LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 4780
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: DECEMBER 26, 2024
SUMMARY
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Synopsis: |
Establishes Veterans Assistance for Nutritional Needs Program in DHS. |
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Type of Impact: |
Annual State expenditure increase and potential local expenditure increases. |
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Agencies Affected: |
Department of Human Services; Department of Military and Veterans Affairs; certain local entities. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Year 1 |
Year 2 and Beyond |
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State Expenditure Increase |
At least $62,000 |
At least $2,800 |
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Potential Local Expenditure Increase |
Indeterminate |
Indeterminate |
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· The Office of Legislative Services (OLS) concludes that the bill would increase one-time administrative costs for the Department of Human Services by at least $62,000 in year one due to the establishment of the Veterans Assistance for Nutritional Needs Program, which would promote and provide the existing Supplemental Nutrition Assistance Program (SNAP) benefits exclusively to veterans. This estimate is based upon similar cost increases to the department for the administration of the Summer EBT program.
· This estimate includes the issuance of new electronic benefits transfer (EBT) cards to each eligible veteran and the creation of a website. Potential additional expenses may include technological updates to the EBT system, as well as the design, production, and distribution of application and promotional materials.
· Assuming the existing average annual rate of enrollment growth for all SNAP recipients in the State, as well as the factors used to determine the year one estimate, the OLS estimates that the out year one-time administrative costs incurred by the department under the bill would be at least $2,800 annually.
· In addition to these one-time costs, the department and local eligibility determination agencies may experience an indeterminate increase in annual costs to support the Veterans Assistance for Nutritional Needs Program, which may include the need to increase staffing levels to accommodate the processing of new applications if the program’s outreach efforts increase the current rate of veteran participation in SNAP benefits.
BILL DESCRIPTION
This bill directs the Division of Family Development in the Department of Human Services to establish the Veterans Assistance for Nutritional Needs Program, a rebranding of SNAP that promotes the program, and provides program benefits, exclusively to veterans. In order to implement the Veterans Assistance for Nutritional Needs Program, the division is required to:
1) design, and distribute to eligibility determination agencies of SNAP, promotional materials, applications, and any other documents associated with SNAP with the Veterans Assistance for Nutritional Needs Program name and branding;
2) design and issue to eligible beneficiaries electronic benefits transfer cards that bear the name and branding of the Veterans Assistance for Nutritional Needs Program;
3) develop a website, separate and distinct from the State’s SNAP website, with the name and branding of the Veterans Assistance for Nutritional Needs Program; and
4) collaborate with the Department of Military and Veterans Affairs to ensure that information regarding the Veterans Assistance for Nutritional Needs Program is distributed to each county Veteran Service Office in the State and posted on the Department of Military and Veterans Affairs’ webpage.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill would increase one-time administrative costs for the department by at least $62,000 in year one due to the establishment of the Veterans Assistance for Nutritional Needs Program, which would promote and provide SNAP benefits exclusively to veterans. This estimate is based upon similar cost increases to the department for the administration of the Summer EBT program, and assumes that, as with SNAP and the Summer EBT program, the federal government would pay 100 percent of the benefits and 50 percent of the administrative costs of the Veterans Assistance for Nutritional Needs Program.
The FY 2025 Appropriations Act provided $1.9 million to the department for the administrative costs of the Summer EBT program, a federal food security benefit program introduced in 2024 that provided eligible children with an EBT card at the end of the 2023-2024 school year in order to purchase food at participating retailers over the summer recess. This program served approximately 540,000 children.
According to an analysis of federal data, the OLS concludes that approximately 17,527 veterans currently receive SNAP benefits in New Jersey. This estimate assumes that: 1) these veterans would transition to the Veterans Assistance for Nutritional Needs Program established under the bill in year one; and 2) the administrative costs per participant incurred by the State under the Summer EBT program, or $3.52, would be identical to the administrative costs incurred by the department under the bill per veteran. These costs, totaling $62,000, would include the issuance of new EBT cards to each eligible veteran and the creation of a website, which activities were also implemented by the department under the Summer EBT program. Potential additional expenses that may increase the estimate include technological updates to the EBT system to separate veterans from the larger SNAP population for the distribution of benefits, as well as the design, production, and distribution of the application and promotional materials for the Veterans Assistance for Nutritional Needs Program.
Moreover, to the extent that the outreach efforts under the bill increase veteran uptake of SNAP benefits via the Veterans Assistance for Nutritional Needs Program, this estimate would increase due to the provision of additional EBT cards and the potential need to increase staffing levels at State and local eligibility determination agencies to accommodate the processing of new applications, as discussed in the following paragraphs.
According to the division’s most recent reports, the average rate of annual SNAP enrollment growth between April 2024 and September 2024 is 4.6 percent. Assuming this rate for veterans, as well as the factors used to determine the year one estimate, the OLS estimates that the out year administrative costs incurred by the department under the bill would be at least $2,800 annually.
In addition to these one-time costs, the department and local eligibility determination agencies may experience an indeterminate increase in annual costs to support the Veterans Assistance for Nutritional Needs Program, which may include the need to increase staffing levels to accommodate the processing of new applications if the program’s outreach efforts increase the current rate of veteran participation in SNAP benefits.
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Section: |
Human Services |
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Analyst: |
Lead 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.).