Food Stamp Error Rates at All Time Low

FOOD STAMP ERROR RATES AT AN ALL-TIME LOW

The U.S. Department of Agriculture (USDA) announced last month that the FY 2003 state food stamp error rates for overpayment and underpayment were at historic lows. Secretary of Agriculture Ann Veneman announced that the 6.64% national error rate was the lowest in the program’s history. Program accuracy has improved by 25% over the last three years. To see the USDA press release, go to: http://www.usda.gov/Newsroom/0251.04.html

FY 2003 was the first year that new quality control rules were in effect. Provisions in the 2002 farm bill triggered a new food stamp quality control system that will target persistently high error rate states in the future. Under the new law, a state is subject to a fiscal sanction if its combined error rate (both overpayment and underpayment) exceeds 105% of the national average for two consecutive years. No state was penalized for FY 2003. Eleven states can avoid future penalties only if their combined underpayment and overpayment error rates improve. These states are: Alaska, Connecticut, Idaho, Indiana, Kansas, Maine, Michigan, Oklahoma, Oregon, Rhode Island and Wisconsin.

Secretary Veneman also announced that all 50 states and the U.S. territories now provide Food Stamp Program benefits with the Electronic Benefit Transfer (EBT) system. Now that EBT has been fully implemented and paper Food Stamps are not being used, Secretary Veneman said the USDA will seek comments on an appropriate name change for the Food Stamp program. Any name change would have to be approved by Congress. A notice inviting comments was published in the Federal Register on June 22, 2004. Suggestions for a new name for the Food Stamp Program will be accepted by USDA through August 23rd; comments may be sent, faxed and/or e-mailed to John Knaus, Chief, Program Design Branch, Program Development Division, USDA FNS, 3101 Park Center Dr., Alexandria, VA 22302; 703-305-2486; john.knaus@fns.usda.gov. See
http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-13761.htm to view the original Federal Register notice.

For additional information, contact Sheri Steisel (sheri.steisel@ncsl.org) or Lee Posey (lee.posey@ncsl.org), or call NCSL’s D.C. office at (202) 624-5400.