"Welfare Options, Set #1"
WELFARE OPTIONS SHEETS #1, May 8, 1996
Note To Subscribers: The Welfare Reform Conference Committee is reviewing
options for a host of issues. This post is the first of a series of updates
for the Senate Health and Human Services WWW page (and mailed to all
subscribers). The ISSUE is identified, and then each option is laid out.
The ISSUES for this post include Food Stamp waivers, a state-only food-
assistance program, county work programs, and electronic benefit transfers for
Food Stamps.
ISSUE
Food Stamp waivers
OPTION A
Continue existing waiver which provides for at least 42 counties to be
exempted from Food Stamp requirements for able-bodied adults without
dependents (ABAWDs) until August 31, 1997.
ANALYSIS
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996
limits receipt of food stamp benefits to three months in a 3-year period for
able-bodied adults who are not working, participating in a work program for 20
hours or more each week, or in workfare.
Individuals are exempt from this provision if they are:
a) under 18 or over 50 years of age,
b) responsible for the care of a child or incapacitated household member,
c) medically certified as physically or mentally unfit for employment,
pregnant, or
d) already exempt from the work requirements of the Food Stamp Act.
States may request a waiver of this provision in areas with an unemployment
rate above 10 percent, or for those residing in an area that does not have
"...a sufficient number of jobs to provide employment for the individuals."
The Department of Agriculture (USDA) will allow States broad discretion to
decide if a waiver request is appropriate for a particular locale or
situation. It is USDA's intent to grant waivers for a maximum of one year.
Waivers may be renewed if conditions warrant
Not extending the waiver will cause up to 124,000 ABAWDS to lose Food Stamp
benefits on December 1, 1997.
OTHER WORK GROUPS IMPLICATED
None
BILLS THAT PROPOSE THIS OPTION
Legislation not required
ISSUE
Food Stamp waivers
OPTION B
Request the existing waiver to be extended for a full year as allowed by the
United States Department of Agriculture (USDA).
ANALYSIS
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996
limits receipt of food stamp benefits to three months in a 3-year period for
able-bodied adults who are not working, participating in a work program for 20
hours or more each week, or in workfare.
Individuals are exempt from this provision if they are:
a) under 18 or over 50 years of age,
b) responsible for the care of a child or incapacitated household member,
c) medically certified as physically or mentally unfit for employment,
pregnant, or
d) already exempt from the work requirements of the Food Stamp Act.
States may request a waiver of this provision in areas with an unemployment
rate above 10 percent, or for those residing in an area that does not have
"...a sufficient number of jobs to provide employment for the individuals."
The Department of Agriculture (USDA) will allow States broad discretion to
decide if a waiver request is appropriate for a particular locale or
situation. It is USDA's intent to grant waivers for a maximum of one year.
Waivers may be renewed if conditions warrant
Requesting the waiver to be extended to the full year will add approximately
six months of eligibility for about 124,000 ABAWDs
OTHER WORK GROUPS IMPLICATED
None
BILLS THAT PROPOSE THIS OPTION
Legislation not required.
ISSUE
Food Stamp waiver.
OPTION C
Require all counties eligible for a federal Food Stamp waiver to implement the
ABAWD waiver.
ANALYSIS
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996
limits receipt of food stamp benefits to three months in a 3-year period for
able-bodied adults who are not working, participating in a work program for 20
hours or more each week, or in workfare.
Individuals are exempt from this provision if they are:
a) under 18 or over 50 years of age,
b) responsible for the care of a child or incapacitated household member,
c) medically certified as physically or mentally unfit for employment,
pregnant, or
d) already exempt from the work requirements of the Food Stamp Act.
States may request a waiver of this provision in areas with an unemployment
rate above 10 percent, or for those residing in an area that does not have
"...a sufficient number of jobs to provide employment for the individuals."
The Department of Agriculture (USDA) will allow States broad discretion to
decide if a waiver request is appropriate for a particular locale or
situation. It is USDA's intent to grant waivers for a maximum of one year.
Waivers may be renewed if conditions warrant
Requiring counties to implement waivers will prevent counties from realizing
administrative savings that could result from reduced caseloads.
OTHER WORK GROUPS IMPLICATED
None.
BILLS THAT PROPOSE THIS OPTION
SB 904 (Lee)
ISSUE
Food Stamp waivers.
OPTION D
Allow counties eligible for a federal waiver to opt out of implementing waiver
provisions.
ANALYSIS
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996
limits receipt of food stamp benefits to three months in a 3-year period for
able-bodied adults who are not working, participating in a work program for 20
hours or more each week, or in workfare.
Individuals are exempt from this provision if they are:
a) under 18 or over 50 years of age,
b) responsible for the care of a child or incapacitated household member,
c) medically certified as physically or mentally unfit for employment,
pregnant, or
d) already exempt from the work requirements of the Food Stamp Act.
States may request a waiver of this provision in areas with an unemployment
rate above 10 percent, or for those residing in an area that does not have
"...a sufficient number of jobs to provide employment for the individuals."
The Department of Agriculture (USDA) will allow States broad discretion to
decide if a waiver request is appropriate for a particular locale or
situation. It is USDA's intent to grant waivers for a maximum of one year.
Waivers may be renewed if conditions warrant
Some counties have requested to be exempt from the waiver. This would result
in county administrative savings. Exemption from the waiver could also result
in ABAWDS migrating to counties that will provide benefits pursuant to the
waiver
OTHER WORK GROUPS IMPLICATED
None
BILLS THAT PROPOSE THIS OPTION
None, legislation may not be required.
==================================================
ISSUE
State-only food assistance program.
OPTION A
Provide a cash-out system for ABAWDS, legal immigrants and others losing
Food Stamp benefits as a result of federal law changes.
ANALYSIS
A state only food assistance program for those losing federal eligibility
could take any form the state desires. One method which is cost effect is to
provide a cash out of the value of the federal food coupons the individual
would otherwise receive. Specifically, the recipient would receive the cash
equivalent of the Food Stamps. The main advantage to a cash-out system is
that there is no, or minimal increase in administrative costs. The main
disadvantage is there is no control over what is purchased. It must be noted
that in any state-only food assistance program there is an increased cost to
the state for administration over the amounts that would have been expended
for federal Food Stamps because the federal government does not participate in
administrative costs.
Currently, the counties pay 30 percent of the non-federal share of food stamp
administration.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
None known
ISSUE
State-only food assistance program.
OPTION B
Create a state Food Stamp system.
ANALYSIS
A state only food assistance program for those losing federal eligibility
could take any form the state desires. This option provides for a state food
stamp program. The primary reason for a state food stamp program is to
restrict purchases through this program to appropriate commodities and other
eligible edibles. There are essentially three means to accomplish this
option.
a) Institute a state food stamp system. This involves the state creating its
own food coupons. This is clearly cost prohibitive. The federal government
is making every effort to get out of the coupon business because of costs
associated with security, including storage, and delivery. Keep in mind that
food coupons are currency and must be afforded the same type of security large
sums of cash would be provided.
b) Institute an electronic benefit transfer system (EBT). This is included as
a separate option. Note: the state must have a functional EBT system by
federal fiscal year 2002.
c) Institute a food voucher system. This involves providing voucher to
recipients which are then cashed with the state by the vendor. Rather than a
currency system, this is more like a checking account for food. A food
voucher will be made out to an individual, and there is less security risk.
However, security systems will still be needed. In addition, agreements with
local grocers will be required for acceptance of vouchers. This could serve
to limit the number of participating vendors.
It must be noted that in any state-only food assistance program there is an
increased cost to the state for administration over the amounts that would
have been expended for federal Food Stamps because the federal government does
not participate in administrative costs.
Currently, the counties pay 30 percent of the non-federal share of food stamp
administration.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
SB 604 (Watson)
ISSUE
State-only food assistance program.
OPTION C
Enter into a Food Stamp buy-back agreement with the USDA.
ANALYSIS
A state only food assistance program for those losing federal eligibility
could take any form the state desires. This option provides for a state buy-
back of federal food coupons. Under this option the state would purchase
Food Stamps from the USDA for distribution under the state-only program.
There would be no difference in the appearance or use of the coupons.
It must be noted that in any state-only food assistance program there is an
increased cost to the state for administration over the amounts that would
have been expended for federal Food Stamps because the federal government does
not participate in administrative costs.
This option will result in additional costs as a result of the need to
contract with the federal government to process and distribute additional
coupons. In addition, it may not be legally possible to enter into an
agreement with the federal government for the buy-back option. However,
federal authorities are currently exploring this as an option for states.
Currently, the counties pay 30 percent of the non-federal share of food stamp
administration.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
SB 604 (Watson)
===================================================
ISSUE
Eligibility for state-only food assistance programs
OPTION A
Make parents who do not have custody of their children but who are
participating in a court ordered family reunification plan eligible for state
food assistance.
ANALYSIS
Under a state-only food assistance program, the state will determine who is
eligible and the rules for eligibility. There will be increased cost to the
state for those who were previously eligible and who lose their benefits under
federal welfare reform for administration of the state only program and the
coupon value. To the extent new populations are made eligible for food
assistance who were not previously eligible, the full cost of benefits and
administration will be a new state or state/local cost.
Option A adds parents participating in court ordered family reunification,
eligible for the new food assistance program. There is likely to be parents
in this category who were previously eligible who now, in absence of custody
of their children, would be ABAWDs, subject to the three month eligibility
limitation. The primary reason for this option is to enable these non-
custodial parents who are working toward reuniting their family the ability to
keep food in the home and help the parent demonstrate their readiness for
reunification. This is also a child welfare services issue.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
None known
ISSUE
Eligibility for state-only food assistance programs
OPTION B
Make legal immigrants who are made ineligible for federal Food Stamps eligible
for state food assistance if they meet all other eligibility criteria.
ANALYSIS
Under a state-only food assistance program, the state will determine who is
eligible and the rules for eligibility. There will be increased cost to the
state for those who were previously eligible and who lose their benefits under
federal welfare reform for administration of the state only program and the
coupon value. To the extent new populations are made eligible for food
assistance who were not previously eligible, the full cost of benefits and
administration will be a new state or state/local cost.
Current and future legal immigrants are barred from receiving Food Stamps
until they become citizens. Current food stamp recipients must be recertified
within one year of the enactment of federal law. Exceptions for food stamps
are the same for SSI and TANF programs.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
SB 604 (Watson)
ISSUE
Eligibility for state-only food assistance programs
OPTION C
Make Special Agricultural Workers (SAWs) (legalized immigrants pursuant to the
Immigration Reform and Control Act (IRCA)) automatically food assistance
eligible.
ANALYSIS
Under a state-only food assistance program, the state will determine who is
eligible and the rules for eligibility. There will be increased cost to the
state for those who were previously eligible and who lose their benefits under
federal welfare reform for administration of the state only program and the
coupon value. To the extent new populations are made eligible for food
assistance who were not previously eligible, the full cost of benefits and
administration will be a new state or state/local cost.
Current and future legal immigrants are barred from receiving Food Stamps
until they become citizens. Current food stamp recipients must be recertified
within one year. Exceptions for food stamps are the same for SSI and TANF
programs.
There are no differences between SAWs and other legal immigrants under federal
welfare reform.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
SB 604 (Watson)
ISSUE
Eligibility for state-only food assistance programs
OPTION D
Make convicted drug felons eligible for food assistance if they meet all other
eligibility criteria.
ANALYSIS
Under a state-only food assistance program, the state will determine who is
eligible and the rules for eligibility. There will be increased cost to the
state for those who were previously eligible and who lose their benefits under
federal welfare reform for administration of the state only program and the
coupon value. To the extent new populations are made eligible for food
assistance who were not previously eligible, the full cost of benefits and
administration will be a new state or state/local cost.
States must permanently deny all federal cash assistance and food stamp
benefits to individuals convicted of felony drug possession, use, or
distribution. Other members of the family could continue to receive benefits.
States may opt out of this provision or limit the period of prohibition by
passing their own legislation. States are authorized to collect drug-related
information through written self-declaration when an individual applies for
benefits.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
None known, legislation required.
ISSUE
Eligibility for state-only food assistance programs.
OPTION E
Make participating in a substance abuse treatment program an eligible work
activity.
ANALYSIS
Under a state-only food assistance program, the state determines who is
eligible and the rules for eligibility. There will be increased cost to the
state for those who were previously eligible and who lose their benefits under
federal welfare reform for administration of the state only program and the
coupon value. To the extent new populations are made eligible for food
assistance who were not previously eligible, the full cost of benefits and
administration will be a new state or state/local cost.
The state may make participation in a substance abuse program an eligible
activity but it will not create federal eligibility for Food Stamps.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
None known, legislation required.
ISSUE
Eligibility for state-only food assistance programs.
OPTION F
Make participating in mental health treatment an eligible work activity.
ANALYSIS
Under a state-only food assistance program, the state determines who is
eligible and the rules for eligibility. There will be increased cost to the
state for those who were previously eligible and who lose their benefits under
federal welfare reform for administration of the state only program and the
coupon value. To the extent new populations are made eligible for food
assistance who were not previously eligible, the full cost of benefits and
administration will be a new state or state/local cost.
The state may make participation in a mental health treatment program an
eligible activity but it will not create federal eligibility for Food Stamps.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
None known, legislation required.
================================================
ISSUE
Create state funded county work programs.
OPTION A
Create state funded county workfare programs for ABAWDS.
ANALYSIS
Many counties already require GA recipients to participate in community
service in exchange for their grants. These community service projects are
100 percent county funded. Under the federal law if an individual works 80
hours in a 30 day period they would requalify for Food Stamps. However, this
curative action may only be made once in a three year period.
This option requires the state to provide financial assistance to counties to
operate community service work programs for able-bodied adults without
dependents meeting Food Stamp eligibility requirements.
The cost of a statewide Food Stamp workfare program would be at least $22
million for 124,000 ABAWDs, assuming a cost to operate a workfare program at
$15 per person per month. This estimate does not include any start up cost
and assumes participants would not receive compensation other than food
stamps.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
None
ISSUE
Create state funded county work programs.
OPTION B
Create state funded county workfare programs for legal immigrants and make
participation in these programs an eligibility requirement for state food
assistance programs.
ANALYSIS
Legal immigrants are not eligible for Food Stamps unless the immigrant meets
the exemption criteria for all programs under federal welfare reform.
Therefore, this is an equity issue.
Creating a state work requirement for a state only program allows the state to
establish any work standard at any value. Therefore, workfare for legal
immigrants may cost any amount.
If the same standards are used that apply to ABAWDs and the same cost
assumptions, a workfare program immigrants could cost at least $18 million
assuming an operational cost of $15 per person per month for 100,000 legal
immigrants. This estimate does not include any start up cost and assumes
participants would not receive compensation other than food stamps.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
None
ISSUE
Create state funded county work programs.
OPTION C
Expand the existing Food Stamp Employment and Training (FSET) program.
ANALYSIS
The Food Security Act of 1985 established the Employment and Training (E & T)
program, which provides job search assistance, work experience and supportive
services to eligible Non-Assistance Food Stamp recipients. This program
requires Food Stamp recipients to register for work and participate in the E &
T program. some recipients are geographically excluded due to reasons such as
sparse population, great distance and lack of available transportation.
Individual county plans are developed that specify the job services, training
and supportive services available to participants.
Under federal welfare reform states will have greater flexibility to run the
Food Stamp E&T Program. Funding will increase gradually, totaling $79 million
in FY 1997, and rising to $90 million in FY 2002. The program must be carried
out through a statewide work horse development system unless the component is
not available locally through such a system.
State funds are capped a $560,000 for program costs and state participant
reimbursement costs are capped at $787,000 for 1996-97 and 1997-98. Currently
39 counties are participating in FSET.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
None known, this may only require a budget augmentation to expand the program.
ISSUE
Create state funded county work programs.
OPTION D
Increase Food Stamp administrative funding to expand training and employment
programs.
ANALYSIS
The Food Security Act of 1985 established the Employment and Training (E & T)
program, which provides job search assistance, work experience and supportive
services to eligible Non-Assistance Food Stamp recipients. This program
requires Food Stamp recipients to register for work and participate in the E &
T program. some recipients are geographically excluded due to reasons such as
sparse population, great distance and lack of available transportation.
Individual county plans are developed that specify the job services, training
and supportive services available to participants.
Under federal welfare reform states will have greater flexibility to run the
Food Stamp E&T Program. Funding will increase gradually, totaling $79 million
in FY 1997, and rising to $90 million in FY 2002. The program must be carried
out through a statewide work horse development system unless the component is
not available locally through such a system.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
None known, this may only require a budget augmentation to expand the program.
================================================
ISSUE
Electronic Food Stamp Benefits Transfers (EBT). (This is primarily a Work
Group V issue.)
OPTION A
Accelerate implementation of the state Food Stamp electronic benefits transfer
system by eliminating the pilot project and instead continue the counties in
the pilot project as the first counties in statewide roll-out of the EBT
system.
ANALYSIS
An EBT system uses a swipe card much like an ATM card which can be encoded
with benefit and recipient information are used in conjunction with a personal
identification number (PIN). These cards can be used in any grocery or
convenience store which is equipped with a point of sale (POS) machine.
The state is currently implementing an EBT system as a pilot project in two
counties, San Bernardino and San Diego. This pilot is intended to test the
technology both within and between counties. Upon completion of the pilot,
changes for a statewide system will be made and the project put out to bid.
The current pilot project only includes Food Stamp benefits but can, in time,
be expanded to include TANF and other benefits.
Federal welfare reform requires the states to have EBT systems in place for
Food Stamp benefits by 2002.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
Legislation is not required but could serve to expedite statewide EBT
implementation.
ISSUE
Electronic Food Stamp Benefits Transfers (EBT). (This is primarily a Work
Group V issue.)
OPTION B
Allow counties to independently implement EBT systems for Food Stamp benefits.
ANALYSIS
An EBT system uses a swipe card much like an ATM card which can be encoded
with benefit and recipient information are used in conjunction with a personal
identification number (PIN). These cards can be used in any grocery or
convenience store which is equipped with a point of sale (POS) machine.
The state is currently implementing an EBT system as a pilot project in two
counties, San Bernardino and San Diego. This pilot is intended to test the
technology both within and between counties. Upon completion of the pilot,
changes for a statewide system will be made and the project put out to bid.
The current pilot project only includes Food Stamp benefits but can, in time,
be expanded to include TANF and other benefits.
Federal welfare reform requires the states to have EBT systems in place for
Food Stamp benefits by 2002.
Independent implementation of EBT systems may result in greater costs to the
state unless specific requirements are established to require that multiple
systems can communicate throughout the state. Even with intercommunication
requirements, the system could still cost more than a single system. However,
independent county contracting may result in a system being implemented
faster. This state has had little success in implementing single statewide
systems such as the DMV system and the SACSS system.
OTHER WORK GROUPS IMPLICATED
Work Group V
BILLS THAT PROPOSE THIS OPTION
AB 2 (Ashburn)