Wednesday, April 2, 1997
What ever happened in the bizarre case in which a federal judge tried to jail a state Department of Social Services and Housing director some years ago? Official did not get jail
in bizarre caseFranklin Sunn, the director, didn't go to jail. He had been held in contempt for refusing to obey an earlier court order to increase benefits to about 2,000 recipients under Aid to Families with Dependent Children. Sunn avoided jail by abiding by the court order when given another 30 days to comply.
But that wasn't the end. Decisions by the U.S. Supreme Court in February 1985 and later the 9th Circuit Court of Appeals took the issue back to the original state position that benefits should be calculated on the basis of gross income. The Legal Aid Society had challenged the gross income formula and taken it to federal court to get it changed to net income (after taxes).
The state objected to the additional benefits the net income formula would bring until its appeal was decided, but federal Judge Harold Fong ordered the money paid. The state eventually paid $50,000 to $60,000 in extra benefits for 22 months. After the high court finally settled the whole thing, the state moved to get the extra money back. The some 2,000 families owed the state about $963,000, and the state began collecting -- about $480 per family.
Those still on welfare had their checks reduced by 10 percent until the state recovered. Families no longer on welfare received collection letters urging them to repay the money.