A needy single parent with two children would see at least $80 more a month in cash assistance after July 1 under a state proposal to increase welfare payments for the first time in 14 years.

The state Department of Human Services wants to set monthly welfare payments so that they are up to 50 percent of the federal government's 2006 poverty income levels. That is the equivalent of $1,590 a month or less for a family of three.

The monthly welfare payments are now set at up to 62.5 percent of the 1993 poverty levels.

Advocates for the poor, however, say the increase will not go far in getting families out of poverty, although they are applauding the state's efforts to step up the benefits — even if they are overdue.

"It's still impossible to live on. But I am personally very happy," said Joel Fischer, a professor of social work at the University of Hawai'i who worked with others to up the payments.

"None of the advocates are satisfied with such a small increment, except for the fact we've been fighting for this change since 1993."

NEW RESTRICTIONS

The increase comes as the state is grappling to meet new federal regulations on welfare that increase the number of hours single parents on welfare must work and tighten restrictions on other unpaid activities that may be counted as vocational training.

The new regulations went into effect in October, and the state has pledged to continue payments for families who are not in compliance for an unspecified amount of time.

Human Services Department Director Lillian Koller said she is still trying to determine how many families don't meet the new rules.

About 7,000 Hawai'i families get cash subsidies under the federally funded Temporary Assistance to Needy Families program, while 2,500 get help under a similar state program.

Some 5,268 Hawai'i families have been taken off the welfare rolls since 1996, when Congress put a five-year limit on payments.

A law passed last year set welfare payments as a percentage of 2006 federal poverty levels, but no increase in assistance was funded. Instead, lawmakers asked the state to study the program and recommend an increase.

ADVOCATES' MINIMUM

Koller said her proposal to base payments on 50 percent of the poverty level came from advocates, who said they wanted to see payments no less than half of poverty wages.

There were no studies conducted to determine how far the increase will go in helping poor families. But Koller said the subsidy was set as a percentage of the poverty level because it is designed to be coupled with other aid programs, including food stamps.

The department says it will cover the increase in payments for families with federal funds, and is not asking for any more state funding for those recipients. But Koller says she will need about $2.2 million to cover the increased subsidies to single people under the state's Aged, Blind and Disabled and General Assistance programs.

Brian Schatz, chief executive officer of Helping Hands Hawai'i, said the increase in welfare subsidies will make a small but significant difference for needy families trying to get out of poverty.

"If you're in a difficult situation, then the government's job is to help get you get back on your feet," Schatz said. "The objective here is for the assistance to be temporary."

Reach Mary Vorsino at mvorsino@honoluluadvertiser.com.