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

SPONSOR Altamirano

DATE TYPED 03/15/05 HB

SHORT TITLE Supplemental Food Stamp Assistance

SB 112/aSFC

ANALYST Weber

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

None

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB 235

Duplicates Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department

Department of Health

SUMMARY

Synopsis of Senate Finance Committee Amendment

The amendment eliminates the appropriation.

Synopsis of Original Bill

Senate Bill 112 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 mini-

mum 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 Insur-

ance 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.

Senate Bill 112/aSFC -- 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 Pro-

gram. 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 house-

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

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

ble 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 SB 112 and implementing the STEP program.

There are safeguards built into the language of SB 112. The STEP program is clearly sub-

ject 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:rs