Over the past several months, the division has been considering the Food Stamp Program's simplified reporting option that was introduced in the Farm Bill. We have been talking with staff around the state to hear feedback regarding this option, as well as communicating with states that have implemented this change.
Based on communications with staff and other states, we have decided to move forward with a Simplified Reporting option. In using the FY 03 QA data, we estimate our FS accuracy rate may improve by as much as 2.5% overall. This policy option benefits FS recipients in that it stabilizes benefits, and has shown a marked improvement in accuracy rates in the 20+ states that have adopted the policy.
As you know, in the past we have received financial penalties that have put budgetary pressure on our ability to achieve our mission. We cannot afford to absorb the one million dollar penalty that is projected to occur at the end of fiscal year '04. This project is part of our on-going campaign to reach our goal of our payment error rate to be less than 7%.
Simplified reporting puts households on a semi-annual report schedule (6-month certifications). In addition, households are required to only report a change when their gross monthly income exceeds the gross income limit.
This is an ambitious effort, however one I believe we are capable of accomplishing. Policy, Program Integrity, and Field Services will be working closely as we move toward implementation. Coastal, Northern, and Southeast Regions will implement on January 1, 2004, and the Central Region will implement on March 1, 2004.
We will need to tap into the expertise of line staff as we design our new reporting system so you may be hearing from your Regional Manager asking for volunteers and ideas very soon. We will be keep you informed of the project status through periodic broadcasts. In addition, your Regional Managers are part of the project team, and can provide you with more information, or can bring your suggestions and ideas to the weekly project meeting.
Thanks again in advance, for your dedication, support, and flexibility!
Anthony M. Lombardo, DPA Director