Baldwin v. Ledbetter

• Decision Date: 18 October 1986
• Docket Number: Civ. A. No. C85-4340A.
• Citation: 647 F. Supp. 623
• Parties: Vernita BALDWIN, on Behalf of herself and her minor children, Wilnetta Baldwin, Lapheitta Baldwin and Schlonda Baldwin, and all others similarly situated, Plaintiff, v. James G. LEDBETTER, in his official capacity as Commissioner of the Georgia Department of Human Resources; and Otis R. Bowen, M.D., in his official capacity as Secretary of the United States Department of Health and Human Services, Defendants.
• Court: U.S. District Court — Northern District of Georgia

647 F. Supp. 623

Vernita BALDWIN, on Behalf of herself and her minor children, Wilnetta Baldwin, Lapheitta Baldwin and Schlonda Baldwin, and all others similarly situated, Plaintiff, v. James G. LEDBETTER, in his official capacity as Commissioner of the Georgia Department of Human Resources; and Otis R. Bowen, M.D., in his official capacity as Secretary of the United States Department of Health and Human Services, Defendants.

Civ. A. No. C85-4340A.

United States District Court, N.D. Georgia, Atlanta Division.

October 18, 1986.

COPYRIGHT MATERIAL OMITTED

John L. Cromartie Jr., Phyllis Holmen, Atlanta, Ga., Lisa J. Krisher, Augusta, Ga., Linda Hay, Columbus, Ga., William C. Thompson, Jenny Mittelman, Atlanta, Ga., for plaintiffs/intervenors.

Michael J. Bowers, Mary Foil Russell, Office of Atty. Gen., Jane Wilcox Swift, Asst. U.S. Atty., Atlanta, Ga., for defendants.

ORDER

FORRESTER, District Judge.

This class action is before the court on cross motions for summary judgment as well as plaintiff's motion for preliminary injunction.^* Because a ruling on the motions for summary judgment is dispositive of the request for injunctive relief, the cross motions for summary judgment will be addressed first.

I. FINDINGS OF FACT.

Plaintiffs challenge regulations governing Georgia's Aid to Families with Dependent Children (AFDC) program. The AFDC program was authorized by Title IV-A of the Social Security Act of 1935, 42 U.S.C. § 601, et seq. This program is a scheme of cooperative federalism intended to provide "financial assistance to needy children and the parents or relatives who live with and care for them...." Heckler v. Turner, 470 U.S. 184, 105 S.Ct. 1138, 1141, 84 L.Ed.2d 138 (1985). The federal government reimburses a participating state for approximately one-half the cost of the program. 42 U.S.C. § 603. The participating state in return must submit a plan for the administration of the program for approval by the Department of Health and Human Services. 42 U.S.C. § 602(a) & (b). Defendant James G. Ledbetter, acting as Commissioner of the Georgia Department of Human Resources, is responsible for the local administration of the AFDC program in Georgia, while defendant Otis R. Bowen, acting as Secretary of the Department of Health and Human Services (Secretary), is responsible for promulgating federal regulations governing Georgia's state plan.

The original representative plaintiffs in this action are Vernita Baldwin and her children, Wilnetta, Lapheitta and Schlonda Baldwin. Plaintiff Schlonda Baldwin is the half-sister of Wilnetta and Lapheitta Baldwin. Prior to October 1, 1984, Ms. Baldwin and Schlonda comprised a family unit eligible for and receiving $174 per month in AFDC benefits. This payment represented the maximum grant allowed by Georgia's payment standard for a family of two with no other income.¹

Schlonda Baldwin's half-sisters, Wilnetta and Lapheitta Baldwin, were not originally included as part of the AFDC family filing unit. These plaintiffs were supported by child support payments made by their father, Willie King, pursuant to an agreement approved by the Christians Circuit Court, Hopkinsville, Kentucky, on January 15, 1980. The court approved payments in the amount of $120 per month, but Mr. King voluntarily agreed in 1983 to raise the court-ordered amount to $200 per month. Affidavit of Vernita Baldwin, ¶ 4. Coupled with the $174 in AFDC payments received by Ms. Baldwin and Schlonda, these plaintiffs as a household enjoyed an income of $374 per month prior to October 1, 1984.

The statutory scheme which allowed Ms. Baldwin to exclude Wilnetta and Lapheitta from the AFDC family filing unit was altered in 1984. Section 2640(a) of the Deficit Reduction Act of 1984 (DRA), Pub.L. No. 98-369, 98 Stat. 1145 (1984) (codified at 42 U.S.C. § 602(a)(38)), provided in pertinent part:

That in making the determination under paragraph (7) with respect to a dependent child and applying paragraph (8), the state agencies shall (except as otherwise provided in this part) include—

(A) Any parent of such child, and

(B) Any brother or sister of such child, if such brother or sister meets the conditions described in clauses (1) and (2) of section 606(a) of this title, if such parent, brother, or sister is living in the same house as the dependent child, and any income of or available for such parent, brother, or sister shall be included in making such determination and applying such paragraph with respect to the family....

This same statutory revision of the Social Security Act also provided that the first $50 of child support payments not be counted as income to the AFDC family filing unit for the purpose of determining eligibility and benefits. DRA, Pub.L. No. 98-369, section 2640(b)(1), 98 Stat. 1145 (1984) (codified at 42 U.S.C. § 602(a)(8)(A)(vi)).

Pursuant to the foregoing statutory authorization regarding the inclusion of co-resident family members in the AFDC family filing unit, the Secretary promulgated the following regulation:

For AFDC only, in order for the family to be eligible, an application with respect to a dependent child must also include, if living in the same household and otherwise eligible for assistance:

....

(B) Any blood-related or adoptive brother or sister.

45 C.F.R. § 206.10(a)(1)(vii)(B). Defendant Ledbetter in turn sent a letter to county directors of AFDC indicating the changes effective October 1, 1984. This letter defined the AFDC family filing unit in Georgia as follows:

Beginning October 1, 1984, the needs and income of the parent(s) and all minor siblings or half-siblings living with a dependent child who applies for or receives AFDC must be included for eligibility determination and benefit calculation. SSI recipients, step-brothers, and stepsisters are excluded from this requirement. In other words, an A/R will no longer have the option to voluntarily exclude the needs or income of herself or a child from a grant. Similarly, there is no longer any restricted income.

As stated, the A/R does not have the option to exclude any family member. Therefore, if the A/R refuses to include the income and needs of a child or herself or we are unable to verify the income of a previously excluded child, total ineligibility of the entire group results as we are unable to determine eligibility.

Eligibility Services County Letter No. 84-44, August 23, 1984 (Appendix D, Plaintiffs' Motion for Preliminary Injunction).

Ms. Baldwin was told in September of 1984 by the Muscogee County Department of Family and Children Services that the foregoing alterations in AFDC eligibility and benefit determinations required that she include Wilnetta and Lapheitta in the AFDC family filing unit previously comprised of only herself and Schlonda Baldwin. Aff., ¶ 6. Rather than risk losing AFDC benefits because of ineligibility, Ms. Baldwin allowed the inclusion of Wilnetta and Lapheitta in the AFDC family filing unit. Id. As a condition of eligibility, Ms. Baldwin was required to assign to the state Wilnetta and Lapheitta's rights of support from their father. 42 U.S.C. § 602(a)(26)(A). Georgia undertook the collection of child support payments from Mr. King pursuant to the child support enforcement program set up by the state as a condition of federal funding. See 42 U.S.C. §§ 602(a)(27), 651 et seq.

Although the payment standard for a family of four is $264 per month, Ms. Baldwin and her family do not qualify for an absolute grant of $264. Because the child support income is deemed available to the entire family, 42 U.S.C. § 602(a)(38)(B), the family is assumed to have an income of $150 per month, or $200 less the disregard of the first $50 in child support income. 42 U.S.C. § 602(a)(8)(A)(vi). Consequently, Ms. Baldwin's family receives a grant of $114 per month. When this grant is coupled with the $150 in child support collected by the state and the $50 disregarded, Ms. Baldwin has a monthly income of $314, or $60 less than before the amendment of the AFDC family filing unit. Baldwin Aff., ¶¶ 6-7. In short, the family receives funds from the state amounting to the payment standard of $264 which represents a $114 grant and $150 in collected child support monies. The family also receives the $50 disregarded with no strings attached.

The Baldwins are joined in their complaint by representative plaintiff-intervenors Brenda Maffett and her children, of Atlanta, Georgia. Ms. Maffett has five children, including Melissa Maffett whose father is Tyrone Davis. Maffett Aff., ¶ 3. Prior to 1984, Ms. Maffett's family received AFDC benefits which were calculated according to the needs and income of all of Ms. Maffett's children except for Melissa who received child support from Mr. Davis. Id., ¶ 5. Mr. Davis has voluntarily paid $10 per week in child support for Melissa and has promised to raise the amount of support to $25 per week. Id., ¶¶ 11 & 24. Ms. Maffett has insured that the $10 per week for Melissa is used for Melissa's benefit. See id., ¶ 29.

After the implementation of the new family filing unit rule, plaintiff Maffett was forced to include Melissa in her AFDC family filing unit. Id., ¶ 6. This move evidently did not result in an immediate loss of income because the total monthly child support received by Melissa did not exceed the $50 disregard. 42 U.S.C. § 602(a)(8)(A)(vi). Nevertheless, Ms. Maffett insists that the family filing unit amendment has had repercussions in her household. In particular, Ms. Maffett complains that the new rule has resulted in the harassment of Mr. Davis by child support enforcement officials. This harassment, as well as Mr. Davis' general dissatisfaction in having his child placed upon the welfare roles, may result in the cessation of Mr. Davis' otherwise regular visits with Melissa. Id., ¶¶ 13-20.

II. MOTIONS FOR SUMMARY JUDGMENT.

A. Count One.

Count one of plaintiff's complaint alleges that defendants' regulations are not authorized by 42 U.S.C. § 602(a)(38)...