SR 08-24 Dated 10/08

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases the 2008 annual Food Stamp Program October updates to:

·   the maximum benefit allotments;

·   the gross and net income limits;

·   the standard utility allowances (SUAs); and

·   certain income deductions.

Form 215, Reporting Requirements Handout, and the Food Stamp 130% Reporting Requirements Poster have been revised accordingly.

This SR additionally releases the following Food Stamp Program-related changes associated with the Food, Conservation, and Energy Act of 2008 (PL 110-246):

·   an increase in the minimum Food Stamp benefit;

·   elimination of the Dependent Care Caps. Actual verified costs for dependent care will now be allowed as an income deduction;

·   eligibility for Extended Food Stamp benefits (EFS) has been expanded to include all categories of assistance under Financial Assistance to Needy Families;

·   deactivation of Food Stamp benefits from EBT accounts after 12 months of inactivity; and

·   the exclusion of certain tax preferred educational plans and retirement accounts when determining Food Stamp Program resource-eligibility.

The following forms and their associated instructions are additionally officially obsolete with the release of this SR:

§   Form 422, Affidavit for Replacement of Coupons;

§   Form 440, Authorization to Issue Coupons;

§   Form 444, Manual Issuance of ATI; and

§   Form 454, Notice of Undelivered Coupons.

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, 2008.

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

Standard Utility Allowances

Effective October 1, 2008, the Standard Utility Allowances are as follows:

Income Deductions

Effective October 1, 2008, the Standard Deduction is as follows:

Additionally effective 10/1/08:

·   the Excess Shelter Expense Deduction increased from $431 to $446;

·   the Homeless Shelter Allowance remained unchanged at $143;

·   the Medical Deduction remained unchanged at $83; and

·   the Dependent Care Deduction Cap has been eliminated allowing eligible families to deduct the entire amount of monthly dependent care expenses when calculating eligibility and benefit levels.

Extended Food Stamp Benefits

Extended Food Stamp (EFS) benefit allotments will be revised to incorporate the increased food stamp benefit allotment figures and federal deductions effective 10/1/08. Refer to Food Stamp Manual PART 249, EXTENDED FOOD STAMPS (EFS), for more information on EFS benefits.

Food Stamp Program-Related Changes Associated with the Food, Conservation, and Energy Act of 2008

Minimum Food Stamp Benefit

The minimum Food Stamp benefit has increased from $10 to $14. This change primarily impacts one and two-person Food Stamp households.

Dependent Care Cap

Dependent care costs are no longer capped. Actual verified monthly costs of dependant care are deducted from gross income.

Eligibility for Extended Food Stamp Benefits

Eligibility for Extended Food Stamp benefits (EFS) has been expanded to include all categories of assistance under Financial Assistance to Needy Families. Previously only federally-funded cash assistance programs for families with children were allowed EFS when cash assistance ended. Now, all categories of financial assistance under Financial Assistance to Needy Families, including the state-funded Interim Disabled Parent (IDP) and the Unemployed Parent (UP) programs, will be eligible for EFS when cash assistance ends, as long as all other EFS eligibility criteria are met. The New HEIGHTS-generated letters CM0022, Notification of Extended Food Stamp Benefits, and CM0023, Your Extended Food Stamp Benefits Are Ending, have been updated accordingly and will be released under separate cover by New HEIGHTS.

Deactivation of Food Stamp Benefits

Formerly Food Stamp benefits were deactivated from EBT accounts after 270 days (9 months) of inactivity. Food Stamp benefits will now be deactivated after 365 days (12 months) of inactivity.

Exclusion of Educational and Retirement Accounts

All tax preferred educational plans and retirement savings accounts, including Individual Retirement Accounts (IRAs), all types of Keogh Plans, or funds in a Federal Thrift Savings Plan account, are now excluded from countable resources in determining Food Stamp eligibility. Formerly IRAs, non-contractual Keogh plans, and educational savings accounts were considered countable resources in the Food Stamp Program. It is the applicant’s or recipient’s responsibility to provide the tax-preferred status for the educational savings plans.

NEW HEIGHTS CHANGES AND PROCEDURES

The following updates were programmed into New HEIGHTS in September to calculate food stamp eligibility and benefits for the October 1, 2008 issuance:

·   the maximum allotment amounts;

·   the gross and net income limits for all group sizes;

·   the updated standard utility allowances; and

·   certain income deductions.

Entering the updates into New HEIGHTS in September allows the system to build correct budgets beginning with the October 1, 2008 issuance. It also allows workers to act on cases that go into exception prior to the October 1, 2008 issuance. The 2008 October Food Stamp Mass Change Schedule will run as follows:

New HEIGHTS will also be updating all tables, screens, and drop down menus to include the

following changes related to the implementation of the Food, Conservation and Energy Act of 2008 effective October 1, 2008:

§   increasing the minimum Food Stamp benefit from $10 to $14;

§   elimination of the Dependent Care Caps of $175 and $200;

§   allowing UP and IDP households to receive EFS, if all other eligibility criteria are met, when financial assistance ends;

§   deactivation of Food Stamp benefits from EBT accounts after 12 months of inactivity; and

§   exclusion of IRA and Non-Contract Keogh accounts as resources. For the other less common tax-preferred educational plans (such as 529 Plans) or the Federal Thrift Savings Plan account, Family Services Specialists (FSS) must choose "Other" (excluded for Food Stamps-only) from the resource drop down menu once the applicant or recipient has provided verification of the plan’s tax-preferred status. Otherwise these accounts are counted in the resource eligibility process. At next redetermination or case action for current Food Stamp recipients, FSS must review the recipient’s current resources marked as "other" and if one of the newly excluded resources has been entered as a countable resource under an "other" choice, the resource must be changed to an "other" option that will now exclude the resource for Food Stamps.

POST MASS CHANGE REPORTS

The reports described below are produced as a result of the October Mass Change. These reports become available in New HEIGHTS each subsequent working day after the mass change is run.

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. The report 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

Section 119.01    When Eligibility Is Uncertain

PART 409    COMMON TYPES OF RESOURCES: BANK ACCOUNTS

PART 409  COMMON TYPES OF RESOURCES: EMPLOYEE RETIREMENT PLANS

PART 411  LESS COMMON TYPES OF RESOURCES: EDUCATIONAL SAVINGS PLANS

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 603.05    Child/Dependent Care Deduction

Section 621.03    Rate and Method of Recoupment

Section 709.02  Deactivation and Return of EBT Benefits from Unused EBT Accounts

Section 713.21   Methods of Collection

FORMS REVISIONS

Form 215, Reporting Requirements Handout, and the Food Stamp 130% Reporting Requirements Poster have been updated to incorporate the current figures provided by FNS.

FORMS OBSOLETION

The following forms and their associated instructions are obsolete with the release of this SR:

§   Form 422, Affidavit for Replacement of Coupons;

§   Form 440, Authorization to Issue Coupons;

§   Form 444, Manual Issuance of ATI; and

§   Form 454, Notice of Undelivered Coupons.

All of the above forms were associated with processes in the Eligibility Management System (EMS) or were associated with manual procedures when EMS was not available. The processes became obsolete when the New HEIGHTS automated eligibility system replaced EMS. The forms are therefore no longer needed or used. A Certificate of Destruction has been included below.

IMPLEMENTATION

All benefits issued for the months beginning with October 2008 will be calculated using the new figures. Tables and Standards sections for benefits prior to October 1, 2008 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, 2008.

Effective October 1, 2008, destroy old versions of Form 215, Reporting Requirements Handout, and the Food Stamp 130% Reporting Requirements Poster and replace them with current versions released in this SR. State Office will provide all District Offices with the Food Stamp posters and an initial supply of the Form 215 until the order from Graphic Services arrives. At that time, resume regular ordering procedures for Form 215.

Forms 422, 440, 444, 454 and their associated instructions may be destroyed as of the release of this SR. A Certificate of Destruction has been included below.

All other policies released in this SR are effective October 1, 2008.

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, Federal and State changes increased income limits, the maximum amount of Food Stamps you can receive, and the amount of deductions you can claim. Your Food Stamp benefits, as shown in the old and new budget below, were adjusted to reflect these changes.

No additional client notification is planned.

TRAINING

No training is planned or needed.

FORMS POSTING INSTRUCTIONS

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.nh.gov/DHHS/DFA/LIBRARY, effective September 29, 2008.

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

DFA/KD:s

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CERTIFICATE OF DESTRUCTION

I certify that all copies of the following forms have been destroyed:

·   Form 215, dated 10/07, SR 07-13;

·   the Food Stamp Poster, dated 10/07;

·   Form 422, dated 6/93, SR 93-51, and Form 422(i), dated 7/92, SR 92-33;

·   Form 440 and Form 440(i), dated 3/97, SR 97-8;

·   Form 444 and Form 444(i), dated 7/92, SR 92-33; and

·   Form 454 and Form 454(i), dated 11/95, SR 95-67.

DOMO:           District Office         

Return this certificate to the DFA Policy Development Unit, 129 Pleasant St, DFA Brown Bldg, SOPS, Concord, NH 03301, after the instructions in the SR have been carried out.