LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 2366

STATE OF NEW JERSEY

220th LEGISLATURE

 

DATED: JULY 5, 2022

 

 

SUMMARY

 

Synopsis:

Establishes State SNAP Minimum Benefit Program; appropriates $18 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

 

Annual

 

 

State Cost Increase

 

Indeterminate

 

 

Potential State Revenue Increase

 

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) determines that annual State costs would increase by an indeterminate amount to provide a State minimum monthly Supplemental Nutrition Assistance Program (SNAP benefit), equal to the difference between a household’s federal SNAP benefit and $50, for eligible households.  The OLS is unable to quantify the cost increase because data on the distribution, by dollar amount, of federal SNAP benefits among the State’s SNAP households are not publicly available. 

·         State administrative expenditures will potentially increase by a substantive amount under the bill for the Division of Family Development in the Department of Human Services (DHS) to determine, on a monthly basis, each SNAP household’s eligibility for a supplemental State SNAP benefit and, if eligible, the amount of the household’s supplemental benefit.  To the extent that State administrative expenditures for SNAP increase under the bill, State revenues will also increase, since the federal government provides a 50 percent match for State administrative costs for SNAP.

 

 

BILL DESCRIPTION

 

      This bill establishes the State SNAP Minimum Benefit Program in the Division of Family Development in the DHS to ensure that all SNAP households receive a minimum monthly benefit of $50.  Under the program, the division would distribute to each eligible household a monthly State SNAP benefit equal to the difference between the household’s federal SNAP monthly benefit and $50.  This State SNAP benefit would supplement an eligible household’s federal SNAP benefit.  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 $18 million from the General Fund to the division for the State SNAP Minimum Benefit Program. 

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that State costs would increase by an indeterminate amount annually to provide a State minimum monthly supplemental SNAP benefit, in an amount equal to the difference between an eligible household’s federal SNAP benefit and $50.  Because data on the distribution, by dollar amount, of federal SNAP benefits among the State’s SNAP households are not publicly available, the OLS cannot determine the magnitude of the annual cost increase.  It is important to note that SNAP is a federal entitlement program, meaning that any individual who qualifies for SNAP is entitled to receive SNAP benefits.  Since SNAP is an open-ended benefit, the State cannot limit annual costs for households that qualify for the State SNAP Minimum Benefit Program, provided under the bill, through the State appropriations process.  Rather, the State would have to bear the full cost each month of providing the difference, if any, between a qualifying household’s federal SNAP benefit and $50.

      According to monthly NJ SNAP enrollment data, reported in the April 2022 Current Program Statistics report issued by the DHS, 450,365 households received SNAP benefits in that month.  In federal fiscal year 2022, the minimum federal SNAP benefit for a household comprised of two persons is $20 per month; the maximum federal allotment for a household of two persons is $459 per month, which increases to $835 per month for a household with four members.  For context, data published by the federal government shows that in FY 2020, the average monthly benefit per SNAP-enrolled household in New Jersey was $314.85.  If ten percent of households receiving SNAP benefits in the State receive the minimum federal SNAP benefit of $20 per month, the bill would increase annual State expenditures by roughly $16 million to bring these households’ monthly SNAP benefits up to the $50 prescribed in the bill.

      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 administer the State SNAP Minimum Benefit Program would result in a corresponding increase in State revenues.  The bill provides that the State is to distribute this supplemental benefits to eligible households via enrollees’ existing benefits card.

 

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.).