And it would provide $50 million to assure that welfare grants are not cut.

Now 34 years old, she is single, unemployed and raising her four other children on a welfare grant of $168 a month.

But they declined to say how much the increase would cost the state, which now spends about $2.5 billion a year on welfare grants.

So despite earnings of $417, she would end the month with $614, or $75 more than the original welfare grant.

The Governor has proposed cutting the basic welfare grant by $38 a month for a family of three.

Others need money to pay for a room, which costs more than the $215 monthly a welfare grant will cover.

The average welfare grant is now about 15 percent below the Federal poverty level, city officials said.

The vouchers would be worth less than the welfare grant.

"The bottom line is this could end up hurting the state in terms of what its welfare grant will be."

The budget contains funds for a 15 percent increase in welfare grants.