SNAP decision could be backward

Clear progress in access to fresh, nutritious foods for children and the disabled in Iowa are at stake in the White House plan for SNAP.

The Trump administration has proposed a 2019 budget with deep cuts and fundamental changes in the Supplemental Nutrition Assistance Program (SNAP). Formerly known as Food Stamps, SNAP every month assures access to food for more than 350,000 Iowans and pumps more than $38 million into the state economy.[1]

The White House proposal would cut of about $213 billion from SNAP over the next decade. About 40 percent of benefits issued to SNAP recipients would be held back by the USDA. Some cuts would go to fund non-perishable food boxes. Other cuts would just reduce access to food for citizens.[2] The budget also would kick some recipients off the program.

Now adults who are not raising children or are disabled have just three-month of food aid over three years. The change raises the age for those who can get food under that provision to age 62. It was formerly 49. The younger adults would get nothing. Also the White House proposal eliminates the minimum benefit, and caps assistance to any household at six people.

These changes would have unfortunate effects on already high levels of food insecurity in Iowa.

An estimated 10.7 percent of Iowans are considered food insecure, meaning they lack consistent access to affordable, nutritious food.[3] SNAP assisted one in eight Iowans in fiscal year 2016. Of those families receiving SNAP benefits, 69 percent have children, and more than 25 percent of benefits go to households with family members who are elderly or disabled. The benefits are not overly generous. In December 2017, Iowa SNAP recipients received just $1.15 per meal.[4]

Food insecurity is correlated with obesity and chronic disease with adults[5] and poses serious threats to child development and school performance.[6] Research has shown that “every $5 in new SNAP benefits generates as much as $9 of economic activity by adults in families to receive benefits.” [7] SNAP spending contributes to local spending and cuts would hurt small grocers in rural Iowa.

Instead of an opportunity to choose nutritious food in the current debit card system, the administration would offer delivered boxes of foods such as canned meats, cereal and shelf-stable milk. The alleged savings from the change ignores the cost of delivery.

There has been clear progress in getting SNAP to provide access to fresh, nutritious foods for children and the disabled in Iowa. For instance, some Iowa communities have piloted a program called Double Up Food Bucks that doubles the value of food dollars up to $10 to purchase fresh produce at farmers markets in order to incentivize healthy eating.[8] Food boxes are a poor substitute for that kind of initiative.

The White House proposal takes Iowa backward on health and food access.

Posted by Natalie Veldhouse, research associate at the nonpartisan Iowa Policy Project. nveldhouse@iowapolicyproject.org

 

 [1] Iowa Department of Human Services, F-1 Food Assistance Program State Summary — January 2018. http://publications.iowa.gov/26363/
 [2] Center on Budget and Policy Priorities, “President’s Budget Would Cut and Radically Restructure SNAP Food Benefits,” February 2018. https://www.cbpp.org/blog/presidents-budget-would-cut-and-radically-restructure-snap-food-benefits
 [3] U.S. Department of Agriculture, “Household Food Security in the United States in 2016,” September 2017. Table 4: Prevalence of household-level food insecurity and very low food security, average 2014-2016. https://www.ers.usda.gov/topics/food-nutrition-assistance/food-security-in-the-us/key-statistics-graphics.aspx
 [4] Ibid, Iowa Department of Human Services.
 [5] Food Research & Action Center, “The Impact of Poverty, Food Insecurity, and Poor Nutrition on Health and Well-Being,” December 2017. http://frac.org/wp-content/uploads/hunger-health-impact-poverty-food-insecurity-health-well-being.pdf
 [6] Food Research & Action Center, “The Connections Between Food Insecurity, the Federal Nutrition Programs, and Student Behavior,” 2018. http://frac.org/wp-content/uploads/breakfast-for-behavior.pdf
 [7] U.S. Department of Agriculture, The Food Assistance National Input-Output Multiplier (FANIOM) Model and Stimulus Effects of SNAP. October 2010. https://www.ers.usda.gov/webdocs/publications/44748/7996_err103_1_.pdf?v=41056
 [8] Iowa Healthiest State Initiative, “Iowa Healthiest State Initiative Expands Double Up Food Bucks Program in Iowa,” May 2017. http://www.iowahealthieststate.com/blog/press-room/iowa-healthiest-state-initiative-expands-double-up-food-bucks-program-in-iowa/

Avoid snap judgments on SNAP use

The fact that SNAP exists says more about us as a nation than do snarky shoppers who stalk the poor in the checkout line.

Legislators have enough to do finding answers to real problems. However, some seem ready to invent problems so they can come to the rescue.

Case in point: the Missouri representative who wants to stop food assistance recipients from buying steak.

Photos, please, of this actually happening. Because common sense tells us that other than some unusual case or two, it’s just not the way people allocate their meager food assistance benefit.

Why? Let’s look at the average benefit in Iowa from SNAP — the Supplemental Nutrition Assistance Program, formerly known as Food Stamps.

People who qualify for SNAP are making less than $2,200 a month in a three-person family, about $2,600 in a four-person family. On average, their SNAP benefit as of March was about $1.18 per person per meal. That’s why they call it “supplemental” assistance: On its own, SNAP is not enough to keep bellies full, let alone fully support good family nutrition.

SNAP is there to help people piece together what they need to get by. SNAP is part of a mix of resources that includes a share of a low-wage family’s own earnings, and probably the help of a local food pantry.

During the Great Recession, SNAP clearly helped Iowans. In our slow recovery from the last national recession, the number of SNAP recipients rose to over 423,000. As things have gotten better, that number has steadily fallen and was under 393,000 as of last month — a decline of 7 percent. That’s the way it is supposed to work.

But for those who still need it, SNAP is there. This critical point should not be missed by distractions like the bill in Missouri, or others that may crop up — even in our state.

The fact that SNAP exists says more about us as a nation than do snarky shoppers who stalk the poor in the checkout line.

Do we really want people who don’t even believe in SNAP to nitpick what people can buy with it? Because those are often the people attempting to call the shots on what goes in the shopping cart.

I’m not buying what they’re selling. They can check my cart.

Owen-2013-57Posted by Mike Owen, Executive Director of the Iowa Policy Project
 Hear Mike Owen and KVFD’s Mike Devine discuss this issue in this April 9 interview.

Basic RGB

A new look for the first of the month

For those working low-wage jobs and receiving SNAP benefits, November 1 is not as good as October 1.

All right! The first of the month! Always a big day for those living paycheck to paycheck. And November 1 is no exception.

Yet, for those working low-wage jobs and receiving SNAP benefits, November 1 is not as good as October 1. SNAP is the Supplemental Nutrition Assistance Program, which many know as Food Stamps. And it’s under constant attack.In Iowa, the more than 420,000 people who count on food assistance can count on less this month than they received a month ago.

Same goes for SNAP recipients across the country, as benefits drop with the expiration of small improvements that were passed in the 2009 Recovery Act.

SNAP benefits in Iowa have averaged about $116 a month per recipient — about $246 per household.* That works out to just about $1.30 per meal per person. Take a look below at what happens to that supplemental benefit when the modest improvement from the Recovery Act goes away today.

 SNAPmonthlyCut-1-31-13

Source: Center on Budget and Policy Priorities, http://www.cbpp.org/cms/index.cfm?fa=view&id=3899

Our economy has not fully recovered from the Great Recession. And if it’s not enough that this Recovery Act improvement is expiring before the work is done, recognize that some in Congress see right now as a time to whack away further at SNAP benefits as a new Farm Bill is negotiated.

Now, we might not like to hear that some 13 percent of the state’s population is receiving food assistance. But you don’t address that issue by just cutting benefits to those people who are stuck in low-wage jobs, or are children, or are seniors, or are disabled.You need to make the jobs better, which starts with an increase in the minimum wage and pressure on Iowa businesses that pay low wages to do better. If we want a higher-road economy, we need to put a better foundation under it.

Mike OwenPosted by Mike Owen, Executive Director

* Iowa Department of Human Services, Food Assistance Program State Summary for September 2013, Report Series F-1.

Why, again, would it make sense to cut SNAP?

Food insecurity has grown in Iowa, we have not recovered from the Great Recession, and SNAP benefits — which only augment household food budgets and are already scheduled for cuts this fall — may be slashed.

Mike Owen
Mike Owen

This week, the U.S. House of Representatives will be considering severe cuts in the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps. Already, SNAP benefits are scheduled to be cut in November because Recovery Act improvements will expire. Any discussion among Iowans about even more SNAP cuts should not miss this context:

Food security remains a serious challenge. In Iowa, the latest report from USDA suggests this has risen by almost one-third in the last decade, from 9.1 percent in 2000-02 to 12.6 percent in 2010-12. (three-year averages) The increase is even greater proportionally for families in more severe situations. See this information from the Iowa Fiscal Partnership.

SNAP use certainly has risen in the last several years — just as it was supposed to in tough times. We have not fully recovered from the Great Recession, but things are getting better and SNAP use will level off and decline as we recover. CBO predicts SNAP spending nationally to fall to 1995 levels by 2019. See this report from the Center on Budget and Policy Priorities.

SNAP is only a supplemental benefit, but a critical one even at only about $1.25 per meal per person in Iowa. We show the share of Iowans who benefit from SNAP, by county and by congressional district, in maps on our Facebook page  (compiled from Iowa Department of Human Services reports and U.S. Census data). By the numbers, here is the share of the population in each Iowa congressional district receiving food assistance in July:

1st District — 12.3 percent; about 94,000 people.
2nd District — 15.8 percent; about 121,000 people.
3rd District — 14.7 percent, about 115,000 people.
4th District — 12 percent, about 91,000 people.
Here’s the county-by-county look (note, the golder and greener a county, the greater percentage of the population receives food assistance):
CI-MapTemplate

The House bill would end categorical eligibility, which permits states to provide access to SNAP benefits for families just above the SNAP earnings limit of 130 percent of poverty. Iowa in 2008 used this option to expand gross income eligibility to 160 percent of poverty. An Iowa Fiscal Partnership policy brief last November noted this is particularly important for low-income working families with children, particularly when child care takes such a big bite out of their budgets.

SNAP is a work support. Contrary to the claims of detractors, SNAP is one of those benefits that enable people to take jobs they otherwise would not be able to accept. When we have an economy that is producing jobs that pay below what is needed to get by, these work support programs are critical. We have illustrated the issues there with our Cost of Living in Iowa research, where we have demonstrated that even at median wage, many Iowa families would not get by were it not for work support programs.
Posted by Mike Owen, Executive Director

Why SNAP matters: Wages aren’t always enough

It’s really quite amazing what kind of arguments people will use to beat up poor people.

Mike Owen
Mike Owen

It’s really quite amazing what kind of arguments people will use to beat up poor people.

Such an example is in the comments section of a story in today’s Des Moines Register about the debate over the Supplemental Nutrition Assistance Program, or SNAP, commonly known as Food Stamps.

One writer, in playing to SNAP opponents, is pushing the idea that two full-time jobs at minimum wage lift a family above poverty according to the current administration. In that case, the writer implies, food assistance isn’t needed.

Let’s take a look at the actual numbers and what they mean. It’s not heavy lifting.

Actually the federal poverty guidelines as established have been consistent — and consistently faulty — through several administrations. They are seriously outdated and underestimate what is necessary to make ends meet.

The official poverty level for a family of four in 2013 is $23,550. Does anyone seriously believe a family of four can make it on that kind of income? Rent, food, clothing, utilities — the basics of just getting by — cost more than that in real life.

The Iowa Policy Project has looked at this issue and is constantly updating a more reliable estimate of what it costs to get by — our report, “The Cost of Living in Iowa,” is available on our website with county-by-county numbers that reflect this cost for varying family sizes.

You can quickly see how two minimum-wage jobs don’t get the job done.

A bare-bones family budget for a four-person family in the Des Moines area is — conservatively — $37,886 for one working parent. (Table below). That assumes $3,157 per month for clothing, household expenses, food, health care, rent and utilities, and transportation. If a second parent works you add more transportation costs, plus child care, which becomes the second-largest expense.

Next, figure in taxes — yes, they pay taxes, and a lot as a share of their income — and you get what it takes for a family just to get by. So, this absolutely no-frills budget, with no savings for school or a home or retirement, not even burgers at McDonald’s, rings up at $39,122 before taxes for one working parent, $58,520 for two.

120523-app-04-dm-w

And that means jobs that pay $14.63 an hour for each working parent, or $19.56 if one works.

Yet, at the $7.25 minimum wage, two jobs would pay $30,160. So much for the argument that two minimum-wage jobs per family solve poverty.

This helps to show why the meager Food Stamp benefit of about $1.25 per person per meal is such an important support for Iowa’s low-income working families. But while we’re at it, we could start talking about a higher minimum wage. Another day, perhaps.

Posted by Mike Owen, Executive Director

A full table

There’s no one living extravagantly off food assistance. But it’s an important supplemental benefit that in many cases helps working families.

Mike Owen
Mike Owen

As the serving table groans and the plate runneth over for many Americans on Thanksgiving Day, the bounty of food they enjoy will not be so plentiful for all.

Many Iowans will face a challenge — as they often have — just to be able to provide enough for their family. They will be thankful that our nation does set aside enough to help them get by. It’s nothing extravagant, but it matters in keeping their children and themselves fed when times are tough. It comes in the form of what we have long known as “Food Stamps,” one of the most successful programs ever initiated by the federal government.

Against this backdrop, Congress holds the fate of the Farm Bill, legislation passed every five years. Three-fourths of the package is related to nutrition support, including Food Stamps — now SNAP, the Supplemental Nutrition Assistance Program. The outcome, as outlined by Michael Bruner in a recent brief for the Iowa Fiscal Partnership, Children and the Farm Bill, shows that decisions in the lame-duck session will have important implications for how well SNAP continues to meet the needs of struggling Americans.

Gridlock in Washington over the past year has left this issue hanging. As IPP’s Andrew Cannon noted a year ago in his report on public and private nutrition programs, A Secure Nutrition Network, “Even a robust private network of food banks and food pantries cannot fully cover the needs of food insecure Americans if federal nutrition programs lapse.”

As we celebrate the holidays and prepare for the year ahead, we should note that over 197,000 households in Iowa, representing over 419,000 people, received food assistance benefits in October totaling about $51 million. Is $51 million a lot of money? Yes — and it’s going into local economies across the state, while providing important help to families.

But there’s no one living extravagantly off that assistance. It works out to about $121 a month per person — about $3.89 per day, or $1.30 per meal. It is, as advertised, a “supplemental” benefit for, in many cases, working families.

The table is full of important issues, none more important than assuring that all Americans, particularly children, have enough to eat.

Posted by Mike Owen, Assistant Director

———

Other resources on this issue:

Check out the “Policy Basics” brief from the Center on Budget and Policy Priorities: http://www.cbpp.org/cms/index.cfm?fa=view&id=2226 and the latest food security report from USDA: http://www.ers.usda.gov/publications/err-economic-research-report/err141.aspx

Nonsense from the Far Right

Fortunately, the discerning Iowan can find the facts about the federal budget by looking for them, and not buying into Dick Morris’ spin.

Political consultant Dick Morris slipped into Iowa last week, and the Spin-O-Meter was in overdrive.

Now, rather than repeat Mr. Morris’ misinformation, here is a link to a Des Moines Register story about his appearance at a rally orchestrated by the national right-wing organization Americans for Prosperity.

What Iowans need to know is that (1) Morris is wrong about what is driving the federal budget deficits, and (2) the causes are clear: You can’t cut taxes and fight two wars at the same time without digging a big budget hole.

Center on Budget and Policy Priorities graph
Center on Budget and Policy Priorities

As shown in the graph at right from the Center on Budget and Policy Priorities, the economic downturn, President Bush’s tax cuts and the wars in Afghanistan and Iraq explain the vast majority of the deficit through 2019. One thing folks must recognize is that deficits caused by those factors cause more debt down the road, because we have to keep paying interest. Even after the Iraq war ended, we have to keep paying for it.

As we deal with these self-inflicted budget problems, we must maintain the fundamental and long-accepted responsibilities of our nation — to care for the most vulnerable and put them on their feet to get work and succeed in our economy.

Dick Morris has a big megaphone to try to instill something other than a factual presentation about what’s causing our deficits and debt. Fortunately, the discerning Iowan can find the facts by looking for them, and not buying into the conventional spin he delivers in his traveling medicine show.

Posted by Mike Owen, Assistant Director