Transcript Slide 1

Food Stamp
Issues & Challenges
House Committee on Human Services
April 18, 2006
Celia Hagert, Senior Policy Analyst
Center for Public Policy Priorities
www.cppp.org
Overview
• Food stamp participation & unmet
need
• Food stamp reauthorization in the
2007 Farm Bill
• President’s FY 2007 budget
• Food stamp access & integrated
eligibility
Center for Public Policy Priorities
www.cppp.org
Participation & Unmet Need
• From fiscal 2001 to September 2005,
participation increased dramatically – by 65%
– after four years of steady and unwarranted
decline
• “Participation rate” – the percentage of
potentially eligible Texans on food stamps –
has increased from 33% to 48%, compared
to 56% in 1996
• Unmet need has fallen, but program still fails
to reach more than 2 million needy Texans
Center for Public Policy Priorities
www.cppp.org
Poverty and Assistance in Texas
Percent of Texans
Poverty and Assistance in Texas
20.0
Poor
15.0
Receiving Food Stamps
10.0
Receiving AFDC/TANF
5.0
Receiving SSI
1975
1980
Center for Public Policy Priorities
1990
1994
1996
2000
2004
www.cppp.org
Unmet Need
4.0
3.5
3.5
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
Poor, not on food stamps
Number of food stamp
recipients
Food Stamp Use, Poverty & Unmet Need
Food stamp recipients
Number of poor
Unmet need for food
stamp
1996 1997 1998 1999 2000 2001 2002 2004
Center for Public Policy Priorities
www.cppp.org
Factors Behind Food Stamp Growth
• Outreach funded by legislature since
2000
• Higher resource limits (expanded
categorical eligibility)
• Economic changes
• Simpler enrollment process (6-month
certification period)
Center for Public Policy Priorities
www.cppp.org
Challenges & Opportunities:
Federal Level
• President’s FY 2007 Budget
 Categorical eligibility restrictions
 CFSP elimination
 Retirement account exemptions – good change
that would eliminate the need for families to
choose between immediate needs and saving
for retirement
 New hire directory – aside from potential
administrative costs to state, appears noncontroversial
Center for Public Policy Priorities
www.cppp.org
Challenges & Opportunities:
Federal Level
 Categorical eligibility restrictions –
-
-
CPPP analysis of HHSC denial rates estimated tens
of thousands could lose benefits due to resource limit
changes
Original policy intended to support states’ welfarework efforts
- Reliable car to get to work ($4,650 limit outdated, established
in 1977)
- Support savings, home ownership, asset accumulation – the
“ownership” society
-
Elimination incompatible with proposal to exempt
retirement accounts
Center for Public Policy Priorities
www.cppp.org
Challenges & Opportunities:
Federal Level

CFSP elimination –
- Would cut benefits for 12,000+ needy seniors
- “S” in CFSP = supplemental, i.e., seniors may need
both food stamps and CFSP commodities
- Why? Seniors on fixed income may only qualify for
$10 - $30 in food stamps, but face greater need (heat
vs. eat, high cost of medicine, etc.)
- Some seniors do not qualify for food stamps (asset
limits, immigrant restrictions)
- Some seniors wary of food stamp process,
associated stigma, difficulty applying
- Low overhead – CFSP administered by volunteerstaffed food charities – good bang for the buck
Center for Public Policy Priorities
www.cppp.org
Outlook for President’s Proposals
•
•
•
•
Categorical eligibility restrictions unlikely to pass
– attempts last year failed during budget
reconciliation process
CFSP could be cut or eliminated as part of this
year’s agriculture appropriations process (was
already cut twice last year – targeted cut and
across-the-board cut in discretionary spending)
Retirement account exemption unlikely until Farm
Bill/Food stamp reauthorization (2007)
New Hire database could get passed as part of
stand-alone bill
Center for Public Policy Priorities
www.cppp.org
Challenges & Opportunities:
Federal Level
• Food Stamp Reauthorization (2007 or 2008)
 Increase access (i.e., outreach, simpler
enrollment process, more application options)
 Reach more needy people through less
restrictive eligibility limits (i.e., immigrant
access, higher income/resource limit, etc.)
 Improve adequacy of benefits (i.e., across-theboard increase, targeted increase for seniors)
Center for Public Policy Priorities
www.cppp.org
Food Stamp Reauthorization
• USDA and FNS have held forums to solicit
feedback from stakeholders, advocates, and the
public (see
http://www.usda.gov/documents/FOOD_STAMP
_PROGRAM.pdf for a summary of comments)
• See APHSA’s see “Crossroads II”
(http://www.aphsa.org/Publications/crossroadsii.
asp) for states’ recommendations – many
commonalities with advocates
• Potential for 2007 Farm Bill, although could be
delayed until 2008
Center for Public Policy Priorities
www.cppp.org
Challenges & Opportunities:
State Level
•
•
•
Integrated eligibility system brings innovation and
potential for simpler enrollment process
At the same time, more remote application
process, less face-to-face assistance could
create barriers for hard-to-serve (seniors, persons
with disabilities, persons with language barriers)
Pilot in Travis/Hays counties indicates need for
technical and operational improvements/changes
to ensure food stamp access and program
integrity
Center for Public Policy Priorities
www.cppp.org
Integrated Eligibility
& Food Stamp Access
New system must comply with federal law/regulations
related to –
• Program access
-
Right to apply without delay
State has duty to assist applicants
Timeliness in application processing
Civil rights protections for special populations (i.e.,
persons with disabilities, persons with language
barriers)
• Program integrity – error rates & fraud control
Center for Public Policy Priorities
www.cppp.org
USDA’s Role in Integrated Eligibility
• USDA is monitoring system’s performance in three
areas –
-
System Functionality (telecommunications at call center,
automated support for certification process)
Customer Service (knowledge of private contractor staff
at call center, ability to assist clients)
Application timeliness
• USDA funding for next rollout phase contingent on
successful performance in these areas
• USDA’s technical consultant Booz Allen is
monitoring system readiness from a technology
perspective and evaluating potential risks
Center for Public Policy Priorities
www.cppp.org
USDA’s Review of Pilot in Mid-March
• System Functionality (at time of review)
- High (39%) call abandonment rates
- Long hold times (20 min. average)
- Backlog in application processing due to
problems with Max-e/TIERS interface
- Incomplete application packets forwarded to
state (40% returned to vendor because
incomplete)
Center for Public Policy Priorities
www.cppp.org
USDA’s Review of Pilot in Mid-March
• Customer Service (at time of review)
- Lack of knowledge of private contractor staff at
call centers
- Bad information given to clients
- Insufficient complaint process – not well
documented
- Problems causing frustration among clients and
state staff
Center for Public Policy Priorities
www.cppp.org
USDA’s Review of Pilot in Mid-March
• Timeliness (at time of review)
- 80% timeliness in application processing
(combined rate for standard and expedited
applications) – federal tolerance level is 95%
- Much higher timeliness rate for “expedited”
applications (state requires processing within 24
hours) of 94%
- Therefore, standard applications processing
(within 30 days) likely lower than 80%
Center for Public Policy Priorities
www.cppp.org
Booz Allen’s Findings & Recommendations
•
•
•
•
•
•
Testing is inadequate, could lead to substandard software
introduced into production
Recommends creation of independent review team (with
state auditor, OIG, etc.) provide input on “go-no go”
decisions, i.e., whether to move forward
Pilot phase is too short, not true test of system
performance statewide (largely because TIERS was not a
variable in the pilot area, already tested there for two
years)
Lack of contingency plan in the event that rollout is
delayed (problems caused by attrition of state staff)
Problem with Max-e/TIERS interface could lead to longer
processing times/greater risk for error in data entry
Next two phases should be extended for 90 days each;
currently too short to indicate how public will adapt,
whether new business model will work
Center for Public Policy Priorities
www.cppp.org
Next Steps
• Problems identified by USDA/HHSC must
be corrected before further expansion
• State staffing levels must be adequate to
ensure smooth transition
• More attention should be paid to special
populations – what distinguishes the
successful clients from the unsuccessful
clients in the new system?
Center for Public Policy Priorities
www.cppp.org
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Center for Public Policy Priorities
www.cppp.org