LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 2361
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: MAY 26, 2022
SUMMARY
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Synopsis: |
Requires DHS to maintain SNAP outreach plan and to conduct additional outreach programs. |
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Type of Impact: |
Potential one-time State and county expenditure increase. Potential one-time State revenue increase. |
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Agencies Affected: |
Division of Family Development, Department of Human Services; County Welfare Agencies. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
One-Time |
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Potential State Expenditure Increase |
Indeterminate |
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Potential County Expenditure Increase |
Indeterminate |
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Potential State Revenue Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) concludes the Division of Family Development (DFD) in the Department of Human Services (DHS), along with county welfare agencies (CWAs), may experience indeterminate, one-time increases in Supplemental Nutrition Assistance Program (SNAP) administrative expenditures under the bill to develop and implement certain outreach programs that are in addition to those activities currently being implemented under the division’s outreach plan. As the bill does not mandate the implementation of any specific outreach activities, the OLS cannot quantify the impact of these expenditures.
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The OLS notes that the federal
government shares all administrative expenses of SNAP with the State. As such,
the bill may also result in a State revenue increase from federal SNAP funds.
Any increase in SNAP benefits under the bill would not have any fiscal impact
on the State, as SNAP benefits are paid directly from federal funds.
BILL DESCRIPTION
This bill requires the DHS to maintain an outreach plan for the SNAP and to conduct additional outreach programs, subject to available funds. Specifically, the bill directs that the outreach plan focus on increasing potential beneficiaries’ access to: 1) information regarding the availability of SNAP, the criteria for eligibility for SNAP benefits, and the various methods to apply for SNAP benefits; and 2) the technological means to apply for SNAP benefits.
Additional outreach programs may include:
1) establishing a SNAP Navigator Program, the purpose of which will be to recruit, train, and support SNAP application navigators, via a process and method determined by the Commissioner of Human Services;
2) making available training to the appropriate staff at community-based organizations regarding the necessary steps to complete and submit a SNAP application, through all available methods, including online and by telephone. Trained staff are to assist clients with the SNAP application process;
3) partnering with community-based organizations to increase client access to computers and the online SNAP application;
4) providing SNAP information and resources to beneficiaries of public assistance programs who are served by the department and by county welfare agencies, and who are likely to be eligible for, but are not currently receiving, SNAP benefits; and
5) conducting a public awareness campaign using available media, including television, radio, print, and social media, to inform public of the availability of SNAP.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
SNAP is federally regulated by the United States Department of Agriculture (USDA); however, the DFD works with CWAs to administer the program on a State level. As such, the OLS concludes that the DFD and county governments may incur an indeterminate amount of one-time administrative costs under this bill to develop and implement certain outreach programs that are in addition to those activities currently being implemented under the division’s outreach plan. As the bill does not mandate the implementation of any specific outreach activities, the OLS cannot quantify the impact of these expenditures.
This estimate assumes that: 1) the division will not incur any costs in maintaining an outreach plan for SNAP, as those activities are supported by the division’s existing operating budget; and 2) any additional outreach activities will have a finite operation.
The OLS notes that the federal government shares all administrative expenses of the program with the State. As such, the bill may also result in a State revenue increase from federal SNAP funds. Any increase in SNAP benefits under the bill would not have any fiscal impact on the State, as SNAP benefits are paid directly from federal funds.
Furthermore, the federal American Rescue Plan (ARP) Act of 2021 provides $1.135 billion over a three-year period for state SNAP administrative costs to help accommodate the increased demand for benefits resulting from the COVID pandemic. The additional federal funding does not require a state match. Between FY 2021 and FY 2023, New Jersey is scheduled to receive $21 million from this source. By comparison, total SNAP administrative costs for FY 2019 in New Jersey were $326.8 million. Guidance from USDA directs states to use these funds for the following purposes, which also coincide with the provisions of this bill that suggest potential additional outreach programs: investments in technology to improve client access to SNAP; investments in employees to provide the necessary training to modernize customer service delivery; explore opportunities to improve service delivery and access to vulnerable populations; and revise SNAP outreach materials to ensure program information is easy to find, clear, and concise. To the extent that the department uses the ARP funds to fulfill any additional outreach activities implemented under this bill, costs incurred by the State or County will decrease, or potentially be eliminated.
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Section: |
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Analyst: |
Senior Research Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).