SNAP Changes in Ohio. Lisa Hamler-Fugitt, Executive Director, Ohio Association of Foodbanks

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1 SNAP Changes in Ohio Lisa Hamler-Fugitt, Executive Director, Ohio Association of Foodbanks Dr. Jon Honeck, Edward D. and Dorothy F. Lynde Fellow, The Center for Community Solutions

2 Who We Are The Ohio Association of Foodbanks is Ohio s largest charitable response to hunger. Our mission is to assist Ohio s 12 Feeding America foodbanks in providing food and other resources in need and to pursue areas of common interest for the benefit of people in need.

3 Who We Are The Center for Community Solutions is a nonpartisan think tank focused on solutions to health, social and economic issues. Our mission is to provide strategic leadership and organize community resources to improve health, social and economic conditions through applied demographic research, nonpartisan policy analysis and advocacy, and communication.

4 Hunger in Ohio: The Facts

5 The Reality of Hunger in Ohio Nearly one in six (16.1%) of Ohioans were food insecure in 2012 an increase of 6.3 points since More than one in four children in Ohio live in food insecure households (25.9 percent) Of households served by our network last year, nearly half included children (44%), while one in six (15%) were seniors. Nationally, 42% percent of food insecure homes participated in SNAP; 32.5% participated in free or reduced price school lunch; 11.4% participated in WIC. Even one experience with hunger has a negative impact on the health of children 10 to 15 years later

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7 The cost of food is rising faster than the cost of other consumer items. All Consumer Items: Up about 12% since recession Food Items: Up nearly 18% since recession The cost of all consumer items (represented by the light bulb) has risen 12.14% since the recession. If this light bulb cost $1 in 1984, it cost $2.22 in Since the recession, this light bulb increased in price by 24 cents. The cost of food items (represented by the bunch of bananas) has risen 17.64% since the recession. If these bananas cost $1 in 1984, they cost $2.30 in Since the recession, these bananas increased in price by 34 cents.

8 Changes to SNAP I had to decide, do I buy Twinkies with the change I found in my car or do I buy them apples? I admit I chose Twinkies because it was cheaper, said Elsie Hunt, a lunch aide at a Westerville school and married mother of 4.

9 SNAP (Food Assistance) In Ohio in January 2014: 1,775,855 people received food assistance benefits to help them with the cost of groceries from SNAP Nearly half (42%) of all Ohio individuals receiving SNAP are children. Nationally, 82% of all benefits go to households that include a child, elderly or disabled person Eligibility: Gross income less than 130% of federal poverty level, net income less than 100% of federal poverty level Average monthly benefit: $121 per month big drop Many more are eligible but not connected! SNAP outreach is simple through the OBB

10 SNAP Facts Every $1 in SNAP benefits generates $1.79 in economic activity (grocery stores, employees & taxes, truck drivers, warehouse, processing plants, farmers) 31% of SNAP homes have earnings Nationally 58% of program participants leave the program in a year or less using the program as a short-term stop gap against hunger Most participants run through their SNAP benefits by the third week of the month, with 90% of SNAP benefits redeemed by day 21 of the month.

11 Standard Utility Allowance Changes Ohio makes use of standard utility allowance (SUA) amount deducted from a person s income when the state determines their eligibility for the program State changed formula which would have been a cut of $50 a month; mitigated by Congressional delegation and state JFS action to be around $23.

12 Loss of ARRA boost in benefits Ohio will lose an estimated $193 million of direct SNAP benefits or over $345 million in economic activity because of early sunset of ARRA benefit boost

13 ARRA cuts mean less food This hurts a family of four in Ohio by an average of $36.00 a month. That $36.00 could mean: a gallon of milk ($3.69); a box of corn flakes ($2.99); eight bananas ($3.12); a loaf of wheat bread ($2.00); some deli ham ($2.49); some deli cheese ($3.49); two boxes of spaghetti ($2.00); spaghetti sauce ($1.79); some ground beef ($4.99); some chicken breasts ($5.69); and four potatoes ($2.36) for a low-income Ohio family. A family of three is estimated to be losing $29 a month or about 16 meals a significant amount for a struggling family who s average benefit is less than $1.40 per person, per meal.

14 Food Prices Are Rising

15 SNAP in Ohio loss of benefits Month/ Year Recipients Monthly Issuance Average monthly benefit Change in monthly benefit Jan-13 1,845,325 $242,980, $ Jun-13 1,815,343 $239,280, $ $0.14 Sep-13 1,798,697 $237,643, $ ($0.31) Oct-13 1,799,402 $237,484, $ ($0.14) Jan-14 1,775,855 $214,977, $ ($10.92) Ohio is losing nearly $20 million each month because of drop in benefit levels.

16 Drop in benefits affecting retailers Food Stamp cutbacks add to Wal-Mart s revenue woes February 24, 2014 Wal-Mart posts 21% drop in fourth quarter profits due to weather and drop in food assistance benefits. Wal-Mart considered economic bellwether because it accounts for nearly 10% of U.S. nonautomotive spending.

17 State Changes to SNAP

18 1996 Welfare Reform The (welfare reform) bill closes its eyes to all the facts and complexities of the real world and essentially says to recipients, Find a job. That has a nice bumper-sticker ring to it. But as a one-size-fits-all recipe it is totally unrealistic. The states are given a rather Machiavellian out. The law in effect assumes that any reduction in the rolls reflects people who have gone to work. So states have a de facto incentive to get people off the rolls in any way they can, not necessarily by getting them into work activities. The (welfare) time limits will be especially tough in states that have large areas in chronic recession -- for example, the coal-mining areas of Appalachia. And they will be even tougher when the country as a whole sinks into recession. It will make no difference if a recipient has played by all the rules and sought work faithfully, as required. When the limit is reached and the state is unable or unwilling to grant an exception, welfare will be over for that family forever. Peter Edelman, Clinton appointee who resigned in protest over the new welfare law explains why it is so bad and suggests how its worst effects could be mitigated

19 Changes to Ohio Works First Deficit Reduction Act (2005) restricted what could count as work activities Ohio incurred a total of $136 million in federal penalties for failing to meet work requirements in FFYs 2007, 2008, 2009 State funding for work supports and case workers was cut during the recession Corrective action plan started in 2011 to avoid penalties; led to massive caseload reductions

20 Ohio Works First Caseload Reduction 250, , , ,000 Adult Child 50,000 0

21 SNAP in Ohio work waiver Ohio recently decided to extend Medicaid to lowincome adults. At the same time, Ohio rejected the statewide SNAP work requirement waiver for unemployed adults without children younger than 50 years old. Took effect October 1, 2013 with little notice or preparation Ohio and 41 other states with high unemployment rates could apply to USDA to waive work requirement in Ohio s employment level is 175,000 jobs below prerecession mark.

22 SNAP in Ohio work waiver Affects an estimated 134,000 in 72 of Ohio s 88 counties Affects veterans, young adults leaving foster care and exoffenders trying to turn their life around. Must be employed or find 20 hours of work, training or volunteer activities to continue to receive SNAP. These adults are in poorer health than the rest of the population, have undiagnosed mental health needs, low literacy levels, lack of reliable transportation or felony records No funding for in-depth assessment to support true pathway to work by County Job & Family Services offices

23 SNAP in Ohio work waiver Recent self-reports collected by Association staff at Franklin County work assessments found that: 72% were currently not on Medicaid 27% never graduated HS or got a GED 60% did not have a valid driver s license 60% have never received unemployment compensation 45% did not have reliable transportation On average their last employment was in % have been convicted of a felony 35% said they had a mental or physical limitation 16% were registered to work with Ohio Means Jobs but most had never heard of this website 55% did not have a current resume

24 SNAP in Ohio staggered issuance Ohio recently decided to stagger issuance of SNAP benefits to a 20 day issuance schedule to take place April New assistance groups or groups that experience even a one day lapse will be moved to the new schedule. No safeguards in place to prevent increase in need for emergency food during transitions.

25 Messages for Lawmakers Access to food can stabilize struggling families, make Ohioans healthier, support Ohio workers, and stimulate Ohio s economy. Hungry children can t learn and hungry adults can t compete for jobs. Increasing Hunger is NOT the way to strengthen our economy or reduce the deficit.

26 Messages for Lawmakers Support SB 262 and HB 395 Primary sponsorship by Senator Tavares and Representative Ramos Bills would compel the state to accept the available USDA work requirement waiver. Co-sponsors: Representatives Ramos, Foley, Sheehy, Hagan, R., Milkovich, Reece, Ashford, Williams, Antonio, Stinziano, Pillich, Patterson, Phillips, Heard, Boyce Senators Tavares, Turner, Cafaro, Brown, Kearney

27 Messages for Lawmakers If your representative or Senator is not listed call them and ask them to co-sponsor this legislation and accept the full statewide waiver. Tell them we need time to make sure that true pathways to work are available with the supportive services needed to maintain employment. Increasing hunger does not move us forward. If they are already co-sponsoring or sponsoring then please thank them!

28 Next steps Find your legislator by typing your zip code into the following locator and giving them your message Stay tuned to find out how you can help protect and strengthen federal, state and local support for critical nutrition programs. Remember: Deadline to enroll in health care exchange is a week away Monday, March 31 st!

29 Questions?

30 Thank you! Lisa Hamler-Fugitt, Executive Director Ohio Association of Foodbanks , ext. 222 Dr. Jon Honeck Edward D. and Dorothy F. Lynde Fellow, The Center for Community Solutions g