LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 2366

STATE OF NEW JERSEY

220th LEGISLATURE

 

DATED: MARCH 7, 2022

 

 

SUMMARY

 

Synopsis:

Requires DHS to issue monthly supplemental SNAP benefit of $15 to senior citizens and disabled enrollees; appropriates $20.5 million to DHS.

Type of Impact:

Annual State expenditure increase from the General Fund; potential annual State revenue increase.

Agencies Affected:

Department of Human Services.

 

 

Office of Legislative Services Estimate

Fiscal Impact

FY 2023 

FY 2024

Year 2025 

 

State Cost Increase

$63.8 million

$63.8 million

$63.8 million

 

Potential State Revenue Increase

Indeterminate

Indeterminate

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) determines that annual State costs under the bill would increase by approximately $63.8 million in order to provide a State-funded, additional Supplemental Nutrition Assistance Program (SNAP) benefit of $15 per month for enrollees who are aged 60 and older or who have a disability.

 

·         To the extent that State administrative expenditures for SNAP increase under the bill, State revenues will also increase by an indeterminate amount, since the federal government provides a 50 percent match for State administrative costs for SNAP.  Additional administrative costs may be limited because the bill provides that the supplemental benefits are to be distributed via the enrollee’s existing benefits card on the same date regular benefits are issued.

 

 

BILL DESCRIPTION

 

      This bill directs the Department of Human Services to issue a monthly supplemental benefit of $15 to each eligible enrollee of the SNAP, provided that the enrollee is a senior citizen aged 60 years or older or an individual with a disability.  This supplemental benefit will be provided with 100 percent State funds, since the federal government sets the average monthly SNAP benefit amount based on a number of factors, such as household size, and household annual income and resources.  The bill appropriates $20.5 million from the General Fund to the department for this supplemental benefit for eligible SNAP enrollees. 

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that annual State costs under the bill would increase by approximately $63.8 million in order to provide a State-funded, additional SNAP benefit of $15 per month for enrollees who are aged 60 and older or who have a disability.  Although the federal government funds 100 percent of the standard SNAP benefit, the State is required to provide funding for any supplemental benefits it chooses to provide above the standard benefit.  Based on monthly New Jersey SNAP enrollment data in the December 2021 Current Program Statistics report issued by the Department of Human Services, there were 354,180 monthly average SNAP enrollees in 2021 who would qualify for the supplemental benefit provided for under this bill.  The OLS notes that SNAP enrollment increased as a result of the COVID-19 pandemic (2021 enrollment was 9 percent higher among those 60 and older or disabled compared to 2019 enrollment levels) and may decline somewhat as the economy improves.  However, based on the 2021 enrollment data, the State will spend about $63.8 million annually to provide the supplemental monthly SNAP benefit.  The $20.5 million appropriated under the bill would fund approximately 47 percent of total costs to the State under the bill.   It is important to note that SNAP is an open-ended entitlement program, meaning that any individual who qualifies for SNAP is entitled to receive SNAP benefits.  Therefore, the State is obligated to appropriate amounts as are necessary for the supplemental benefit for any individual who qualifies based on age or disability status.

      The OLS notes that the federal government funds 50 percent of State administrative costs for the SNAP.  As such, any increase in State costs to provide the supplemental benefit via enrollees’ existing SNAP electronic benefits card would result in a corresponding increase in State revenues.  However, any additional administrative costs and associated revenues are likely to be marginal because the bill provides that the supplemental benefits are to be distributed via the enrollee’s existing benefits card on the same date regular benefits are issued.

 

 

Section:

Human Services

Analyst:

Anne Cappabianca

Associate Fiscal Analyst

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.).