Bauer v. Rasmussen

No. S-99-714 (Neb. Sup. Ct. Jan. 4, 2001) ; Clearinghouse Number: 53843

Description

AmeriCorps Stipend Is Not Income Under Nebraska’s Welfare Reform Act

Abstract

The Nebraska Supreme Court ruled that plaintiff’s AmeriCorps stipend fell into the category of “other self-sufficiency-related expenses” under state law and was not countable income for purposes of eligibility for cash assistance. Plaintiff was an unemployed full-time college student with custody of three grandchildren when she began receiving aid. After plaintiff’s caseworker told her that the stipend would not be considered income, plaintiff entered into a one-year contract with AmeriCorps. Relying on a 1994 state agency memorandum, defendant welfare agency then reversed this determination,; it reduced plaintiff’s benefits, and plaintiff lost health coverage. Plaintiff’ argued that the state’s Welfare Reform Act did not count the stipend as income. Relying on the 1994 memorandum and failing to cite the statutory provision, defendant ruled against her. The lower court affirmed, noting that the stipend was “similar” to items listed as exempt in the statute but deferring to defendant’s interpretation of the regulations. The supreme court found the statutory language ambiguous and so looked to the legislative purpose and the statute as a whole. It ruled that the provision upon which plaintiff relied “covers financial assistance provided in connection with further education …, which would include the AmeriCorps U.S.A. stipend.” While this interpretation conflicted with the 1994 memorandum, that document was entitled to little weight because it preceded and thus could not interpret the Welfare Reform Act. The court said that its interpretation was consistent with the statutory purpose of removing disincentives to work and promoting economic self-sufficiency.

Additional Information

Attorney Information
Plaintiffs represented by Jeremy P. Murphy, 941 0 Street #727, Lincoln NE 68508 (402.438.2556)
Docket Date
2001-01-04 00:00:00+00:00