1986
4. 1980 cuts in Title XX (the 1980 Omnibus Reconciliation Bill) “There are over 100,000 persons in California who depend on IHSS funded services to live on their own or in board and care facilities. One-third of these people are severely disabled, all of them are poor. Recent federal cutbacks in Title XX will mean a reduction of services to 99% of these people and many will lose up to 50% of benefits. The 1980 cuts in Title XX (the 1980 Omnibus Reconciliation Bill) are only now filtering down to the people who depend on it for services. In mid-year the California Legislature passed S.633 which determined how the $28 M. cut would be implemented. This act was held up by the courts until recipients had adequate notice and opportunity to appeal. In January 1982, the recipients will actually begin to lose benefits.” From: Testimony on the Impact of Federal Human Services Cutbacks on the Disabled for the House of Representatives Ways and Means Committee Hearing January 18, 1982, Sacramento, California by EDWARD V. ROBERTS, DIRECTOR of the DEPARTMENT OF REHABILITATION
5. Unemployment and Benefit Reductions “In Los Angeles, high unemployment in the late 1970s and early 1980s increased the welfare rolls, and drastic measures to curtail them were introduced. As a result of State actions, 38,000 recipients were dropped entirely, another 48,000 suffered benefit reductions, almost 8,000 lost food stamps, and about 12,000 AFDC families lost Medi-Cal coverage. Health and mental health funding was cut, along with funding for substance abuse treatment. Lawsuits forced the county to raise its General Assistance monthly payments (locally known as General Relief, or GR) from $228 in 1986 to $341 in 1991. However, this benefit payment was later slashed to $293 and has continued to decrease since then.”
6. 1987 LA River Encampment “By the 1980s, the homelessness situation was a crisis. Skid Row was full, and [those experiencing homelessness] were living throughout the city, with people and families living under freeways, by the beach, and along the Los Angeles River’s 51 miles. Due to the surge in the population, LA County and City took desperate measures, opening City Hall as a temporary housing site, and signing an emergency agreement for a temporary “urban campground” for hundreds in need. This campground was on 12 acres of land lining the LA River and approximately 2,600 people looked to this camp for housing solutions. Unfortunately, this riverside camp was deemed unsuccessful and closed months later.”