Valerie Case was talking to a military veteran last week who received notice from the state Department of Public Welfare that his "General Assistance" monthly cash payment of $215 was being terminated. The vet, who had recently applied for Social Security disability benefits, was happy — thinking the state was cutting him off because Social Security had ruled in his favor.

Case, a paralegal at MidPenn Legal Services, broke the news gently: Social Security hadn't ruled yet.

But Pennsylvania had, and the vet — and nearly 70,000 other Pennsylvanians who count on the monthly stipend — are being cut off.

The budget, signed by Gov. Tom Corbett last night, eliminated the $150 million General Assistance program, which since the Great Depression has provided cash assistance to single people. The program was initially slated to end today, July 1, but Democrats won a one-month delay so the Pennsylvania Department of Public Welfare can notify recipients — including 1,518 people in Lancaster County — that they will lose benefits.

Local social service providers are bracing for impact.

"We have a substantial number of clients who are going to be affected by this," said Bob Thomas, president of Tabor Community Services in Lancaster. "People are very bewildered — they're not sure what they're going to do."

Valerie Case worries about a ripple effect that could wind up costing the state far more than the $150 million saved by eliminating the program.

"CareerLink will be flocked, Social Security will be overwhelmed," she said. "It's going to impact our prisons, our court system, our hospitals, our shelters.

"I don't understand how anyone could possibly think this is a good idea."

The program has been in the legislative crosshairs for months. Last week several legislators mounted last-ditch efforts to save it, but were only able to delay it.

The Pennsylvania Department of Public Welfare had not yet formally notified recipients that the program was to be eliminated. But early last week, a letter erroneously went out to some recipients, informing them that the benefits would be cut off.

DPW spokeswoman Anne Bale said the agency jumped the gun. "That was an error with our print shop," she said.

Bale said the department would advise recipients to talk with their caseworkers. "It's possible that [recipients] might qualify for other benefits," she said.

But the General Assistance program was narrowly targeted, a safety net of last resort available only to single adults who don't live with children related to them and who don't quality for other public assistance.

"We deal with some people who are ex-offenders, who are going through substance abuse, transitional people," said Scott Sheely, executive director of the Lancaster County Workforce Investment Board. "These are people who can't fight back."

Sheely said he's not yet sure what the impact will be on the WIB, which among other things runs PA CareerLink of Lancaster County, which helps the unemployed find work. "We warned all our case managers," he said.

In May, a statewide coalition of more than 100 advocacy groups — including AARP, United Way, the Pennsylvania Council of Churches and the Drug and Alcohol Service Providers Organization of Pennsylvania — asked Corbett and the Legislature to preserve the program, saying the program "supports the most vulnerable Pennsylvanians who have no other income, while they transition to a more stable life," and that ending GA is penny-wise, pound-foolish.

The group. calling itself "PA Cares for All," features stories on its website of people who will lose their cash benefit. "I am disabled," wrote "Pedro," age 41. "I have mental problems and a drug problem so I truly need the assistance. It's been helping me with things that I'm in need of, like for my medications. ... The cash assistance is helping me with the rent from the recovery house that I'm staying at now. Without the cash assistance where am I going to stay for some help?"

Wrote "Klaudia," age 26: "Without GA, I wouldn't be able to take care of my medical and mental health needs. I suffer from major mental illnesses, and having GA was making it possible for me to see the doctors, psychiatrists, and therapists.. ... GA doesn't give a lot of money, but it gives enough for me to pay my co-pays to doctor's appointments."

The Center for Budget and Policy Priorities in Washington, D.C., reported last year that 30 states had a General Assistance cash benefit in 2011, although two — Illinois and Kansas — eliminated their programs last year. Three others, along with the District of Columbia, either reduced funding or restricted eligibility. The programs are comparably easy to cut, as they aren't mandated by the federal government.

Gov. Corbett first proposed eliminating Pennsylvania's program in February, as a cost-saving measure. The Associated Press reported last week that while the budget for the program is $150 million, it ends up costing Pennsylvania more like $126 million annually as the federal government reimburses the state for recipients who eventually qualify for Social Security disability benefits.

While $215 monthly might not sound like much, said Tabor's Thomas, it's all some clients receive from the state Department of Welfare.

"It's often disabled people who want to find work, and are trying to find work, but they can't get a job," Thomas said.

The money, he said, has prevented people from sliding into homelessness. Sometimes it's just enough to keep them from falling over the edge.

"If people think they can just cut this and no one other than the recipients will feel the effects, that's just not true," he said.

Gil Smart is associate editor of the Sunday News. Email him at gsmart@lnpnews.com, or phone 291-8817.