ED 285 949 TITLE INSTITUTION REPORT NO PUB DATE CONTRACT NOTE AVAILABLE FROM PUB TYPE EMS PRICE DESCRIPTORS IDENTIFIERS DOCUMENT RESUME UD 025 743 Food Stamp Program: Trends in Program Applications, Participation, and Denials. GAO Briefing Report to the Honorable Leon E. Panetta, House of Representatives. General Accounting Office, Washington, D.C. GAO/RCED-87-80BR Apr 87 B-217883 28p. U.S. General Accounting Office, PO Box 6015, Gaithersburg, MD 20877 (1-5 copies, free; over 5, $2.00 ea.; discounts on larger quantities). Legal/Legislative/Regulatory Materials (090) -- Reports - Research/Technical (143) MF01/PCO2 Plus Postage. Delivery Systems; Eligibility; *Federal Programs; Federal State Relationship; *Poverty Programs; *Welfare Recipients; Welfare Services *Food Stamp Program ABSTRACT This briefing report provides information on recent trends in: (1) the number of households applying for food stamp benefits; (2) the number of households participating in the Food Stamp Program; and (3) the percentage of households whose food stamps were improperly denied or terminated. The data were reported by the 50 U.S. states, the District of Columbia, Guam, and the U.S. Virgin Islands to the Department of Agriculture's Food and Nutrition Service. Section 1 of the report describes the study background and objectives; section 2 presents statistics and analysis. Major findings, based on data available as of February 23, 1987, include the following: (1) the number of households applying for rood stamps, riationwide, declined from about 16.8 million in fiscal year 1983 to about 6 million in fiscal 1985--a decline of about 25 percent. The percentage of applications approved and denied remained relatively constant at about 80 and 20 percent, respectively. (2) The total estimated number of households participating in the program nationwide declined from about 13.7 million in 1983 to about 12.8 million in 1985--a 7 percent decline. Participation increased in 11 states, while 42 states experienced declines. (3) The percentage of cases in which households' benefits were reported by the states as improperly denied or terminated declined from 1980 through 1985. State-by-state, improper denials or termination over this period ranged from zero in Delaware to over 11 percent in Washington State (1984 and 1985) and the District of Columbia (1981). Data are presented in the text and in tabular form. Appendices include comments about this report from the Department of Agriculture and General Accounting Office and a list of major contributors to this report. (KM :: =11 US DEPARTMENT OF EDUCATION Office of Educational Research and improvement EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) phis document has been reproduced as received from the person or organization originating it. O Minor changes have been made to improve reproduction quMity. PERMISSION TO REPRODUCE THIS MATERIAL HAS BEEN GRANTED BY POI nts of view or opinions slat ed unthia docu- ment do not necessarily represent official OERI position or policy. INFORMATION CENTER (ERIC). GAO United States General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-217883 April 2, 1987 The Honorable Leon E. Panetta Chairman, SubcomMittee on Domestic Marketing, Consumer Relations, and Nutrition Committee on Agriculture House of Representatives Dear Mr. Chairman: As requested in your January 28, 1986, letter, and in subsequent discussions with your office, this briefing report provides the latest available information on the trends in the (1) number of households applying for and subsequently approved for or denied food stamp benefits, (2) number of households participating in the Food Stamp Program, and (3) percentage of households whose food stamps were improperly denied or terminated. We also attempted to estimate the number of households that were terminated from the Food Stamp Program, but we were unable to develop meaningful estimates because neither the Food and Nutrition Service nor the states report reliable data on these actions. This report is the second product issued'as part of an overall review of food stamp denials and terminations.1 Our overall review is still ongoing at the Department of Agriculture's Food and Nutrition Service and selected states, and, at a later date, we anticipate reporting on the accuracy of data trot the states report on the extent of improper denials anr terminations and the reasons why food stamps are being denit or terminated. The Food Stamp kJ. --am is designed to help low-income households obtain IL nutritious diets. The states are required to determine whether applicants are eligible for the program and, if so, issue them the appropriate amount of food stamps and (2) whether participants whose circumstances change continue to be eligible, and, if not, terminate them 1The first report was entitled Food Stamp Program: Restoration of Improperly Denied or Terminated Benefits (GAO/RCED-87-51, Oct. 30, 1986). 3 B-217883 from the program.2 States report to the Service on the number of households applying for, approved for, or denied benefits, as well as those participating in the program. States do not report separate statistics on the number of households terminated from the program but include these households in their report on the number of negative actions (denials plus terminations) taken during the year. To determine the validity of states' decisions to deny or terminate benefits, states are required to conduct quality control reviews of cases involving such negative actions. Cases where households were incorrectly denied entry into the program or improperly terminated from it are to be reported by the states to the Service as errors. The Service does not routinely validate the accuracy of the state-reported data on improper denials and terminations, nor does it verify that states are properly reporting on the number of households applying for and receiving benefits or those denied benefits. Service officials cautioned that because of variations in the states' reporting periods (differences in the start of the fiscal year) and possible inconsistencies in states' definitions of what constitutes an application, or denial, these data may only approximate the actual program trends. According to the data states reported to the Service: -- the number of households applying for food stamps, nationwide, declined from about 16.8 million to about 12.6 million from fiscal years 1983 through 1985--a decline of about 25 percent. Applications for about 13.7 million households were approved to receive benefits in fiscal year 1983 compared with about 10.0 million in fiscal year 1985. About 3.1 million households' applications to receive benefits were denied in fiscal year 1983 compared with about 2.6 million in fiscal year 1985. However, the percentage of applications approved and denied remained relatively constant at about 80 and 20 percent, respectively, during this period. -- the total estimated number of households participating in the program, nationwide, declined 2For this report, the term "states" includes the 50 U.S. states and the District of Columbia, Guam and the U.S. Virgin Islands. 2 B-217883 from about 13.7 million households in fiscal year 1983 to about 12.8 million in fiscal year 1985--a decrease of about 7 percent. On a state-by-state basis, participation increased in 11 states, while 42 states experienced declines, 29 of which were in excess of the 7-percent national percentage decrease. -- the percentage of cases, nationwide, in which households' benefits were reported by the states as improperly denied or terminated declined from fiscal years 1980 through 1985 (about 4 percent in fiscal year 1980 compared with about 3 percent in fiscal year 1985). Section 2 of this report provides more detailed information on the number of households applying for and participating in the program, those denied benefits, and errors states reported in denying or terminating benefits. Information in this report was obtained from the Department of Agriculture's Food and Nutrition Service headquarters in Alexandria, Virginia. Data were available, nationwide and by state, for fiscal years 1983 through 1985 on the number of households whose applications were approved and denied, and the number of households participating in the program. Because the Service gathers data on the number of households receiving food stamps at certain times in the fiscal year, but not on the total number of households that receive food stamps during the year, we estimated total annual Food Stamp Program participation for fiscal years 1983 through 1985 by multiplying the annual average number of participating households by the Service's estimated rate of turnover in the program. Data on the percentage of food stamp cases in which households' benefits were improperly denied or terminated were available, nationwide and by state, for fiscal years 1980 through 1985. The information in this report is based on the most recent data available from the Service as of February 23, 1987. We analyzed these data to determine the program trends, but we did not test the validity or reliability of this information nor do we draw any conclusions based on these data. We obtained official written comments from the Department of Agriculture on the results of our work. The Department commented that the draft report generally presented an objective description of the subject material. However, the Department expressed concern with our estimates of the number of households terminated from food stamp participation and 3 5 B-217883 the total number of households receiving benefits annually. In our draft, we reported estimates of the number of households terminated from the Food Stamp Program annually based on data maintained by the Department. We have deleted these estimates from our final report because of concerns the Department raised about the quality of its data. Accordingly, the only data on terminations included in the final report are on improper denials and terminations as reported by the states. Using data that states report to the Service on monthly program participation and the Service's estimate of program turnover, we estimated the total number of households participating in the program annually. As the Department suggested, our report identifies these numbers as GAO estimates. Department officials agreed with the logic of our methodology for developing these estimates. Other Department comments have been incorporated where appropriate. (See app. I.) As arranged with your office, unless you publicly announce its contents earlier, we will make no further distribution of the report until 30 days from the date of this letter. At that time, we will send copies to the Chairman, Senate Committee on Agriculture, Nutrition, and Forestry; the Secretary of Agriculture; the Director, Office of Management and Budget; and other interested parties. Should you have questions regarding information contained in this report, please contact me at (202) 275-5138 or Mr. John Harman of my staff at (202) 475-4880. Major contributors to this briefing report are listed in appendix II. Sincerely yours, Brian P. Cr Senior Associate Director 4 SECTION 1 Contents Page INTRODUCTION 7 Background 7 Objectives, scope, and methodology 8 2 TRENDS IN HOUSEHOLDS APPLYING FOR, PARTICIPATING IN, AND DENIED ENTRY INTO THE FOOD STAMP PROGRAM Households whose applications for food stamp benefits were approved and denied, nationwide 11 13 Percentage of households whose applications for food stamp benefits were denied, by state 15 Households participating in the Food Stamp Program, nationwide 17 Households participating in the Food Stamp Program, by state 19 Percentage of food stamp cases improperly denied or terminated, nationwide and by state 23 APPENDIX I Agency Comments and Our Response 26 II Major Contributors to This Report 28 TABLES 2.1 Percentage of households' applications for food stamp benefits denied by state- - fiscal years 1983 through 1985 2.2 Households participating in the Food Stamp Program, by state--fiscal years 1983 through 1985 5 7 14 20 2.3 Percentage of food stamp cases reported as improperly denied or terminated, nationwide and by state--fiscal years 1980 through 1985 FIGURES 2.1 Households' applications for food stamps approved and denied, nationwide--fiscal years 1983 through 1985 2.2 Households participating in the Food Stamp Program, nationwide--fiscal years 1983 through 1985 2.3 Changes in Food Stamp Program participation levels between fiscal years 1983 and 1985 2.4 Percentage of food stamp cases reported as improperly denied or terminated, by state--fiscal year 1985 ABBREVIATIONS GAO General Accounting Office RCED Resources, Community, and Economic Development Division USDA U.S. Department of Agriculture 6 Page 24 12 16 18 22 SECTION 1 INTRODUCTION BACKGROUND The Food Stamp Program is designed to help low-income households obtain more nutritious diets. Eligible applicants receive coupons to buy food through normal market channels, primarily retail grocery stores. The Department of Agriculture's Food and Nutrition Service is responsible for administering and supervising the Food Stamp Program. States are responsible for local administration and day-to-day operation of the program.' The states are required to determine whether applicants are eligible for the program and, if so, issue them the appropriate amount of benefits. Applicants found ineligible are to be denied food stamps, and participants whose circumstances change, thereby making them ineligible, are to be terminated from the program. States report to the Service on the number of households applying for food stamps, those approved for or denied benefits, and those participating in the program. The states are also required to conduct quality control reviews of cases involving negative actions (decisions to deny or terminate benefits) to determine the validity of these actions. Cases involving households that were incorrectly denied entry into the program or improperly terminated from it are to be reported by the states to the Service as errors. The Service does not routinely validate the accuracy o the data states report on improper denials or terminations, nor does it verify the number of households applying for or receiving benefits, or those denied benefits. Program regulations describe applications as occurring when a household requests food coupons and signs the application document. If the application is approved, the household may be certified to participate in the program generally for up to a 12-month period. 1 For this report the term "states" includes the 50 U.S. states and the District of Columbia, Guam, and the U.S. Virgin Islands. 2The Service validates the reported rate of improper denials and terminations only if a state may be eligible to receive enhanced funding to administer the program. To receive enhanced funding, states are required to have improper denial/termination case error rates below the national average and combined overpayments and underpayments of benefits rates not exceeding a legislatively established target rate. 7 At the end of a certification period, households must reapply for benefits. Reapplications are included in the number of total applications states report to the Service. Although the regulations define as negative actions the decision to deny or terminate a household's benefits, when reporting the number of negative actions to the Service, states do not distinguish whether the action was a denial or termination. A denial applies to cases in which a request for food coupons is rejected because a state's food stamp office determines that an applicant does not meet the eligibility requirements. A termination applies to cases in which a household's eligibility to receive food stamps is terminated before the end of the certification period. Households whose certification periods expire are not considered terminated from the program. A termination can be initiated by the household informing the food stamp office of a change in its eligibility status or by an action taken by the state or local food stamp office. OBJECTIVES, SCOPE, AND METHODOLOGY Our objectives were to provide the most recent available information on the trends in -- the number of households applying for and subsequently approved for or denied food stamp benefits, -- the number of households participating in the Food Stamp Program, -- the number of households whose benefits were terminated, and, -- the percentages of cases involving households whose benefits were improperly denied or terminated. To address the objectives, we analyzed data the states reported to the Service on the (1) number of applications for food stamps approved and denied, (2) number of households participating in the Food Stamp Program, (3) total number of negative actions that the states took to deny or terminat households' benefits, and (4) percentage of cases involving households whose benefits were improperly denied or terminated. Because it was not within the scope of this assignment, we did not attempt to draw conclusions based on the data or trends in this report. We also did not test the validity or reliability of the Service's data. Information in this report was obtained from the Department of Agriculture's Food and Nutrition Service headquarters in Alexandria, Virginia. Data on the number of applications approved and denied were available, nationwide and by state; for fiscal years 1983 through 1985. Data on the average number of households participating in the program at certain times in the year were available, nationwide and by state, for fiscal years 1983 through 8 10 1985. Using the Service's estimate of Food Stamp Program turnover, we adjusted the Service's participation data to develop an estimate of the total number of households receivxag benefits each year. We attempted to develop estimates of the number of households terminated from the Food Stamp Program annually. However, we deleted these estimates from this report because of concerns the Department raised about the quality of its data. Data on the percentage of cases involving households whose benefits were improperly denied or terminated were available, nationwide and by state, for fiscal years 1980 through 1985. Service officials cautioned that because of (1) variations in the states' reporting periods (differences in the start of the fiscal year), (2) possible inconsistencies in the states' definitions of what constitutes an application or denial, and (3) states' possible inaccurate measures of program activity, these data may only be an approximation of actual prograw trends. The information in this report is based on the most recent data available from the Service as of February 23, 1987. 9 r 11 SECTION 2 TRENDS IN HOUSEHOLDS APPLYING FOR, PARTICIPATING IN, AND DENIED ENTRY INTO THE FOOD STAMP PROGRAM . . : SECTION SUMMARY : According to the data states reported to the Service: : . The number of households applying for food stamps : : nationwide declined from about 16.8 million in : : fiscal year 1983 to about 12.6 million in fiscal : : year 1985--a decline of about 25 percent. During : : that period the number of households approved : : correspondingly declined from about 13.7 million to : : about 10.0 million. The number of households whose : applications were denied declined from about 3.1 : : million in fiscal year 1983 to about 2.6 million in : fiscal year 1985. The percentage of applications : : approved and denied remained relatively constant at : : about 80 and 20 percent, respectively. : : . The total estimated number of households : : participating in the program nationwide declined : : from about 13.7 million in fiscal year 1983 to : : about 12.8 million in fiscal year 1985--a decline : : of about 7 percent. On a state-by-state basis, participation increased in 11 states, while 42 states experienced declines, 29 of which were in : excess of the na,ional percentage decrease. : . The percentage of cases, nationwide, in which : : households' benefits were reported by the states as : improperly denied or terminated declined from : fiscal years 1980 through 1985 (about 4 percent in : fiscal year 1980 compared with about 3 percent in : fiscal year 1985). On a state-by-state basis, : improper denials or terminations of benefits over this 6-year period ranged from 0 (Delaware and : : Kansas) to over 11 percent (Washington and the : : District of Columbia), although in fiscal year : 1985, most states'(42) improper denials or : : terminations were 4 percent or less. : 1 1 11 12 Figure 2.1 Households' Applications for Food Stamps Approved and Denied Nationwide, Fiscal Years 1983 Through 1985 18 Applications for Food Stamp Benefits (Millions) 18 14 1983 1984 Fiscal Wars Denied PR Approved 1985 Source: Food and Nutrition Service, USDA 12 13 HOUSEHOLD WHOSE APPLICATIONS FOR FOOD STAMP BENEFITS WERE APPROVED AND DENIED, NATIONWIDE The number of households applying for food stamps, nationwide, has been declining since fiscal year 1983. States reported that about 16.8 million applications were submitted to their food stamp offices in fiscal year 1983, compared with about 12.6 million applications submitted in fiscal year 1985. About 13.7 million applications were approved in fiscal year 1983, while about 10.0 million were approved in fiscal year 1985. About 3.1 million applications were denied in fiscal year 1983, compared with about 2.6 million in fiscal year 1985. However, the percentages of applications approved and denied have remained relatively constant at about 80 percent and 20 percent, respectively, for this period. Service officials attributed the decline in applications to, among other things, improvements in the economy and changes to Food Stamp Program procedures. These procedural changes generally increased the length of certification periods, thereby reducing the frequency that households need to reapply for benefits. 13 14 Table 2.1: Percentage of Households' Applications for Food Stamp Benefits Denied by State, Fiscal Years 1983 Through 1985 FY 1984 FY 1985 STATE FY 1983 U.S. TOTALS 19 20 20 Alabama 15 15 17 Alaska 18 24 33 Arizona 22 24 30 Arkansas 16 19 19 California 25 27 29 Colorado 21 15 14 Connecticut 21 22 21 Delaware 12 8 8 District of Columbia 16 7 19 Florida 13 17 24 Georgia 20 30 9 Guam 33 24 4 Hawaii 26 27 26 Idaho 10 10 13 Illinois 24 24 24 Indiana 10 10 10 Iowa 26 27 34 Kansas 16 18 20 Kentucky 20 23 22 Louisiana 28 29 30 Maine 17 12 14 Maryland 29 34 32 Massachusetts 27 29 28 Michigan 12 15 27 Minnesota 17 17 16 Mississippi 14 16 18 Missouri 10 12 14 Montana 5 6 6 Nebraska 8 9 11 Nevada 18 23 28 New Hampshire 26 30 32 New Jersey 14 14 14 New Mexico 9 12 14 New York 21 28 26 North Carolina 16 17 29 North Dakota 12 16 10 Ohio 11 10 9 Oklahoma 12 13 15 Oregon 35 23 19 Pennsylvania 23 22 25 Rhode Island 29 36 25 South Carolina 7 15 14 South Dakota 10 13 14 Tennessee 36 28 28 Texas 33 32 36 Utah 26 26 26 Vermont 20 18 18 Virgin Islands 21 39 4 Virginia 21 24 25 Washington 42 47 46 West Virginia 15 15 19 Wisconsin 5 5 5 Wyoming N/A 5 11 Source: Food and Nutrition Service, USDA. N/A: Not available. 14 15 PERCENTAGE OF HOUSEHOLDS WHOSE APPLICATIONS FOR FOOD STAMP BENEFITS WERE DENIED, BY STATE Nationwide, the average percentage of households whose applications were denied was relatively constant at about 20 percent from fiscal years 1983 through 1985. However, there were sizable variations in that percentage from state to state. For example, in fiscal year 1985, nine states denied 10 percent or less of the households applying for food stamps, while eight states denied applications of 30 percent or more households. From fiscal year 1983 to 1985, for 37 states the percentage of households whose food stamp applications were denied remained relatively stable (5 percentage points or less change). During that period, eight states showed increases in the percentage of applications denied (more than 5 percentage points increase), and seven states showed decreases in the percentage of applications denied (more than 5 percentage points decrease). One state did not report the data needed for us to make this analysis. Service officials could not explain what caused some states to increase or decrease their percentage of denied applications. 15 I 6 Figure 2.2: Households Participating in the Food Stamp Program, Nationwide, Fiscal Years 1983 Through 1985 14 Household:: Participating In the Program (Millions) 12 10 1983 1984 Fiscal bars 1985 Source: GAO calculations based on Food and Nutrition Service data. 16 17 HOUSEHOLDS PARTICIPATING IN THE FOOD STAMP PROGRAM, NATIONWIDE The total number of households participating in the Food Stamp Program nationwide declined about 7 percent from fiscal years 1983 through 1985. We estimated that about 13.7 million households participated in the program in fiscal year 1983, about 13.2 million in fiscal year 1984, and about 12.8 million in fiscal year 1985. According to Service officials, during any fiscal year, the number of participating households fluctuates depending on the number of households entering or leaving the Food Stamp Program. In this report, we estimated total annual participation in the program by multiplying the state-reported fiscal year average number of households participating in the program by the Service's estimated rate of turnover in food stamp participation. According to the state-reported data and without adjusting for turnover, on the average, 7.9 million households received food stamps in fiscal year 1983, about 7.6 million in 1984, and 7.3 million in 1985. Based on 1979 data, the Service estimated that because of turnover, total annual participation was about 1.74 times as large as average annual participation.1 The officials said that they have not updated this estimate. 1Food Stamp Research: Results from the Income Survey Development Program and the Promise of the Survey on Income and Program participation, USDA, Food and Nutrition Service, March 1986. 17 1 8 Fi ure 2.3: Chan es in Food Stam Pro ram Partici ation Levels Between Fiscal Years 1983 and 1985 Source: GAO calculations of Food and Nutrition Service data, USDA 18 19 HOUSEHOLDS PARTICIPATING IN THE FOOD STAMP PROGRAM, BY STATE From fiscal year 1983 to 1985, most states reported noticeable changes in the Food Stamp Program participation levels (See figure 2.3). For example, 11- states experienced increases in participation, while 42 states experienced declines, 29 of which were in excess of the national percentage decline of 7 percent (See table 2.2.). States experiencing _ncreases in food stamp participation generally were located in the central portions of the country, while those experiencing the largest declines generally were in the Northeast and Southeast. On the whole, about half of the states (23) experienced a 7- to 15-percent decline in food stamp participation. As previously mentioned, for this report, we are defining participation as the estimated total number of households receiving benefits during a fiscal year. We computed this estimate, nationwide and by state, by multiplying the state-reported fiscal year average number of households participating in the program by the Service's estimated rate of turnover in food stamp participation. 19 20 Table 2.2: Households Participating in the Fiscal Year 1985 Percent Change Fiscal Years 1983 - 1985 Food Stamp Program, by State, Fiscal Year 1984 Fiscal Years 1983 Through 1985 State Fiscal Year 1983 U.S. TOTAL 13,660,770 13,213,431 12,756,187 -7 Alabama 383,628 375,194 361,053 -6 Alaska 14,529 12,650 12,366 -15 Arizona 131,266 128,080 118,511 -10 Arkansas 186,387 176,939 155,829 -16 California 1,088,274 1,000,236 958,089 -12 Colorado 122,486 116,646 110,187 -10 Connecticut 111,426 103,979 95,121 -15 Delaware 33,161 29,126 25,827 -22 District of Columbia 62,045 56,562 52,296 -16 Florida 531,452 454,775 415,364 -22 Georgia 373,138 357,713 340,579 -9 Guam 9,111 8,820 8,088 -11 Hawaii 66,969 65,734 64,610 -4 Idaho 41,106 37,476 35,494 -14 Illinois 739,321 750,878 748,628 1 Indiana 279,117 260,614 237,282 -15 Iowa 136,263 135,556 132,992 -2 Kansas 91,099 85,554 78,704 -14 Kentucky 335,014 345,921 333,038 -.6 Louisiana 332,632 345,402 366,829 10 Maine 88,837 83,118 80,607 -9 Maryland 219,259 208,777 200,013 -9 Massachusetts 286,338 258,945 244,863 -14 Michigan 754,154 768,010 710,042 -6 Minnesota 154,218 156,007 156,497 1 Mississippi 290,194 280,937 276,225 -5 Missouri 257,757 247,708 222,523 -14 Montana 34,478 36,265 37,382 8 Nebraska 57,545 57,531 59,059 3 Nevada 25,980 25,818 25,185 -3 Nea Hampshire 32,594 25,519 21,185 -35 New Jersey 347,669 322,850 296,437 -15 New Mexico 97,584 89,125 86,972 -11 New York 1,320,237 1,330,256 1,311,970 -.6 North Carolina 336,504 312,086 298,615 -11 North Dakota 19,422 18,877 19,855 2 Ohio 768,012 788,230 774,718 .9 Oklahoma 159,224 173,104 173,963 9 Oregon 187,582 168,827 163,948 -13 Pennsylvania 765,308 733,271 714,966 -7 Rhode Island 58,624 54,768 50,740 -13 South Carolina 252,518 233,978 220,726 -13 South Dakota 29,081 26,920 26,947 -7 Tennessee 385,894 348,920 324,541 -16 Texas 688,003 668,132 683,347 -.7 Utah 50,575 46,181 44,342 -12 Vermont 35,707 34,513 30,711 -14 Virginia 278,183 255,860 238,317 -14 Virgin Islands 14,668 15,140 13,772 -6 Washington 205,404 192,790 193,746 -6 West Virginia 157,912 162,488 161,749 2 Wisconsin 217,998 224,396 224,500 3 Wyoming 14,846 16,189 16,796 13 Source: Food and Nutrition Service, USDA. 20 21 Figure 2.4: Percentage of Food Stamp Program Cases Reported as Improperly Denied or Terminated, by State, Fiscal Year 1985 Source: Food and Nutrition Service, USDA. 22 22 PERCENTAGE OF FOOD STAMP CASES IMPROPERLY DENIED OR TERMINATED, NATIONWIDE AND BY STATE In fiscal year 1985, the percentage of cases, nationwide, in which household benefits were improperly denied or terminated was about 3.1 percent, according to the results of states' quality control reviews. A majority of states (33) reported error rates of 2 percent or less (See fig. 2.4.). From fiscal years 1980 through 1985, the percentage of cases involving households whose benefits were improperly denied or terminated, nationwide, declined from about 4 percent to about 3.1 percent (See table 2.3.). During that period, the percentage of households who had their food stamps improperly denied or terminated ranged on a state-by-state basis from 0 (Delaware in fiscal years 1982, 1984, and 1985 and Kansas in 1985) to over 11 percent (Washington in fiscal years 1984 and 1985 and the District of Columbia in 1981). As noted in section 1, the Service does not validate the accuracy of the state-reported improper denials or terminations unless a state may be eligible to receive enhanced funding to administer the program. We are currently evaluating the accuracy of states' improper denial and termination error rates as well as the procedures that states use to develop these error rates. We will be reporting the results of that work later this year. 23 23 Table 2.3: Percentage of Food Stamp Cases Reported as Improperly Denied or Terminated, Nationwide and by State, Fiscal Years 1980 Through 1985 Fiscal Year Fiscal Year Fiscal Year Fiscal Your Fiscal Year Fiscal Year State 1980a 1981a 11,82a 1983 1984 1985 U.S. Total 4.0 3.7 3.7 2.9 3.0 3.1 Alabama 1.2 1.7 1.8 1.9 0.9 1.9 Alaska 5.6 3.4 2.5 3.6 2.9 1.3 Arizona 0.4 3.0 3.0 3.4 2.4 1.4 Arkansas 1.3 1.5 0.3 0.1 0.5 0.1 California 8.3 9.3 9.8 4.2 2.4 4.4 Colorado 1.8 2.6 1.2 1.5 1.1 1.1 Connecticut 2.1 1.2 1.3 0.2 0.5 0.5 Delaware 0.5 1.2 0.0 0.7 0.0 0.0 District of Columbia 2.5 11.9 1.3 1.4 3.9 1.1 Florida 1.3 2.3 1.4 0.9 1.9 1.5 Georgia 3.2 2.5 1.0 1.5 2.3 3.9 Guam 3.9 2.2 3.1 2.4 N/A 2.0 Hawaii 1.5 1.7 1.0 2.4 1.7 3.2 Idaho 7.7 3.1 2.1 1.9 1.9 2.1 Illinois 3.6 3.2 3.4 2.3 7.5 9.1 Indiana 3.8 2.1 2.3 2.5 1.6 2.8 Iowa 3.6 4.1 4.6 3.7 4.4 1.9 Kansas 1.6 2.5 1.9 3.7 2.0 0.0 Kentucky 1.0 1.6 1.4 1.4 5.2 3.0 Louisiana 2.1 4.0 3.5 1.5 2.1 5.6 Maine 0.5 0.4 1.3 1.8 1.8 0.6 Maryland 6.4 7.3 3.5 3.6 3.3 1.9 Massachusetts 2.5 1.7 1.0 1.3 0.5 1.0 Michigan 6.7 6.2 5.8 4.1 5.4 6.5 Minnesota 5.2 4.5 5.9 8.3 9.8 5.3 Mississippi 0.5 1.1 1.7 1.1 0.7 0.7 Missouri 2.6 1.7 1.1 1.2 0.7 0.6 Montana 7.0 3.1 2.4 3.1 1.6 1.8 Nebraska 5.4 3.5 4.0 0.3 3.1 1.8 Nevada 0.2 0.8 0.7 1.2 0.6 0.3 New Hampshii-e 1.8 3.8 4.2 1.0 0.8 2.7 New Jersey 1.0 1.1 1.2 1.3 0.5 0.8 Neu Am, ,_ 2.3 2.0 1.9 1,4 2.4 3.1 New York 1.9 2.0 1.6 2.1 1.4 1.1 North Carolina 2.9 2.2 1.0 2.5 2.4 1.2 North Dakota 0.7 1.6 2.2 1.4 1.4 0.7 Chlo 4.7 2.0 4.6 5.0 6.4 7.0 Oklahoma 0.6 10 3.6 5.2 1.1 6.4 Oregon i.e 4.4 4.6 4.1 4.2 4.7 Pennsylvania 2.1 5.6 4.2 2.5 4.2 4.5 Rhode Island 1.3 0.9 0.4 1.5 1.5 1.5 South Carolina 1.3 1.1 2.2 2.9 2.3 1.7 South Dakota 0.8 1.3 0.7 2.0 0.5 0.4 Tennessee 2.4 2.1 2.3 2.1 0.6 0.1 Texas 3.2 5.5 8.0 4.9 1.9 1.4 Utah 2.1 2.7 4.3 2.6 0.3 0.2 Vermont 2.5 2.8 0.8 2.4 3.5 2.7 Virgin Islands 3.9 3.6 3.8 4.1 4.3 6.3 Virginia 1.7 2.0 1.9 1.9 2.0 2.7 Washington 7.9 5.4 6.4 5.5 11.2 11.4 West Virginia 0.7 1.3 2.7 1.1 0.5 0.4 Wisconsin 1.9 1.8 1.9 2.1 1.6 0.8 Wyoming 1.3 1.7 1.0 2.5 1.2 0.5 1Prior to fiscal year 1983, the Service published separate error rates for the first and second half of each fiscal year. Error rates for these perloda have been weighted and an average developed for the fiscal year. N/A: Not available. Source: Food and Nutrition Service, USDA. 24 24 APPENDIX I. APPENDIX I COMMENTS FROM THE DEPARTMENT OF AGRICULTURE Note: GAO comments supplementing those in the report text appear at the end of this appendix. DEPARTMENT OF AGRICULTURE OFFICE OF THE SECRETARY WASHINGTON, D.C. 20250 February 17, 1987 Mr. J. Dexter Peach Director, Resources, Community and Economic Development Division General Accounting Office Washington, D. C. 20546 Dear Mr. Peach: This is in response to the General Accounting Office (GAO) proposed report entitled, Dod Stamp program: =kin az= Applications, Participation. terdalra,_ and Terminations. Our primary concern with the proposed report is the presentation of numbers for households terminated fran food stamp participation and the unduplicated number of households receiving benefits annually. Because these numbers are not reported directly by States to the Food and Nutrition Service, GAO used other information that is available to develop these numbers. In both instances, the numbers are fran unverified, disparate data sources. Since the numbers are, at best, an approximation, they could misrepresent the actual trends in the subject areas. At a minimum, wherever in the report the number of households terminated from Food Stamp Program participation is presented, it should be described as a GAO estimate. Similarly, the annual participation numbers should be presented as GAO estimates. Other comments of a more technical nature have been shared with your staff orally. We believe that the proposed report generally presents an objective description of the subject material. Thank you for the opportunity to comment. Sincerely, N W. BODE Assistant Secretary for Food and Consumer Services 26 25 APPENDIX I APPENDIX I GAO COMMENTS: As the Department correctly points oute the numbers for households terminated and the unduplicated number of households receiving benefits annually are not directly reorted by the states to the Service. Therefore, we attempteu to estimate the number of terminations and total annual participation using the Service's best and most recent available data. Because of the limitations on these data, ..'e were unable to develop meaningful estimates of food stamp terminations. However, we were able to estimate total annual program participation, and, as the Department suggests, our report identifies these numbers as GAO estimates. Our procedures for developing these estimates were coordinated with Service officials, and these officials agreed with the logic of our approach. Nevertheless, for the reasons cited by the Department, we acknowledge that these estimates should be interpreted cautiously in drawing conclusions about trends in food stamp participation. We describe our methodology for developing these estimates in section 1 of this report. 27 26 APPENDIX II APPENDIX II MAJOR CONTRIBUTORS TO THIS REPORT Resources, Community, and Economic Development Division, Washington, D.C. Brian P. Crowley, Senior Associate Director, (202) 275-5138 John W. Harman, Associate Director Barry T. Hill, Group Director Stanley J. Czerwinski, Assignment Manager June M. Foster, Evaluator-in-Charge Gregory D. Knight, Writer-Editor Julian L. King, Information Processing Assistant Michelle Y. Perry, Clerk-Typist (023260) 23 27 United States General Accounting Office Washington, D.C. 20548 Official Business Penalty for Private Use $300 Address Correction Requested First-Class Mail Postage & Fees Paid GAO Permit No. G100 Requests for copies of GAO reports should be sent to: U.S. General Accounting Office Post Office Box 6015 Gaithersburg, Maryland 20877 Telephone 202-275-6241 The first five copies of each report are free. Additional copies are $2.00 each. There is a 25% discount on orders for 100 or more copies mailed to a single address. Orders must be prepaid by cash or by check or money order made out to the Superintendent of Documents. 28