Farm Security and Rural Investment Act of 2002

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Farm Security and Rural Investment Act of 2002
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Introduction

• Changes to the Food Stamp Program
• 5-Year Reauthorization through FY 2007
• Effective Dates
• Implementation Issues
• FNS Responsibilities
• States Responsibilities

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Percentage of 10-Year Outlays
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Overview

• Food Stamp Reauthorization Provisions

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Transitional Benefit Alternative(effective
October 1, 2002)

• Goals
• Minimize errors at an unstable time for
  households
• Reduce states workload
• Give households a stable benefit

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Transitional Benefit Alternative(cont.)

• SAs choosing this option may extend from 3 months
  up to 5 months the time period HHs may receive FS
  when they lose TANF cash assistance.

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Transitional Benefit Alternative(cont.)

• Eligible households
• Households leaving TANF cash

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Transitional Benefit Alternative(cont.)

• Ineligible households
• Households leaving TANF due to TANF sanction
• Households disqualified from FS
• Households determined ineligible by states
  definition

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Transitional Benefit Alternative(cont.)

• TBA
• Freezes benefit at a higher level
• Adjusts for the income change when cash
  assistance ends
• Adjusts for information from another program
  (state option)
• Extends certification period

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Transitional Benefit Alternative(cont.)

• To end TBA
• Apply for recertification during TBA period
• Let it expire
• At end of TBA, SA may
• Redetermine eligibility
• Recalculate benefit
• Shorten certification period to recertify

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Standard Deduction(effective October 1, 2002)

• Goals
• Offset the decreased purchasing power of an
  unchanging deduction
• Recognize larger households higher expenses
• Hold current households harmless

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Standard Deduction(cont.)

• Overview
• Everybody gets one
• Nobody gets less
• About ¼ get more
• Changes every year

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Standard Deduction(cont.)

• Method
• Net Income Limit
• X .0831
• Standard Deduction
• But not less than the current amount
• Up to a household of six

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Standard Deduction(cont.)
Sample Calculation for 2003 48 States and DC Sample Calculation for 2003 48 States and DC Sample Calculation for 2003 48 States and DC Sample Calculation for 2003 48 States and DC Sample Calculation for 2003 48 States and DC Sample Calculation for 2003 48 States and DC
Size Poverty Computed Not Less Than Final Figure
1 739 .0831 61 134 134
2 995 .0831 83 134 134
3 1252 .0831 104 134 134
4 1509 .0831 125 134 134
5 1765 .0831 147 134 147
6 2022 .0831 168 134 168
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Standard Deduction(cont.)
 
October 1, 2002 through September 30, 2003
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Standard Deduction(cont.)

• Distribution of Households by Household Size
• 1 2
• 3 4
• 5 6

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Standard Deduction(cont.)

• Distribution of Recipients by Household Size
• 1 2
• 3 4
• 5 6

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Child Support Payments(effective October 1, 2002)

• Goals
• Help states make some households eligible
• Match food stamp policy with other programs

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Child Support Payments(cont.)

• Allows SAs to treat payments to non-household
  members as either an
• Income exclusion, or an
• Income deduction
• Legally obligated payments being paid out, not
  coming in

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Child Support Payments(cont.)

• SA must notify RO prior to implementation if
  treated as exclusion
• FNS must develop issue regulations for the
  certification process
• SA may develop their own procedures to calculate
  amount
• must submit them to the RO

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Simplified Determination of Deductions (effective
October 1, 2002)

• Goals
• Reduce states workload
• Reduce errors

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Simplified Determination of Deductions (cont.)

• Allows SAs to disregard reported changes in
  deductions during certification periods
• EXCEPT FOR
• Changes associated with a new residence, or
• Earned income

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Simplified Determination of Deductions (cont.)

• To implement this option, FNS expects SAs to
• Notify RO prior to implementation
• Develop procedures to advise applicant/participant
  households that reported changes will not result
  in benefit changes
• Provide written procedures to RO
• Advise FNS of waiver modifications

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Simplified Utility Allowance(effective October
1, 2002)

• Goals
• Simplify the excess shelter deduction
• Facilitate encourage use of mandatory SUA
• Eliminate requirement to prorate SUA for
  households that share living quarters
• Allow SAs to extend the SUA to households in
  public housing

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Simplified Utility Allowance(cont.)

• Implementation for SAs with mandatory SUA in
  place
• May implement beginning 10/1/02
• Must notify RO of implementation date
• Implementation for SAs that want mandatory SUA
  (10/1/02 or later)
• Follow regulations to obtain approval
• Document that SUA will not increase costs

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Simplified Reporting(effective October 1, 2002)

• Goals
• Allow SAs to extend SAR to all households
• Reduce the number of payment accuracy errors

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Simplified Reporting(cont.)

• Advantages
• Once certified, households must report only when
  income exceeds 130 of poverty guideline or if
  ABAWD hours drop
• Households recertify or file report at 6-month
  interval
• Reduces case actions and office visits

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Internet Applications(effective November 13,
2003)

• Requires States to post applications on their web
  sites in the same languages as printed
  applications

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Legal Immigrants

• Goals
• Restore FSP eligibility to qualified immigrants,
  immigrant children, and disabled immigrants
• Reduce need for state replacement programs to
  provide FS
• Match food stamp policy with other programs

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Legal Immigrants
Provision Immigrant Category Effective Date
Restores eligibility to qualified immigrants who are otherwise eligible AND who Receive disability benefits for their condition, without regard to their legal presence on 8/22/96. 10/1/02
Are under 18, without regard to their legal presence on 8/22/96. Eliminates deeming requirements. Creates a potential gap in benefits for those 14. 10/1/03
Have lived in the U.S. for 5 years as a qualified immigrant beginning on date of entry. Minimizes effect of 40 quarters requirement. Lifts 7-year cap on refugees and asylees. Retains deeming for adults with sponsors. 4/1/03
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Disaster Issuance(effective May 13, 2002)

• Goal
• Creates new flexibility for the program in
  disaster situations
• Allows USDA to approve alternate issuance systems
  during disasters when reliance on EBT systems is
  impracticable

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Simplified Definition of Income (effective
October 1, 2002)

• SAs may exclude the following types of income, if
  excluded under specified programs authorized
  under the Social Security Act
• Educational income (loans with deferred payment,
  veterans assistance, grants, scholarships, etc.)
  Does not affect educational income currently
  excluded.
• State complementary assistance not counted under
  section 1931 of the Social Security Act
• Any other type of income not counted for Medicaid
  purposes under section 1931 of SSA or TANF

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Simplified Definition of Income(cont.)

• SAs may not exclude the following types of
  income
• Wages or salaries
• Benefits from major assistance programs, regular
  payments from a government source (unemployment
  or general assistance)
• Workers compensation
• Child support payments
• Any other type of income as determined by USDA
  through regulations

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Simplified Definition of Income(cont.)

• Until publication of regulations SAs
• May exclude educational assistance not counted
  under Medicaid
• May exclude state complementary assistance not
  counted under section 1931 of the SSA, and
• Will identify additional types of income to
  exclude
• Will notify the RO what types of income will be
  excluded under this option

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Simplified Determination of Housing Costs
(effective October 1, 2002)

• Allows SAs to use a standard deduction from
  income of 143 per month for homeless households
  that are not receiving free shelter throughout
  the month
• Replaces existing homeless shelter allowance
  option of up to 143
• Allows the SA to make a household with extremely
  low shelter costs ineligible for the deduction

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Simplified Determination of Housing Costs (cont.)

• Implementation for SAs already using the existing
  homeless shelter allowance
• Take no action unless the allowance is less than
  143
• Increase the amount to 143, if the allowance is
  less than 143
• Use standard deduction in lieu of excess shelter
  deduction calculation

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Simplified Determination of Housing Costs (cont.)

• Implementation for SAs that are not using the
  existing homeless shelter allowance want to
  implement the homeless shelter deduction on
  10/1/02 or later - USDA expects the SA to
• notify RO of anticipated implementation date

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Use of TANF Funds

• Allows use of TANF funds for Food Stamp Program
  outreach purposes

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Employment Training(effective May 13, 2002)

• Rescinds all unobligated carryover money
• Eliminates 75 million authorized for FY 2002
  under the Balanced Budget Act
• Sets the FY 2002 100 Federal ET allocation at
  90 million
• Makes an additional 20 million in 100 Federal
  ET funds available for use by pledge states to
  serve at-risk ABAWDs

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Employment Training(cont.)

• Eliminates the 80/20 use of funds requirement
• Eliminates the MOE requirement
• Eliminates maximum reimbursement (slot) rates
• Eliminates the 25 per month per participant
  limit on reimbursement of participant expenses
  other than dependent care

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Simplified Definition of Resources (effective
October 1, 2002)

• Increases the resource limit for households with
  a disabled member from 2,000 to 3,000 and
• Allows States the option to exclude some of the
  same resources that the State excludes under its
  TANF cash assistance program or its Medicaid
  program (section 1931).

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Simplified Definition of Resources (cont.)

• Under this option States could not exclude
• cash
• licensed vehicles (except those that they are
  already excluding under their TANF rules)
• amounts in financial institutions or
• other resources to be identified in regulations.

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Alternative Issuances in Group Homes (effective
October 1, 2002)

• FNS must conduct pilot projects to test the
  feasibility of issuing standardized benefits to
  residents of certain group homes
• small group facilities for the disabled
• shelters for battered women and children
• shelters for the homeless or
• drug or alcoholic treatment centers.

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Alternative Issuances in Group Homes (cont.)

• To participate, SAs should submit a project plan
  for approval that includes
• information specifying which facilities are
  participating
• a schedule for reporting to FNS on the projects
• procedures for standardizing allotment amounts
  that take into consideration the allotment
  amounts typically received by residents of the
  facilities and
• a commitment to comply with project requirements.

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Access Outreach Grants(effective October 1,
2002)

• Authorizes up to 5 million annually to fund
  projects that simplify the application process or
  improve program access
• Projects that may be approved include
• Combined applications/eligibility processes
• Alternative application methods (telephone,
  Internet, etc.)
• Materials/resources to improve program access
• Improved outreach methods for eligible
  households
• Other activities determined appropriate by USDA.

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Access Outreach Grants(cont.)

• Eligible entities include
• State agencies
• State or local governments
• Health or welfare agencies
• Public health or educational agencies
• Private non-profit community-based organizations,
  food banks, or other emergency feeding
  organizations

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High Performance Bonuses(effective May 13, 2002)

• Replaces enhanced funding with performance system
• Awards 48 million each year (beginning with FY
  03) to States with high or most improved
  performance

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High Performance Bonuses(cont.)

• USDA will
• Establish guidance by October 1, 2002 for
  awarding FY 2003 2004 bonuses
• Issue regulations for bonus awards for FY 2005
  succeeding years
• Solicit ideas from SA organizations that
  represent state interests prior to issuing
  regulations

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High Performance Bonuses (cont.)

• Questions to Consider
• How do we measure them?
• Is data available?
• How much should go to payment accuracy?
• Should we allow for comparisons between States?
• How many States should get them?
• Should the bonus be related to size of State or
  amount of issuance?

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High Performance Bonuses(cont.)

• Examples
• Participation rates
• Participation rate improvement
• Overpayments
• Overpayment reduction
• Incorrect denials
• Under-issuance

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Measuring Participation Rates
Nov 02
Feb 03
Mar 04
Sep 04
Feb 05
May 05
Jun 05
Dec 05
SIPP
Census Collects Elig. Data
Census Ends Data Coll.
Census Rel. Elig. Data
FNS Releases Report
ACS
Census Releases 03 State Data
Census Collects Data
FNS Releases Report
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Wrap-Up

• Now that the puzzle is solved

any questions?
Immigrants
Standard Deduction
Income Resources
SAR
Other
Deductions
TBA