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State Capitol Facing North Office Building

Critics: Food Stamp Asset Test is Bad Policy

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The Department of Public Welfare will reinstate a food stamp asset test on May 1st.  “It will help to ensure that individuals will first deplete all readily available resources before relying solely on public assistance, and as a result preserve the benefit for those who have no other additional means or resources,” explains DPW spokeswoman Carey Miller. 

But the testimony received by the House Human Services Committee focused largely on the negative effects that some foresee for Pennsylvania’s most vulnerable citizens.  “SNAP benefits are good for needy families and they’re good for the economy,” says Louise Hayes from Community Legal Services.  SNAP refers to the Supplemental Nutrition Assistance Program, which is commonly referred to as food stamps.

Hayes believes more government red tape will lead to more needy families without the help they need to afford food. 

Following Thursday’s capitol hearing, opponents of the food stamp asset test delivered a petition with 10,000 signatures to Governor Tom Corbett’s office.   They say the new policy won’t save the commonwealth any money because food stamps are funded by the federal government, while state government shares the cost of administering the program.     

When Pennsylvania last had an asset test in 2008, the limits were $2,000 for households under the age of 60, and $3,250 for households with older or disabled individuals.  The asset test that’s set to take effect in May would increase those thresholds to $5,500 and $9,000 respectively. 

Assets subject to the test will include: cash, checking and savings accounts, as well as stocks, bonds and savings certificates.  Assets exempt from the test will include: homes, primary vehicles, educational savings accounts and all retirement plans. 

“This change is only expected to affect less than 1% of Pennsylvania’s population who are currently receiving the food stamp benefit,” Miller says.  As of December 2011, there were more than 1.8-million Pennsylvanians enrolled in the SNAP program.

State Capitol Facing North Office Building

Appropriations Hearings to Start on Monday

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Four weeks of budget hearings commence on Monday when the state Senate Appropriations Committee sits down with the Governor’s Budget Office, Independent Fiscal Office and State Treasury for three separate hearings in their North Office Building hearing room. 

The $27.14-billion dollar no-tax increase budget has been generating plenty of buzz around the state capitol complex, and plenty of rhetoric too.  “If you are on the low rung of the economic ladder in Pennsylvania, this governor has his foot on your neck,” exclaimed Senate Democratic Appropriations Chair Vincent Hughes, who’s sure to scrutinize the public welfare spending plan. 

Between mandatory increases in welfare spending and aggressive cost-containment measures, the Department of Public Welfare budget received a net $30-million dollar cut in proposed budget.  “We need to make sure we take care of the neediest of citizens and reform is necessary to do that,” says Commonwealth Foundation President & CEO Matthew Brouillette, a supporter of the Corbett budget. 

The Department of Public Welfare will get its first budget hearing before the Senate on February 28th.  The House DPW Appropriations hearing is scheduled for March 7th. 

Governor Tom Corbett continues to make appearances throughout the state to plug his budget plan.  “This is a very difficult time, I understand that,” Corbett said during Thursday’s stop at a Lancaster County manufacturing facility.  “But we have to start living within our means so that companies and the people can start saving and growing, and getting new jobs.” 

National Federation of Independent Business state director Kevin Shivers tells us the small business community is buoyed by the stability that the Corbett administration brings to the state budget process.  “It’s an important message that government is no longer going to spend at a prolific rate and then hand the tax bill to small employers and other taxpayers in the state.”

Budget Plan Would Consolidate Human Services Funding into Block Grants

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The governor’s proposed budget takes a new approach to human services funding by lumping seven separate line items into a single block grant.  “The innovation will give the counties the flexibility they need to identify their most pressing needs, and apply funds as they know best,” Corbett said during Tuesday’s budget speech. 

Jo Ellen Litz, CCAP, County Commissioners

CCAP President Jo Ellen Litz of Lebanon County

The increased flexibility is welcome news to the County Commissioners Association of Pennsylvania (CCAP), which has identified human services funding as its top legislative priority.  “Counties not only know what programs and services are needed at the local level, but also how they can be most effectively managed while keeping unnecessary costs to a minimum,” says CCAP President Jo Ellen Litz of Lebanon County.

While combining these seven line items the Corbett administration would cut about 20%, or $168-million dollars.  “So they’re going to have perhaps more flexibility, but somewhat less money,” says House Democratic Appropriations Chair Joe Markosek (D-Westmoreland).  “Over time, generally speaking, block grants go down not up.” 

But counties are used to human services funding cuts.  In fact, the next budget is poised to be the 10th consecutive spending plan that cuts state aid for the human services counties deliver.  “Although there is an overall reduction in the monetary amount that counties will be receiving for human services, we also think that the administrative savings that we realize will offset and mitigate that impact this year,” says Somerset County Commissioner Pamela Tokar-Ickes, who chairs CCAP’s Human Services Committee. 

The seven appropriations that are being proposed for block grant consolidation are: Mental Health Services; Intellectual Disabilities; County Child Welfare Special Grants; Behavioral Health Services, Homeless Assistance Program; Human Services Development Fund, and Act 152 Drug and Alcohol Program.

Critics Urge Administration to Reconsider Planned Food Stamp Asset Test

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The Rendell administration did away with the state’s food stamp asset test in 2008.  Four years later, Governor Tom Corbett says restoring it would ensure food stamp dollars are used for those who truly need them.  “I think it’s incumbent if you are to get money from the government, than you should demonstrate your need for that,” Corbett said on Radio PA’s Ask the Governor program.

“I believe it’s incumbent for the people of Pennsylvania – those who are on welfare and those who are not on welfare – that we test for eligibility to make sure only those people who are eligible under the guidelines are entitled to get that.”

But an asset test would send the wrong message, according to Pennsylvania Hunger Action Center Interim Executive Director Laura Tobin Goddard.  “We know that having small savings, encouraging people to save, does help them to become self sufficient,” she says.

The proposed asset threshold for non-senior households would be $2,000.  Homes, retirement savings and first vehicles would be exempt.  Second vehicles would be exempt up to a value of $4,650.  Governor Corbett says there’s room for discussion about the thresholds, but their proposal simply returns to the asset test numbers that were in place in 2008.

The final decision rests with the US Department of Agriculture, which can either approve or reject the Department of Public Welfare’s request.  State House Democratic Leader Frank Dermody (D-Allegheny) has already written Ag Secretary Tom Vilsack, urging him to deny the administration’s request.

In part, that letter reads: “Despite the Corbett Administration’s assertions that reinstating the asset test will aid in Pennsylvania’s effort to root out “fraud, waste and abuse,” the fact is that few such problems exist with SNAP in Pennsylvania.  In fact, statistics show that Pennsylvania’s fraud rate in the program is among the lowest in the nation – a mere one-tenth of one percent.”

In a separate letter to Governor Corbett, Dermody urges him to reconsider the “ill-conceived” proposal.

Cash

Auditor General Questions Oversight of Public Assistance Benefit Cards

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Auditor General Jack Wagner

The state Auditor General is questioning the oversight of public assistance that’s distributed through electronic benefits transfer cards.   Jack Wagner says he can’t say with assurance that the cards are being used properly and only for their intended purposes. He says that’s because the Department of Public Welfare has not provided enough records and supporting documentation for a proper review by his office.

Wagner says 5.2 million dollars in cash for welfare benefits was used for out-of-state purchases or cash withdrawals in May of 2010.  He says 80% of the transactions occurred in bordering states.  Beyond that, he says his department known nothing about the types of purchases that were made.

Wagner says they want to make sure in these tough economic times; all available resources are there for those in need.  He says  his intent is not to raise unfair suspicions about welfare recipients.  He says his concern is over DPW’s refusal to properly administer programs to prevent the system from being “gamed”.

In a special report, Wagner says DPW needs to develop an internal review process to monitor transactions made with the cards, to make sure funds are spent in accordance with their intended purpose. Wagner says that oversight should include confirmation that a recipient still resides in Pennsylvania and should restrict access to ATMs in establishments that are inconsistent with the intent of the program.

In a written statement, the Department of Public Welfare responded to Wagner’s special report on the EBT cards. The department says that it takes its responsibility to make sure benefits are provided only to those eligible very seriously. Steps have been taken to review out-of-state transactions and potentially questionable benefit usage.

The statement says with respect to the Auditor General’s request, Secretary Alexander is very interested in open and transparent government.  DPW plans to accommodate the Auditor General to the fullest extent permitted by law.