"FOOD STAMPS: ABLE-BODIED ADULTS W/O KIDS"
Food Stamps: Cut-Off of Jobless Adults
CURRENT PROGRAM AND CURRENT LAW
The Food Stamp Program provides monthly benefits that assist low
income households in purchasing the food they need to maintain
adequate nutritional levels. Recipients can get Food Stamps if
they work for low wages, are unemployed or work part time, receive
welfare or other assistance payments, are elderly or disabled and
live on a small income, or are homeless.
The Food Stamp Program must be reauthorized by Congress every five
years.
At the federal level, the program is administered by the U.S.
Department of Agriculture (USDA). At the state level, the
California State Department of Social Services (SDSS) is the
designated single state agency responsible for the Food Stamp
program. Counties administer the program and issue Food Stamps to
recipients.
National eligibility standards and benefit levels are established
by Congress.
In March 1996, there were 3.1 million Food Stamps recipients in
California--62 percent of them are children. About 77 percent are
public assistance recipients; 75 percent are female heads of
households; 16 percent are households with earned income; 9 percent
are households with elderly/disabled persons.
California's recipients currently receive approximately $2.5
billion each year in Food Stamp benefits.
Food Stamps are distributed to recipients by mail, by private
vendors, and in person at county welfare offices. Grocers are
reimbursed directly by the federal government for the cost of the
Food Stamps.
The amount of Food Stamps one can get is based on the USDA's
"Thrifty" Food Plan, which estimates how much it costs to give a
household nutritious, low-cost meals. This estimate is changed
every year to keep pace with food prices. The maximum Food Stamp
benefit for a one-person household is $120 per month; however, many
recipients receive less than the maximum.
USDA funds the entire cost of Food Stamp coupons. However,
administrative costs are shared: Federal (50%), State (35%), County
(15%). In the state fiscal year 1994-95, California expended, from
the General Fund, $88.6 million for salaries and overhead ($107
million was allocated) and $8.4 million for issuance ($7.8 million
was allocated). State operations during that year cost $20.5
million.
IMPACT OF NEW FEDERAL LEGISLATION (HR 3734): WHAT DOES THE NEW LAW
REQUIRE?
All able-bodied adults without dependents (ABAWDs) between ages 18-
50 are now ineligible for Food Stamps beyond three months in any 36
months.
Individuals can retain their Food Stamp benefits by performing one
of the following:
Working 20 hours or more a week (average monthly);
Participating in a workfare program as defined in Section 20 of the
Food Stamp Act (7 U.S.C. 2029) or in a comparable program
established by a state or political subdivision of the state; or
Participating in an allowable "work program" for 20 hours or more
per week.
Qualifying programs include programs under JTPA or the Trade
Adjustment Assistance Act, state or local programs approved by the
state agency (including a county Food Stamp Employment and Training
program), and "workfare". However, job search or job search
training programs do not qualify.
Exemptions are provided for those medically certified as physically
or mentally unfit for employment, those who are pregnant, those who
are exempt from work requirements under current Food Stamp law.
Individuals denied Food Stamps under the ABAWD work requirement can
regain eligibility if, during a 30-day period, the individual works
for 80 or more hours, participates in a workfare assignment, or
participates in a work program for at least 80 hours. If the
individual subsequently stops performing the ABAWD work
requirement, that person shall remain eligible for a period of
three consecutive months, beginning on the date the individual
notifies the county that he/she is not satisfying the work
requirement. However, regaining eligibility in this manner can
occur only once during a 36-month period.
The new law allows "waivers" or exemption from the cut-off for
certain geographic areas: areas with 10% or greater unemployment
or areas where there are "insufficient jobs."
PROGRAM IMPACT
SDSS estimates 183,000 Californians aged 18-50 are subject to the
Food Stamps cut-off. The cut-off commences March 1, 1997, but may
be delayed in some counties. Of the 183,000, SDSS estimates that
59,000 will meet federal work or exemption requirements. Another
21,000 will be exempted by a waiver (based on 10% unemployment).
Thus, an estimated 102,000 could lose Food Stamp benefits (see
attached list by county).
Nearly half of the ABAWDs between 18-50 have no income other than
Food Stamps. Some 41 percent of those affected are women; 31% are
over the age of 40.
FISCAL IMPACT
California received $2.5 billion in federal Food Stamp funds during
FY 1995. The legislative analyst (LAO) estimates the lost funds
for ABAWDs to be $8 million in the first year and $300 million over
six years.
OPTIONS FOR STATE ACTION/MAJOR DECISIONS
Revise Federal Law: Encourage Congress and the President to make
substantive and technical amendments that would ease the harshness
of the Food Stamp provisions.
Establish Workfare Programs: Recipients in a workfare program
(including a "self-initiated" program) are exempted from the Food
Stamp loss, but not all counties offer recipients workfare
placements. The state could expand Food Stamp workfare programs in
order to supply enough work slots (federal matching funds are
available under administrative claiming); or, encourage or require
counties to start workfare programs or help clients start self-
initiative programs that meet the work requirement.
Waivers: Urge the governor to request a broader waiver in order to
allow counties time to establish workfare programs. The law allows
waivers based on the following criteria: when unemployment exceeds
10 percent and where there are insufficient jobs. States can
request a waiver if the unemployment rate of an area is over 10
percent. The governor has asked for a waiver based on this
criteria, covering 28 counties (many small rural counties) and 20
percent of the ABAWDs statewide. In addition, states can use
several methods to demonstrate there are "insufficient jobs" in a
local area. One method is to use the "labor surplus areas," as
defined by the Bureau of Labor Statistics. A waiver under this
criteria would exempt 17 additional counties in California. A
second method is identifying local geographic areas where the
growth of the adult population exceeds the growth in jobs. This
method could cover many more California counties.
State-only Program: Provide a food supplement program funded with
state-only funds (see SB604/Watson).
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Estimated ABAWD Households
1996/97
Counties Counties
Subject to With
ABAWD ABAWD
Requirements Households Waivers Households
TOTAL * 102,700 TOTAL 21,300
Alameda 5,398 Calaveras 176
Alpine 12 Colusa 100
Amador 84 Del Norte 177
Butte 1,041 Fresno 3,791
Contra Costa 2,336 Glenn 113
El Dorado 345 Imperial 968
Humboldt 785 Kern 3,246
Inyo 118 Kings 688
Los Angeles 45,341 Lake 365
Marin 522 Lassen 116
Mariposa 87 Madera 705
Mendocino 590 Merced 1,415
Napa 291 Modoc 50
Nevada 271 Mono 21
Orange 6,572 Monterey 964
Placer 438 San Joaquin 2,071
Plumas 75 Shasta 921
Riverside 3,651 Sierra 16
Sacramento 5,407 Siskiyou 219
San Benito 105 Stanislaus 1,609
San Bernardino 6,897 Sutter 317
San Diego 6,074 Tehama 345
San Francisco 5,200 Trinity 79
San Luis Obispo 576 Tulare 2,123
San Mateo 671 Tuolumne 205
Santa Barbara 1,100 Yuba 502
Santa Clara 3,683
Santa Cruz 962
Solano 827
Sonoma 995
Ventura 1,754
Yolo 492
* Numbers may not add to totals due to rounding.
Information Services Bureau
February 26, 1997