Nos. 85-2366, 85-2481.

789 F.2d 474 (1986)

Tommie E. WATKINS, et al., Plaintiffs-Appellants, v. Donald BLINZINGER, et al., Defendants-Appellees. Dorothy DAVIS, et al., Plaintiffs-Appellants, v. Gregory COLER, et al., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided April 18, 1986.

Rehearing and Rehearing Denied May 12, 1986.

Attorney(s) appearing for the Case

Donald R. Lundberg, Legal Organization of Indiana, Indianapolis, Ind., for Watkins.

Gary L. Shaw, Dep. Atty. Gen., Indianapolis, Ind., James R. Goeser, Dept. of Health & Human Service, Chicago, Ill., for Blinzinger.

John M. Bouman, Beverly V. Groudine, and Barbara Stob, Legal Assistance Foundation, Chicago, Ill., for Davis.

Steven Hogroian, Owen M. Field, and James C. O'Connell, Special Asst. Attys. Gen., Chicago, Ill., for Coler.

Before BAUER, WOOD and EASTERBROOK, Circuit Judges.

Rehearing and Rehearing En Banc in No. 2366 Denied May 12, 1986.

EASTERBROOK, Circuit Judge.

Recipients of Aid to Families with Dependent Children (AFDC) are dropped from the program if their incomes exceed the "standard of need" in their states. They also are dropped if their "resources" exceed $1,000. A person who receives a lump-sum payment wants to have the payment called a "resource" rather than "income."

If the lump sum is a "resource," the recipient...


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