SR 02-25 Dated 10/02

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases the 2002 annual Food Stamp Program October updates to the:

·   maximum benefit allotments;

·   gross and net income limits;

·   Telephone-Only, Heat and Utilities, Utilities-Only, and Electric-Only standard utility allowances; and

·   certain federally-mandated income deductions. In addition, the fixed standard deduction has been replaced with a graduated deduction based upon household size.

This SR also releases the elimination of:

·   the use of actual utility costs to determine Food Stamp income eligibility and benefit amount; and

·   proration of utility standards for Food Stamp households sharing living quarters.

For reference purposes District Offices will be sent a hard copy of the Basis of Issuance Tables provided by the Food and Nutrition Service.

POLICY

Benefit Allotments and Gross and Net Income Limits

Benefit allotment amounts and gross and net income limits for all group sizes are part of the annual October Food Stamp Program update and will increase as noted below, effective October 1, 2002.

1Gross and net income limits do not apply to categorically eligible households (all members receive or are eligible for PA and/or SSI).

Standard Utility Allowances

Effective October 1, 2002, actual household utility costs will no longer be used to compute Food Stamp income eligibility or benefit amounts. Instead, the annually determined standard utility amounts, indicated below, will be set figures. The established figures must be used, as appropriate, in all pertinent Food Stamp budget computations, regardless of whether actual household utility costs are higher or lower than the set amounts.

Additionally, the utility standards will no longer be prorated for households sharing living quarters. These households will now be eligible for the full utility standard applicable to their household circumstances.

Income Deductions

The current fixed Standard Deduction has been replaced with a graduated deduction that increases in direct correlation to increases in household size. The deduction will be adjusted annually but is currently set at 8.31% of the applicable net income limit based upon household size, with the minimum deduction set at $134, as follows:

In addition:

·   the Excess Shelter Expense Deduction increased from $354 to $367;

·   the Homeless Shelter Allowance remained unchanged at $143; and

·   the Dependent Care Deduction remained unchanged at $200 for a child under two and $175 for a child two or older.

NEW HEIGHTS CHANGES

The maximum allotment amounts, gross and net income limits for all group sizes, and the updated Telephone-Only and Utilities-Only standards will be programmed into New HEIGHTS in September and will be used to calculate food stamp eligibility and benefits beginning October 1, 2002. Food stamp closings will be run September 30, 2002 to terminate all cases with a redetermination date of September 25, 2002. The mass change for open cases will be run on September 28, 2002. The major run for October will follow the mass change on September 30, 2002.

System Changes for Cases with Actual or Prorated SUAs

New HEIGHTS will convert all open food stamp "actual" and "prorated SUA" cases to the appropriate standard utility allowance for which the household is eligible effective October 1, 2002. The standards will be used for all other cases opening on or after the effective date. In addition, the following screen updates occurred:

·   question #1, "Does anyone in your household elect to use actual utility costs or does an institutionalized individual, intending to return home, incur utility costs for maintaining a home or an apartment?", located under "Utility Questions," on the "Shelter & Utility" tab in the "Case Characteristics – Shelter/Utility" folder under the "Expense/Shelter/Utility" function, was eliminated; and

·   the question, "Number of households sharing the utility?" at the bottom of the "Standard Utility Allowance Details" tab in the "Standard Utility Allowance" folder under the "Expense/Shelter/Utility" function, will remain on the screen. However, entered information will not be used and the household will receive the entire appropriate allowance.

POST MASS CHANGE REPORTS

The reports described below will be produced as a result of the Mass Change. These reports will be available on CADocView shortly after October 1, 2002.

NMC600RA: Status After MC

This report lists all cases that were selected for the Mass Change, including cases that were successfully confirmed as shown on NMC540RA and those that were not confirmed (exceptions shown on NMC550RA). This report is sorted by District Office and contains the following information: D.O., Worker Name, Client Name, Case Number, and household size.

NMC600RB: Status Before MC

This report shows the pre-mass mass change status of cases that were selected for the Mass Change. It contains the following information: D.O., Worker Name, Client Name, Case Number, and Household Size.

NMC540RA: AG’s Affected by MC

This report lists all cases upon which the Mass Change ran successfully through confirmation. It contains the following information: D.O., Worker Name, Client Name, and Case Number.

NMC550RA: MC Exception

This report lists cases that were selected for the Mass Change, but were not confirmed due to some discrepancy in data. These cases require further District Office action. It contains the following information: D.O., Worker Name, Client Name, Case Number, Reason for Exception, and Mass Change Type.

POLICY MANUAL REVISIONS

Revised Food Stamp Manual Topics

PART 601, TABLE E FOOD STAMP MAXIMUM MONTHLY INCOME LIMITS

PART 601, TABLE F MAXIMUM FOOD STAMP ALLOTMENTS

PART 601, TABLE G DETERMINING FOOD STAMP ALLOTMENTS

PART 601, TABLE I FOOD STAMP DEDUCTIONS

Section 603.09  Other Allowable Deductions: Utility Standards

IMPLEMENTATION

After the mass change is run, all benefits generated by New HEIGHTS on or after October 1, 2002, will be calculated using the new amounts.

Tables and Standards sections for benefits prior to October 1, 2002 need not be retained for reference for retroactive benefits because New HEIGHTS will hold them internally and automatically use them for calculating benefits for eligibility periods prior to October 1, 2002.

CLIENT NOTIFICATION

Households experiencing a change in food stamp benefits due to the mass change will receive a standard New HEIGHTS Notice of Decision (NOD). The following message will also appear in the "Explanations" section of the NOD:

On October 1, 2002, some changes happened in the Food Stamp Program. The income limit is now higher. Maximum food stamp benefit levels went up. We also changed how we figure shelter costs for households that pay for heat or utilities. Fixed deductions have been set for utility costs. If you were splitting utility costs, you will now get the full deduction amount rather than a share. Larger households will get a bigger general deduction. Households with a disabled member can now have up to $3000 in resources.

No additional client notification is planned.

TRAINING

A remote training to review the changes described in this SR is planned for Thursday September 19, 2002.

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the On-line manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at http://www.dhhs.state.nh.us/DHHS/DFA/LIBRARY/Manual/A1.htm, effective October 1, 2002.

This SR, and printed pages with posting instructions, will be distributed under separate cover to all hard copy holders of the Food Stamp Manual.

DFA/JBV:s