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F I S C A L I M P A C T R E P O R T

SPONSOR Lujan

DATE TYPED 1/28/05

HB 235

SHORT TITLE Supplemental Food Stamp Assistance

SB

ANALYST Weber

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$1,300.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB112

Duplicates Appropriation in the General Appropriation Act

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department

Department of Health

SUMMARY

Synopsis of Bill

House Bill 235 appropriates $1.3 million from the GENERAL FUND to The Human Services

Department for establishing a food stamp simplified targeted eligibility program (STEP) for the

elderly and disabled. This will be a new section of the Public Assistance Act, Section 27-2-10.1

NMSA 1978. The program increases an eligible household’s food stamp allotment to a

minimum of $25.00 per month in food stamp benefits. The population served is households in

which all members are age 60 or older or disabled, reside in a one- or two-person household in

which all members receive Supplemental Security Income or Old Age, Survivors and Disability

Insurance or a combination of both, and are otherwise qualified to receive federal food stamps.

HSD may by rule limit the amount of supplemental benefits made to eligible households based

on the availability of state funds.

House Bill 235 -- Page 2

Significant Issues

Human Services reports.

New Mexico is ranked high nationally for food insecurity and hunger problems.

Federal funds may only be utilized for eligibility under the USDA/FNS Food Stamp

Program. Many one- or two-person households in which individuals receive Social

Security or SSI benefits only qualify for a minimum of $10 per month in federal benefits.

This bill provides state funds to increase the monthly food stamp allotment for eligible

households to a minimum of $25 in monthly food stamp benefits.

Currently there are approximately 7,000 elderly/disabled households that would be

eligible for the STEP program. The Department anticipates from census information that

many more households in New Mexico are eligible for this program, but are not currently

receiving food stamp benefits. This initiative will encourage participation by those who

have been unwilling to apply for the federal Food Stamp Program because the benefit

amount is so low.

There is no legal impediment to enacting HB 235 and implementing the STEP program.

There are safeguards built into the language of HB 235. The STEP program is clearly

subject to the availability of state general funds, and HSD has the authority by rule to

limit the amount of supplemental food stamp benefits provided to eligible elderly or

disabled recipients.

HSD has informed the U.S. Department of Agriculture, Food and Nutrition Service

(FNS), Southwest Regional Office of its intention to provide supplemental food stamp

assistance under the STEP program.

FISCAL IMPLICATIONS

The appropriation of $1.3 million contained in this bill is a RECURRING expense to the

GENERAL FUND. Any unexpended or unencumbered balance remaining at the end of FISCAL

YEAR 2006 shall revert to the GENERAL FUND.

Based on caseload growth in the Department’s food stamp program, the estimated cost for FY 07

will be $1.5 million.

MW/yr:lg