Tuesday, July 29, 2008

$2 Million Bonus For Arizona For Improvements In Food Stamp Accuracy

Arizona’s food stamp program was recognized by the United States Department of Agriculture (USDA) as one of the most improved programs in the country – just one year after the program was sanctioned by the federal government due to a below-average accuracy rate.

"I am very pleased by the improvements made by DES staff to ensure effective and accountable food stamp payments," Governor Janet Napolitano said. "During this economic downturn, we need to make sure we are doing everything we can to help vulnerable children, adults and families put good nutritious food on their tables.”

Allen Ng, USDA Food and Nutrition Service Regional Administrator, met briefly with Governor Napolitano & members of the press to highlight Arizona's accomplishments & present the state with a $2 million check to ensure that Arizona's performance continues to meet federal requirements.

"USDA commends our state partners for their diligence in maintaining program integrity while increasing access and participation in the Food Stamp Program," Ng said. "This achievement indicates continued focus on customer service and providing critical nutrition assistance to those most in need."

Arizona's food stamp program - administered by the Department of Economic Security (DES) - is paid for primarily with federal funds & ensures that more than half a million Arizonans – mostly children of low-income working parents or senior citizens – have access to food each month.

Ng thanked Governor Napolitano for her advocacy for nutrition programs, DES Director Tracy Wareing & her leadership team for making payment accuracy a priority for DES, & the hard-working, dedicated workers at DES who are ultimately responsible for Arizona's success.

The food stamp program is subject to a number of federal performance measures, including its accuracy in determining the amount of benefits a family should receive. If the family receives too much, or not enough, it counts as an error against the state.

In prior years, Arizona was seen as a national model for accuracy. But, budget cuts, a recent court decision that requires Arizona eligibility interviewers to focus on timely processing of applications, & vastly improved performance by other states caused Arizona's accuracy rate to slip below the federal acceptance level. The caseload in the food stamp program has more than doubled - going from 102,307 cases in 2001 to 218,381 cases in 2007. That is an increase of 113%.

Last year, the federal government sanctioned Arizona $1.5 million for its error rate. Instead of paying the sanction outright, Arizona entered into an agreement with the USDA to invest half that amount in strategies to improve accuracy. Those strategies included: hiring and training more case readers to review eligibility determinations for errors; deploying additional resources and supports to the 10 urban offices that distribute the highest amounts of benefits, & the expanded use of document imaging to ensure eligibility files had complete & accurate information.

Under the USDA agreement, Arizona does not have to pay the remaining half of the sanction – in excess of $700,000 – because its performance improved to an acceptable level. Arizona not only met, but exceeded, its target, decreasing its error rate from 8.26% in fiscal year 2006 to 4.87% in fiscal year 2007. This qualified Arizona as the second most improved state in the nation on accuracy.