The Governor's proposal to suspend state cost-of-living adjustments (COLAs) for SSI/SSP grants in 2008 and 2009 would cut $328.9 million from cash assistance payments and further erode the purchasing power of SSI/SSP grants for 1.3 million low-income seniors and people with disabilities. Under the Governor's proposal, SSI/SSP recipients would receive a federal COLA in January 2009, but no state COLA in 2008 or 2009, lowering monthly grants by $50 for individuals and $93 for couples compared to current law. A new CBP Budget Brief, "Governor Proposes to Suspend State COLAs for SSI/SSP Grants," finds that the state has suspended SSI/SSP COLAs, delayed SSI/SSP COLAs, and/or reduced SSI/SSP grants in 14 of the last 19 years, shrinking the purchasing power of grant payments to some of California's poorest residents.

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